AI Infrastructure Market Analysis, Swot Profile, Current Developments, Strategies To Boost Industry Growth 2031

AI tech enables automation of tasks like driving and conversations, boosting demand due to efficiency needs and rising manual labor costs.

WILMINGTON, DE, UNITED STATES, July 14, 2025 /EINPresswire.com/ -- According to the report, the global AI infrastructure industry generated $23.5 billion in 2021, and is estimated to reach $309.4 billion by 2031, witnessing a CAGR of 29.8% from 2022 to 2031. The report offers a detailed analysis of changing market trends, top segments, key investment pockets, value chain, regional landscape, and competitive scenario.

Ability of AI-based technology to enable machines to automate complex tasks such as driving cars, holding conversations, filtering e-mail, and other things, growing demand for improving operational efficiency, and the rising cost of manual labor drive the growth of the global AI infrastructure market. However, a lack of skilled professionals in the industry to develop, manage, and implement AI technology hampers the global market growth. On the other hand, increasing digital dependence and implementation of industry 4.0 trends present new growth opportunities for the global market in the coming years.

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Artificial intelligence makes it possible for machines to learn from previous experiences and adjust to new inputs to perform tasks like humans. Such capabilities of AI-based technology enable machines to automate much more complex tasks such as driving cars (self-driving cars), holding conversations (conversational bots), filtering e-mail (spam and fraud detectors), and other things. Such factors drive the AI infrastructure market forecast. Furthermore, growing demand to improve operational efficiency and the rising cost of manual labor. In addition, increasing digital dependence and implementation of industry 4.0 trends are expected to offer remunerative opportunities for expansion of the AI infrastructure market during the forecast period.

The key players that operate in the AI infrastructure market analysis Alphabet Inc., Amazon.com, Inc., IBM Corporation, Intel Corporation, Micron Technology, Inc., Microsoft Corporation, NVIDIA Corporation, Oracle Corporation, Samsung and Toshiba Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the AI infrastructure industry.

Covid-19 Scenario

1. The AI infrastructure market exhibited notable growth during the outbreak of the COVID-19 pandemic. This is due to the rise in need for artificial intelligence among enterprises to meet their customers' needs and upsurge their revenue opportunity.

2. Many businesses invested in AI-based solutions to ease the increasing complexity of the IT needs of many businesses during the pandemic.

3. In addition, surge in investment in AI based technology by various private sectors such as healthcare and medical research to fight the pandemic propelled the growth of the market.

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Based on region, North America was the largest market in 2021, capturing more than one-third of the global AI infrastructure market, owing to high concentration of artificial intelligence solution vendors in the region. However, the market in Asia-Pacific is expected to lead in terms of revenue and manifest the fastest CAGR of 36.0% during the forecast period. This is due to the ongoing rapid digital transformation trends in this region.

Based on component, the hardware segment was the largest market in 2021, contributing to more than half of the global AI infrastructure market, and is expected to maintain its leadership status during the forecast period. This is because advances in hardware technologies are enabling AI to transform industries worldwide, from financial services to manufacturing, healthcare, and many others. On the other hand, the services segment is projected to witness the fastest CAGR of 33.8% from 2022 to 2031. This is because the adoption of AI infrastructure services enhances software implementation, maximizes the value of existing installation by optimizing it, and minimizes the deployment cost & risks, and others.

Based on technology, the machine learning segment was the largest market in 2021, contributing to more than two-thirds of the global AI infrastructure market, and is expected to maintain its leadership status during the forecast period. This is because machine learning solutions are utilized to uncover numerous trends and patterns, assisting businesses in improving their decision-making capabilities. On the other hand, the deep learning segment is projected to witness the fastest CAGR of 33.3% from 2022 to 2031. This is because the deep learning technology has been instrumental in the discovery of exoplanets and novel drugs and the detection of diseases and subatomic particles and many more.

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Based on end-users, the enterprises segment held the largest market share of more than three-fifths of the global AI infrastructure market in 2021 and is expected to maintain its dominance during the forecast period. This is because AI infrastructure solutions make it easier for enterprises to automate customer services and provide a personalized experience to customers. Furthermore, these technologies help business leaders make effective data-driven decisions. On the other hand, the cloud service providers (CSPs) segment is projected to witness the largest CAGR of 33.5% from 2022 to 2031. A solution for AI has been made available by the major cloud service providers. They built AI infrastructure by utilizing their considerable technological know-how and financial resources to offer cutting-edge solutions.

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