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The "AI" market could reach 1 trillion USD in 3 years

2024-09-28 13:01:43Lifestyle SHKRUAR NGA REDAKSIA VOX

The "AI" market could reach 1 trillion USD in 3 years

As the biggest tech companies spend billions to develop and deploy generative artificial intelligence, the market for these products and services could reach almost $1 trillion in three years, according to a new report.

The total addressable market for AI-related hardware and software is estimated to grow between 40% and 55% annually for at least the next three years, according to the Bain global technology report. This market, which refers to the total potential revenue of a product or service if it has 100% of the market, for artificial intelligence could reach between $780 billion and $990 billion by 2027.

While there will be "fluctuations in supply and demand," Bain sees a "long-term and stable trajectory" that will continue for the foreseeable future. "Companies are moving beyond the experimentation phase and starting to scale generative AI across the enterprise," the head of Bain's global technology practice said in a statement.

The company identified "three centers of innovation" that will drive market growth, from cloud service providers to the largest data center models, as well as enterprises and sovereign countries adopting new technology.

Due to the disruptions of the COVID-19 pandemic and geopolitical tensions between the US and China, companies have sought to create "more resilient" supply chains in other countries, including India, Germany and Japan. Now, governments around the world are subsidizing sovereign artificial intelligence by investing billions of dollars in "domestic computing infrastructure and models developed within their borders, trained on local data and languages."

Bain estimates that the amount of new technology processing could grow 25% to 35% annually over the next three years, which could lead to an increase in demand for large data centers in five to 10 years. that come Today's centers use about 50 to 200 megawatts of power and cost $1-4 billion. In five years, the increase in workloads could drive data centers to develop capacity above one gigawatt, costing between $10 billion and $25 billion, the report says.


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