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AI and Semiconductor – a Server GPU Market

AI and Semiconductor – a Server GPU Market is estimated to reach over USD 134.9 Bn by 2031, exhibiting a CAGR of 30.2% during the forecast period. 

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AI and semiconductor – a server GPU market about the graphics processing units implemented in servers for AI purposes. As a result of their exceptional efficiency in parallel processing, GPUs are perfect for artificial intelligence and machine learning applications that demand the simultaneous handling of massive volumes of data. Rising demand for AI capabilities across sectors has fueled breakthroughs in semiconductor technology, which has led to a substantial market expansion. These advancements are meeting the demands of AI-driven applications and services. The rising need for AI and semiconductor–server GPUs is propelled by the expansion of edge computing, which moves data processing closer to its point of generation instead of depending only on shared cloud servers. The growing use of virtualization in corporate and data center settings and the phenomenal growth of AI and machine learning applications are other key factors propelling the GPU server market. However, the graphics processing unit (GPU) hardware is expensive, which can prevent startups and small businesses with smaller resources from investing in it. Because of this price, advancements in artificial intelligence semiconductors – a server GPU market- have slowed considerably.

List of Prominent Players in the AI and Semiconductor – a Server GPU Market:

• Nvidia Corporation
• Advanced Micro
• Intel Corporation
• Qualcomm
• Imagination
• ASUSTeK Computer
• INSPUR Co., Ltd.
• Huawei Technologies
• GIGA-BYTE
• Penguin Computing
• Advantech Co., Ltd.
• Dell Inc
• Fujitsu
• Exxact Corporation

Market Dynamics:

Drivers-

The growing demand for AI and semiconductors, a server GPU market, is fueled by the increased use of AI in a variety of industries. Due to their parallel processing capabilities, server GPUs are well-suited to deliver the strong computational capacity required for AI systems, given their complexity and volume of data processed. The need for data-driven decision-making in enterprises and services is further fueled by the growth of data centers and the wider adoption of cloud computing. Furthermore, the widespread adoption of IoT devices and the development of technologies such as smart cities and driverless cars intensify the demand for sophisticated GPUs to facilitate AI processing and algorithms and the growing demand for AI and semiconductors – a server GPU market in the coming years.

Challenges:

One main challenge in the AI and semiconductor – a server GPU business is the exorbitant cost of high-end GPU systems. Smaller businesses and startups may find these expenses prohibitive, which hinders the widespread use and advancement of AI applications that rely on high-performance computers. Another obstacle to deployment is the technological complexity and specialized knowledge required to design and integrate GPU-based solutions and stay competitive, facing additional financial and operational challenges due to the constant need to update and upgrade systems brought about by technology improvements. This also slows down the AI and semiconductor – a server GPU market expansion.

Regional Trends:

The North American AI and semiconductor – a server GPU market is anticipated to register a major market share in revenue. It is projected to grow at a high CAGR soon because the region has a long-standing technological landscape and rising innovative emphasis. Substantial investments in AI technology and robust infrastructure also expand the market. Besides, Europe had a substantial share in the market due to strict environmental restrictions pushing for the use of cutting-edge solutions. The region’s strong market position is also aided by its well-established industrial and automotive sectors, and the ever-expanding GPU market is fueling market expansion in the European region.

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Recent Developments:

• In February 2024, ServiceNow, the industry-leading digital workflow provider, and NVIDIA, the market leader in artificial intelligence solutions for telecommunications companies, announced a new relationship that will see the development of generative AI solutions tailored to the needs of telecommunications companies to improve customer service.
• In February 2024, Qualcomm Technologies unveiled its seventh-generation 5G modem-to-antenna solution, the Snapdragon® X80 5G Modem-RF System, demonstrating its commitment to innovation. Snapdragon X80 achieves several world firsts with its integrated 5G AI Processor and 5G-Advanced architecture. These include the first 5G modem with fully integrated NB-NTN satellite communications support, a 6-antenna smartphone architecture, 6X carrier aggregation, and an extension of the mmWave range for fixed wireless access customer premise equipment (CPE) based on artificial intelligence.

Segmentation of AI and Semiconductor – a Server GPU Market-

By Application-

• Cloud Computing
• HPC Application

By Product-

• Single GPU
• Dual to Quad GPU
• High-Density GPU

By Region-

North America-

• The US
• Canada
• Mexico

Europe-

• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific-

• China
• Japan
• India
• South Korea
• South East Asia
• Rest of Asia Pacific

Latin America-

• Brazil
• Argentina
• Rest of Latin America

 Middle East & Africa-

• GCC Countries
• South Africa
• Rest of the Middle East and Africa

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