It is anticipated that the worldwide market for goods and services connected to artificial intelligence (AI) will expand at a rate of 40–55 percent each year and might reach $990 billion by 2027. Over the next three years, at least, there will be an annual growth of 40–55 percent in hardware and software related to artificial intelligence. By 2027, this market might be worth between $780 billion and $990 billion. Along the way, fluctuations in supply and demand will likely cause volatility, but overall, the trajectory appears to be stable and long-lasting.
Over the next five to ten years, the need for processing power will drive AI’s growth, dramatically increasing the size of massive data centers. AI will accelerate data center expansion, bringing their current 50–200 megawatt capacity to over a gigawatt. This implies that in five years, the cost of major data centers, if they currently cost between $1 billion and $4 billion, may reach between $10 billion and $25 billion. The AI-driven spike in demand for graphics processing units (GPUs) might drive up the overall demand for some upstream components by 30 percent or more by 2026, on top of the requirement for additional data centers.
As innovation moves beyond the hyperscalers to smaller cloud service providers (CSPs), companies, sovereigns, software suppliers, and beyond, artificial intelligence’s disruptive expansion will continue to transform the tech industry. The requirements of generative AI will be met by advancements in storage technology, and the demand for data mobility and preparation will drive an increase in data management software.