The AI market is poised for a remarkable growth, with the potential to reach a staggering $990 billion by 2027, as per a recent study by Bain & Company. The new research report, “Global Technology Report,” finds that the AI-related hardware and software market is expected to grow between 40% and 55% annually, reaching between $780 billion and $990 billion by 2027.
“Generative AI is the prime mover of the current wave of change, but it is complicated by post-globalisation shifts and the need to adapt business processes to deliver value. Companies are moving beyond the experimentation phase and are beginning to scale generative AI across the enterprise. As they do, CIOs will need to maintain production-grade AI solutions that will enable companies to adapt to a landscape that is quickly shifting. Essentially, they need to adopt an ‘AI everywhere’ approach,” said David Crawford, chairman of Bain’s Global Technology practice.
Impacts
The report estimates that the growth in AI workloads, projected to be between 25% and 35% annually through 2027, could significantly impact data centres. This surge in demand could potentially lead to an expansion from 50–200 megawatts to more than a gigawatt.
Bain projects that the AI-driven surge in demand for graphics processing units (GPUs) could increase total demand for upstream components by 30% or more by 2026. Increasing demand for AI computing power will impact demand for data centre chips, personal computers, and smartphones and may cause the subsequent semiconductor shortage.
Bain warns that if data centre demand for current-generation GPUs were to double by 2026, suppliers of critical components and makers of chip packaging components would need to increase their output to keep up with demand.
