🟦AI Server Market Trends in 2024

HBM supply doubles due to increased demand for AI servers!

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table of contents

  1. 🟦AI Server Market Trends in 2024
  2. 🟦AI server market grows rapidly due to demand from major CSPs
  3. 🟦Summary

🟦AI Server Market Trends in 2024

In 2024, the AI server market is expected to grow by 41.5% year-on-year, with 1.67 million shipments and a market size of $187 billion (about 29 trillion yen). Traditional GPU-powered servers account for about 71% of the share, while ASIC servers account for about 26% of the share. NVIDIA has the largest share (about 64%) among AI chip suppliers, and its share is expected to increase in 2025 with the launch of the next-generation Blackwell.

🟦AI server market grows rapidly due to demand from major CSPs

The growing demand for advanced AI servers by major CSPs (cloud service providers), such as Amazon, Meta, and others, is driving the growth of the overall market. AI servers are more expensive and profitable than traditional servers, which is a significant contributor to the revenue growth of the overall server market. In 2024, the AI server market value is expected to grow at a year-on-year growth rate of 69%. That’s 65% of the total server market.

🟦Summary

The AI server market is expected to witness significant growth in 2024, owing to the growing demand of major CSPs and the fact that it is an expensive and profitable product.

There are CSPs that develop their own ASICs, but their share of the total market is only about 1/4. NVIDIA boasts an overwhelming share of the AI chip supplier and is becoming like Intel in the server CPU market.

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