Omdia: AI data center chip market will reach $151 billion in 2029, with growth slowing after 2026

Research and consulting organizations Omdia In an article published on the 1st of this month, local time, it was stated that the AI Data CenterchipMarket demand will reach $151 billion (currently around RMB 1.08 trillion) by 2029, although growth will slow down significantly after 2026.

AI data center chip market size is just under $10 billion in 2022, according to Omdia's "Cloud and Data Center Artificial Intelligence Processor Forecast" report.It has grown to $78 billion this year.(currently approximately RMB556,287 million) and will continue to rise.

However, there may be a clear inflection point in 2026.Driving growth will shift from technology adoption to changes in demand for AI applications.

Omdia: AI data center chip market will reach $151 billion in 2029, with growth slowing after 2026

Alexander Harrowell, senior principal analyst for computing at Omdia, said:

  • The important change is that the underlying data center semiconductor market has seen an upward revision, driven by AI growth. In addition to this, we note thatCustom chips for hyperscalers, especially Google's TPUs, are starting to take market share from GPUs. We anticipate that they will become increasingly important.
  • The size of the largest AI models has not advanced since January 2021, and the focus of innovation has shifted to a wider variety of smaller models. There are also indications that similarly sized models are becoming more efficient from generation to generation. This is a disadvantage for investment in AI infrastructure, although it also allows more organizations to participate, which tends to make up for the loss of depth in breadth.
  • Reasoning will become more important over time. We anticipate that a growing user base and applications will require more inference infrastructure.
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