The total production value of the server industry is expected to reach $306 billion in 2024, with AI servers contributing $205 billion. This could increase to $298 billion in 2025, where NVIDIA’s Blackwell platform and AWS’s Trainium chip will prove to be a big game-changer. Read in this article about the growing demand for AI servers, new technologies and their impact on the industry in the coming years.
According to a recent survey by TrendForce, the total production value of the server industry is expected to reach around US$306 billion in 2024. The special thing is that the performance of AI servers will be better than normal servers. The production value of AI servers can be up to around $205 billion. But despite the decline in demand for AI servers in 2025, their average selling price (ASP) could lead to production value rising to $298 billion. Then AI servers will account for more than 70% of total server production.
Demand and major changes for AI servers
Cloud Service Providers (CSPs) and server OEM customers in China and the US have rapidly increased the demand for Hopper series models. Due to this, shipments of AI servers are expected to grow by 46% year-on-year in 2024. At the same time, shipments of AI servers may grow by 28% in 2025, which will be more than 15% of total server shipments.
Future of NVIDIA and Blackwell
NVIDIA’s position in the AI chip market is going to be stronger. It is expected that by 2025 the Blackwell platform will become the mainstay of NVIDIA’s high-end GPUs. However, the design and verification of the GB Rack series is quite complex, so the supply chain needs time to prepare.
Shipments may be low in the first quarter of 2025 due to seasonal reasons, but it is expected to see a big jump from the second quarter. Along with this, new solutions from NVIDIA, such as B300 and GB300, will be launched in the third quarter of 2025. These will take HGX and GB Rack shipments to new heights.
The dominance of AWS and Google
Investments by big companies like AWS and Google in the field of AI chips have opened the doors to new possibilities. Google’s chip shipments will be the highest in 2024, but AWS’s growth rate will be the fastest. AWS’s annual growth rate is likely to be more than 200%.
In 2025, AWS will focus more on its Trainium chip and further increase investment in AI applications, such as AWS public cloud infrastructure and e-commerce platform. This could see AWS shipments grow by more than 70%.
Experts believe that the growing demand for AI servers is the next big step in technological development. NVIDIA’s Blackwell platform and AWS’s Trainium chips could revolutionize the market. Apart from this, Google, Microsoft, and other big players are also working on improving their respective technologies.
- Launch of new chips: The increase in shipments of NVIDIA’s Blackwell series will intensify competition in the market.
- AWS’s Trainium chip: AWS is betting big on Trainium chips to improve AI technologies.
- Expansion of market: The AI server market could touch new heights by contributing 70% by 2025.
Did you know?
These steps by companies like NVIDIA and AWS will not only give a new direction to the server industry but will also make cloud computing, e-commerce and AI-based services more accessible.
Will the growing influence of AI servers create opportunities or challenges for smaller players in the industry? What do you think? Let us know what you think.
