AI infrastructure market seen reaching $309.4B by 2031

Allied Market Research says the global AI infrastructure market will jump from $23.5 billion in 2021 to $309.4 billion by 2031, driven by rising demand for automation, cloud adoption and digital transformation. North America led the market in 2021, while Asia-Pacific is projected to grow fastest through 2031. Why it matters: - AI infrastructure is becoming the backbone for training, deploying and scaling artificial intelligence across industries. - Allied Market Research projects the market will expand rapidly as companies seek higher efficiency, lower labor costs and more automation. - The growth outlook signals continued spending on hardware, cloud platforms and machine learning systems. What happened: - Allied Market Research said the global AI infrastructure market was valued at $23.5 billion in 2021. - The firm estimates the market will reach $309.4 billion by 2031. - The forecast implies a 29.8% compound annual growth rate from 2022 to 2031. - The report was released June 12, 2026. - Allied Market Research published the report under the title “AI Infrastructure Market.” - A sample of the research report is available online. - A purchase page for the full report is also listed. The details: - Hardware accounted for the largest share of the market by component in 2021. - On-premise deployment held the largest share in 2021 and is expected to keep that lead through the forecast period. - Cloud deployment is expected to post the fastest growth, helped by lower cost and easier maintenance. - Machine learning led by technology in 2021. - Enterprise customers represented the largest end-user segment in 2021. - AI training was the biggest application segment in 2021. - North America generated the highest revenue in 2021. - Asia-Pacific is projected to grow the fastest through 2031. - The report ties regional growth to broader adoption of advanced technology, cloud-based services and artificial intelligence. - The report lists Alphabet, Amazon, IBM, Intel, Micron Technology, Microsoft, NVIDIA, Oracle, Samsung and Toshiba as key market players. Between the lines: - The on-premise lead suggests many companies still prioritize data control and security over flexibility. - Cloud growth points to a second wave of demand from organizations that want easier scaling and lower operating costs. - Manufacturing emerged as a key use case because supply chain disruptions, labor shortages and raw material constraints pushed companies to rely more on data and analytics. - The report also links pandemic-era investments in cloud, big data, AI and machine learning to broader market expansion. What’s next: - Allied Market Research expects AI infrastructure demand to keep rising as digital dependence deepens and Industry 4.0 adoption spreads. - Manufacturers are likely to use more augmented analytics to track production capacity, shipping schedules, workforce planning and warehouse space. - The report says that capability could help companies shift production faster when market demand changes. - More buyers are likely to compare on-premise and cloud deployments based on security, cost and scalability. The bottom line: - AI infrastructure is moving from a niche technology stack to a high-growth foundation for enterprise automation and analytics.