AI Market Projected to Hit $990 Billion by 2027: Bain & Company Report

A new report by Bain & Company forecasts that the global market for AI-related products and services could grow at an annual rate of 40-55%, reaching up to $990 billion by 2027. The expansion will drive demand for computing power, data centers, and semiconductors, despite potential challenges in supply and demand fluctuations.

A new report from Bain & Company projects the global market for AI-related products and services to grow at an annual rate of 40-55%, potentially reaching up to $990 billion by 2027.

The 5th annual Global Technology Report by Bain & Company predicts AI workloads to increase by 25-35% per year through 2027.

The firm estimates that the total addressable market for AI-related hardware and software will expand dramatically, despite fluctuations in supply and demand. The growth in AI will necessitate significant increases in computing power and the scale of data centers.

Bain & Company noted, “AI will spur growth in data centers, from today's 50-200 megawatts to over a gigawatt. This could drive costs for large data centers from today's $1 billion-$4 billion to $10 billion-$25 billion in the next five years.”

The surge in AI demand will also affect upstream components, with a 30% or more increase in demand for GPUs by 2026. This may lead to a scarcity of semiconductors.

The report highlighted that a doubling of data center demand for current-generation GPUs by 2026 would require suppliers to increase output, and chip packaging component makers would need to triple their production capacity.

AI's rapid growth is expected to reshape the tech sector, impacting smaller cloud service providers, enterprises, sovereigns, and software vendors.

To support this expansion, storage technology will advance, and there will be a growing need for data preparation and mobility, spurring the development of data management software.

While tech services will be in high demand in the medium term, a shift towards software is expected as expertise in AI deployment grows.