AI Market Poised to Reach Nearly $1 Trillion by 2027, Experts Say

The global market for AI products is projected to reach $990 billion by 2027, according to experts from the consulting firm Bain in their report.

The AI industry, encompassing both services and hardware segments, is expected to grow annually by 40-55% from last year’s $185 billion. Bain anticipates this will lead to revenues between $780 billion and $990 billion.

This growth will be driven by the development of larger AI systems, extensive data centers for their training and operation, and the adoption of technology by companies and governments to enhance efficiency.

Bain notes that demand is increasing so rapidly that supply chain issues for components like chips may arise. Coupled with geopolitical tensions, this growth in sales could lead to shortages of semiconductors, PCs, and smartphones.

The demand for chip components could rise by 30% or more by 2026, putting pressure on manufacturers, Bain experts noted. The cost of large data centers is expected to jump from the current $1-4 billion to $10-25 billion over the next five years, with their capacity increasing from 50-200 megawatts to over a gigawatt.

“These changes are expected to have a significant impact on the ecosystems supporting data centers, including infrastructure, power generation, and cooling,” the report states.

Bain added that companies are moving beyond the experimental phase and scaling generative AI in their operations. Smaller, lightweight, and efficient models may become preferable for businesses and countries amid concerns over costs and data privacy.

Earlier, Bitwise analyst Juan Leon stated that by 2030, the global GDP could increase by $20 trillion due to the digital assets and artificial intelligence industries.

A study by the Bitcoin Policy Institute indicates that the energy consumption of AI likely already exceeds that of Bitcoin mining.

In September, OpenAI CEO Sam Altman discussed the substantial benefits of AI development.