Al global market may touch $990 billion by 2027

The global market for artificial intelligence (AI) products and services is poised for significant growth, with an annual increase of 40-55%, potentially reaching $990 billion by 2027, according to Bain & Company's 5th annual Global Technology Report. AI workloads are projected to expand by 25-35% per year through 2027. Bain estimates that the total market for AI-related hardware and software will experience steady growth, with fluctuations due to supply and demand, but the long-term trajectory remains robust. By 2027, this market could reach between $780 billion and $990 billion annually.

A critical driver of this growth will be the increasing demand for computing power, leading to a rapid expansion of large data centers over the next 5 to 10 years. Current data centers, which range between 50-200 megawatts, are expected to grow beyond a gigawatt, significantly increasing infrastructure costs. Today, large data centers cost between $1 billion and $4 billion; however, by 2029, these costs could soar to $10 billion to $25 billion. In parallel, AI’s demand for Graphics Processing Units (GPUs) is expected to rise dramatically. Bain's report anticipates a 30% increase in demand for certain upstream components by 2026. If data center demand for next-generation GPUs doubles by then, suppliers will need to increase their production output substantially, with chip packaging manufacturers potentially tripling capacity to meet the growing need.

Beyond hyperscalers, AI’s transformative power will reshape the broader tech ecosystem. Smaller cloud service providers (CSPs), enterprises, governments, and software vendors will increasingly adopt AI-driven innovations. The need for advanced storage technology will grow as generative AI continues to evolve, necessitating advancements in data management, mobility, and preparation software. In the medium term, there will be a strong demand for AI deployment services as many companies lack the expertise and skills required for AI integration and data modernization. However, as technology matures, a substantial portion of these tech services could be automated or replaced by AI-powered software solutions, transforming the service landscape.

The report underscores that AI's explosive growth will continue to disrupt the tech industry, expanding the need for infrastructure, components, and expertise across multiple sectors.