IDC: China Takes Up One Third Of Global AI Computing Power

China’s AI market is expected to reach US$6.27 billion in 2020, with a compound annual growth rate of 30.4% from 2019 to 2024, according to a report by IDC research institute and Inspur.

It is worth mentioning that in the overall AI market globally, the artificial intelligence server market will reach US$3.41 billion dollars, accounting for more than 50%.

From the perspective of the development level of AI computing power in various countries in 2020, China and the United States are among the countries where artificial intelligence server spending accounts for the highest overall server spending.

In 2020, China’s artificial intelligence servers account for about one-third of the global artificial intelligence server market.

The pandemic has had a huge impact on the global economy, and the need for digital transformation has been highlighted. IDC believes that New Infrastructure will be the main driving force for China to stimulate economic growth after the epidemic.

The overall investment scale of new infrastructure in 2020 is expected to reach US$275.71 billion. Artificial intelligence, as one of the important areas of new infrastructure, will also usher in rapid growth.

In this context, IDC predicts that China’s artificial intelligence market will reach US$6.27 billion in 2020, with a compound annual growth rate of 30.4% from 2019 to 2024.

The artificial intelligence market here covers several aspects of artificial intelligence hardware, software, and services. The infrastructure hardware market is the largest component of the overall market, and its proportion is expected to reach 62.7% in 2020.

Although affected by the pandemic this year, both IT investment and national economic growth have slowed down, but the 37.3% growth is still the fastest growing in AI investment in all regions of the world.

Compared with the United States, its IT expenditure in the same period is declining year-on-year, while overall AI computing power and other aspects are basically the same as last year.

In 2020, the penetration of artificial intelligence in various industries will increase. The top five industries with application penetration in the artificial intelligence industry are: Internet, government, finance, telecommunications, and manufacturing.

Compared with 2019, the application of artificial intelligence in the telecommunications industry has accelerated and surpassed the manufacturing industry, ranking fourth.

In the first half of 2020, the medical industry accelerated the implementation of artificial intelligence applications under the influence of the pandemic, and achieved remarkable results in many aspects.

It also promoted the penetration of artificial intelligence applications in the medical industry to surpass the education industry and rank seventh.

In the Internet industry, artificial intelligence was applied earlier and has the highest penetration rate. Internet companies apply artificial intelligence in multiple application scenarios such as identity verification, automated customer service, marketing interaction, precision marketing, public opinion management, content review, and provide artificial intelligence services externally through cloud service platforms.

In the telecommunications industry, artificial intelligence technology has become an indispensable part. It is mainly manifested in two aspects: 1. The construction and optimization of telecommunications networks require the integration of multiple technologies such as GPU acceleration, deep learning and analysis technologies.

2. The creation of next-generation smart networks requires the support of artificial intelligence technology for the intelligent scheduling, scheduling, and operation of cloudized networks. In addition, AI technology will also be used in the construction of smart business halls.

In terms of manufacturing, artificial intelligence is an important emerging technology application for the manufacturing industry to move towards Industry 4.0 and the Industrial Internet era.

Its essence is to realize the modeling and digitalization of complex industrial technology, experience, and knowledge. The main application scenarios include intelligent interactive interface, quality management and recommendation system, maintenance and production inspection automation.

IDC predicts that by the end of 2023, 50% of China’s manufacturing supply chain will use artificial intelligence, which can increase productivity by 15%.

In the years after 2020, IDC is more optimistic about the growing maturity of smart retail, smart manufacturing, smart telecommunications, smart driving, smart medical and other industries.

In 2020, the top 5 cities in China’s artificial intelligence computing power rankings are Beijing, Shenzhen, Hangzhou, Shanghai, and Chongqing, and the cities ranked 6-10 are Guangzhou, Hefei, Suzhou, Xi’an, and Nanjing.

Compared with 2019, Shenzhen surpassed Hangzhou to rank second, Chongqing entered the first echelon, and Xi’an surpassed Nanjing to rank ninth.

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