Survey: Market for AI Products and Services Could Reach $990 Billion by 2027

Bain & Company's 5th annual Global Technology Report predicts substantial growth for AI-related products and services.

• Larger data centers could drive costs to between $10 billion and $25 billion in five years
• Demand for upstream components could rise 30% or more by 2026, creating next chip shortage
• "Sovereign AI" and enterprise concerns on cost and data privacy create opportunities for small language models

The market for AI-related hardware and software is expected to grow between 40% and 55% annually, reaching between $780 billion and $990 billion by 2027, according to new research released by Bain & Company.

The fifth annual Global Technology Report provides insights on the new waves of growth in the technology sector as a result of disruptions from the fast-changing AI advancements. Three areas of opportunities – bigger models and larger data centers, enterprise and sovereign AI initiatives, and software efficiency and capabilities – could enable the AI hardware and software market to come close to a trillion-dollar industry in the next three years.

"Generative AI is the prime mover of the current wave of change, but it is complicated by post-globalization shifts and the need to adapt business processes to deliver value. Companies are moving beyond the experimentation phase and are beginning to scale generative AI across the enterprise. As they do, CIOs will need to maintain production-grade AI solutions that will enable companies to adapt to a landscape that is quickly shifting. Essentially, they need to adopt an 'AI everywhere' approach," said David Crawford, chairman of Bain's Global Technology practice.