IDC: The market size of the accelerating server market in China in the first half of 2024 reached 50 billion US dollars, a year-on-year increase of 63%.

Recently, International Data Corporation (IDC) released the latest report on the Chinese half-year accelerated computing market (first half of 2024). According to IDC data, the market size of China's accelerated server market reached 5 billion US dollars in the first half of 2024, a 63% increase compared to the first half of 2023. Among them, GPU servers still dominate, reaching 4.3 billion US dollars. Meanwhile, non-GPU accelerated servers such as NPU, ASIC, and FPGA reached a market size of nearly 700 million US dollars with a 182% year-on-year growth. In the first half of 2024, from the perspective of vendor sales, Inspur, New H3C, and Huawei Cloud ranked top three, accounting for over 70% of the market share; from the perspective of server shipments, Inspur, New H3C, and KQWANG ranked top three, occupying nearly 60% of the market share; from the perspective of industries, the Internet industry remains the largest buyer, accounting for over 60% of the overall accelerated server market share. Apart from the finance and service industries, other industries have shown varying degrees of growth. Looking at the international environment, due to the control of relevant technologies and products by the United States, on one hand, it restricts the development of the Chinese AI industry; on the other hand, it also stimulates the enthusiasm of Chinese manufacturers to develop their own AI chips. However, there is still room for improvement in the later maintenance and ecological support of domestically developed chips. From the perspective of the market and the industry chain, as industries delve into the development of large models, there is a growing demand for high-performance and stable AI servers. After the deployment of 5G communication technology, there is an increased requirement for a comprehensive and efficient collaborative AI computing system network. These two trends, in addition to higher computing power and faster bandwidth, also place higher demands on domestically produced AI servers, such as shorter average time to failure, more comprehensive basic computing facilities, more professional operation and maintenance teams, and wider coverage. IDC predicts that by 2028, China's accelerated server market size will reach 25.3 billion US dollars, with the non-GPU server market size approaching 50%. The in-depth research and development of large models in industries have a significant driving effect on AI software, hardware, and ecological deployment. In complex scenarios such as smart cities, smart homes, and in specific functions within industries such as finance, healthcare, and education, AI provides more refined and diversified solutions. The large model market has formed characteristics of multiple scenarios, multiple tracks, high-quality output, and fierce competition. Unique large models aim to attract end consumers with more innovative entry points, higher quality content services, and more affordable prices. The highly competitive environment places higher demands on the training of large models and the computing power of AI servers. In the first half of 2024, the market size of China's accelerated chips exceeded 900,000 units. From a technological perspective, GPU cards accounted for 80% of the market share; from a brand perspective, shipments of Chinese domestic AI chip brands have reached nearly 200,000 units, accounting for approximately 20% of the entire market share. AI chips used for inference occupy 61% of the market share. After restrictions on accelerated card imports, due to the trend of qualitative transformation towards continuous demand for computing power, the market share of Chinese domestic accelerated card brands has shown a certain degree of growth. IDC's China AI Infrastructure Analyst, Du Yunlong, believes that the Chinese AI chip industry is undergoing unprecedented changes and development. As the global trend towards digitalization and intelligence accelerates, the importance of chips as the core components of modern electronic devices is self-evident. In the context of import restrictions, the construction of domestic technology and supporting facilities for AI is not yet complete, and with the previous crazy purchases leading to stockpiles, the AI server market is still in a state of stock. On the other hand, the existing inventory provides a buffer period for Chinese technological upgrades. Although there are gaps in advanced processes compared to international standards, with the support of government policies, market demand, and technological progress from CKH HOLDINGS, the overall development trend is positive. In the field of AI, where opportunities and challenges coexist, enterprises need to analyze the development of the AI industry rationally, identify their own strengths and market positioning, and focus on in-depth research and development in their respective fields. Furthermore, as the demand for large models in the industry continues to deepen, the ecological construction of adapting Chinese computing facilities will become a major focus, and the industrial chain network and other technological support must keep up with the pace of AI computing facilities.