According to the latest statistics released by International Data Corporation (IDC), with the rapid development of generative AI technology in China, related network hardware spending is expected to increase significantly over the next five years, rising from 6.5 billion yuan in 2023 to 33 billion yuan in 2028.
This trend is mainly driven by the rapid commercialization of large models. It is expected that by the second half of 2024, daily Token consumption in China will experience explosive growth, reaching 114.2 trillion Tokens. This data does not include call volumes through overseas MaaS platforms.
Image source note: The image was generated by AI, and the image licensing service provider is Midjourney.
As the demand for Tokens from data centers continues to grow, the burden on network infrastructure also increases. The sharp rise in data traffic and communication energy consumption has made the network a key bottleneck limiting further development and application of AI technology. To address this situation, the high-end network hardware market in China has also experienced rapid development. According to IDC's forecast, by 2024, the shipment of high-end Ethernet (≥200G) ports in China will exceed 6 million, and it will maintain a compound annual growth rate of 45.6% in the coming years, expected to exceed 43 million ports by 2029.
Notably, the growth rate of data consumption is astonishing. According to data from the National Data Administration, at the beginning of 2024, China's daily Token consumption was 10 billion, but by the end of June this year, this number had exceeded 30 trillion, representing a growth of more than 300 times. All of this indicates that the commercial prospects of generative AI technology are very promising, and it also brings new opportunities for the development of related hardware industries.
Key points:
🌟 By 2028, spending on hardware related to generative AI in China is expected to increase from 6.5 billion yuan to 33 billion yuan, with an annual compound growth rate of 38.5%.
📈 By 2024, China's daily Token consumption is expected to reach 114.2 trillion, with a sharp increase in data traffic.
🚀 The high-end network hardware market is experiencing rapid development, and the shipment of high-end Ethernet ports is expected to exceed 43 million by 2029.
