Analysis of the Upstream, Midstream, and Downstream Structure of China's AI Server Industry Chain and Downstream Application Segments in 2024
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AI servers are specialized data servers designed for artificial intelligence (AI) tasks. They possess powerful computing and storage capabilities to support complex AI models and services. These servers not only provide backend support for local applications and web pages but also offer real-time computing services for cloud and on-premises servers, ensuring rapid and accurate responses for various AI applications.
There are two main types of AI server architectures. The first is a hybrid architecture, which allows data to be stored locally, ensuring data security and controllability. This architecture is suitable for applications with high data security requirements, such as finance and healthcare. The second is a cloud-based architecture, which utilizes remote storage technology and hybrid cloud storage (a combination of local and cloud storage) for data storage. This architecture can flexibly expand storage capacity and computing power, making it suitable for large-scale data processing and computing applications, such as big data analytics and image recognition.
The emergence of AI servers has provided robust support for various real-time AI applications. Whether in smart homes, autonomous driving, or medical diagnostics, AI servers can deliver stable and efficient computing services, driving the rapid development and application of AI technologies. As technology continues to advance and application demands grow, AI servers will play an even more critical role in the future.
Analysis of the Upstream, Midstream, and Downstream Structure of the AI Server Industry Chain The upstream sector of the AI server industry chain primarily includes suppliers of key components and materials. Chips, serving as the 'brain' of servers, handle complex computational tasks; PCBs (printed circuit boards) act as bridges connecting various components, ensuring smooth information transmission; connectors, cables, and power supplies provide stable power and connectivity; and various interfaces facilitate connections with other devices or networks. The technical capabilities and product quality of these upstream suppliers directly impact the performance and quality of products from midstream server manufacturers.
The midstream sector consists mainly of server brand manufacturers and OEM/ODM manufacturers. Brand manufacturers develop and produce servers with proprietary intellectual property, while OEM/ODM manufacturers customize production based on client needs. With increasing market competition and diversified customer demands, OEM/ODM manufacturers may gradually shift toward the JDM (Joint Design Manufacturing) model, fostering closer collaboration with upstream suppliers and downstream clients to jointly develop and optimize products.
The downstream customer base primarily includes B2B and G2B clients, such as internet companies, cloud service providers, telecom operators, government agencies, and financial institutions. These clients have stringent requirements for server performance, stability, and security, as stable server operation directly impacts their business operations and customer satisfaction. Additionally, with the widespread adoption of AI technologies, the demand for AI servers from these clients continues to grow, driving rapid development in the AI server industry.
AI Server Industry Downstream Application Market Segmentation Analysis In China's AI server market, the internet industry held a dominant position in 2022, accounting for 47.5% of total sales. This is primarily driven by internet companies' demands for large-scale data processing, real-time computing, and complex algorithms. As internet services continue to expand and innovate across sectors like social media, e-commerce, online education, and digital entertainment, the need for AI servers keeps growing.
Telecom operators represented 19.6% of the AI server market, mainly due to their requirements for processing massive user data and delivering high-quality communication services. With the widespread adoption of 5G and IoT technologies, operators' demand for AI servers is increasing to support faster and smarter data processing and analysis.
Other sectors including communications (8.6%), government (6.3%), manufacturing (5.1%), education (5%), and finance (3.8%) also contributed to the market share. These industries primarily utilize AI servers for data analysis, intelligent decision-making, and automated production to enhance efficiency, reduce costs, and improve service quality.
The internet industry has evolved through multiple phases: from the early PC internet era to the mobile internet era, and now the emerging metaverse era. Each phase exhibits distinct characteristics and development trends. With improvements in network speeds, hardware performance, and growing demands for entertainment experiences and localization, the internet industry continuously drives technological innovation and application expansion. The metaverse era emphasizes immersive interactive experiences, offering users richer virtual world engagements. This trend will further propel the AI server market as the metaverse requires processing more complex data and delivering more efficient computing services.