AI tops tech growth charts
Growing 2x faster than semiconductors, 3x faster than IoT, and beating cloud by 10%.
Despite high interest rates, economic slowdown, stricter regulations on big tech and AI, Trump's tariff policies, and global trade wars, which hit the tech industry hard, the AI boom shows no signs of slowing. The entire sector continues surging despite all the headwinds and challenges, outperforming every other corner of the tech industry.
According to data presented by AltIndex.com, AI tops tech growth charts in 2025, growing twice as fast as semiconductors, three times faster than IoT, and beating the public cloud by 10%.
AI Industry to Grow by a Massive 31% in 2025
The tech sector has had one of the hardest starts to a year in its history, marked by geopolitical tensions shaking up global markets. While the industry will continue to grow in 2025, the pace and the structure of that growth are shifting.
Trump's tariff policies and escalating global trade wars may drive up costs for AI hardware, making AI chips more expensive and harder to get. However, AI`s core growth drivers, like software, business use, and cloud services, are less affected by tariffs and keep moving ahead. So, despite potential short-term supply chain disruptions, AI is still expected to grow fast in 2025, much faster than any other tech industry segment. Statista's latest market forecast shows the global AI market will surge by 31% and hit a $244 billion value in 2025. This double-digit jump is even more impressive compared to forecasted growth in other tech industry segments.
For example, the public cloud is expected to grow by 20.8% this year, or 10% less than the AI. The Internet of Things (IoT), expected to become a trillion-dollar industry this year, will grow three times less than AI, or by 11%. All other tech industry segments will also grow much slower. Semiconductors are forecasted to expand by 15.6% in 2025, an impressive number, yet only half the AI's projected growth. Other major segments like robotics and cybersecurity see roughly a 10% annual increase, while data centers, IT services, and software follow with 8.8%, 6.5%, and 5.5% growth, respectively.
Seven Years of Double-Digit Market Growth Ahead
While 31% growth in 2025 is huge, AI's market projections for the following years are just as impressive. According to Statista's forecast, the AI industry will continue seeing double-digit growth for seven straight years. Even though AI's growth will slow down a bit, it's still expected to stay strong, hitting 23.5% by 2031.
Other fastest-growing tech industry segments are expected to cool off more sharply. For instance, the annual growth rate in the public cloud market will drop from 20.8% to 15.2%, nearly a 25% decrease in seven years. Semiconductor growth is projected to fall to 7% five years from now, or half its current pace.
