China's Generative AI Hardware Market Set for Massive Growth

International Data Corporation (IDC) forecasts China's spending on generative AI-related hardware will surge from 6.5 billion yuan in 2023 to 33 billion yuan by 2028, representing a 38.5% compound annual growth rate. This dramatic expansion is fueled by the rapid commercialization of large language models and increasing computational demands across industries.

Image source note: The image was generated by AI, and the image licensing service provider is Midjourney.

Token Consumption Reaching Unprecedented Levels

The report highlights that China's daily Token consumption is projected to reach 114.2 trillion Tokens by late 2024 - a figure that excludes usage through overseas MaaS platforms. National Data Administration statistics reveal even more staggering growth: from 10 billion daily Tokens in early 2024 to over 30 trillion by June, marking a 300-fold increase in just six months.

Network Infrastructure Facing New Challenges

As AI adoption accelerates:

• Data center demands are creating unprecedented pressure on network infrastructure
• Communication energy consumption has emerged as a critical bottleneck
• High-end Ethernet ports (≥200G) shipments are projected to exceed 6 million units in 2024
• This market segment is expected to maintain a 45.6% CAGR, reaching 43 million ports by 2029

"The network has become the key constraint limiting further AI development," notes the IDC report. "This challenge is driving massive investments in next-generation hardware solutions."

Key Points:

• 💰 Market Growth: China's AI hardware spending projected at 33B yuan by 2028 (38.5% CAGR)
• 📊 Data Surge: Daily Token consumption expected to hit 114.2 trillion in late 2024
• 🖥️ Infrastructure Boom: High-end Ethernet port shipments forecast to reach 43M units by 2029
• ⚡ Energy Challenge: Network power consumption emerging as critical development bottleneck