How Has the AI In Hardware Market Size Evolved in Recent Years?
The ai in hardware market has seen considerable growth due to a variety of factors.
• In recent times, the size of the AI in hardware market has seen an exponential surge. It is predicted to leap from a value of $25.45 billion in 2024 to a whopping $31.36 billion in 2025, with a compound annual growth rate (CAGR) of 23.2%.
The expansion during the historic period can be traced back to robust economic growth in the emerging markets, amplified penetration of smartphones, and an upsurge in the adoption of AI hardware in sectors like banking, and IT and telecom.
What are the Market Size and Expected Growth Rates for the AI In Hardware Market?
The ai in hardware market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of AI in hardware is predicted to experience startling growth in the forthcoming years, potentially reaching a value of $72.77 billion in 2029, growing at a compound annual growth rate (CAGR) of 23.4%.
Factors contributing to this projected expansion during the forecast period include fast-paced urbanization, wider internet accessibility, the rise of smart cities, heightened demand for self-driving vehicles, and the increasing need for cloud computing. Major trends to watch in the forecast period will be the swift urbanization process, the growing reach of the internet, development of more smart cities, a rise in demand for autonomous vehicles, and an escalating need for cloud computing.
Which Factors Are Boosting Growth In The AI In Hardware Market?
The surge in the utilization of AI hardware across banking, IT, and telecom sectors is predicted to accelerate the expansion of the AI hardware market. These flourishing industries are progressively turning to AI technology to optimize their functions, improve client services, and spur innovation. AI hardware is employed in banking to boost abilities in fraud identification and mitigation, risk management, and client service. IT firms apply AI hardware to scrutinize large data volumes from interconnected devices to spot irregularities and anticipate maintenance needs, while telecom businesses utilize AI-complemented hardware to analyze network traffic in real-time for pinpointing and rectifying performance glitches. For example, IBM, a technology corporation based in the US, stated in May 2022 that 35% of global businesses had adopted AI in 2022, marking a rise of 4% from 2021. Furthermore, there was a 13% climb in organizations adopting AI in 2022 compared to the previous year. Consequently, the rise in the use of AI hardware in banking, IT, and telecom sectors is fueling the expansion of the AI hardware market.
How Is The Globa AI In Hardware Market Divided Into Key Segments?
The AI in hardware market covered in this report is segmented –
1) By Type: Processor, Memory Network, Storage
2) By Deployment: Cloud, On-Premise
3) By Technology: Machine Learning, Computer Vision, Natural Language Processing, Expert Systems
4) By Application: Training And Simulation, Driver Monitoring Systems, Surveillance And Security, Other Applications
5) By End User: Telecommunication And IT (Information Technology) Industry, Banking And Finance Sectors, Ecommerce, Robotics, Healthcare, Other End Users
Subsegments:
1) By Processor: Graphics Processing Units (GPUs), Tensor Processing Units (TPUs), Field-Programmable Gate Arrays (FPGAs), Application-Specific Integrated Circuits (ASICs)
2) By Memory Network: High Bandwidth Memory (HBM), Dynamic Random-Access Memory (DRAM), Non-Volatile Memory (NVM)
3) By Storage: Solid State Drives (SSDs), Hard Disk Drives (HDDs), Cloud Storage Solutions
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What Trends Are Reshaping The AI In Hardware Market?
In the AI hardware industry, leading corporations are prioritising technological breakthroughs, such as AI accelerators that enhance the effectiveness of computation and expedite complex AI tasks including real-time inference and deep learning. An AI accelerator is particular hardware designed to improve the execution of artificial intelligence assignments like machine learning, deep learning, and neural network management. For example, in October 2024, Advanced Micro Devices, Inc. (AMD), a corporation headquarted in the U.S., and a fabless semiconductor organization, launched the Instinct MI325X AI accelerator. This was developed on the CDNA 3 structure, boasting 256GB of HBM3E memory and 6.0 TB/s bandwidth with the aim to outperform NVIDIA's H200 in terms of memory capacity, bandwidth, and performance. This power-efficient accelerator was devised to manage large-scale AI models, thereby solidifying AMD's competitive position against leaders such as Intel and NVIDIA in the AI hardware marketplace.
Who Are the Key Players in the AI In Hardware Market?
Major companies operating in the AI in hardware market include:
• Qualcomm Technologies
• Alphabet Inc.
• Micron Technology
• NVIDIA Corporation
• Huawei Technologies Co. Ltd.,Intel
• Apple Inc.
• IBM
• Advanced Micro Devices Inc.
• Samsung Electronics Co. Ltd.
• Xilinx
• Cambricon Technologies
• Graphcore
• Kalray
• Mipsology
• BrainChip Holdings
• LightOn
• Synetec
• Imobisoft
• Light IT Global
• Webol
• Theodo
• Digiryte
• Innowise Group
• Magora
• Skyward Digital
• GPU-Tech
• Elvees NeoTek
• Cogito Instruments
• Trencadis Corp
• Dell Technology Inc.
• Amazon Web Services. Inc.
• Open AI
• Empiria.ai
• NetuxLab
• Tellumat
• DataProphet
• Cortex Logic
• JUMO
• Xineoh
• Clevva
What are the Regional Insights into the AI In Hardware Market?
North America was the largest region in the AI in hardware market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the AI in hardware market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
