What Has Been the Progress and Growth of the Hardware Artificial Intelligence Market in Recent Years?
The hardware artificial intelligence market has seen considerable growth due to a variety of factors.
• In recent times, there has been a significant expansion in the size of the hardware artificial intelligence market. It is projected to increase from $8.44 billion in 2024 to $10.27 billion in 2025, marking a compound annual growth rate (CAGR) of 21.7%.
Various factors have contributed to this growth during the historic period, including a rapid increase in data volume, enhanced performance, the need for low latency and energy-efficient solutions, regulatory compliance requirements, standards adherence, global competition, and dynamic market conditions.
What Is The Expected Growth In The Hardware Artificial Intelligence Market Size Evolve over the Forecast Period?
The hardware artificial intelligence market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the hardware artificial intelligence market size is predicted to witness a substantial rise. It's estimated to grow to $22.57 billion in 2029, with a compound annual growth rate (CAGR) of 21.8%.
This growth during the forecast period can be credited to advancements in AI algorithms, issues of security and privacy, scalability and flexibility, and applications specific to different industries. Notable trends during this forecasted period include AI hardware-as-a-service, hardware designed for autonomous systems, on-chip memory hierarchies, and ethical AI hardware design.
What Main Forces Are Fueling Expansion In The Hardware Artificial Intelligence Market?
The surge in Internet consumers globally is set to stimulate the expansion of the hardware artificial intelligence market. Internet consumers capitalize on the Internet to obtain information, interact with others, and participate in a range of online activities. The escalating interconnection of the global economy and society has increased Internet dependency for cross-border communication, cooperation, and trade, leading to a higher number of internet users worldwide, particularly in evolving markets. The incorporation of hardware AI improves user experiences by accelerating data processing and contributing to the expansion of internet access via advancements in gadgets like smartphones, smart speakers, and IoT devices. For example, data from the Switzerland-based special agency, the International Telecommunication Union, indicates that the global internet users are nearly 5.3 billion people, representing 66% of the world's total population in 2022, a jump of 6.1%. Hence, the rising number of internet consumers globally is instrumental in propelling the expansion of the hardware artificial intelligence market.
What Are The Primary Segments In The Global Hardware Artificial Intelligence Market?
The hardware artificial intelligence market covered in this report is segmented –
1) By Type: Processor, Network, Storage
2) By Product: Central Processing Unit (CPU), Graphics Processing Unit (GPU), Application-Specific Integrated Circuit (ASIC), Field-Programmable Gate Array (FPGA), Memory, Modules
3) By Technology: Machine Learning, Computer Vision, Other Technologies
4) By End Use Industry: Banking, Financial Services And Insurance (BFSI), Information Technology (IT) And Telecommunication, Healthcare, Media And Entertainment, Aerospace And Defense, Manufacturing, Automotive, Agriculture, Retail, Other End Users
Subsegments:
1) By Processor: Graphics Processing Unit (GPU), Central Processing Unit (CPU), Application-Specific Integrated Circuit (ASIC), Field-Programmable Gate Array (FPGA), Neural Network Processor (NPU)
2) By Network: AI-Optimized Network Infrastructure, Switches Or Routers, Data Center Networks, Network Interface Cards (NICs)
3) By Storage: Solid-State Drives (SSD), Hard Disk Drives (HDD), Cloud Storage Solutions, Data Storage Systems For AI Workloads, High-Performance Storage Systems
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What Trends Are Shaping The Hardware Artificial Intelligence Market?
Leading businesses in the hardware artificial intelligence market are working on technologically superior products, including fresh AI chips, to take advantage of the increasing need for tailored hardware suitable for AI tasks. This specialized computing hardware is employed in the creation and implementation of artificial intelligence systems capable of swiftly and efficiently managing the exceptionally intricate computational demands of AI algorithms. For instance, Advanced Micro Devices, Inc., an American IT company, introduced two novel AI chips in December 2023 – the Instinct MI300X accelerator and the Instinct M1300A accelerated processing unit (APU). These chips, which are more energy-efficient than their forerunners, are engineered to train and execute large language models (LLMs). The MI300X possesses 1.5 times more memory capacity than the earlier M1250X version and equals Nvidia’s H100 chips in training LLMs, but it outperforms them in inference. Both chips are intended to drive progress in generative AI and are built to swiftly and efficiently tackle the intricate computational demands of AI algorithms.
Who Are the Key Players In The Hardware Artificial Intelligence Market?
Major companies operating in the hardware artificial intelligence market are:
• Google Plc
• Samsung Electronics Co. Ltd.
• Microsoft Corporation
• Dell Technologies Inc.
• Bosch GmbH
• Huawei Technologies Co. Ltd.
• Intel Corporation
• International Business Machines Corporation
• Xilinx Inc.
• Oracle Corporation
• Honeywell International Inc.
• Micron Technology
• NVIDIA Corporation
• Hewlett Packard Enterprise
• Toyota Industries Corporation
• Safran S.A.
• Thales Group
• Leidos Holdings Inc.
• Rockwell Automation Inc.
• The Smiths Group plc
• Arm Limited
• Axis Communication AB
• Inspur Information Technology Co. Ltd.
• OSI Systems Inc.
• Graphcore Limited
What Is The Most Dominant Region In The Hardware Artificial Intelligence Market?
North America was the largest region in the hardware artificial intelligence market in 2024. The regions covered in the hardware artificial intelligence market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
