USD 13.22 Billion
Global Artificial Intelligence (AI) in Hardware Market Size, Share, Growth Analysis, By Type(Processor, Network), By End-User(Telecommunication and IT industry, Banking and Finance Sectors), By Product Type(CPU, GPU), By Application(Training & Simulation, Driver Monitoring Systems), By Technology(Machine Learning, Supervised Learning), By Material(Silicon, GaN), By Devices(Smartphones & Tablets, Personal Computing Devices), By Deployment(Cloud, Cloud Platforms) - Industry Forecast 2024-2031
Report ID:
SQMIG45I2192 |
Region:
Global |
Published Date: April, 2024
Pages:
197
|
Tables:
258 |
Figures:
75
Global Artificial Intelligence (AI) in Hardware Market Insights
Global Artificial Intelligence (AI) in Hardware Market size was valued at USD 13.22 Billion in 2022 and is poised to grow from USD 113.27 Billion in 2023 to USD 93.07 Billion by 2031, growing at a CAGR of 26.96% in the forecast period (2024-2031).
The Global Artificial Intelligence (AI) in Hardware Market is characterized by dynamic changes driven by a combination of technological advancements, evolving consumer needs, regulatory considerations, and competitive developments. Technological innovation is led, and constantly changing the state of AI hardware solutions. Advances in the semiconductor industry, such as the development of specialized AI chips such as Graphics Processing Unit (GPU) and TPU (Tensor Processing Unit) are increasing the productivity and performance of AI systems, fueling the market growth.
The market is characterized by semiconductor companies, hardware manufacturers, cloud service providers, AI startups including Nvidia, Intel, AMD and other leading semiconductor companies in the market. In addition, emerging players are entering the market with specialized AI hardware solutions tailored to specific use cases and applications, further intensifying the competition and driving innovation. Regulatory considerations including export control, intellectual property rights and data privacy laws also affect the growth of the market. Compliance is important for AI hardware manufacturers to ensure that AI technology of the safety, integrity and ethics. In addition, geopolitics and trade policies may affect the global supply chain and market dynamics of AI hardware, affecting the production, distribution and sales of AI hardware products worldwide.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Processor
Fastest Growth
Network
Growth Rate
26.96% CAGR
Global Artificial Intelligence (AI) Hardware Market ($ Bn)
Country Share for North America Region (%)
Global Artificial Intelligence (AI) Hardware Market By Type ($ Bn)
Global Artificial Intelligence (AI) Hardware Market By Type (%)
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Global Artificial Intelligence (AI) in Hardware Market Segmental Analysis
Based on type the market is segmented as processor, network, storage. Based on End User the market is segmented into telecommunication and IT industry, banking and finance sectors, education, ecommerce, navigation, robotics, agriculture, health care, and others. Based on product type the market is segmented into CPU, GPU, ASIC, FPGA, memory, storage, modules. Based on application the market is segmented into training & simulation, driver monitoring systems, surveillance & security, imaging & diagnosis, robotic surgery, disaster management, visual inspection, and others. Based on technology the market is segmented into machine learning, supervised learning, un-supervised learning, deep learning, others, computer vision, others. Based on Material the market is segmented as silicon, GaN, glass, metal, others. Based on devices the market is segmented as smartphones & tablets, personal computing devices, autonomous robots, UAVs/UGVs, HUD, and others. Based on deployment the market is segmented as cloud, cloud platforms, private cloud, public cloud, hybrid cloud, community cloud, cloud services, SAAS, IAAS, PAAS, others, on-premises. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Type
The processor segment is dominating the market. The processor component includes hardware components designed to better meet the computational requirements of AI operations. At the center of this category are specialized functional units optimized for tasks like deep-learning simulation and training. Graphics Processing Units (GPUs) for example have emerged as the keystone of AI hardware due to their parallel processing capabilities, making them ideally suited for training large neural networks. Similarly, Tensor Processing Units (TPUs) developed by Google and other companies have been successfully developed specifically to accelerate a complex machine learning task. In addition, the processor segment includes chips such as field-programmable gate arrays (FPGAs) with performance, power efficiency and flexibility for AI projects specificity provides a distinct advantage in vision.
The network segment is the fastest growing segment in the market. The network component of AI hardware includes the services needed to enable communication and data exchange within an AI system, both locally and in distributed environments. For AI, the network component is especially important for distributed computing systems, where data processing and analysis occurs across multiple nodes or devices. High-speed Ethernet, Infiniband, and emerging connectivity standards such as PCIe Gen4 and Gen5 technologies in a scalable high that enables internal performance. AI infrastructure plays a key role, whether deployed in data centers, cloud environments, or at the network edge.
Analysis by Deployment
The cloud segment is dominating the market. The cloud segment includes software platforms and ecosystems built on top of cloud infrastructure, providing new tools, services and APIs designed for AI development and deployment. These platforms provide end-to-end solutions to build, train, deploy implement and manage AI model applications on the cloud. Cloud platforms for AI typically have features and services, such as data preprocessing tools, model training frameworks, automatic machine learning (AutoML) capabilities which enables them seamless integration of conventional models and algorithms.
Cloud platforms are the fastest growing segment in the market which can provide specialized AI functionality for specific use cases, such as computer vision, natural language processing, and predictive analytics, which allowing developers to provide pre-built models. This provides scalability cycle is faster and democratizes access to AI capabilities the ability to use AI capabilities without extensive expertise in hardware design. Cloud platform components are indispensable components of the global market, providing scalable infrastructure, tools and services that enable organizations to deploy advanced AI with hardware. By leveraging capabilities, this feature fosters innovation, accelerates the development of AI, and opens new opportunities for businesses across sectors to harness the transformational potential of artificial intelligence.
Global Artificial Intelligence (AI) Hardware Market By Type (%), Hardware (%)
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Global Artificial Intelligence (AI) in Hardware Market Regional Insights
As a hub for technological innovation and home to leading AI hardware manufacturers, North America occupies a dominant position in the global market. AI provides a conducive environment for hardware development and commercialization, the sector benefits from a strong ecosystem that includes tech giants, start-ups, research institutes and venture capitalists. Furthermore, market does the presence of major players such as NVIDIA, Intel and Google contribute to North America’s leadership in innovation and setting industry standards.
With the technology sector growing in adoption of AI, Asia Pacific is emerging as a major player in the global market. Countries like China, Japan, South Korea are leading AI innovations, they have invested heavily in R&D though strengthening their technical capabilities. In addition to solving rising demand, besides contributing significantly to market growth, government policies and strategic plans aimed at enforcing. The AI innovation drive is further enhancing the regional influence in the global landscape.
Global Artificial Intelligence (AI) Hardware Market By Geography, 2024-2031
- Largest
- Fastest
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Global Artificial Intelligence (AI) in Hardware Market Dynamics
Drivers
Technological Advances in Hardware Technology
- Constant innovation and advancement in hardware technology is fueling growth in the Global Artificial Intelligence (AI) in Hardware Market. With advances in the semiconductor industry, including the development of specialized AI chips such as GPUs (Graphics Processing Units) and TPUs (Tensor Processing Units), these advances enhance, and expand, the performance and functionality of AI systems AI applications and helps in market expansion.
Accelerated Adoption across Industries
- Widespread adoption of AI solutions across industries acts as a key driver of market growth. From healthcare and finance to manufacturing to auto manufacturing, organizations are using AI hardware to streamline operations, improve decision-making processes and drive innovation. There is a growing need for AI-powered insightful automation driving the adoption of specialized hardware designed to meet the needs of different industries.
Restraints
High Cost and Mobility
- One of the most important restraints in the Global Artificial Intelligence (AI) in Hardware Market is the high cost associated with the development and implementation of AI systems. The sophisticated hardware components required for AI applications often carry a high price tag, putting them out of reach for small businesses and budget-constrained organizations.
Legal and Ethical Concerns
- Another mandate concerns legal and ethical considerations for the use of AI hardware. As AI technologies are increasingly integrated across industries, concerns about data privacy, algorithmic bias, and possible social impact emerge. Regulatory frameworks and ethical guidelines must evolve alongside technological advances to effectively mitigate these concerns.
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Global Artificial Intelligence (AI) in Hardware Market Competitive Landscape
NVIDIA offers its expertise in GPU systems and accelerators designed specifically for the AI industry. These GPUs are optimized for parallel processing, making them ideal for training and inference tasks in deep learning models. Meanwhile, AWS brings its extensive cloud computing infrastructure and global reach to the partnership, providing scalable computing resources and storage solutions to support AI performance. Nvidia and AWS are integrating each of their technologies to create a comprehensive AI infrastructure solution for the cloud. This solution allows enterprises and organizations to leverage NVIDIA's high-performance GPUs in AWS' cloud environment and enables seamless deployment and scaling of AI applications. Customers can access NVIDIA GPU instances on AWS to train AI models that produce very hard for the computing power required.
Top Player’s Company Profiles
- Apple (US)
- Intel (US)
- NVIDIA (US)
- Huawei Technologies (China)
- Samsung Electronics (South Korea)
- IBM (US)
- Micron Technology (US)
- Xilinx (US)
- Google (US)
- Microsoft (US)
- AMD (US)
- Inspur Group
- Graphcore
Recent Developments
- February 2023 – Baidu, Inc. with its own AI chatbot called Ernie bot in English, Wenxin Yiyan in Chinese. As a result, Baidu shares rose more than 13% in Hong Kong.
- October 2022 - Ericsson Canada partnered with the university in Montreal to improve 5G sustainability through artificial intelligence.
- September 2022 - Dialexa is acquired by IBM Corporation to drive business innovation and digital growth initiatives. With IBM’s acquisition of Dialexa, a US-based digital content technology company. is expected to strengthen its manufacturing capabilities and customer service.
Global Artificial Intelligence (AI) in Hardware Key Market Trends
- Growing Demand for Specialized AI Hardware: The Global Artificial Intelligence (AI) in Hardware Market is witnessing several key trends that are changing the landscape of the industry and driving its growth trajectory. A key trend is the increasing demand for specialized AI hardware designed for specific tasks and specific industries. As AI technology becomes increasingly ubiquitous across industries, the need for customized hardware solutions increases to meet the unique computing needs of various applications such as natural language functionality, computer vision, autonomous driving etc. This trend drives innovation among hardware manufacturers -Units are evolving Another important trend is the rise of edge AI hardware solutions, driven by the proliferation of Internet of Things (IoT) devices and the need for real-time operations and calculated at the network edge.
Global Artificial Intelligence (AI) in Hardware Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
The Global Artificial Intelligence (AI) in Hardware Market is witnessing rapid expansion due to technological innovations, growing demand for AI-powered solutions across industries, and building efficiencies and for a greater emphasis on performance. Despite facing challenges such as cost and regulatory concerns, the market continues to grow, driven by a collection of different factors shaping its growth As global organizations realize the transformational potential of AI technology in 2010, the demand for specialized hardware solutions is expected to increase Stakeholders must remain vigilant, flexible and active in addressing emerging developments and challenges though effectively address the challenges of the global artificial intelligence (AI) hardware. Collaboration, innovation, and commitment to ethical AI principles will be key drivers for the future direction of Global Artificial Intelligence (AI) in Hardware Market.
| Report Metric | Details |
|---|---|
| Market size value in Hardware | USD 13.22 Billion |
| Market size value in 2031 | USD 93.07 Billion |
| Growth Rate | 26.96% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Artificial Intelligence (AI) in Hardware Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Artificial Intelligence (AI) in Hardware Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Artificial Intelligence (AI) in Hardware Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Artificial Intelligence (AI) in Hardware Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Artificial Intelligence (AI) in Hardware Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Artificial Intelligence (AI) in Hardware Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Artificial Intelligence (AI) in Hardware Market Report Snapshots
- Global Artificial Intelligence (AI) in Hardware Companies
- Global Artificial Intelligence (AI) in Hardware Market Size
- Global Artificial Intelligence (AI) in Hardware Market Analysis
- Global Artificial Intelligence (AI) in Hardware Geographic Analysis
- Global Artificial Intelligence (AI) in Hardware Market News
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