by The artificial intelligence in hardware market comprises computer hardware that is embedded with AI capabilities to perform complex computations, undertake tasks like perception, learning and decision making without being explicitly programmed. AI hardware includes processors, memory, storage and networks designed specifically to accelerate machine learning, deep learning and other AI workloads. AI hardware provides fast processing speeds and reduced latency which enhances the performance of AI applications across industries like healthcare, automotive, manufacturing and others.
The Global Artificial Intelligence in Hardware Market is estimated to be valued at US$ 56.21 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Artificial Intelligence in Hardware are Advanced Micro Devices Inc., Amazon.com, Inc., Apple Inc., Baidu, Inc., Facebook, Inc., Google LLC, H2O.ai, Huawei Technologies Co., Ltd., IBM Corporation. The growing demand for AI-powered applications from industries and adoption of deep learning and ML techniques is driving the need for specialized AI hardware that can support complex AI workloads. Major companies are investing heavily in R&D to develop advanced processors, GPUs and other AI hardware products. As AI applications become mainstream, hardware players are also expanding their business globally to cater to the growing international demand for AI hardware from different industry verticals and governmental organizations.
Market key trends
Artificial Intelligence in Hardware Market share is significantly influenced by the development of hardware accelerators. Hardware accelerators like GPUs, ASICs, and neural processing units have been designed specifically to carry out the mathematical operations required for deep learning algorithms efficiently.These accelerators provide much faster processing speeds compared to CPUs for AI tasks. Another trend is the increased integration of AI capabilities into edge devices. Major technology players are integrating AI processors into consumer devices like smartphones, IoT nodes and other edge devices to enable on-device AI and reduce latency issues. This trend is expected to accelerate as 5G networks and edge computing become widespread.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as AI hardware manufacturing requires large investments in R&D.
Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of several global players providing similar AI chips and hardware.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are several supplier options available for raw materials used in manufacturing AI chips and hardware.
Threat of new substitutes: The threat of substitutes is low as AI hardware has applications across major industries and there are no close substitutes for AI capabilities.
Competitive rivalry: The competitive rivalry is high among global players due to technological advancements in AI chips and hardware.
Artificial Intelligence in Hardware Market Regional Analysis shows that, in terms of value, North America is currently the largest market for artificial intelligence in hardware, accounting for around 45% share of the global market in 2024. The high presence of major technology companies and significant investments in AI research and development are driving the regional market.
The artificial intelligence in hardware market in Asia Pacific is poised to witness the fastest growth during the forecast period. Rapid digitalization of industries, increasing adoption of AI across verticals, and growing investments by governments as well as private organizations are fueling the regional market expansion. Countries such as China, India, Japan, and South Korea are expected to offer significant growth opportunities for AI hardware vendors.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. LinkedIn
