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Hardware Artificial Intelligence Market Forecast: Value Set To Climb From $12.39 Billion To $27.1 Billion
The hardware artificial intelligence market size has experienced significant expansion in recent years. It is anticipated to increase from $10.2 billion in 2025 to $12.39 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 21.5%. Historically, this growth stems from factors such as the early adoption of GPUs for AI tasks, a rise in data center compute demand, the increasing deployment of machine learning models, advancements in cloud computing infrastructure, and the expansion of semiconductor manufacturing capabilities.
The hardware artificial intelligence market size is projected to experience significant growth in the coming years. It is forecast to expand to $27.1 billion by 2030, achieving a compound annual growth rate (CAGR) of 21.6%. The anticipated growth during this period stems from factors such as the increasing deployment of edge devices, a heightened need for low-latency AI processing, the expansion of autonomous systems, a rising demand for scalable AI infrastructure, and progress in neural network processor design. Noteworthy trends for the forecast period include a surging demand for high-performance AI accelerators, the expanding adoption of edge AI hardware solutions, an increasing need for energy-efficient AI chips, the growth of AI data centers and high-speed compute infrastructure, and the increasing utilization of specialized hardware for deep learning training and inference.
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Hardware Artificial Intelligence Market Growth Momentum: What Factors Are Shaping Demand?
The growing number of internet users globally is expected to fuel the expansion of the hardware artificial intelligence market going forward. Internet users access information, communicate with others, and participate in various online activities through the internet. The increasing interconnectedness of the global economy and society has led to a greater reliance on the internet for international communication, collaboration, and commerce, resulting in a rising population of internet users worldwide, particularly in emerging markets. Hardware AI enhances user experiences by enabling faster data processing and facilitating the spread of internet access through advancements in devices such as smartphones, smart speakers, and IoT devices. For instance, in 2023, according to the International Telecommunication Union (ITU), a Switzerland-based specialized agency, global internet usage increased from 66% (~5.3 billion people) in 2022 to approximately 67% (~5.4 billion people) in 2023. Therefore, a rising number of internet consumers across the globe is driving the growth of the hardware artificial intelligence market.
Hardware Artificial Intelligence Market Segmentation And Category Overview
The hardware artificial intelligence market covered in this report is segmented –
1) By Hardware Function: 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
Hardware Artificial Intelligence Market Trends Redefining Industry Growth
Key entities in the hardware artificial intelligence market are developing advanced products, such as new AI chips, to meet the rising demand for specialized hardware optimized for AI operations. This specialized computing hardware is essential for developing and deploying artificial intelligence systems, as it is designed to manage the uniquely complex computational needs of AI algorithms with speed and efficiency. For example, in December 2023, Advanced Micro Devices, Inc., a US-based IT firm, launched two new AI chips: the Instinct MI300X accelerator and the Instinct M1300A accelerated processing unit (APU). These chips are engineered to train and run large language models (LLMs) and are more energy-efficient than their earlier versions. The MI300X offers 1.5 times more memory capacity than the previous M1250X version and performs comparably to Nvidia’s H100 chips in LLM training, while excelling in inference. Both chips are aimed at powering advancements in generative AI and are crafted to efficiently and quickly handle the intricate computational demands of AI algorithms.
Hardware Artificial Intelligence Market Competitive Analysis Of Leading Industry Participants
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
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Hardware Artificial Intelligence Market Regional Analysis: Which Geography Leads On Revenue?
North America was the largest region in the hardware artificial intelligence market in 2025. The regions covered in the hardware artificial intelligence market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
