With a focus on actionable insights and strategic value, The Business Research Company’s 2026 market reports include market attractiveness scoring, total addressable market sizing, company benchmarking matrices, interactive Excel dashboards, deeper supply chain intelligence, emerging startup tracking, and granular product-level insights.
Hardware Artificial Intelligence Market Size Analysis: Historical Growth And Future Revenue Projections
The hardware artificial intelligence market has seen substantial exponential growth in recent years. It will grow from $10.2 billion in 2025 to $12.39 billion in 2026 at a compound annual growth rate (CAGR) of 21.5%. This historical growth can be attributed to several factors, including the early adoption of GPUs for AI tasks, a rise in demand for data center compute power, the increasing use of machine learning models, the expansion of cloud computing infrastructure, and the growing capabilities of semiconductor manufacturing.
The hardware artificial intelligence market size is projected to experience substantial growth in the upcoming years. It is forecast to reach $27.1 billion in 2030 at a compound annual growth rate (CAGR) of 21.6%. This expansion during the forecast period is driven by factors such as the increasing deployment of edge devices, the rising requirement for low-latency AI processing, the development of autonomous systems, a growing demand for scalable AI infrastructure, and advancements in neural network processor design. Significant trends during this period involve an increasing need for high-performance AI accelerators, the expanding adoption of edge AI hardware solutions, a heightened demand for energy-efficient AI chips, the enlargement of AI data centers and high-speed compute infrastructure, and the growing utilization of specialized hardware for deep learning training and inference.
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Hardware Artificial Intelligence Market Drivers: What Is Fueling Demand Through 2030?
The global increase in internet consumers is expected to propel the growth of the hardware artificial intelligence market. These consumers utilize the internet for information access, communication, and various online activities. The escalating interconnectedness of the global economy and society has amplified dependence on the internet for cross-border communication, collaboration, and commerce, leading to a rise in internet users worldwide, especially in emerging markets. The application of hardware AI enhances user experiences by enabling faster data processing and facilitating the expansion of internet access through advancements in devices such as smartphones, smart speakers, and IoT devices. For instance, in 2023, the International Telecommunication Union (ITU), a Switzerland-based specialized agency, indicated that global internet usage climbed from 66% (~5.3 billion people) in 2022 to approximately 67% (~5.4 billion people) in 2023. This growth in internet consumers globally is thus driving the expansion of the hardware artificial intelligence market.
Hardware Artificial Intelligence Market Segmentation Analysis: Core Categories And Subcategories
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
Which Trends Will Define The Hardware Artificial Intelligence Market Through 2030?
Leading companies operating in the hardware artificial intelligence market are developing cutting-edge products, such as novel AI chips, to capitalize on the rising demand for specialized hardware optimized for AI workloads. This specialized computing hardware is employed in the creation and deployment of artificial intelligence systems, engineered to manage the uniquely complex computational requirements of AI algorithms with speed and effectiveness. For instance, in December 2023, Advanced Micro Devices, Inc., a US-based IT corporation, unveiled two new AI chips: the Instinct MI300X accelerator and the Instinct M1300A accelerated processing unit (APU). These chips are designed to train and operate large language models (LLMs) and are more energy-efficient than their earlier versions. The MI300X offers 1.5 times more memory capacity than the preceding M1250X version and rivals Nvidia’s H100 chips in training LLMs, while exhibiting superior performance in inference tasks. Both chips are intended to fuel advancements in generative AI and are crafted to handle the complex computational demands of AI algorithms quickly and efficiently.
Hardware Artificial Intelligence Market Major Companies And 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 Geographic Analysis: Which Region Accounts For The Biggest Share?
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.
