The global artificial intelligence in hardware market size was valued at USD 43.06 billion in 2022 and it is projected to surpass around USD 248.09 billion by 2030 and grow at a compound annual growth rate (CAGR) of 24.5% from 2023 to 2030.
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Due to the deployment and the advancements of dynamic hardware related to the artificial intelligence applications will lead to a growth in the market. Due to advanced developments in the computing applications and group of big data the market is expected to grow. Important components of artificial intelligence hardware are networking storage and computer. Artificial intelligence hardware is widely adopted in various industries like telecom, banking and IT. And the growth in these industries is expected to drive the market of the artificial intelligence hardware in the coming years. Availability of high speed Internet and increase in the number of Internet consumers across the globe is driving the growth of the market. Use of robotics and artificial intelligence in many different industries will create a demand for the hardware.
Apart from the usage of artificial intelligence hardware in different industries it's used in deep learning and machine learning will also accelerate the growth. The use of this hardware has provided an opportunity for the companies to effectively analyze their data in a considerably less amount of time. The lack of artificial intelligence expert will restrain the growth of the market. Various standards relating to the artificial intelligence hardware will also be a challenge for the hardware market in the coming years. Due to the lack of protocols to be followed and the absence of the standards required in the artificial intelligence hardware are limiting the growth of this market. The limited amount of training data and the lesser amount of returns on the invested money will also hamper the growth of the artificial intelligence hardware market in the forecast period. Advancements in big data and the technologies involved in analysis we'll try the market in the coming years.
Due to the shutdown across majority auto countries due to pandemic and disrupted supply chain activities except for the ones that were dealing with the essential goods the manufacturing activities had stopped. Post pandemic major market players are taking efforts to enhance their production capabilities in order to provide for the growing demand. These companies are bringing in accurate and advanced devices to improve the technology.
The hardware used in artificial intelligence acts as a differentiator. By developing various novel technologies, the companies that so for the hardware used in artificial intelligence could make huge profits. There shall be a great demand for the already existing chips available in the market. The chips manufactured by these semiconductor companies will grow largely in terms of revenue in the coming years. When it comes to storage there shall be an increase in the demand for storage systems as many facilities need to retain the data. There's an increasing demand for innovative infrastructure when it comes to the networking related to different data centers. Increase in the demand for programmable switches and an interconnection which enhances the speed are in great demand. In the coming years there shall be an increased use of non-volatile memory for storing the retained data. And the use of nonvolatile memory as a data storing device will create new opportunities for the growth of the artificial intelligence hardware in the coming years.
Artificial intelligence is used across many industries and when it comes to the specific workload the use of boosters or artificial intelligence accelerators will also provide new opportunities in this market. When it comes to commute performance which is dependent on the central processing unit and the graphics processing unit the use of artificial intelligence hardware will alter depending upon the requirements. Data centers in different industries that make use of cloud computing we will have a great demand for artificial intelligence applications. Artificial intelligence has an extremely high memory bandwidth which creates a demand for data storage. The amount of data generated by the artificial intelligence applications is expected to increase during the forecast period. Major market players are concentrating on increasing the production of the storage accelerator's due to a growing demand. For adapting to the changing needs of storage solutions artificial intelligence solutions are making use of non-volatile memory for storage. In order to increase the speed of the network connecting servers, programmable switches are used which will be helpful in changing the direction of data. This will be helpful in changing the input weights in different servers which is one of the most important tasks. The use of high-speed interconnections in different servers will also improve the network.
Report Scope of the Artificial Intelligence (AI) in Hardware Market
|Market Size in 2023||USD 53.71 Billion|
|Market Size by 2030||USD 248.09 Billion
|Growth Rate from 2023 to 2030||
CAGR of 24.5%
|North America Market Share in 2022||37.97%|
|Processor Segment Market Share in 2022||56.29%|
|Forecast Period||2023 to 2030|
|Segments Covered||Type, End User, Product, Application, Technology, Material, Devices, Deployment, Geography|
|Companies Mentioned||Apple (US), Intel (US), NVIDIA (US), Qualcomm Technologies (US), Huawei Technologies (China), Samsung Electronics (South Korea), IBM (US), Micron Technology (US), Xilinx (US), Google (US), Microsoft (US), AMD (US)|
The North American region has dominated the artificial intelligence hardware market in the past and accounted 37.97% revenue share in 2022. Followed by the North American region the European market is expected to grow well in the coming years. There's an increasing demand related to the computer services industry in the international markets. Well it's the globe the United States is regarded as the biggest technological market from the North American region. For all the economic activity in the North American region apart from EU S other countries also have a significant position. North American region has always had a dominating position in most of the technological innovations. This region is a hub for advancements in different technologies.
Apart from the United States Canada is also expanding when it comes to the digital world. Due to many technological advances in this country a large number of employments is provided to the individuals. There is a great amount of innovation in different products in Canada. Canada is also known for its efficiency in different businesses which has helped in the economical growth of this region. Due to all of these reasons there shall be an integration of artificial intelligence devices across all their industries in the North American region and this is expected to create a larger demand in the coming years. Increase in the demand for data modeling and real time data streaming will also lead to an exponential growth in this market. There's a growing demand for global sensors and increased adoption of softwares will create great demand for artificial intelligence hardware.
Followed by the North American region the European market is also expected to have a good position in the market. Advanced technological use in artificial intelligence will bring many transformations in the industries. Due to automation in different industries and the use of advanced robots in the manufacturing industries had created a greater demand for artificial intelligence hardware. There's an increased demand for artificial intelligence hardware in the Internet of thing applications and owing to all of these reasons the hardware market is expected to grow well during the forecast period.
On the basis of the type of hardware relating to the network memory or processors, the processor segment will have the largest market share in the coming years. This segment is expected to grow at a compound annual growth rate of three 23.7% in the coming years. Processor segment dominated the market in 2022 an accounted revenue share of around 56.29%. The processor which enables high speed computing is extremely good for machine learning applications. This consists of deep learning. These processors are also used in supervised reinforcement learning.
Semiconductor manufacturers are expected to derive huge profits in the coming years. The machines involved in the manufacturing of the learning devices make use of processing chipsets or they are made up of artificial intelligence chipsets. Many major market players are investing in order to provide innovative and high speed computing processors as there's an increasing demand for the machine learning devices across the globe. Various research and developmental activities that aim at providing computing processors that provide high speed which will help in enhancing the performance are in great demand. In order to store the input data does an increased use of non volatile memory. The dynamic random access memory is extremely helpful in different functions pertaining to the training which efficiently stores the data.
An universal network which will be available for all the industries across the borders which will be fruitful in making decision for any consumer depending upon the activity and the location of that consumer. This technology will be helpful in routing the person to the best available network for carrying out his task without facing any hassles or interruptions in the service.
Artificial Intelligence (AI) in Hardware Market, By Type 2022-2030 ($Billion)
End User Insights
By end user, the telecom and IT industry is expected to have a dominant position in the market in the coming years. The telecom and IT industry has had the largest market share in the past. Due to the availability of huge amount of big data in the telecom industry artificial intelligence serves to be the best option which help in making efficient decisions. The use of artificial in the telecom sector is extremely valuable as it helps in solving many complex problems associated with the telecommunication industry.
Artificial intelligence in the IT industry and the telecommunication industry has helped the decision makers by accelerating the procedure and by reducing the time required for decision making to a fraction of seconds. But there is a lack of expertise related to the technical aspects which help in increasing the amount required for yielding the results. The use of artificial intelligence across many other industries apart from telecommunications and it has helped in providing a better network.
Artificial Intelligence (AI) in Hardware Market, By End User 2022-2030 ($Billion)
|IT & Telecommunication||9.28||11.52||27.17||51.37|
Currently the use of artificial intelligence is the highest and the future seems to be brighter as there's a growing demand for network equipment across the globe. Due to the advancements in technologies many industries are implementing robotic process automation which is extremely useful for all the procedures that can be done with the use of this application. And it helps in reducing the manual work of the employees and providing them with larger amount of time to focus on more productivity. Extensive use of artificial intelligence in many types of industries will increase the demand for its hardware devices in the coming years.
Key market players
Key Market Developments
The partnership between green tea which is a shopping mall which is environment friendly with Samsung Electronics in the year 2021 will help in promoting the devices in the mall. It will help in boosting the sales of the consumer electronic products and various appliances.
Segments covered in the report
By End User
By Product Type
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