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July 2025
The global artificial intelligence in hardware market size accounted for USD 34.05 billion in 2025 and is forecasted to hit around USD 210.50 billion by 2034, representing a CAGR of 22.43% from 2025 to 2034. The North America market size was estimated at USD 9.96 billion in 2024 and is expanding at a CAGR of 22.75% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The global artificial intelligence in hardware market size was estimated at USD 27.91 billion in 2024 and is predicted to increase from USD 34.05 billion in 2025 to approximately USD 210.50 billion by 2034, expanding at a CAGR of 22.43% from 2025 to 2034.
The U.S. artificial intelligence in hardware market size was exhibited at USD 6.18 billion in 2024 and is projected to be worth around USD 47.96 billion by 2034, growing at a CAGR of 22.79% from 2025 to 2034.
North America:
In July 2025, an artificial intelligence action plan, which aims to reduce regulation and accelerate the construction of data centers was released by the White House. The plan is centered around three pillars: accelerating innovation, building AI infrastructure, and making American hardware and software the ‘standard’ platform for global AI innovation.
Europe is anticipated to grow at the fastest rate in the market during the forecast period.
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.
The Artificial Intelligence (AI) in hardware market is the segment of the technology industry focused on the development and deployment of hardware components specifically designed to support AI workloads. AI hardware encompasses a variety of devices and systems optimized for accelerating AI algorithms, deep learning models, and other computational tasks inherent in AI applications. The AI in hardware market is driven by the increasing demand for AI-powered applications across various industries, including healthcare, finance, automotive, retail, manufacturing, and entertainment. As AI workloads become more complex and data-intensive, there is a growing need for specialized hardware solutions capable of delivering high performance, energy efficiency, and scalability to support AI innovation and deployment.
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 Coverage | Details |
| Market Size by 2034 | USD 210.50 Billion |
| Market Size in 2025 | USD 34.05 Billion |
| Market Growth Rate from 2025 to 2034 | CAGR of 22.43% |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Type, End User, Product, Application, Technology, Material, Devices, Deployment, Geography |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Rising applications in healthcare industry
AI-powered hardware is increasingly being utilized for medical imaging and diagnostics, enabling more accurate and efficient interpretation of images such as X-rays, MRIs, and CT scans. AI algorithms running on specialized hardware can analyze images in real-time, assisting healthcare professionals in detecting abnormalities, tumors, and other medical conditions with greater accuracy. AI-enabled hardware facilitates the implementation of personalized medicine approaches by analyzing large datasets of patient information, including genomic data, electronic health records, and medical imaging results. This enables healthcare providers to tailor treatments and interventions to individual patients based on their unique genetic makeup, medical history, and specific healthcare needs. Thereby, the application in the healthcare industry acts as a driver for the Artificial Intelligence (AI) in hardware market.
Cost of implementation
Developing and deploying AI hardware can be expensive due to the need for specialized components and technologies. This high initial investment can be a significant barrier for smaller companies or organizations with limited budgets, hindering widespread adoption of AI hardware solutions. Integrating AI hardware into existing systems and infrastructure can be complex and challenging. Compatibility issues, interoperability concerns, and the need for specialized technical expertise can make it difficult for organizations to effectively incorporate AI hardware into their operations.
Rising requirement for scalability in the retail sector
As the retail sector continues to grow and evolve, there is an increasing need for efficiency and automation in various operations, including inventory management, supply chain optimization, and customer service. AI-powered hardware solutions, such as smart shelves, autonomous robots, and cashier-less checkout systems, can help retailers streamline their processes, reduce manual labor, and improve overall operational efficiency. Retailers are increasingly focused on delivering personalized shopping experiences to their customers to enhance engagement and drive sales.
AI-powered hardware, such as intelligent kiosks and interactive displays, can analyze customer data in real-time to offer personalized product recommendations, promotions, and assistance based on individual preferences and browsing history, thereby improving customer satisfaction and loyalty.
The processor segment held a dominant presence in the artificial intelligence in hardware market in 2024.
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The network segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
In August 2025, new AI-driven intelligent network observability solutions providing automated insights, higher performance, and greater value was launched by Riverbed.
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 2022-2024 (USD Billion)
| Type | 2022 | 2023 | 2024 |
| Processor | 10.42 | 12.68 | 15.44 |
| Memory | 2.26 | 2.74 | 3.34 |
| Network | 3.87 | 4.72 | 5.76 |
| Storage | 2.25 | 2.75 | 3.37 |
The computer vision segment is set to experience the fastest rate of the market growth from 2025 to 2034.
The BFSI segment is projected to experience the highest growth rate in the market between 2025 and 2034.
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Artificial Intelligence (AI) in Hardware Market, By End User 2022-2024 (USD Billion)
| End User | 2022 | 2023 | 2024 |
| IT & Telecommunication | 4.04 | 4.91 | 5.97 |
| BFSI | 3.28 | 4.01 | 4.90 |
| Healthcare | 2.35 | 2.87 | 3.50 |
| Retail | 1.99 | 2.43 | 2.97 |
| Automotive | 1.59 | 1.93 | 2.35 |
| Others | 5.56 | 6.76 | 8.23 |
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.
The cloud-based segment registered its dominance over the market in 2024.
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The on-premises segment is anticipated to grow with the highest CAGR in the market during the studied years.
By Type
By End User
By Technology
By Deployment
By Geography
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