PUBLISHER: Roots Analysis | PRODUCT CODE: 1721382
PUBLISHER: Roots Analysis | PRODUCT CODE: 1721382
As per Roots Analysis, the global AI hardware market size is estimated to grow from USD 31.40 billion in the current year to USD 624.4 billion by 2035, at a CAGR of 31.23% during the forecast period, till 2035.
The opportunity for AI hardware market has been distributed across the following segments:
Type of AI Hardware
Type of Deployment
Type of Product
Type of Device
Type of Power Consumption
Type of Process
Type of End-Users
Company Size
Type of Business Model
Geographical Regions
AI hardware refers to equipment specifically engineered and developed for use in artificial intelligence technologies. It encompasses a range of devices and systems optimized to enhance the performance of AI algorithms, deep learning models, and other computational tasks integral to AI applications. As AI workloads become increasingly intricate and data-heavy, the demand for specialized hardware solutions that can provide high performance, energy efficiency, and scalability to foster AI innovation and development has significantly increased. This surge in need has resulted in substantial investments aimed at creating dedicated AI hardware, consequently leading to tremendous market growth.
In the context of global industrial advancement, there is a considerable demand for enhanced processing and computational capabilities to more effectively manage AI algorithms, which in turn encourages manufacturers of AI hardware to channel resources into the development of new products. The growing prevalence of edge AI, as well as AI models and products across various sectors, alongside trends and technological advancements in the semiconductor industry, is opening up new avenues for AI hardware manufacturers to launch innovative offerings. Additionally, the creation of custom AI chipsets and energy-efficient AI hardware is projected to be the primary focus for many companies in the AI hardware space. Moreover, leading market players are also working to boost production of storage accelerators in response to rising demand. To meet the evolving requirements for storage solutions, artificial intelligence is contributing to the development of non-volatile memory.
Driven by increasing investments and interest from various stakeholders worldwide, the AI hardware market is anticipated to grow at a healthy pace during the forecast period.
Based on the type of AI hardware, the global AI hardware market is segmented into embedded sound processors, embedded vision processors, stand-alone vision processors, and stand-alone sound processors. According to our estimates, currently, stand-alone vision processors segment captures the majority share of the market. This can be attributed to the rising adoption of edge AI, increased demand for computer vision applications, and advancements in technology. However, embedded sound processors segment is anticipated to grow at a higher CAGR during the forecast period.
Based on the type of deployment, the AI hardware market is segmented into cloud, and on-premises. According to our estimates, currently, cloud segment captures the majority share of the market. This can be attributed to the accessibility, flexibility, scalability, and cost-effectiveness that cloud-based AI solutions provide. Additionally, the growing emphasis on accessibility and efficiency by numerous businesses is driving the expansion of this segment. Cloud-based deployment enables organizations of all sizes to utilize advanced AI tools and technologies without the requirement of significant initial investments in hardware and infrastructure.
Based on the type of product, the AI hardware market is segmented into memory (DRAM, NVM, SRAM), processors (CPU, FPGA, GPU, TPU), networking and storage. According to our estimates, currently, processors segment captures the majority share of the market. This can be attributed to their high computing speed, which is particularly beneficial for applications in machine learning, including deep learning and machine learning itself. They are also commonly utilized in supervised reinforcement learning. Further, a significant factor driving growth in the processor market is the rising global demand for machine learning devices. This has led major market players to invest in order to deliver innovative and high-speed computing processors.
Based on the type of device, the AI hardware market is segmented into automotive, cameras, robots, smartphones, smart mirror, smart speaker and wearable technologies. According to our estimates, currently, automotive segment captures the majority share of the market. This can be attributed to the rise of advanced driver-assistance systems that heavily depend on AI hardware for features related to safety and efficiency, such as collision avoidance and cruise control. However, smart speaker segment is anticipated to grow at a higher CAGR during the forecast period.
Based on the type of application, the AI hardware market is segmented into less than 1W, 1-3W, 3-5W, 5-10W, and more than 10W. According to our estimates, currently, 1-3W power consumption segment captures the majority share of the market. This can be attributed to the prevalent use of AI hardware in consumer electronics, where power consumption in the 1-3W range is common. Additionally, devices that operate within this range can provide adequate performance while also being energy-efficient, making them ideal for power-saving applications. However, less than 1W segment is anticipated to grow at a higher CAGR during the forecast period.
Based on the type of process, the AI hardware market is segmented into inference and training. According to our estimates, currently, inference segment captures the majority share of the market. This can be attributed to its essential function in real-time applications that demand quick decision-making, such as autonomous vehicles and smart cameras. The broad adoption of this segment across various industries is another factor contributing to its growth. However, training segment is anticipated to grow at a higher CAGR during the forecast period.
Based on the type of end-users, the AI hardware market is segmented into aerospace & defense, automotive & transportation, BFSI, consumer electronics, e-commerce, education, energy & utilities, government & public services, navigation, real estate, smart home, telecommunication & IT and others. According to our estimates, currently, telecommunication & IT segment captures the majority share of the market. This can be attributed to the application of AI in making efficient decisions within the telecom sector, where significant volumes of big data are processed. The implementation of AI in this field is particularly beneficial for addressing the intricate challenges faced by the telecommunications industry.
Based on the type of enterprise, the AI hardware market is segmented into large and small and medium enterprise. According to our estimates, currently, large enterprise segment captures the majority share of the market. However, small and medium enterprise segment is anticipated to grow at a higher CAGR during the forecast period. This growth can be attributed to their agility, innovative capabilities, targeted focus on niche markets, and their ability to respond to shifting customer preferences and changes in market conditions.
Based on the geographical regions, the AI hardware market is segmented into North America, Europe, Asia, Latin America, Middle East and North Africa, and Rest of the World. According to our estimates, currently, North America captures the majority share of the market. This can be attributed to the growing number of startups dedicated to creating AI hardware, which in turn creates new opportunities for AI hardware firms in this area. However, market share in Asia is anticipated to grow at a higher CAGR during the forecast period.
The report on the AI hardware market features insights on various sections, including: