PUBLISHER: The Business Research Company | PRODUCT CODE: 1923186
PUBLISHER: The Business Research Company | PRODUCT CODE: 1923186
Hardware artificial intelligence refers to specialized hardware components, architectures, and systems explicitly crafted to expedite and optimize the execution of artificial intelligence (AI) tasks. These hardware solutions are tailored to elevate the speed, energy efficiency, and scalability of AI algorithms and applications, surpassing the capabilities offered by traditional computing hardware.
The primary types of hardware artificial intelligence consist of processors, networks, and storage. Processors, acting as the central processing unit (CPU) of a computer, are responsible for executing instructions, performing calculations, and managing data flow within the system. In the realm of AI hardware, processors are utilized to carry out complex computations involved in training and inference tasks, leading to improved performance. Various product types in this category include the central processing unit (CPU), graphics processing unit (GPU), application-specific integrated circuit (ASIC), field-programmable gate array (FPGA), memory, and modules. These are further categorized based on technologies such as machine learning and computer vision, as well as end-use industries including banking, financial services, and insurance (BFSI), information technology (IT) and telecommunications, healthcare, media and entertainment, aerospace and defense, manufacturing, automotive, agriculture, retail, and others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs on semiconductor components, wafers, and integrated circuits have increased production and procurement costs for AI hardware, particularly affecting GPUs, ASICs, and memory sourced from Asia Pacific manufacturing hubs. Industries such as IT, telecom, and automotive face the highest impact due to their heavy reliance on high performance compute hardware. However, tariffs are also accelerating domestic chip manufacturing, encouraging regional fabrication investments, and supporting innovation in cost effective AI hardware solutions.
The hardware artificial intelligence research report is one of a series of new reports from The Business Research Company that provides hardware artificial intelligence market statistics, including the hardware artificial intelligence industry's global market size, regional shares, competitors with an hardware artificial intelligence market share, detailed hardware artificial intelligence market segments, market trends and opportunities, and any further data you may need to thrive in the hardware artificial intelligence industry. This hardware artificial intelligence market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The hardware artificial intelligence market size has grown exponentially 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%. The growth in the historic period can be attributed to early adoption of gpus for AI tasks, rise in data center compute demand, increasing use of machine learning models, growth in cloud computing infrastructure, expansion of semiconductor manufacturing capabilities.
The hardware artificial intelligence market size is expected to see exponential growth in the next few years. It will grow to $27.1 billion in 2030 at a compound annual growth rate (CAGR) of 21.6%. The growth in the forecast period can be attributed to rising deployment of edge devices, increasing need for low latency AI processing, growth of autonomous systems, rising demand for scalable AI infrastructure, advancements in neural network processor design. Major trends in the forecast period include rising need for high performance AI accelerators, growing adoption of edge AI hardware solutions, increasing demand for energy efficient AI chips, expansion of AI data centers and high speed compute infrastructure, growing use of specialized hardware for deep learning training and inference.
An increasing number of internet consumers across the globe is expected to drive the growth of the hardware artificial intelligence market going forward. Internet consumers use the internet to access information, communicate with others, and engage in various online activities. The growing interconnectedness of the global economy and society has increased reliance on the internet for cross-border communication, collaboration, and commerce, leading to a rising number of internet users worldwide, particularly in emerging markets. The use of hardware AI enhances user experiences by enabling faster data processing and supporting the expansion of internet access through advancements in devices such as smartphones, smart speakers, and IoT devices. For example, in 2023, according to the International Telecommunication Union (ITU), a Switzerland-based specialized agency, global internet usage grew from 66% (~5.3 billion people) in 2022 to approximately 67% (~5.4 billion people) in 2023. Therefore, an increasing number of internet consumers across the globe is driving the growth of the hardware artificial intelligence market.
Leading companies in the hardware artificial intelligence market are actively developing technologically advanced products, including new AI chips, to meet the rising demand for specialized hardware optimized for AI workloads. These specialized computing hardware are essential for developing and deploying artificial intelligence systems, addressing the unique computational requirements of AI algorithms efficiently. In December 2023, Advanced Micro Devices, Inc., a US-based IT corporation, introduced two new AI chips-the Instinct MI300X accelerator and the Instinct M1300A accelerated processing unit (APU). These chips are designed for training and running large language models (LLMs) and boast increased energy efficiency compared to their predecessors. The MI300X, with 1.5 times more memory capacity than its predecessor, competes with Nvidia's H100 chips in training LLMs and outperforms on the inference side. Both chips aim to power advancements in generative AI and efficiently handle the complex computational requirements of AI algorithms.
In July 2023, Nvidia Corporation, a US-based software company, acquired OmniML Inc. for an undisclosed amount. This strategic move aligns with Nvidia's objective of enhancing its AI chips for applications in autonomous vehicles, drones, and industrial robots. The acquisition of OmniML Inc., a US-based enterprise company specializing in hardware artificial intelligence solutions, supports Nvidia's efforts to build smaller, more power-efficient AI models.
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
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.
The countries covered in the hardware artificial intelligence market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The hardware artificial intelligence market consists of revenues earned by entities through services such as data processing and analysis, energy management, edge AI processing, and personalized recommendations. The market value includes the value of related goods sold by the service provider or included within the service offering. The hardware artificial intelligence market also includes sales of products such as vision processing units (VPUs), language models, AI inference, autonomous systems, and neural networks. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Hardware Artificial Intelligence Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses hardware artificial intelligence market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for hardware artificial intelligence ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The hardware artificial intelligence market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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