Artificial Intelligence Hardware Market Analysis And Forecast 2021-2030: Types, Applications, Industry Sectors And The Competitive Landscape
This comprehensive report examines the AI Hardware market over the 2021-2030 period, offering insights into hardware types, applications, and industry sectors. It provides a clear perspective on corporate and industrial progressions to illustrate market dynamics and future trajectories.
The rapid integration of Artificial Intelligence (AI) into hardware markets has introduced several transformative trends. As AI capabilities are increasingly embedded into edge devices such as smartphones, IoT sensors, and vehicles, there's a surging demand for low-power, high-performance chips, like edge-optimized GPUs and ASICs.
Global firms like Google and Microsoft are innovating with customized chips aimed at boosting efficiency and performance for specific AI workloads, reducing reliance on general-purpose GPUs. Neuromorphic chips, modeled on the human brain, are emerging as a promising solution for enhancing efficiency in cognitive tasks, especially in robotics and autonomous systems.
There is a strong emphasis on developing energy-efficient hardware through innovations in chip architecture and cooling systems. These advancements aim to minimize the carbon footprint of AI operations. However, escalating tariffs imposed by the United States on countries like China, Taiwan, and Vietnam-key producers and exporters in this realm-could steeply increase the costs of AI servers, laptops, and GPUs, potentially dampening demand.
The AI Hardware market is projected to grow from US$25 billion in 2024 to US$76.7 billion by 2030, achieving a CAGR of 20.5% over the period. The burgeoning use of AI across diverse sectors such as healthcare, automotive, and retail is driving this demand. Enhanced chip designs, featuring smaller, more energy-efficient transistors and specialized AI accelerators, facilitate faster proceedings, further propelling market growth.
As data generation from IoT devices, cloud services, and digital platforms skyrockets, there is an increased need for AI-optimized solutions capable of managing substantial processing and analytics. Industry giants such as Google, Microsoft, NVIDIA, Intel, and Qualcomm are significantly investing in R&D to pioneer cutting-edge AI hardware, spurring innovation and sector expansion. The trend towards edge computing, which processes data closer to its source in smart devices or autonomous systems, is escalating demand for compact, efficient AI hardware tailored for edge environments.
Regionally, North America is poised to command a 34% share of the AI Hardware market in 2024, home to leading tech enterprises and a robust atmosphere for innovation driven by both private and public funding-evidenced by the CHIPS Act. The swift adoption of AI across the IT & Telecommunications sector underscores its market dominance. NVIDIA alone captures over 90% of the global market for data center GPUs.
Processors, including GPUs, TPUs, CPUs, and ASICs, will represent the primary segment in AI Hardware, holding a 55.3% share in 2024 and expected to grow at a CAGR of 22%. This segment's pivotal role across industries-enabling compute-intensive tasks such as machine learning training and inference-is indispensable for contemporary AI systems.
Machine Learning commands the spotlight as the leading AI Hardware application, projected to capture 41.8% of the market share by 2024 and expand at the fastest rate through 2030. The growing reliance on Machine Learning for sectors such as autonomous driving, finance, and healthcare further galvanizes the need for recognized hardware solutions such as GPUs, TPUs, and ASICs.
The IT & Telecommunications sector emerges as the primary industry for AI Hardware, anticipated to account for 33.3% of the global demand in 2024. The sector's requirement for proficient data processing, particularly in AI-as-a-Service platforms managed by frontrunners AWS, Microsoft Azure, and Google Cloud, demonstrates its leading position, with 60% of global data center AI hardware expenditure attributed to it in 2023.
Companies Featured:
- Advanced Micro Devices, Inc. Apple, Inc. Brainchip Holdings Ltd. Cambricon Technologies Corp. Ltd. Dell Technologies, Inc. Google LLC Graphcore Ltd. Huawei Technologies Co. Ltd. Intel Corporation Kalray SA Lighton SAS Nvidia Corp. Qualcomm Technologies, Inc. Samsung Electronics Co. Ltd.
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