Artificial Intelligence (AI) Hardware Market Size, Share, Growth Analysis, By Product(Sound processor, Vision processor, Embedded sound processing unit, Embedded vision processing unit), By Hardware Type(Processors (CPUs, GPUs, TPUs, FPGAs)), By Application(Machine Learning, Deep Learning, Computer Vision, Natural Language Processing), By End-User(BFSI, IT & Telecommunication, Retail, Manufacturing), By Region - Industry Forecast 2024-2031

Global Artificial Intelligence (AI) in Hardware Market size was valued at USD 13.3 Billion in 2022 and is poised to grow from USD 23.5 Billion in 2023 to USD 84.9 Billion by 2031, growing at a CAGR of 15.5% in the forecast period (2024-2031).

Currently, the global artificial intelligence (AI) hardware market is highly saturated with Nvidia accounting for more than 80% share and the rest of 20% taken by other leading chip manufacturers. New companies have a shot at penetrating the market if they raise good capital for the R&D of novel AI hardware components. From AI robots to simple AI chatbots, all AI-powered applications and devices will utilize hardware in some form, which is why companies need to diversify their product portfolio. Innovation will be the key differentiating factor for all artificial intelligence (AI) hardware companies. 'NVIDIA (US) ', 'Intel (US) ', 'IBM Corporation (US) ', 'Qualcomm Technologies (US) ', 'AMD (Advanced Micro Devices, Inc.) (US) ', 'Google LLC (US) ', 'Apple Inc. (US) ', 'Microsoft Corporation (US) ', 'Amazon Web Services, Inc. (AWS) (US) ', 'Xilinx, Inc. (now part of AMD) (US) ', 'ARM Holdings plc (UK) ', 'Graphcore (UK) ', 'Cerebras Systems (US) ', 'Huawei Technologies Co., Ltd. (China) ', 'Baidu, Inc. (China) ', 'Alibaba Group Holding Limited (China) ', 'Tencent Holdings Ltd. (China) ', 'Samsung Electronics Co., Ltd. (South Korea) ', 'Fujitsu Limited (Japan) ', 'Mythic Inc. (US)'

As AI technology advances, its algorithms are becoming more and more complex, demanding more computational power. Hardware made specifically to handle such complex AI processing will be high in demand as AI adoption surges in the future and this will primarily drive market growth as well.

Energy Efficient Hardware: Artificial intelligence algorithms are highly complex and therefore draw out huge amounts of power from AI hardware. Artificial intelligence (AI) hardware companies should focus on developing new hardware capable of handling complex processing with less power to provide efficiency for users.  

The presence of AI hardware giants such as Nvidia, Intel, and AMD in North America allows it to hold a dominant stance. Rapid adoption of AI across multiple industry verticals and high investments in the R&D of novel AI hardware solutions will also help bolster the dominance of North America. An increasing number of start-ups focusing on AI hardware development will also provide new opportunities for artificial intelligence (AI) hardware companies in this region. Canada and the United States are estimated to be the leading countries in North America across the study period.