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).

Hardware specifically designed and developed for artificial intelligence technology use is known as artificial intelligence (AI) hardware. Growing adoption of AI around the world and high investments in the development of specific AI hardware is projected to primarily drive market growth over the coming years. Surging demand for better processing and computational power to handle advanced AI algorithms will also push AI hardware manufacturers to innovate. Rising use of AI models and products across multiple industry verticals and advancements in semiconductor technologies will also create new opportunities for artificial intelligence (AI) hardware providers going forward. Development of custom AI chips and energy efficient AI hardware will be the prime focus of almost all artificial intelligence (AI) hardware companies in the long run. However, heat management, high costs of development, and complexity in integration are estimated to be the key factors slowing down artificial intelligence (AI) hardware market growth prospects in the future.