Artificial Intelligence (AI) Hardware Market Size (2023 - 2030)

The global Artificial Intelligence (AI) Hardware Market size is witnessed to grow with a CAGR of 17.7% and was worth USD 925 million units in 2022 and is expected to reach USD 2,076 million by 2030. 

Artificial Intelligence is termed science and engineering of making intellectual computer systems that are capable of showcasing an understanding level familiar to those of humans and implement tasks without any human interference.

COVID-19 Impact on Artificial Intelligence (AI) Hardware Market:

The recent novel coronavirus (COVID-19) has affected millions of people globally along with different business sectors. The Artificial Intelligence hardware market is witnessing a positive influence during the pandemic period. The rising adoption of AI is boosting extremely and different tools and solutions are accepted throughout the pandemic period. 

Market Drivers:

Factors boosting the Artificial Intelligence hardware market are growing demand and deployment for BigData across the healthcare domain, and companies require to enhance their sales. The government and other private sectors and policies are supporting the Artificial Intelligence hardware market. The demand for AI and the adoption of AI products and services provide ample opportunities to the market. 

Market Restrains:

Poor data quality: Poor quality of data of major internet service providers globally hinders the AI hardware market growth. 

Unsafe security features: The digital experts request the decentralized nature of edge computing boosts the security features. The stimulated physical data points make an Edge AI infrastructure hazardous to different cyberattacks. 

Restricted Machine Learning Power: In several cases, large complicated Edge AI models have to be a simple priority to the use of the Edge AI hardware to fuel its accuracy and efficiency. Power utilization and size limitations restrain the Artificial Intelligence hardware market growth.The dearth of experienced professionals also hampers the market growth. 

ARTIFICIAL INTELLIGENCE (AI) HARDWARE MARKET REPORT COVERAGE:

Segment Analysis

The global Artificial Intelligence (AI) Hardware Market has been segmented and sub-segmented based on the device, processor, function, power consumption, and end-user.

Artificial Intelligence (AI) Hardware Market segmentation - By Device

• Smartphones

• Robots

• Surveillance cameras

• Wearables

• Smart speakers

• Automotive

• Edge servers

• Smart mirrors

By device, the surveillance cameras segment is leading the AI hardware market during the historical period. The rising population base, along with growing criminal activities, and increasing technological advancements are some of the factors fueling the segment growth. The wearables segment is expected to have the fastest growth in the AI hardware market.

Artificial Intelligence (AI) Hardware Market segmentation - By End-User

• Smart home

• Consumer electronics

• Automotive & transportation

• Aerospace & defense

• Industrial

• Government

• Healthcare

• Construction

By end-user, the consumer electronics segment dominated a major share in the Artificial Intelligence hardware market growth. The market growth owes to increasing demand for smartphones, wearables, rising purchaser expenses. The boosting advancements and creativity of novel use cases for Artificial Intelligence propel the end-user market growth throughout the timeline period. 

Artificial Intelligence (AI) Hardware Market segmentation - By Function

• Training

• Inference

By function, the inference segment dominates the market owing to the increasing utilization of AI in different sectors.

Artificial Intelligence (AI) Hardware Market segmentation - By Processor

• CPU

• GPU

• ASICs

By processor, the CPU segment is leading the AI hardware market globally

Artificial Intelligence (AI) Hardware Market segmentation - By Power Consumption

• Less than 1W,

• 1-3 W,

• 3-5 W,

• 5-10W

• More than 10W

Artificial Intelligence (AI) Hardware Market segmentation - Regional Analysis

• The North American AI hardware market is dominating the region globally. The region's growth depends on factors like the existence of robust IT companies like Apple, Microsoft, Google that provide AI platforms for various sectors like healthcare, semiconductors, IT. Also, the growing number of and rising reliance on IoT devices push the market growth forward. The U.S is the major contributor to the AI hardware market. the growing government measures and investing huge capital stimulates the growth in the U.S.

• The European Artificial Intelligence hardware market is projected to have substantial growth during the timeline period. In 2020 for the AI start-ups, the European Investment Fund allocated USD 111 million funds. On 10 & 11 of March 2020, in Munich, Germany, the AI hardware Summit was launched which is an eco-friendly event acceleration. In Europe, AI hardware has its involvement across different sectors like industrial, semiconductors, automotive transportation, and healthcare. AI hardware market in the U.K is said to have considerable growth during the estimated forecast period. the government of the U.K has promised substantial funds to enhance robotics and machine learning. The increasing number of start-up companies has contributed millions for organizing machine learning research activities.

• However, the Asia-Pacific region for Artificial Intelligence (AI) hardware is witnessing a quick growth during the forecast period. China dominates the Artificial Intelligence hardware market due to increasing technology investments. The Country has launched New Generation Artificial Development Plan for providing strong results. 

• AI hardware market in the Latin American region is expected to have notable growth during the timeline period. The market growth in the region owes to the increasing use of AI across various sectors like healthcare, software, and others. The booming AI applications in genomics healthcare and rising demand for the real-time healthcare monitoring system. Mexico, Brazil, and the rest of Latin America contribute a major share in terms of revenue. 

• The Middle East & African AI hardware market is anticipated to have noteworthy growth in the region. Africa is leading the market with considerable growth. 

Artificial Intelligence (AI) Hardware Market - By Company Share

1. Apple (US)

2. NVIDIA (US)

3. Intel (US)

4. Micron Technology (US)

5. Huawei Technologies (China)

6. Samsung Electronics (South Korea)

7. Qualcomm Technologies (US)

8. Xilinx (US)

9. Google (US)

10. IBM (US)

11. Microsoft (US)

12. AMD (US).

In January 2020, Apple Inc. obtained Xnor AI. The company uses its people detection technology in its smart cameras for security applications. 

Notable Happenings in the global Artificial Intelligence (AI) Hardware Market

• On September 12, 2021, the Artificial Intelligence (AI) team of Intel introduces a new machine learning process 'Multiagent Evolutionary Reinforcement Learning (MERL) for teaching robots teamwork.

• On June 02, 2021, Google disclosed about using Artificial Intelligence (AI) for designing chips, and also creating machine learning Ouroboros. Designing more chips improves the performance.

• On April 05, 2021, Samsun unveiled the launch of Next-Generation- Enterprise Resource Planning (N-ERP). N-ERP is the improved version of G-ERP and the company Samsung decided to enlarge the system in phases to targe total execution by January 2022.

• On April 15, 2021, IBM launched its new tool AI Hardware Composer to escalate the performance of AI hardware. The tool helps both beginners and experienced to set up neural networks and mold analog devices to construct appropriate AI models. 

• On August 04, 2021, the Artificial Intelligence researchers of Microsoft disclose a new neural network with around 135 billion parameters and utilized it on Bing to enhance the search results.