In Dublin on November 6, 2025, it was announced by GLOBE NEWSWIRE that the offering of “Artificial Intelligence (AI) Hardware Market – Types, Applications and Industry Sectors” has been included in ResearchAndMarkets.com’s portfolio. This detailed report delves into the AI Hardware market from 2021 to 2030, shedding light on various hardware types, applications, and industry sectors. It offers a clear view of business and industrial advancements to showcase market dynamics and future directions.
The rapid fusion of Artificial Intelligence (AI) into hardware markets has brought forth numerous transformative trends. With AI capabilities being increasingly integrated into edge devices like smartphones, IoT sensors, and vehicles, there is a growing demand for energy-efficient, high-performance chips such as edge-optimized GPUs and ASICs.
Leading global companies such as Google and Microsoft are spearheading innovations with tailor-made chips aimed at enhancing efficiency and performance for specific AI workloads, reducing the dependence on general-purpose GPUs. Neuromorphic chips, inspired by the human brain, are emerging as a promising solution to improve efficiency in cognitive tasks, particularly in fields like robotics and autonomous systems.
There is a strong focus on creating energy-efficient hardware through advancements in chip structure and cooling systems to reduce the environmental impact of AI operations. Nevertheless, the escalating tariffs imposed by the United States on key producers and exporters like China, Taiwan, and Vietnam in this domain could lead to a significant rise in costs for AI servers, laptops, and GPUs, potentially dampening demand.
The AI Hardware market is forecasted to expand from US$25 billion in 2024 to US$76.7 billion by 2030, achieving a Compound Annual Growth Rate (CAGR) of 20.5% during this period. The growing utilization of AI across various sectors such as healthcare, automotive, and retail is driving this surge in demand. Enhanced chip designs featuring smaller, more energy-efficient transistors and specialized AI accelerators enable quicker processing, further fueling market growth.
As data generation from IoT devices, cloud services, and digital platforms skyrockets, there is an escalating need for AI-optimized solutions capable of handling vast amounts of processing and analytics. Major industry players like Google, Microsoft, NVIDIA, Intel, and Qualcomm are making substantial investments in Research & Development (R&D) to pioneer cutting-edge AI hardware solutions that drive innovation and sector expansion. The trend towards edge computing is also increasing demand for compact, efficient AI hardware tailored for edge environments where data is processed closer to its source in smart devices or autonomous systems.
Geographically speaking, North America is expected to dominate with a 34% share of the AI Hardware market in 2024 due to its leading tech enterprises and a thriving environment for innovation supported by private and public funding initiatives like the CHIPS Act. The rapid adoption of AI within the IT & Telecommunications sector underscores its dominance in the market. NVIDIA alone holds over 90% of the global market share for data center GPUs.
Processors including GPUs, TPUs,…