PUBLISHER: The Business Research Company | PRODUCT CODE: 1465795
PUBLISHER: The Business Research Company | PRODUCT CODE: 1465795
Hardware artificial intelligence refers to specialized hardware components, architectures, and systems explicitly crafted to expedite and optimize the execution of artificial intelligence (AI) tasks. These hardware solutions are tailored to elevate the speed, energy efficiency, and scalability of AI algorithms and applications, surpassing the capabilities offered by traditional computing hardware.
The primary types of hardware artificial intelligence consist of processors, networks, and storage. Processors, acting as the central processing unit (CPU) of a computer, are responsible for executing instructions, performing calculations, and managing data flow within the system. In the realm of AI hardware, processors are utilized to carry out complex computations involved in training and inference tasks, leading to improved performance. Various product types in this category include the central processing unit (CPU), graphics processing unit (GPU), application-specific integrated circuit (ASIC), field-programmable gate array (FPGA), memory, and modules. These are further categorized based on technologies such as machine learning and computer vision, as well as end-use industries including banking, financial services, and insurance (BFSI), information technology (IT) and telecommunications, healthcare, media and entertainment, aerospace and defense, manufacturing, automotive, agriculture, retail, and others.
The hardware artificial intelligence research report is one of a series of new reports from The Business Research Company that provides hardware artificial intelligence market statistics, including the hardware artificial intelligence industry's global market size, regional shares, competitors with an hardware artificial intelligence market share, detailed hardware artificial intelligence market segments, market trends and opportunities, and any further data you may need to thrive in the hardware artificial intelligence industry. This hardware artificial intelligence market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The hardware artificial intelligence market size has grown exponentially in recent years. It will grow from $6.91 billion in 2023 to $8.44 billion in 2024 at a compound annual growth rate (CAGR) of 22.3%. The expansion observed in the historical period can be attributed to several factors, including the rapid growth in data volume, efforts towards performance improvement, increased demand for low latency solutions, a surge in the need for energy-efficient AI solutions, adherence to regulatory compliance and standards, and the influence of global competition and market dynamics.
The hardware artificial intelligence market size is expected to see exponential growth in the next few years. It will grow to $18.50 billion in 2028 at a compound annual growth rate (CAGR) of 21.7%. The anticipated growth in the forecast period can be attributed to advancements in AI algorithms, heightened concerns about security and privacy, a focus on scalability and flexibility, and the development of industry-specific applications. Noteworthy trends in this period include the emergence of AI hardware-as-a-service, the design of hardware for autonomous systems, the integration of on-chip memory hierarchies, and a growing emphasis on ethical AI hardware design.
The anticipated growth in the number of internet consumers worldwide is set to drive the expansion of the hardware artificial intelligence market. Internet consumers engage in various online activities, relying on the internet for communication, collaboration, and accessing information. The global interconnectedness of economies and societies has led to an increased reliance on the internet, particularly in emerging markets, resulting in a rising number of users. The integration of hardware AI enhances user experiences by facilitating faster data processing and contributing to the expansion of internet access through devices such as smartphones, smart speakers, and IoT devices. According to the International Telecommunication Union, approximately 66% of the global population, or 5.3 billion individuals, used the internet in 2022, representing a 6.1% increase from 2021. Therefore, the growing number of internet consumers globally is a key driver propelling the growth of the hardware artificial intelligence market.
Leading companies in the hardware artificial intelligence market are actively developing technologically advanced products, including new AI chips, to meet the rising demand for specialized hardware optimized for AI workloads. These specialized computing hardware are essential for developing and deploying artificial intelligence systems, addressing the unique computational requirements of AI algorithms efficiently. In December 2023, Advanced Micro Devices, Inc., a US-based IT corporation, introduced two new AI chips-the Instinct MI300X accelerator and the Instinct M1300A accelerated processing unit (APU). These chips are designed for training and running large language models (LLMs) and boast increased energy efficiency compared to their predecessors. The MI300X, with 1.5 times more memory capacity than its predecessor, competes with Nvidia's H100 chips in training LLMs and outperforms on the inference side. Both chips aim to power advancements in generative AI and efficiently handle the complex computational requirements of AI algorithms.
In July 2023, Nvidia Corporation, a US-based software company, acquired OmniML Inc. for an undisclosed amount. This strategic move aligns with Nvidia's objective of enhancing its AI chips for applications in autonomous vehicles, drones, and industrial robots. The acquisition of OmniML Inc., a US-based enterprise company specializing in hardware artificial intelligence solutions, supports Nvidia's efforts to build smaller, more power-efficient AI models.
Major companies operating in the hardware artificial intelligence market are Google Plc, Samsung Electronics Co. Ltd., Microsoft Corporation, Dell Technologies Inc., Bosch GmbH, Huawei Technologies Co. Ltd., Intel Corporation, International Business Machines Corporation, Xilinx Inc., Oracle Corporation, Honeywell International Inc., Micron Technology, NVIDIA Corporation, Hewlett Packard Enterprise, Toyota Industries Corporation, Safran S.A., Thales Group, Leidos Holdings Inc., Rockwell Automation Inc., The Smiths Group plc, Arm Limited, Axis Communication AB, Inspur Information Technology Co. Ltd., OSI Systems Inc., Graphcore Limited
North America was the largest region in the hardware artificial intelligence market in 2023. The regions covered in the hardware artificial intelligence market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the hardware artificial intelligence market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The hardware artificial intelligence market consists of revenues earned by entities through services such as data processing and analysis, energy management, edge AI processing, and personalized recommendations. The market value includes the value of related goods sold by the service provider or included within the service offering. The hardware artificial intelligence market also includes sales of products such as vision processing units (VPUs), language models, AI inference, autonomous systems, and neural networks. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Hardware Artificial Intelligence Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on hardware artificial intelligence market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for hardware artificial intelligence ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The hardware artificial intelligence market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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