Research Expert: Sarah Overall
  • Published: Aug 2025
  • Pages: 150
  • SKU: IRTNTR80839

  • Latest News- AI In Hardware Market: Processor is expected to lead the Type segment during 2025-2029

    The AI In Hardware Market is being driven by Explosive growth of generative AI and large language models

    The AI In Hardware Market is expected to grow at a CAGR of 27.6% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 149612.7 million. The global AI in hardware market is witnessing a significant shift from generic hardware solutions to domain-specific architectures, as the maturation of the AI industry necessitates hardware that is meticulously optimized for specific workloads and applications. Previously, general-purpose GPUs laid the groundwork for the deep learning revolution. However, to maximize performance per watt and performance per dollar, the industry now requires hardware that is precisely tailored to particular use cases. This trend is most evident in the aggressive pursuit of custom silicon by hyperscale cloud providers. For instance, Amazon Web Services (AWS) advanced its strategy in November 2023 with the launch of its Inferentia2 chip, specifically engineered for inference workloads, and its Trainium2 chip for training. These companies are designing application-specific integrated circuits (ASICs) that cater to their unique software ecosystems. 

    Get more information on AI In Hardware Market by requesting a sample report

    Which Factors Are Causing a Surge in Market Growth?

    The market is segmented based on

    • Type
      • Processor
      • Storage
      • Network
    • Technology
      • Machine learning
      • Deep learning
      • Computer vision
      • Generative AI
      • Others
    • End-user
      • IT and telecom
      • Healthcare
      • Banking and finance
      • Robotics
      • Others
    • Geography
      • North America
        • Canada
        • Mexico
        • US
      • APAC
        • China
        • India
        • Japan
        • South Korea
      • Europe
        • Germany
        • UK
        • France
      • Middle East and Africa
        • South America

        According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

        • Explosive growth of generative AI and large language models
        • Expanding deployment of AI inference at the edge
        • Strategic investment and vertical integration by hyperscale cloud providers

        However, the market also witnesses some limitations, which are as follows:

        • Extreme power consumption and thermal management
        • Supply chain bottlenecks and geopolitical tensions
        • Soaring cost and complexity of hardware development

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        Market Scope in AI In Hardware Market Research Report

        Market Scope

        Report Coverage

        Details

        Page number

        251

        Base year

        2024

        Historic period

        2019-2023

        Forecast period

        2025-2029

        Growth momentum & CAGR

        Accelerate at a CAGR of 27.6%

        Market growth 2025-2029

        USD 149612.7 million

        Market structure

        fragmentation

        YoY growth 2024-2025(%)

        22.6

        Key countries

        US, China, Canada, Japan, Germany, UK, South Korea, Mexico, France, and India

        Competitive landscape

        Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

        Find out which segment is leading the market by accessing the free PDF report

        Research Analysis Overview

        The AI hardware market encompasses various components including AI accelerator cards, specialized hardware for artificial intelligence, platforms that facilitate AI hardware development and deployment, testing and benchmarking tools, and the lifecycle management of AI hardware. Key considerations include security, cost, efficiency, scaling, reliability, maintenance, architecture, design, optimization, selection, performance, monitoring, management, upgrades, solutions, vendors, ecosystem, trends, research, and innovation in AI hardware.

        Market Research Overview

        The AI-powered hardware market, encompassing machine learning accelerators, deep learning chips, and neural network processors, is a significant segment of the global technology hardware, storage, and peripherals market. According to Technavio, this market is a crucial component of the larger global technology hardware, storage, and peripherals market, which includes manufacturers of IT hardware devices, equipment, and components, such as cellular phones, personal computers, servers, electronic computer components, data storage components, motherboards, audio and video cards, monitors, keyboards, printers, and other peripherals. The global technology hardware, storage, and peripherals market size is determined by the revenue generated from the sales of these hardware devices and components. Key growth drivers for this market include the increasing volume, velocity, veracity, and variety (4Vs) of data, necessitating the demand for advanced data storage solutions.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.


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        Technavio Research
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        Media & Marketing Executive
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        UK: +44 203 893 3200
        Email: media@technavio.com
        Website: www.technavio.com/

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