Artificial Intelligence (AI) Hardware Market Research 2025: U.S. Tariffs Cloud AI Hardware Industry Outlook Amid Strong Growth Projections - Global Forecast to 2030 - ResearchAndMarkets.com

The "Artificial Intelligence (AI) Hardware Market - Types, Applications and Industry Sectors" has been added to ResearchAndMarkets.com's offering.

The global AI Hardware market size is projected at $25 billion in 2024, with a forecasted CAGR of 20.5% from 2024 to 2030, reaching $76.7 billion by 2030.

The AI Hardware market is witnessing significant evolution as trends like edge-computing gain prominence. Integration of AI capabilities in edge devices, such as smartphones, IoT sensors, and vehicles, is escalating demand for low-power, high-performance chips including edge-optimized GPUs and ASICs. Companies like Google and Microsoft are developing specialized chips for improved efficiency and performance, reducing dependency on general-purpose GPUs. Neuromorphic chips, inspired by human brain structures, are emerging as a promising innovation for cognitive tasks in robotics and autonomous systems.

Chip architecture innovations and advanced cooling systems are crucial for developing energy-efficient hardware, focusing on reducing carbon footprints in AI operations. However, escalating tariffs under the current U.S. administration are increasing costs for AI servers, laptops, and GPUs, potentially impacting demand.

The growing application of AI across industries such as healthcare, automotive, and retail, demands hardware capable of supporting complex algorithms and real-time processing. Advancements in chip design, like smaller, energy-efficient transistors and specialized AI accelerators, are enabling faster computation.

The exponential growth of data from IoT devices, cloud services, and digital platforms increases the need for AI-optimized solutions capable of large-scale processing and analytics. High-tech firms such as Google, Microsoft, NVIDIA, Intel, and Qualcomm are investing substantially in R&D to advance AI hardware.

In 2024, North America is expected to hold the largest market share of 34%. The presence of tech giants like NVIDIA, Intel, and IBM leads to intensive R&D activities and substantial innovations. The CHIPS Act contributes to semiconductor advancements with a significant investment in sustainable chip materials. The rapid adoption of AI in industries, particularly IT and telecommunications, is a considerable growth driver.

Processors, including GPUs, TPUs, CPUs, and ASICs, dominate and are anticipated to grow at a 22% CAGR from 2024 to 2030. These processors are critical for managing compute-intensive tasks, bolstering their position in AI systems. In application types, Machine Learning holds the most substantial share, projected to account for 41.8% in 2024, driven by needs in deep learning, neural networks, and predictive analytics.

The IT & Telecommunications sector leads AI Hardware demand, accounting for 33.3% in 2024. This sector's substantial data-processing needs, fueled by cloud computing, 5G networks, and IoT devices, support AI hardware demand. Major IT players, including AWS and Microsoft Azure, integrate AI hardware in AI-as-a-service platforms, representing 60% of global data center AI hardware spending in 2023.

A comprehensive global report on AI Hardware is available, with market analyses by hardware type, application type, and industry sector from 2024 to 2030.

Key Topics

1. Executive Summary

2. Industry Landscape

3. Competitive Landscape

4. Key Business & Product Trends

5. Global Market Overview

Companies Featured

• Advanced Micro Devices, Inc.
• Apple, Inc.
• Brainchip Holdings Ltd.
• Cambricon Technologies Corp Ltd
• Dell Technologies, Inc.
• Google Llc
• Graphcore Ltd
• Huawei Technologies Co Ltd
• Intel Corporation
• Kalray Sa
• Lighton Sas
• Nvidia Corp
• Qualcomm Technologies, Inc.
• Samsung Electronics Co Ltd

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