sales@towardsict.com
+1 804-441-9344
December 2025
The artificial intelligence (AI) in hardware market size was estimated at USD 34.45 billion in 2025 and is predicted to increase from USD 42.18 billion in 2026 to approximately USD 261.08 billion by 2035, expanding at a CAGR of 22.45% from 2026 to 2035. The rapid expansion of the e-commerce sector is expected to drive the growth of artificial intelligence (AI) in hardware market.
-in-Hardware-Market.webp "Artificial Intelligence (AI) in Hardware Market Size 2025 To 2034")
The artificial intelligence in hardware market refers to the integration of AI technologies directly into hardware components, such as processors, chips, sensors, and specialized devices, to enable faster data processing, improved decision-making, and enhanced automation. This market encompasses AI accelerators, graphics processing units (GPUs), application-specific integrated circuits (ASICs), and edge devices designed to support AI workloads. The adoption of AI-enabled hardware is driven by the growing need for high-performance computing, real-time analytics, and AI-driven applications in industries such as automotive, healthcare, consumer electronics, telecommunications, and manufacturing.
The growing focus of market players on developing NPUs for the electronics industry, coupled with technological advancements in edge AI solutions, is positively impacting the AI hardware market. Additionally, the research and development activities related to neuromorphic computing and quantum computing are playing a vital role in shaping the market landscape.
| Report Coverage | Details |
| Market Size in 2026 | USD 42.18 Billion |
| Market Size by 2035 | USD 261.08 Billion |
| Growth Rate From 2026 to 2035 | CAGR of 22.45% |
| Base Year | 2025 |
| Forecast Period | 2026-2035 |
| Segments Covered | By Type, By Technology, By Deployment, By End User |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Regional scope | North America; Europe; Asia Pacific; Latin America; MEA |
Numerous AI companies are partnering with processor brands to develop AI chips for the electronics industry.
The AI brands are engaged in designing different types of AI-integrated devices to cater for the needs of the end-users.
Several market players are investing heavily in opening up new production centres to enhance the manufacturing of AI processors.
The increasing adoption of cloud-based AI solutions in the e-commerce sector is expected to create numerous growth opportunities for the market players in the future.
The surging emphasis of the government to digitalize the BFSI industry is likely to reshape the industry in the upcoming days.
The processor segment led the market. The increasing demand for AI-based processors from smartphone manufacturers and computer brands has boosted the market expansion. Also, rapid investment by chip manufacturers for opening up new production centres, along with collaborations among AI brands and chip developers, is expected to drive the growth of artificial intelligence (AI) in hardware market.
The network segment is expected to rise with the highest CAGR during the forecast period. The integration of AI in telecom networks for enhancing the capabilities of the tower has boosted the market expansion. Moreover, partnerships among network providers and AI developers are expected to boost the growth of artificial intelligence (AI) in hardware market.
The computer vision segment dominated the industry. The growing use of computer vision in a wide range of applications for interpreting and analysing visual data to perform tasks such as object and facial recognition has boosted the market growth. Moreover, the rising application of computer vision technology in self-driving cars is expected to propel the growth of artificial intelligence (AI) in hardware market.
The machine learning segment is expected to rise with the fastest CAGR during the forecast period. The rising emphasis of tech providers to develop new ML platforms for the banking sector has boosted the market expansion. Moreover, the growing adoption of machine learning by the telecom sector is expected to accelerate the growth of artificial intelligence (AI) in hardware market.
The cloud-based segment dominated the market. The growing deployment of cloud-based storage solutions in the data centres has boosted the market expansion. Moreover, numerous advantages of cloud solutions, including enhanced scalability, cost savings, improved flexibility, superior accessibility and others, are expected to drive the growth of artificial intelligence (AI) in hardware market.
The on-premises segment is expected to rise with the fastest CAGR during the forecast period. The rising adoption of on-premises AI solutions by the educational sector in developed nations has boosted the market growth. Moreover, collaborations among robotic brands and AI companies for deploying on-premises solutions in the robotic industry is expected to propel the growth of artificial intelligence (AI) in hardware market.
The telecom and IT industry segment dominated the industry. The growing expansion of the telecom industry in several nations, including China, India, France, Germany, the U.S. and some others, has boosted the market expansion. Moreover, technological advancements in the IT industry in developed nations is expected to drive the growth of artificial intelligence (AI) in hardware market.
.webp "India Telecom Sector Revenue in US$ Billion (2024-25)")
The BFSI segment is expected to rise with a considerable CAGR during the forecast period. The rapid growth of the BFSI sector in numerous countries such as Canada, France, Italy, the UAE and some others has boosted the market growth. Additionally, partnerships among AI developers and BFSI companies to develop AI-based solutions for the BFSI industry are expected to accelerate the growth of artificial intelligence (AI) in hardware market.
North America led the artificial intelligence (AI) in the hardware market. The growing development in the AI sector across numerous countries, including Canada, the U.S., Mexico and some others, has boosted the market growth. Additionally, the presence of numerous market players such as Micron Technology, AMD, Nvidia and some others, coupled with the rapid expansion of the educational sector, is expected to boost the growth of artificial intelligence (AI) in hardware market in this region.
.webp "Nvidia Revenue in US$ Million (2024-25)")
The U.S. is a major contributor in this region. The rising demand for AI-enabled processors from smartphone manufacturers, along with numerous government initiatives aimed at developing the AI sector, has driven the market expansion. Moreover, technological advancements in the telecom sector are playing a prominent role in shaping the industrial landscape.
Asia Pacific held a significant share of the market and is observed to grow at the fastest rate in the foreacast period. The growing development in the robotics industry across numerous countries, including Japan, India, China, South Korea and some others, has boosted the market growth. Also, numerous government initiatives aimed at strengthening the agricultural sector, coupled with rapid digitalisation of the educational sector, are expected to boost the growth of artificial intelligence (AI) in the hardware market in this region.
China led the market in this region. The growing emphasis of automotive manufacturers to deploy AI chips in autonomous cars has driven the market growth. Moreover, partnerships among robot companies and AI developers to develop a wide range of AI-enabled robotic solutions are playing a vital role in shaping the industrial landscape.
Europe is observed to grow as significant shareholder in the upcoming years. The rising adoption of AI-based hardware systems from the financial sector across numerous countries, including Germany, Italy, France, the Netherlands and some others, has boosted the market expansion. Moreover, rapid investment by the government for strengthening the telecom sector, coupled with a rise in the number of e-commerce startups, is expected to drive the growth of artificial intelligence (AI) in the hardware market in this region.
Germany is a significant contributor in this region. The surging demand for high-quality storage solutions from the data centres has driven the market expansion. Moreover, collaborations among tech providers and AI developers to design AI-enabled solutions are contributing to the industry in a positive manner.
| Company | Headquarters | Offerings |
| Apple | California, USA | Apple Inc. is a global tech giant known for iconic consumer electronics like the iPhone, Mac, and Apple Watch, alongside integrated software (iOS, macOS) and services (App Store, iCloud, Apple Pay), focusing on user experience through design, innovation (now AI with Apple Intelligence), and a strong ecosystem, generating massive revenue and holding a huge market share in wearables. |
| Intel | California, USA | Intel Corporation is a leading American tech giant creating CPUs (Core, Xeon), chipsets, and tech platforms for PCs, data centers, and the cloud, focusing on innovation in AI, 5G, and IoT |
| NVIDIA | California, USA | NVIDIA is a leading American tech company, famous for GPUs, that pioneered accelerated computing, driving AI, gaming, data centers, and robotics with its hardware (GeForce, Blackwell) and software platform (CUDA). |
| Qualcomm Technologies | California, USA | Qualcomm Technologies, a subsidiary of Qualcomm Inc., is a global leader in designing and supplying semiconductors, software, and services for wireless tech, powering everything from smartphones (Snapdragon) to cars, smart homes, and IoT devices, focusing on cutting-edge AI, 5G, high-performance computing, and connectivity to drive digital transformation. |
| Huawei Technologies | Shenzhen, China | Huawei Technologies isa global Chinese tech giant providing ICT infrastructure, smart devices, and digital solutions (like 5G, cloud, AI, automotive tech) for carriers, businesses, and consumers. |
| Samsung Electronics | Suwon-si, South Korea | Samsung Electronics isa South Korean multinational giant, the core of the Samsung Group, known globally for consumer electronics, IT, and mobile comms, producing everything from TVs and smartphones to semiconductors and home appliances. |
| IBM | New York, United States | IBM (International Business Machines Corp.) isa global tech giant specializing in hybrid cloud, AI, and consulting, providing enterprise solutions in data analytics, automation, cybersecurity, and IT infrastructure to diverse industries such as finance, healthcare, and retail. |
| Micron Technology | Idaho, USA | Micron Technology is a global leader in innovative memory and storage solutions (DRAM, NAND flash, SSDs) for data centers, AI, mobile, and automotive. |
| Xilinx | California, United States | Xilinx wasfounded in 1984, was a pioneer in programmable logic devices (FPGAs, SoCs) and adaptive computing, enabling innovation in cloud, edge, and AI, |
| AMD | California, USA | Advanced Micro Devices (AMD) is a leading multinational semiconductor company designing high-performance computing, graphics (GPUs), and AI technologies for data centers, PCs, gaming, and embedded systems. |
By Type
By Technology
By Deployment
By End User
By Region
December 2025
December 2025
December 2025
December 2025