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Software industry

AI in Hardware Market to Reach $48.18 Billion by 2027

Strategic Insights

— 2 min read

The global AI in hardware market is expected to grow at a compound annual growth rate (CAGR) of 23.25% from $16.82 billion in 2022 to $20.88 billion in 2023. This growth is driven by the increasing adoption of AI technologies in various industries, including banking, IT, and telecom. The market is expected to reach $48.18 billion by 2027, with North America being the largest region in 2022 and Asia-Pacific expected to be the fastest-growing region.

Key Takeaways:

  • The global AI in hardware market is expected to grow from $16.82 billion in 2022 to $20.88 billion in 2023 at a CAGR of 24.14%.
  • The market is expected to reach $48.18 billion in 2027 at a CAGR of 23.25%.
  • The AI in hardware market consists of revenues earned by entities providing AI in hardware services such as AI-optimized hardware design, AI consulting, AI accelerators, and cloud-based AI services.
  • The main types of AI in hardware are processor, network, and storage, with processor being the largest segment in 2022.
  • The adoption of AI hardware in banking, IT, and telecom is expected to propel the growth of the AI in hardware market, with banking and IT industries being the largest adopters in 2021.
  • Technological advancements, such as the launch of 3rd generation Intel Xeon Scalable processors with built-in AI acceleration, are key trends gaining popularity in the AI in hardware market.
  • Major companies operating in the AI in hardware market, such as Intel Corporation and Apple Inc., are adopting new technologies to sustain their position in the market.

Statistics:

  • The global AI in hardware market size was $16.82 billion in 2022.
  • The market is expected to grow to $20.88 billion in 2023 at a CAGR of 24.14%.
  • The market is expected to reach $48.18 billion in 2027 at a CAGR of 23.25%.
  • The processor segment accounted for the largest share of the AI in hardware market in 2022, followed by the storage segment.
  • The banking and IT industries adopted AI technology at a rate of 52% in 2021, followed by the media and telecom sectors at 38%.
  • 29.5% of IT and telecom organizations adopted AI technology in January 2022.
  • The use of AI technologies such as predictive analytics and voice recognition was adopted by 32% of banking service providers in February 2020.

Sources:

  • Reportlinker.com, "AI In Hardware Global Market Report 2023"
  • Government Digital Service, UK-based government office
  • Wiggli, US-based software as a service company
  • Intel Corporation, US-based semiconductor technology corporation
  • Apple Inc., US-based technology company

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