AI Computing Hardware Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Global Artificial Intelligence Computing Hardware Market is segmented by Type (Stand-alone Vision Processor, Embedded Vision Processor, Stand-alone Sound Processor, and Embedded Sound Processor), End User (BFSI, Automotive, Healthcare, IT and Telecom, Aerospace and Defense, Energy and Utilities, and Government and Public Services), and Geography.

AI Computing Hardware Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

AI Computing Hardware Market Size

ai computing hardware market CAGR
Study Period 2019 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
CAGR 26.00 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

AI Computing Hardware Market Major Players

*Disclaimer: Major Players sorted in no particular order

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AI Computing Hardware Market Analysis

The AI Computing Hardware Market is expected to register a CAGR of 26% during the forecast period.

  • The demand for AI computing hardware in the defense sector drives the market. The air force needs unconventional computing architectures for pattern recognition, event reasoning, decision making, adaptive learning, and autonomous tasking on energy-efficient manned and unmanned aircraft. As per researchers, the major focus area is neuromorphic computing or brain-inspired computing that involves processors more advanced than more-traditional the Von Neumann architectures. This kind of design could lead to unconventional circuits based on emerging nanotechnologies, like memristors and nano-photonics.
  • The adoption of field-programmable gate arrays (FPGAs) for high-computing speed drives the market. The FPGA provides low thermal outputs and low latencies and offer an alternative deep learning processor with great potential. For example, with some programming efforts, developers can modify FPGAs, like a software to execute various neural networks. If an application requires several neural networks over time, FPGAs represent a good option. Further, hardware accelerators, like FPGAs, are increasingly important in server systems that run heavy AI training or database workloads in many industries.
  • In September 2019, Intel announced to ship new Intel Stratix 10 DX field-programmable gate arrays (FPGAs) to help accelerate workloads in the cloud and in enterprises using Intel's data center technology. They also help increase bandwidth and hardware acceleration for some upcoming Intel Xeon Scalable processors, showing 37% lower latency and a theoretical top transfer rate of 28 Gbps.
  • However, the impact of COVID-19 affects the growth of the market due to the massive slowdown of the supply chain. In the chip sector, revenues have plunged by nearly 12%, globally, during the pandemic, dropping by nearly USD 57 billion compared to 2018, which may ultimately affect the AI computing processors. Intel saw zero growth in its core microprocessor segment in 2019, while sales of logic chips rose by 7%.
  • Further, the growth of the market can be observed in healthcare to provide processor helping medical doctors. In April 2020, AMD announced a COVID-19 HPC (high-performance computing) fund to provide research institutions with computing resources to accelerate medical research on COVID-19 and other diseases. The fund will include an initial donation of USD 15 million of high-performance systems powered by AMD EPYC CPUs (central processing units) and AMD Radeon Instinct GPUs (graphics processing units) to key research institutions. For medical customers, AMD is prioritizing and expediting product shipments, including AMD-embedded processors used in ventilators and respirators.

AI Computing Hardware Industry Overview

The AI computing hardware market is highly fragmented, and the major players have used various strategies, such as new product launches, agreements, joint ventures, partnerships, and acquisitions, to increase their footprints in this market. Key players are Cadence Design Systems Inc., Synopsys Inc., etc. Recent developments in the market include -

  • 2020 - Tenstorrent funded over USD 34 million for all-in-one computer system dubbed to Grayskull. Grayskull's architecture eliminates unnecessary computation to deliver a performance improvement on today's most-used AI models, allowing data scientists to train sophisticated AI without having to pay through the nose for cloud-hosted resources. The system features 120 of Tenstorrent's proprietary Tensix cores, each of which comprises a high-utilization packet processor, a single instruction multiple data (SIMD) processor, a dense math computational block and five reduced instruction set computer (RISC) cores.

AI Computing Hardware Market Leaders

  1. Cadence Design Systems, Inc.

  2. Synopsys, Inc.

  3. NXP Semiconductors N.V.

  4. CEVA, Inc.

  5. Allied Vision Technologies GmbH

  6. *Disclaimer: Major Players sorted in no particular order
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AI Computing Hardware Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Deliverables
  • 1.2 Study Assumptions
  • 1.3 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Demand for AI Computing Hardware in the Defense sector
    • 4.2.2 Adoption of Field-programmable Gate Arrays (FPGA) for High Computing Speed
  • 4.3 Market Restraints
    • 4.3.1 Limited Number of AI Experts and High Power Consumption
  • 4.4 Industry Value Chain Analysis
  • 4.5 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.5.1 Threat of New Entrants
    • 4.5.2 Bargaining Power of Buyers/Consumers
    • 4.5.3 Bargaining Power of Suppliers
    • 4.5.4 Threat of Substitute Products
    • 4.5.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

  • 5.1 Type
    • 5.1.1 Stand-alone Vision Processor
    • 5.1.2 Embedded Vision Processor
    • 5.1.3 Stand-alone Sound Processor
    • 5.1.4 Embedded Sound Processor
  • 5.2 End User
    • 5.2.1 BFSI
    • 5.2.2 Automotive
    • 5.2.3 Healthcare
    • 5.2.4 IT and Telecom
    • 5.2.5 Aerospace and Defense
    • 5.2.6 Energy and Utilities
    • 5.2.7 Government and Public Services
    • 5.2.8 Other End Users
  • 5.3 Geography
    • 5.3.1 North America
    • 5.3.1.1 United States
    • 5.3.1.2 Canada
    • 5.3.2 Europe
    • 5.3.2.1 Germany
    • 5.3.2.2 United Kingdom
    • 5.3.2.3 France
    • 5.3.2.4 Rest of Europe
    • 5.3.3 Asia-Pacific
    • 5.3.3.1 China
    • 5.3.3.2 Japan
    • 5.3.3.3 South Korea
    • 5.3.3.4 Rest of Asia-Pacific
    • 5.3.4 Rest of the World
    • 5.3.4.1 Latin America
    • 5.3.4.2 Middle-East and Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Company Profiles
    • 6.1.1 Cadence Design Systems Inc.
    • 6.1.2 Synopsys Inc.
    • 6.1.3 NXP Semiconductors NV
    • 6.1.4 CEVA Inc.
    • 6.1.5 Allied Vision Technologies GmbH
    • 6.1.6 Arm Limited
    • 6.1.7 Knowles Electronics LLC
    • 6.1.8 GreenWaves Technologies
    • 6.1.9 Andrea Electronics Corporation
    • 6.1.10 Basler AG
  • *List Not Exhaustive

7. INVESTMENT ANALYSIS

8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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AI Computing Hardware Industry Segmentation

AI computing hardware is a class of microprocessors or microchips, designed to enable the faster processing of AI applications. The study on the market comprises stand-alone vision processors and embedded sound processors, among others, that are offered by various players to different end users, such as BFSI, automotive, and IT and telecom.

Type Stand-alone Vision Processor
Embedded Vision Processor
Stand-alone Sound Processor
Embedded Sound Processor
End User BFSI
Automotive
Healthcare
IT and Telecom
Aerospace and Defense
Energy and Utilities
Government and Public Services
Other End Users
Geography North America United States
Canada
Europe Germany
United Kingdom
France
Rest of Europe
Asia-Pacific China
Japan
South Korea
Rest of Asia-Pacific
Rest of the World Latin America
Middle-East and Africa
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AI Computing Hardware Market Research FAQs

What is the current AI Computing Hardware Market size?

The AI Computing Hardware Market is projected to register a CAGR of 26% during the forecast period (2025-2030)

Who are the key players in AI Computing Hardware Market?

Cadence Design Systems, Inc., Synopsys, Inc., NXP Semiconductors N.V., CEVA, Inc. and Allied Vision Technologies GmbH are the major companies operating in the AI Computing Hardware Market.

Which is the fastest growing region in AI Computing Hardware Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in AI Computing Hardware Market?

In 2025, the North America accounts for the largest market share in AI Computing Hardware Market.

What years does this AI Computing Hardware Market cover?

The report covers the AI Computing Hardware Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the AI Computing Hardware Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

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Statistics for the 2025 AI Computing Hardware market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. AI Computing Hardware analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.