ARTIFICIAL INTELLIGENCE IN HARDWARE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Complexity in design and development of specialized AI hardware can hamper the global artificial intelligence in hardware market growth. Developing application-specific integrated circuits (ASICs) or systems-on-chips (SoCs) that can handle the computational requirements of deep learning and neural networks is an immense technical challenge. It requires expertise in hardware design, semiconductor fabrication, parallel computing architectures and software-hardware co-design. Finding the optimal level of processing power, memory bandwidth, power consumption and cost is difficult to achieve. Transitioning AI models trained on general-purpose GPUs to run efficiently on custom hardware also pose challenges. Hardware vendors must invest heavily in R&D to continuously innovate and deliver performance improvements with each new generation of AI chips. This sustained engineering effort coupled with design cycles that can extend years adds to the complexity faced by hardware companies in commercializing specialized AI solutions.

In December 2023, Intel Corporation, a leading technology company that is known for its innovations in semiconductor design and manufacturing, announced the launch of its new AI products and hardware. The introduction of the 5th Gen Intel Xeon and Intel Core Ultra processors expands the company's extensive AI hardware portfolio, positioning it to compete effectively with top AI hardware providers.

Opportunity- Growing Demand for AI in Gaming and Entertainment

Gaming and entertainment industry has emerged as a major opportunity area for artificial intelligence in hardware. Applications of AI such as computer vision, motion tracking, predictive analytics, facial recognition, and natural language processing enhances the user experience in games, interactive content and simulations. The industry is investing heavily in AI techniques to power immersive VR/AR experiences, personalized recommendations, contextual storytelling, lifelike virtual characters and integrated social experiences. This growing demand from gaming and entertainment customers for specialized AI capabilities can boost development of efficient AI hardware accelerators optimized for computer vision, voice and language processing workloads.