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

Regional Analysis

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North America has established itself as the dominant region in the global artificial intelligence in hardware market with 35.1% in 2024. With major technology companies like Intel, Nvidia and AMD headquartered in the U.S., the region accounts for the largest number of AI chip startups and suppliers. These companies have made huge investments in innovating AI hardware like processors, systems and edge devices optimized for neural network computations. Sustained focus on R&D has enabled North American firms to commercialize cutting-edge AI chip technologies well ahead of competitors. These also wield significant influence over global technology standards and supply chains catering to AI deployment. The presence of large tech customer base has further accelerated adoption of AI hardware goods and solutions across industries in the region.

Asia Pacific is rapidly emerging as the fastest-growing market, largely fueled by China's significant investments. The Chinese government is heavily funding and promoting indigenous innovation, leading to substantial advancements in domestic AI chip manufacturing. The robust electronics manufacturing sector in China enables startups to quickly scale their hardware production. Initiatives like 'Made in China 2025' are enhancing this growth by designating AI processors and edge devices as key strategic areas. Moreover, several Chinese companies are successfully expanding internationally by utilizing their competitive manufacturing capabilities and expertise. Government policies mandating AI deployment across essential industries are further boosting domestic demand. Other countries in Asia are also increasing their investments to take advantage of the economic opportunities presented by China's ascent as a global AI leader. As local capabilities strengthen, the Asia Pacific region is progressively transforming into a net exporter of AI hardware technologies rather than an importer.