Emerging Technologies Fuel Demand for Specialized Hardware and its Patent
Analysis of the IT hardware market reveals steady growth in recent years, driven by increasing demand for smartphones, tablets, and laptops. The market has also witnessed a surge in the adoption of cloud computing and data storage solutions, leading to a higher demand for servers and networking equipment. Additionally, emerging technologies such as artificial intelligence and the Internet of Things (IoT) have further fueled the demand for specialized hardware components.
The anticipated size of the IT hardware market is USD 130.86 billion in 2024, and it is projected to reach USD 191.03 billion by 2029, with a compound annual growth rate (CAGR) of 7.86% over the forecast period (2024–2029).
The IT hardware market refers to the worldwide industry that includes the manufacturing, distribution, and sale of computer hardware components and devices. IT hardware encompasses a diverse array of items, including desktop computers, laptops, servers, storage devices, networking equipment, peripherals (such as keyboards and printers), and other electrical devices needed for computing. Portable computers and handheld devices have become popular because of their ability to be easily moved and their flexibility. These devices are commonly used for many purposes, such as work, education, entertainment, and personal use. Manufacturers consistently release new versions with upgraded features such as quicker processors, improved displays, extended battery life, and greater connectivity choices.
The fast expansion of the IT sector has played a major role in driving the market for IT hardware. IT is important in different industries, such as business, healthcare, education, finance, entertainment, and government. As the sector keeps growing and changing, the need for IT gear also goes up.
The growing use of digital technology in the public sector is a major factor influencing the IT hardware market. Governments around the world acknowledge the advantages of digital technologies and are pursuing several projects to improve their service delivery, increase efficiency, and offer better solutions for citizens.
The COVID-19 epidemic compelled numerous enterprises and educational institutions to implement remote work and distance learning methods. This resulted in an increase in the requirement for IT hardware items such as laptops, desktops, webcams, and accessories as people and organizations required them for remote work and learning.
Market trends in IT hardware
The anticipated expansion of the IT sector is projected to propel the IT hardware market.
The growth of the IT sector increases the demand for sophisticated and effective IT hardware solutions. This encompasses servers, storage devices, networking equipment, computer systems, and peripherals. As corporations and organizations embrace digital transformation plans more and more, they need strong and flexible hardware infrastructure to manage the increasing amounts of data, provide smooth connectivity, and assist their software applications.
The widespread use of cloud computing and big data analytics has specifically contributed to the expansion of the IT hardware market. Cloud service providers and businesses need robust servers, storage systems, and networking equipment to host and handle large volumes of data in real time. In addition, the increasing popularity of artificial intelligence (AI), machine learning (ML), and Internet of Things (IoT) technologies also contributes to the need for specific hardware components that are designed to work efficiently with these applications.
Based on reports from Spiceworks and SWZD, the most widely adopted or planned information technology trend in North American and European enterprises was Gigabit Wi-Fi networking, with a usage rate of 67%. Technologies for IT automation, which had a usage rate of 65%, came in second place. These trends highlight the growing demand for faster and more reliable network connectivity, as well as the desire to streamline and automate IT processes. Gigabit Wi-Fi networking allows for faster data transfer speeds, enabling businesses to handle large volumes of data more efficiently. Similarly, IT automation technologies help organizations optimize their workflows and reduce manual tasks, freeing up resources for more strategic initiatives.
Furthermore, the continuous progress in IT hardware, including quicker processors, larger storage capacity, enhanced networking technologies, and energy-efficient designs, remains appealing to organizations looking to expand their IT infrastructure. The requirement for improved hardware to facilitate new technologies such as 5G networks, edge computing, and quantum computing also adds to market expansion.
In general, there is a high demand for IT hardware due to the fast expansion of the IT sector and the growing use of digital technology across many industries. The expectation is that this trend will persist as firms focus on investing in infrastructure to remain competitive, enhance operational efficiency, and take advantage of emerging technology.
The Asia-Pacific region is projected to experience the highest rate of growth.
The Asia-Pacific region has a significant population and an expanding middle class, which is increasing the need for IT hardware items. The market size for IT hardware in the region is significant and continues to expand due to urbanization, digitization, and rising disposable incomes. Several international IT hardware manufacturers have set up manufacturing operations in China, Taiwan, and South Korea. These countries are significant production centers for IT hardware items, including components, devices, and peripherals. A strong manufacturing system in the area helps make IT hardware easily accessible and affordable.
The Asia-Pacific region has experienced substantial growth in internet usage due to the rising popularity of smartphones, affordable internet packages, and government efforts to enhance connectivity. The increasing number of internet users leads to a high need for IT hardware devices like smartphones, laptops, and tablets. In May 2023, the IT equipment PLI 2.0 intends to enhance India's productivity and worldwide prominence in the IT hardware, servers, and laptop value chains. Implementing PLI 2.0 for IT hardware will accelerate India's goal of achieving a USD300 billion electronics manufacturing industry, which is a crucial part of its objective to build a trillion-dollar digital economy.
The growth of online shopping and digital services in the Asia-Pacific area has had a significant effect on the market for IT hardware. E-commerce platforms offer a convenient method for consumers to buy IT hardware products, resulting in higher sales. In addition, the expansion of digital services, cloud computing, and data centers contributes to the need for IT hardware infrastructure. Mobile devices, especially smartphones, have become a crucial aspect of everyday life in the Asia-Pacific area. The popularity of smartphones is increasing as people look for more advanced features and affordable choices. Countries in the Asia-Pacific region are some of the biggest users of smartphones worldwide, which is increasing the need for IT hardware components.
Overview of the IT Hardware Industry
The IT hardware market is divided into many parts, with significant companies such as HP Inc., Samsung Electronics Co. Ltd., Intel Corporation, Dell Technologies Inc., and Acer Inc. being present. Market participants are utilizing tactics such as collaborations and purchases to improve their range of products and achieve a lasting competitive edge.
In May 2023, Samsung Electronics Co., Ltd. revealed the worldwide launch of its 2023 Smart Monitor collection. The three models of Samsung Smart Monitors, namely M80C, M70C, and M50C, provide customers with the ability to customize their monitor according to their preferences and needs when viewing, playing, and working.
In October 2022, Intel entered a partnership with original design manufacturer VVDN Technologies to create, produce, and manufacture products based on Intel technology for telecommunications, networking, cloud computing, and 5G in India. VVDN, located in Gurugram, creates solutions for international customers in 5G, networking and Wi-Fi, vision, the Internet of Things, the cloud, and applications. VVDN runs six manufacturing facilities in Manesar, close to Gurugram, and plans to invest Rs 500 crore (USD 60.5 million) in the next three years to expand production capacity by establishing a new factory in Tamil Nadu.
In April 2023, Samsung Electronics and AMD announced that they would continue their cooperation for several years. The goal of this partnership is to include multiple generations of high-performance, energy-efficient AMD Radeon graphics solutions into a wider range of Samsung Exynos SoCs.
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