Hardware

The Global Hardware Market, valued at USD 685.4 billion in 2024, is poised for robust growth, driven by soaring demand for semiconductors, microcontrollers, integrated circuits, computing systems, networking equipment, IoT hardware, and industrial automation devices. Asia-Pacific emerges as the fastest-growing hub, recording growth above 10% CAGR, fuelled by consumer adoption of smart gadgets, wearable electronics, and AI-powered devices, alongside government-backed electronics manufacturing initiatives in China, India, and Vietnam. Meanwhile, North America and Europe dominate exports of advanced servers, GPUs, quantum-ready processors, edge devices, and microcontrollers, while APAC nations imported over USD 75 billion in integrated hardware components, PCBs, and semiconductors in 2024, with India alone accounting for USD 22 billion. Price disparities persist, with U.S. tariffs on Chinese hardware at 12–25%, whereas APAC manufacturers benefit from a 10–15% cost advantage due to clustered supply chains and vertical integration.

Capital intensity defines the sector, with CAPEX in semiconductor fabs, AI-driven chipsets, robotics hardware, and data centers exceeding USD 100 billion globally, while OPEX is dominated by raw materials (45–50%) and skilled labor (20–30%). Hardware market Trade and regulatory shifts shape flows, with over 15 million GPUs and industrial processors exported from Taiwan and South Korea, and compliance with WEEE and RoHS standards driving sustainability in manufacturing. Hardware market remains concentrated, led by Intel, Samsung, TSMC, Nvidia, and Foxconn, while European and Japanese firms specialize in power electronics, high-frequency modules and miniaturized PCBs. Nvidia holds 38% of the GPU market, and Samsung and TSMC dominate semiconductor foundry services with over 60% combined share.

Future growth is driven by AI-powered computing hardware, quantum processors, IoT modules, edge devices, wearable electronics, and green infrastructure. The global semiconductor shortage widened supply gaps by 14% in 2024, underscoring investment urgency. Venture capital exceeded USD 25 billion targeting next-gen microchips, miniaturized PCBs, IoT modules, and smart factory solutions. Urban market penetration already exceeds 70%, projected to reach 85% by 2032, while industrial automation hardware maintains double-digit growth. As trade liberalizes and tariff harmonization advances, the hardware market solidifies its role as a strategic backbone of the global digital economy, driving innovation and resilient growth through 2032.

Digital Transformation Impact
Growth of 5G
Fastest-Growing Hardware Component Segment
Semiconductors, GPUs,
Dominant MNCs in Hardware Components
Intel

Explore the key insight

EVM Components
The global EVM components market, valued at an estimated USD 205.8 billion in 2024, is being redefined by growing demand from both consumers and enterprises and is projected to expand at a CAGR of 22.5% by 2034. The EVM components market growth is being fueled by the rapid adoption of electronic EVM modules, embedded EVM components, and industrial EVM components across electric vehicles, industrial automation, and IoT-enabled platforms. Increasing integration of IoT EVM modules and high-performance EVM components is enhancing connectivity, data monitoring, and energy efficiency in modern EVM electronics devices. EVM components industry Asia-Pacific has emerged as a leading growth hub, with China, India, and Southeast Asia registering nearly double the global growth rate for EVM boards, EVM system modules, and embedded system EVM, driven by cost-effective manufacturing, government incentives, and rising EV adoption. Meanwhile, North America and Europe continue to dominate advanced EVM modules, professional EVM modules, and high-speed EVM components, focusing on innovation, premium quality, and industrial-grade EVM hardware modules.Government initiatives promoting sustainable mobility, energy-efficient transportation, and smart city infrastructure are creating a favorable regulatory environment for EVM integration modules, modular EVM systems, and EVM electronics integration. EVM components industry, trends such as low-power EVM modules, compact embedded EVM, and EVM circuit modules are enabling miniaturization, enhanced performance, and seamless integration into consumer electronics and industrial applications. Companies are increasingly investing in EVM development boards, EVM software modules, and next-gen EVM modules to strengthen their EVM solutions for IoT and AI-enabled platforms.Competition in the EVM components market remains intense, with leading players focusing on EVM innovation, EVM electronics boards, and embedded electronics EVM modules to differentiate through reliability, scalability, and cost efficiency. The increasing adoption of EVM applications in electronics, industrial-grade EVM, and EVM modules for automation and robotics is shaping the next generation of electric mobility and smart industrial solutions. With urban EV adoption projected to rise significantly over the next decade, EVM electronics platforms and EVM board solutions are evolving from niche components into critical infrastructure for global electronics and industrial ecosystems.

Industry definition

Hardware, a vital sub-industry within Electronics, encompasses the physical components and devices that power modern electronic systems, integrating high-performance chips, microcontrollers, circuits, and connectors. This includes computing hardware such as desktops, laptops, servers, and storage devices; networking hardware like routers, switches, and modems; consumer electronics hardware including smartphones, tablets, smart TVs, and wearables; industrial and automation hardware such as sensors, actuators, PLCs, and robotic components; and peripheral devices like keyboards, mice, printers, and scanners. With the rise of AI, IoT, 5G, and edge computing, hardware innovations are driving next-generation electronics, enabling energy-efficient, high-performance, and intelligent solutions across automotive, industrial, healthcare, and consumer applications.