Computer Hardware Manufacturing Market

Computer Hardware Manufacturing Market Outlook (2024 to 2034)

A new research study released by Fact.MR places the global computer hardware manufacturing market at a value of US$ 295.7 billion in 2024. Demand is estimated to reach US$ 765.64 billion by the end of 2034, increasing at a noteworthy 10% CAGR from 2024 to 2034.

The need for gear that processes advanced algorithms and vast volumes of data is increasing, which is driven by artificial intelligence and machine learning. This includes specialized gear, such as AI accelerators used in data centers, driverless cars, and robotics, as well as strong CPUs and fast memory. Advanced computer hardware is needed for real-time data processing and decision-making because of Industry 4.0's development in automation, robots, and artificial intelligence in manufacturing. These smart manufacturing systems depend on sensors, controllers, high-performance processing units, and others, which are driving up the need for computer hardware.

The computer hardware manufacturing market growth is driven by the ongoing development of semiconductor technology, such as reduced chip sizes, sophisticated packaging methods, and enhanced fabrication processes. These developments produce components that are strong and energy-efficient, satisfying the demands of electronic gadgets and next-generation computers.

Key Market Growth Drivers

• The requirement for advanced computer hardware is continuously increasing due to developments in processing power, memory, and storage technologies, such as the innovation of faster, higher-capacity storage solutions, including SSDs, and more efficient processors, for instance multi-core CPUs and GPUs.
• To support advanced applications, developing technologies, such as 5G, machine learning, and others are further contributing to the computer hardware manufacturing market size expansion.
• Demand for high-performance components, particularly graphics processing units (GPUs), specialist gaming motherboards, and peripherals is increasing because of the growing gaming industry as well as the increasing utilization of virtual reality (VR) and augmented reality (AR).
• An important computer hardware manufacturing market trend is businesses are becoming more digital and continuing to move toward cloud computing, which is driving up the need for data centers and server gear.
• Strong, scalable hardware infrastructure is becoming more necessary as several businesses invest in big data analytics, cloud storage, and high-performance computing (HPC).
• Continuously increasing demand for laptops, personal computers, and accessories, including webcams, microphones, and printers by speeding up the trend of remote work and online education. As more companies and academic institutions are adopting flexible, hybrid working methods, the need for computer hardware is also rising.

Report Attributes	Details
Computer Hardware Manufacturing Market Size (2024E)	US$ 295.7 Billion
Forecasted Market Value (2034F)	US$ 765.64 Billion
Global Market Growth Rate (2024 to 2034)	10% CAGR
North America Market Value (2024E)	US$ 18.31 Billion
East Asia Market Growth Rate (2024 to 2034)	10.6% CAGR
Computer Manufacturing Segment Value (2034F)	US$ 569.51 Billion
Trade Segment Value (2034F)	US$ 489.22 Billion
Key Companies Profiled	Apple Inc.; Dell Technologies Inc.; HP Inc.; Lenovo Group Ltd.; ASUS Computer International; Microsoft Corporation; Samsung Electronics Co., Ltd.; Intel Corporation; Advanced Micro Devices, Inc. (AMD); NVidia Corporation

What is Driving the Demand for Computer Hardware Manufacturing?

“Continuous Technological Innovations in 5G, Artificial Intelligence, Machine Learning, and Others”

The market for computer hardware is continuously moving in an upward direction due to technology in processing power, memory, storage, and others. High-capacity SSDs, potent GPUs, and multi-core CPUs are some of the innovations that are satisfying the growing need for quicker, more effective computing.

Demand is further driven by the rising need for advanced hardware to handle complicated applications of developing technologies, such as 5G, AI, machine learning, and others. Market players are constantly innovating because of the growing need for more potent, specialized computer hardware brought on by these technologies.

What is Limiting the Demand Growth for Computer Hardware Manufacturing?

“High Production Expenditures Limiting Market Expansion”

The market growth of computer hardware manufacturing is seriously hampered by the high production costs, particularly for innovative parts, such as semiconductors. Making advanced hardware is extremely costly due to the high price of raw materials, such as silicon and rare metals as well as the intricacy of manufacturing procedures. To maintain a position in a competitive market and develop new technologies, large expenditures in research and development are becoming necessary.

Profit margins are sometimes decreased by these high expenses, especially in areas where consumers and companies are searching for less expensive options. This makes it more difficult for producers to keep prices competitive while still making a profit.

Country-wise Insights

The East Asia region is estimated to hold a significant portion of the worldwide computer hardware manufacturing market share throughout the assessment period due to its well-known reputation as an important production center. Other than this, this region is one of the key producers of semiconductors, which is further driving the computer hardware manufacturing market growth. The growing gaming industry in countries, including China and South Korea is also positively affecting the market growth.

Why is the Market for Computer Hardware Manufacturing in the United States Showing Positive Sentiments?

“Presence of Well-Known Companies and High Focus of Technical Innovations”

Attribute	United States
Market Value (2024E)	US$ 16.41 Billion
Growth Rate (2024 to 2034)	9.3% CAGR
Projected Value (2034F)	US$ 39.92 Billion

The market in the United States is expanding continuously due to the presence of several leading companies and a high focus on technological innovations. To create advanced processors, memory systems, and other components that help developing industries, such as artificial intelligence (AI), machine learning, and cloud computing, companies in the United States are heavily investing in research and development activities.

These companies are driving the demand growth as well as guaranteeing that the United States maintains its competitiveness in the market for computer hardware manufacturing by consistently pushing the limits of technology.

Why are Computer Hardware Manufacturing Companies Aiming at Japan?

“Growing Utilization of Robotics and AI in Several Industries”

Attribute	Japan
Market Value (2024E)	US$ 57.9 Billion
Growth Rate (2024 to 2034)	9.3% CAGR
Projected Value (2034F)	US$ 141.28 Billion

The need for computer hardware manufacturing is increasing in Japan because it is one of the leading countries in robotics and artificial intelligence. Strong processors, AI accelerators, and high-speed memory solutions are becoming more necessary to support the growing number of AI applications in automation, manufacturing, healthcare, and others. With the increasing utilization of robotics in sectors, including manufacturing and automotive as well as AI-driven advancements in healthcare, advanced hardware is needed to handle massive volumes of data and facilitate real-time decision-making.

The market for computer hardware manufacturing in Japan is seeing new opportunities because of these technical developments, providing the infrastructure required for these new applications.

Category-wise Insights

Based on major market, sales of computer hardware from wholesalers and retailers are projected to increase at an excellent CAGR of 10.8% over the next ten years. The reason behind this is consumers and businesses are continuously upgrading their systems due to the growing need for technology in both personal and professional contexts.

Why is the Requirement for Computer Manufacturing Growing Continuously?

“Growing Adoption of Digital Work Environment Worldwide”

Attribute	Computer Manufacturing
Segment Value (2024E)	US$ 207.77 Billion
Growth Rate (2024 to 2034)	10.6% CAGR
Projected Value (2034F)	US$ 569.51 Billion

The need for computer manufacturing is constantly rising because of the increasing demand for laptops, business computing devices, personal computers, and others. This segment covers the manufacturing of vital parts that are necessary for putting together working computer systems, such as motherboards, processors, memory, and storage devices.

High-quality, dependable computing devices are still needed because of our growing reliance on digital work settings, education, gaming, cloud computing, and others. The demand for advanced computers is also driven by advancements in processing power, energy efficiency, and connection.

Why does the Trade Segment Hold a Sizable Portion of Market Share?

“Rising Number of International Trade and Expanding e-Commerce Industry Driving Demand”

Attribute	Trade
Segment Value (2024E)	US$ 185.36 Billion
Growth Rate (2024 to 2034)	10.2% CAGR
Projected Value (2034F)	US$ 489.22 Billion

The trade segment holds a significant percentage of the market share because of the growing need for hardware devices and components. International trade is increasing, which is driven by the rising need for high-quality computer hardware products, such as processors, memory chips, peripherals, and others as several countries are continuously focusing on digitizing and adopting advanced technologies.

Trade is essential for satisfying global demand because manufacturers in areas with excellent production capabilities, such as East Asia and North America, export components to other markets. The growth of the trade segment is further pushed by the e-Commerce portals, which are making it easier to distribute consumer electronics and components globally.

Competitive Landscape

Key players in the computer hardware manufacturing industry are heavily investing in R&D activities to introduce innovative features and advanced technologies that differentiate them and their products in the market. These developments, include 5G capabilities, AI integration, smart home appliances, display technology, such as OLED and 8K TVs, and others.

• In October 2024, as part of its larger effort to increase domestic production and lessen dependency on gadgets manufactured elsewhere, India is proceeding with plans to restrict imports of laptops and computers. The government's plan to impose import limits is intended to encourage global tech firms, including Apple, Dell, and Lenovo to establish local production facilities, according to a recent Reuters article.
• In January 2024, the US$ 30 million investment round was announced by Xyte, the company that created the first all-in-one servitization platform for hardware and device manufacturers. This includes US$ 10 million in venture lending from funds and accounts managed by BlackRock, as well as US$ 20 million in Series A funding led by Intel Capital, with participation from Samsung Next and current investors S Capital and Mindset Ventures.

Fact.MR provides detailed information about the price points of prominent players in the computer hardware manufacturing market positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Computer Hardware Manufacturing Market Research

• By Product & Service :

  • Computer Manufacturing
  • Computer Storage Device Manufacturing
  • Other Computer Peripheral Manufacturing

• By Major Market :

  • Trade
  • Wholesalers & Retailers
  • Direct Sales

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa