The world of computing and computer hardware is a fast and ever-evolving market. The latest trends released just the other day may be redundant after only a few years as the market continues to innovate and excite. The tech hardware industry includes computer hardware and technology, peripheral devices, infrastructure, and semiconductors.
Along the tech hardware value chain are several globally recognized players, including Apple, Dell, IBM, and Intel. However, competition is stiff, with tech firms across the world investing heavily in research and development in order to maintain their lead in the market and continue to develop innovative products and services. As a result, many of the leading companies in the hardware industry are among the world’s largest and richest companies.
Disruptions to supply chains, impacts on the workforce, and demands brought about by the transition to a new way of life have resulted in businesses along the entire electronics value chain having to evaluate and modify their operations. The global economic crisis has exacerbated problems within the tech hardware industry, with device spending expected to fall for the second year in a row in 2023 as buyers lengthen refresh cycles – a trend that is expected to last until 2024.
Following strong growth through the pandemic as consumers and enterprises purchased new devices, global PC shipments fell by over 15 percent in 2022. A decline of 30 percent was recorded in the first quarter of 2023 – one of the sharpest declines on record and attributed to the slowdown in the global economy. To counter this, PC vendors are expected to focus on software and service provision upgrades while the market recovers, including PC as a service (PCaaS) offerings to mitigate costs.
Data centers are forecast to receive increased investment in 2023. Security and efficiency have been enhanced by the implementation of artificial intelligence (AI), processes that require specialized AI chips. Advanced applications such as 5G, the Internet of Things, and generative AI will benefit from advancements in AI chip technology and the development of both hyperscale and edge data centers – specialized facilities located closer to end-users.
Governments and companies across the entire semiconductor value chain have had to navigate changing demands, supply chain imbalances, and geopolitical factors. As a result, action plans and policies have had to be established in order to protect the supply of chips. Following further growth in 2022, the semiconductor industry must overcome new challenges as it faces a decline in 2023, fueled by a deteriorating global economy and weakening demand from consumer-driven markets.
Smartphones represent a key market for the semiconductor industry, especially as these devices become more advanced and able to support 5G, AI, and immersive technology applications. Servers and data center environments are set to become an even more important opportunity, with graphics processing units being deployed for the training and running of generative AI applications such as ChatGPT, as well as AI-powered quantum simulation.
The tech hardware industry includes computer hardware and technology, peripheral devices, infrastructure, and semiconductors. Statista provides information on spending within the overall technology hardware industry and its segments, both on a global and regional scale. Additionally, the financial metrics and market share of the major players within the relevant market segments are also covered, together with data on the application and usage of technology hardware.