Report

IT Hardware Market Analysis

The global IT hardware market was valued at USD 141.15 billion in 2025 and estimated to grow from USD 152.13 billion in 2026 to reach USD 221.34 billion by 2031, at a CAGR of 7.78% during the forecast period (2026-2031). Demand accelerates as enterprises refresh PCs ahead of Windows 10 end-of-support, deploy AI-ready servers, and comply with data-sovereignty mandates. North American cloud providers continue to expand hyperscale campuses, while Asia-Pacific manufacturers modernize production with edge computing. Tight semiconductor supply and e-waste regulation temper short-term momentum but do not derail the long-range growth outlook. Vendor competition intensifies around integrated compute, storage, and networking solutions that shorten deployment time and improve energy efficiency. Direct OEM relationships still dominate large-enterprise procurement, yet fast-growing online channels now give smaller firms affordable access to enterprise-grade equipment.

Global IT Hardware Market Trends and Insights



Post-pandemic PC refresh cycle ahead of Windows 10 EoS

Enterprises face a hard Windows 10 support deadline in October 2025. Microsoft's extended security plan costs escalated to USD 427 per device in the third year, making new hardware cheaper than patching . Devices purchased for remote work in 2020-2021 now reach their natural four-year replacement window. U.S. hospital systems such as Kaiser Permanente have already upgraded entire fleets for Windows 11-based electronic health records. Banking majors mirror the trend; JPMorgan Chase earmarked USD 2.1 billion in 2024 for endpoint security upgrades tied to modern PCs. The dual catalyst lifts demand for compliant laptops, desktops, and specialist workstations across regulated sectors.

Proliferation of AI-optimized servers and GPUs

AI workloads move from pilots to production, sending specialized server demand sharply higher. NVIDIA data-center revenue jumped to USD 47.5 billion in fiscal 2024 as enterprises standardised on GPU-based compute. Dell Technologies reported an AI-server backlog swelling from USD 800 million to USD 2.9 billion within one quarter, underscoring urgency for AI-ready gear. Manufacturers such as Siemens embed these systems on shop floors to enable predictive maintenance, while Goldman Sachs invested USD 1.2 billion in 2024 to secure millisecond risk-analysis capability. The shift also accelerates spending on high-bandwidth networking and low-latency storage that keep AI clusters fully utilized.

Escalating e-waste regulation and disposal costs

The EU's Waste Electrical and Electronic Equipment Directive now mandates 85% recycling by 2027, raising redesign and logistics costs for producers. California's Right-to-Repair Act forces vendors to stock parts and manuals for seven years, reshaping product roadmaps. Customers factor disposal fees into the total cost of ownership, stretching refresh cycles. Microsoft extended its own PC life from four to five years to limit landfill volume. Vendors with modular chassis gain an edge, while planned obsolescence playbooks lose relevance.

Other drivers and restraints analyzed in the detailed report include:

Hyperscale data-centre build-out in emerging marketsGrowth of edge-computing starter kits for smart factoriesSemiconductor geo-political supply-chain shocks

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Server revenue is growing at a 8.95% CAGR, the fastest in the IT hardware market, as enterprises adopt dense GPU nodes for AI model training. Dell logged USD 4.2 billion in Q3 2024 server sales on AI-centric builds. In contrast, PCs hold a 51.02% share but now experience elongated replacement cycles. Storage and networking follow server demand, adding bandwidth and low-latency links for AI clusters. Liquid cooling and vertically integrated racks blur traditional product boundaries. AMD's acquisition of ZT Systems gives it custom design capacity, aligning with hyperscaler preference for bespoke units. Peripherals see steady demand from hybrid work, while edge gateways seed new micro-segments in industrial settings.

Hybrid architecture dominates server rooms. Enterprises pair x86 CPUs with accelerators, balancing cost and throughput. Energy efficiency has become a front-line buying criterion as utility tariffs climb. The IT hardware market size for servers is poised to expand steadily alongside AI deployment waves through 2031. Vendors capable of supplying turnkey racks with power and cooling subsystems protect margins against white-box alternatives.

Enterprises retained 47.25% of 2025 spending, yet cloud providers are set to outpace at a 17.05% CAGR. AWS alone devoted USD 12.7 billion in Q3 2024 to data-center and AI server capital outlays. Government buyers raise on-shore capacity to comply with sovereignty rules. Healthcare pivots to telemedicine and secure patient records, needing encrypted storage arrays. BFSI firms refresh endpoints to satisfy cyber-resilience audits. Manufacturing installs edge clusters for real-time production data, and media firms deploy 8K editing suites. Telecom operators integrate IT hardware into 5G core networks, preferring converged compute appliances.

Cloud leaders' capex sets a high floor for server, switch, and storage demand, cushioning suppliers against cyclical dips. Enterprises, meanwhile, adopt hybrid IT, retaining in-house assets for regulated workloads. The IT hardware market benefits from both streams, yielding a balanced user-mix profile through the decade.

The IT Hardware Market Report is Segmented by Product Type (PC Client Devices, Servers, and More), End User (Enterprise, Government and Public Sector, BFSI, and More), Deployment Environment (On-Premise, and Cloud), Distribution Channel (Direct/OEM, System Integrators, Value-Added Resellers, and Online Retail), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Geography Analysis

North America contributed 37.40% revenue in 2025 thanks to early AI adoption and hyperscale expansion. Federal cloud programs and private-sector tech upgrades sustain steady refresh cycles. Enterprises embrace hybrid IT, driving balanced orders across PCs, servers, and network hardware. Sustainable design also gains traction, with vendors pitching energy-efficient racks to meet carbon targets.

Asia-Pacific leads growth at a 9.32% CAGR to 2031. Japan's planned USD 35.4 billion in data-center spend underpins bulk purchases of GPU servers and liquid-cooling systems. India advances digital-public-goods frameworks, forcing domestic processing that enlarges local server capacity . China's indigenous tech suppliers grab share amid trade tension, while Southeast Asian hubs like Singapore attract multi-national cloud builds. Manufacturing modernization multiplies edge-node deployment across the region, spreading demand beyond tier-one cities.

Europe posts moderate expansion anchored by regulatory compliance and sustainability incentives. Right-to-repair laws stimulate modular hardware demand, while data-sovereignty rules encourage regional assembly. Cloud data centers locate in Nordic countries for renewable energy, yet on-premise spend persists in banking and public services. Eastern Europe shows catch-up investment in PCs and network upgrades, adding a growth tail to the mature Western bloc.

List of Companies Covered in this Report:

Upwork Inc. Fiverr International Ltd. Freelancer Limited Toptal LLC Guru.com LLC PeoplePerHour.com Ltd. DesignCrowd Pty Ltd. Contently Inc. WorkGenius GmbH WorkMarket, Inc. Catalant Technologies, Inc. 99designs by Vista Behance (Adobe Inc.) TaskRabbit, Inc. Amazon Mechanical Turk (Amazon.com, Inc.) UpStack Technologies, Inc. Workana Inc. Gigster LLC Aquent LLC FlexJobs Corporation

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support