Computer Hardware

The market size of the global computer hardware industry was $130.86 billion in 2024, according to Mordor Intelligence. From 2024 through 2029, revenue in the industry is expected to increase at a compound annual growth rate of 7.86 percent, reaching $191.03 billion by 2029. "Overall, the rapid growth of the IT industry, fueled by technological advancements and increasing digitalization across sectors, creates a strong demand for IT hardware," according to Mordor Intelligence. "This trend is expected to continue as organizations prioritize investments in infrastructure to stay competitive, improve operational efficiency, and harness the potential of emerging technologies."

The U.S. Department of Labor (DOL) predicts that overall employment in the computer and information technology will increase much faster than the average for all careers from 2023 through 2033. The job outlook will also be good in specific hardware-related careers. For example, employment for computer hardware engineers is projected to grow 7 percent from 2023 to 2033, according to the DOL. This is faster than the average for all occupations. "Demand for computer hardware engineers is expected to grow, as these workers are needed to design parts for manufactured products that use processors and other components, such as household appliances, medical devices, and automobiles," according to the DOL. Job opportunities for computer and information research scientists are projected to grow 26 percent from 2023 to 2033, which is much faster than the average for all occupations.

Firstresearch.com reported that in 2024 the computer manufacturing industry in the United States included 950 companies (single-location companies and units of multi-location companies) with combined revenues of approximately $20 billion. The U.S. computer manufacturing industry is highly concentrated, with the 50 largest firms generating more than 80 percent of revenue. The three biggest product categories in the industry are computers, including personal computers, servers, and mainframes; storage devices, including optical and hard disk drives; and peripheral equipment, including ATMs, PC peripherals, and point-of-sale devices. Demand will be driven by consumer and business spending. Demand for peripherals for personal devices, however, has been affected by widespread adoption of tablets and personal computers with built-in peripheral features, such as cameras, webcams, and high quality speakers.

The computer hardware industry is boosted by several key factors. The Internet continues to provide faster ways to obtain information, attracting many new computer users. Handheld mobile computing devices are extremely popular. Additionally, a new class of extremely powerful computers known as supercomputers are being developed to tackle the most-challenging computing tasks. "Modern supercomputers contain tens of thousands of processors, perform trillions of calculations per second, primarily run on the Linux operating system and consist of multiple computers performing parallel processing," according to BuiltIn.com, an online community for startups and tech companies. Computer hardware professionals will be needed to develop more robust versions of these devices, as well as completely new technology for use in quantum computing.

Computer networking, especially wireless networking, is expanding into all areas of computing, creating opportunities for systems analysts and networking specialists. The power of semiconductors, integrated circuits in particular, is important outside of the computer industry. These electronic components give power to smart homes, vehicle-to-vehicle (V2V) communication systems, aircraft navigational systems, as well as electronic consumer goods, such as cellular phones, toys, and refrigerators. Also, computer professionals who can translate techno-lingo into layperson’s terms (for example, technical writers and computer support specialists) will be in high demand.

However, though many opportunities within the industry exist, expect competition for these jobs to stay fierce. A degree in computer science or electrical engineering is a prerequisite for most companies, though non-science degree holders may be considered if they have ample computer training or practical experience along with various computer courses. Management opportunities favor those with advanced degrees in computer science, computer engineering, management information systems (MIS), or an MBA. Certification is also becoming more important in this industry, as employers seek to hire the best-educated and most qualified candidates from a growing pool of applicants. Along with having strong programming and analytical skills, successful industry workers should be excellent communicators and quick thinkers. They should also have good business sense.

In the past, industry giants were located only in California’s Silicon Valley or the San Francisco Bay area. Up-and-coming computer hardware companies are now established throughout the United States in states such as Texas, North Carolina, South Dakota, and Idaho. Major computer hardware companies include Apple, IBM, Hewlett-Packard, Toshiba, Intel, and Dell. Those who are willing to relocate to high-tech hotspots will have improved job opportunities—although it's also important to note that some positions allow remote work opportunities or remote/in-office hybrid options.

Trends suggest that outsourcing product development and manufacturing to companies overseas and the consolidation of companies within the computer hardware industry may impact future employment opportunities in the United States. Some companies are keeping top-level design jobs and the marketing and distribution segment of the industry in the United States, while taking advantage of cheaper labor available in China or the Philippines by sending production and basic design work to those countries at a loss of many U.S.-based jobs. Though the computer hardware industry is not immune to economic volatility or changes in profit margins, qualified computer workers with advanced education and certification will always be needed.

One final noteworthy trend is the use of artificial intelligence in the design of hardware and software, as well as its integration into computer products. Artificial intelligence is being used in hardware design and development to fuel more effective brainstorming (AI prompts save engineers time and allow them to approach problems from different angles), identify design errors earlier in the process, decrease iteration times, automate part selection, and speed up the learning process. While the future is bright for the use of AI in hardware design and development, there are serious concerns about its accuracy in some usage formats, as well as concerns that it will automate some jobs. "Unfortunately, in most corners of the hardware market, AI is still very much in its infancy," according to BuiltIn.com. "While other industries are adopting AI at lightning speed, the hardware world seems to be dragging behind. Only recently have hardware teams begun expressing serious interest in the potential of AI."