In this article, we are going to list the 15 biggest tech hardware companies in the world. We will analyze the hardware industry, possible growth catalysts for hardware stocks and the overall outlook for the industry. You can also skip this discussion and see the 5 biggest tech hardware companies in the world.
Computer hardware market is experiencing a spectacular rise amid the coronavirus-induced demand. Trends that are fueling the computer hardware industry include work from home, remote learning, Cloud computing, AI, increasing PC shipments, gaming and entertainment. According to research firm Gartner, worldwide PC shipments increased 9% year over year in the third quarter of 2020. Overall, PC shipments jumped 3.6% to 71.4 million units in the third quarter, fueled by a 11.4% rise in U.S. This was the first time in a decade that the region saw a double-digit growth.
The global computer hardware market is anticipated to grow from $862.93 billion in 2020 to $944.09 billion in 2021 at a compound annual growth rate (CAGR) of 9.4%. North America was the largest region in the global market for computer hardware, accounting for 43% of the market in 2020. The tech hardware market is expected to be powered by a rapid increase in investment in smart city projects in many countries around the world. Smart city innovations use information and communication technologies to organize urban services efficiently, including transport systems, water supply, and law and order.
Hardware in tech terms refers to the physical parts of a computer and related devices. It can be categorized into internal hardware (motherboards, RAM, HDD, SSD, graphic cards, power supply) and external hardware (monitor, keyboard, scanner, printer). Hardware refers to the tangible parts of a computer device needed to store and run the software. The hardware is the delivery platform of the written instructions provided by the software. On the other hand, the software is intangible which consists of operating systems, programs, and applications that need to be installed on the computer. You can check out the 15 biggest software companies in the world on a separate list.
Computer hardware industry experienced a massive growth over the course of a century. In 1946, the first computer, Electronic Numerical Integrator and Computer (ENIAC) was built in the U.S. It weighed more than 27 tons and had over 17,000 vacuum tubes, 70,000 resistors, 10,000 capacitors, 6,000 switches, and 1,500 relays. Today, massive computing power has been narrowed down to chips the size of pins.
In the last few years, the tech hardware sector has faced major shifts in areas such as graphics processing and virtual reality. Moreover, the Internet of Things (IoT) is gaining momentum as the next major trend in the computer market with the potential to establish an impact across the business spectrum. IoT and AI will fuel the demand for hardware companies. Data from McKinsey shows that by 2025, AI-related semiconductors could account for about 20% of the total hardware demand. This translates into $67 billion in revenue.
The tech industry offers investors endless opportunities. The hardware sector specifically promises thriving numbers in the years to come. This is why we created a list of the 15 biggest tech hardware companies in the world. We gathered each company's value in terms of revenue, market cap, assets, and the number of employees sourced from Forbes. We then ranked these tech hardware companies from the lowest to highest financial value.
Let's take a look at the biggest tech hardware companies in the world.
15. Quanta Computer Inc. (TWSE: 2382.TW)
Revenue: $33.3 billion
Market cap: $8.4 billion
Assets: $20.5 billion
Number of employees: 70,000
Headquarters: Taoyuan, Taiwan
Quanta Computer, founded in 1988, is one of the Global Fortune 500 Companies and also one of the world's leading manufacturers of notebooks. Quanta is also involved in cloud computing, enterprise network solutions, mobile communications products, smart home products, smart healthcare, IoT, and AI applications.
Revenue: $51.6 billion
Market cap: $189.18 billion
Assets: $90.4 billion
Number of employees: 75,900
Headquarters: San Jose, CA
Cisco is one of the biggest tech companies in the world. Cisco Systems, Inc. is specializing in the development, manufacture, and sale of Internet Protocol-based networking products and services related to the communications and information technology industry. Cisco is a global leader in manufacturing switches, routers, access points, and controllers.
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13. Lenovo Group Limited (NYSE: LNVGY)
Revenue: $51.8 billion
Market cap: $6.5 billion
Assets: $35 billion
Number of employees: 57,000
Headquarters: Beijing, China
Ranking 13th on the list of the 15 biggest tech hardware companies in the world is Lenovo. One of the world's largest PC manufacturer is now also a leading producer of tablets and smartphones. In addition, Lenovo also offers servers, storage, smart TVs, mobile apps, and internet and IT services. Its sales originate mostly from China, Asia Pacific, America, and Europe-Middle East-Africa (EMEA).
12. LG Electronics Inc. (KRX: 066570.KS)
Revenue: $52.5 billion
Market cap: $8.1 billion
Assets: $37.4 billion
Number of employees: 40,110
Headquarters: Seoul, South Korea
LG is a South Korean multinational electronics manufacturer and distributor of digital display equipment and home appliances. Its product lines include flat-screen televisions, A/V products, desktop computers, washing machines, air conditioning units, refrigerators, LED lighting, and telecommunication equipment such as smartphones and tablets.
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Revenue: $58.4 billion
Market cap: $32.59 billion
Assets: $31.7 billion
Number of employees: 56,000
Headquarters: Palo Alto, CA
HP Inc stands on the 11th position in our list of 15 biggest tech hardware companies in the world. The company supplies tech hardware devices such as laptops and desktops, imaging and printing products, as well as related technologies, solutions, and services. The company manufactures commercial and consumer desktop and notebook personal computers, workstations, commercial hardware, and mobility devices, printer hardware and supplies, scanning equipment, and more.
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10. Panasonic Corporation (NYSE: PCRFY)
Revenue: $70.4 billion
Market cap: $18 billion
Assets: $61.8 billion
Number of employees: 271,869
Headquarters: Kadoma, Japan
Panasonic is a large global electronics manufacturer based in Japan that develops and manufactures home appliances. The company's products include refrigerators and washing machines, car navigation systems, digital equipment, computer peripherals, telecommunications, industrial equipment, lighting fixtures, electrical lamps, and various electronic components.
9. Intel Corporation (NASDAQ: INTC)
Revenue: $75.7 billion
Market cap: $230.21 billion
Assets: $147.7 billion
Number of employees: 110,800
Headquarters: Santa Clara, CA
No list of biggest tech hardware companies in the world could be complete without Intel, a major provider of chips that power millions of mobile devices, laptops and PCs worldwide. Intel Corp. is one of the largest computer chip companies in the world and the company offers platform products that incorporate a range of components and technologies, including a microprocessor and chipset, a stand-alone SoC, or a multichip package.
8. International Business Machines Corporation (NYSE: IBM)
Revenue: $76.5 billion
Market cap: $105.69 billion
Assets: $153.4 billion
Number of employees: 383,800
Headquarters: Armonk, New York
International Business Machines (IBM) is a multinational technology company providing hardware, software, cloud-based services, and cognitive computing. IBM produces and supplies computer hardware and software and provides infrastructure services, hosting services, and consulting services in diverse areas from mainframe computers to nanotechnology.
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7. Sony Corporation (NYSE: SNE)
Revenue: $79.2 billion
Market cap: $78.7 billion
Assets: $208.3 billion
Number of employees: 114,400
Headquarters: Tokyo, Japan
Sony ranks 7th on the list of 15 biggest tech hardware companies in the world. It is a multinational conglomerate based in Japan that develops, designs, and manufactures electronic devices, instruments, personal computers, home audio and entertainment systems, game consoles, mobile phones, and software. The company also has a segment of semiconductor solutions that produces image sensors and camera modules.
6. Dell Technologies Inc. (NYSE: DELL)
Revenue: $91.9 billion
Market cap: $56.94 billion
Assets: $118.9 billion
Number of employees: 165,000
Headquarters: Roud Rock, TX
Dell Technologies remains in the top tier of the 15 biggest tech hardware companies in the world. Dell offers hardware, software, and cloud management, networking, security, and other end-user computing services. The company manufactures laptops, desktops, tablets, workstations, servers, monitors, printers, gateways, software, and storage devices.
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Disclosure: None. 15 Biggest Tech Hardware Companies in the World is originally published at Insider Monkey.