The latest report by IMARC Group, titled” Artificial Intelligence Chip Market Report by Chip Type (GPU, ASIC, FPGA, CPU, and Others), Technology (System-on-Chip (SoC), System-In-Package (SIP), Multi-Chip Module, and Others), Processing Type (Edge, Cloud), Application (Natural Language Processing (NLP), Robotics, Computer Vision, Network Security, and Others), Industry Vertical (Media and Advertising, BFSI, IT and Telecom, Retail, Healthcare, Automotive and Transportation, and Others), and Region 2024-2032“, offers a comprehensive analysis of the industry, which comprises insights on the market. The global artificial intelligence chip market size reached US$ 18.8 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 150.4 Billion by 2032, exhibiting a growth rate (CAGR) of 25.8% during 2024-2032.
Factors Affecting the Growth of the Artificial Intelligence Chip Industry:
- Significant Advancements in Deep Learning and Neural Networks:
One of the primary factors driving the artificial intelligence (AI) chip market is the rapid advancements in deep learning and neural networks. Deep learning, a subset of AI, involves training artificial neural networks with vast amounts of data to enable machines to make decisions, recognize patterns, and perform tasks that mimic human intelligence. The increasing complexity and capability of these neural networks necessitate more powerful and efficient hardware to process large volumes of data quickly and accurately. AI chips, specifically designed to accelerate neural network computations, are essential for handling the intensive computational requirements of deep learning models. Companies such as NVIDIA, Google, and AMD are investing heavily in developing AI chips tailored for deep learning applications, which include natural language processing, image and speech recognition, and autonomous systems.
- Increasing Proliferation of Edge Computing:
The proliferation of edge computing is another significant factor driving the AI chip market. Edge computing involves processing data closer to the source, such as IoT devices and sensors, rather than relying on centralized cloud-based data centers. This approach reduces latency, conserves bandwidth, and improves real-time data processing capabilities, which are critical for applications such as autonomous vehicles, smart cities, and industrial automation. AI chips designed for edge computing, also known as edge AI chips, are optimized for low power consumption, high efficiency, and the ability to perform complex computations locally. The increasing deployment of IoT devices and the need for real-time analytics and decision-making at the edge are fueling the demand for these specialized AI chips. For example, in autonomous vehicles, edge AI chips are crucial for processing sensor data in real-time to enable safe and efficient navigation.
- Integration of AI in Consumer Electronics:
The integration of AI in consumer electronics is a key factor propelling the AI chip market. Modern consumer electronics, including smartphones, smart home devices, wearables, and personal assistants, increasingly incorporate AI features to enhance user experiences and provide intelligent functionalities. AI chips are integral to enabling these smart capabilities, as they power advanced features such as facial recognition, voice assistants, augmented reality, and personalized recommendations. For instance, AI chips in smartphones enhance camera performance by enabling real-time image processing, object detection, and scene recognition. In smart home devices, AI chips facilitate voice recognition and natural language processing, allowing users to interact with their devices seamlessly. The growing consumer demand for intelligent and connected devices is driving manufacturers to incorporate AI chips into their products to stay competitive and meet market expectations.
For an in-depth analysis, you can request a sample copy of the report: https://www.imarcgroup.com/artificial-intelligence-chip-market/requestsample
Leading Companies Operating in the Global Artificial Intelligence Chip
- Advanced Micro Devices Inc.
- Huawei Technologies Co. Ltd.
- Intel Corporation
- LG Electronics Inc. (LG Corporation)
- Mediatek Inc.
- Micron Technology Inc.
- Mythic Inc.
- Nvidia Corporation
- NXP Semiconductors N.V.
- Qualcomm Technologies Inc
- SK hynix Inc.
- Toshiba Corporation
Artificial Intelligence Chip Market Report Segmentation:
By Chip Type:
- GPU
- ASIC
- FPGA
- CPU
- Others
GPU dominates the market as they are highly efficient at handling the parallel processing requirements of complex AI algorithms and deep learning tasks.
By Technology:
- System-on-Chip (SoC)
- System-In-Package (SIP)
- Multi-Chip Module
- Others
System-on-chip holds maximum number of shares as it integrates multiple components, such as processors, memory, and input/output interfaces, into a single chip, providing high performance and energy efficiency for a wide range of applications.
By Processing Type:
- Edge
- Cloud
Cloud represents the largest segment due to its ability to provide scalable, flexible, and cost-effective computational power to support extensive AI workloads and data processing needs.
By Application:
- Natural Language Processing (NLP)
- Robotics
- Computer Vision
- Network Security
- Others
Natural language processing (NLP) dominates the market due to its widespread adoption in enhancing user interactions through applications such as virtual assistants, chatbots, and real-time language translation, which are integral to numerous consumer and enterprise solutions.
By Industry Vertical:
- Media and Advertising
- BFSI
- IT and Telecom
- Retail
- Healthcare
- Automotive and Transportation
- Others
BFSI holds maximum number of shares due to its substantial investment in AI technologies to enhance fraud detection, risk management, customer service, and operational efficiency.
Regional Insights:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
North America’s dominance in the artificial intelligence chip market is attributed to its advanced technological infrastructure, significant investments in AI research and development, and the presence of major AI chip manufacturers and technology companies.
Global Artificial Intelligence Chip Market Trends:
Governments worldwide are recognizing the strategic importance of artificial intelligence and are investing heavily in AI research and development to bolster their competitive edge in the global economy. Various countries are implementing national AI strategies, funding AI research centers, and fostering partnerships between public and private sectors to accelerate the adoption of AI technologies. For instance, the United States has launched initiatives such as the National AI Initiative to support AI innovation, while China has made significant investments through its New Generation AI Development Plan. These government initiatives and investments are driving the demand for AI chips, as they are essential components for implementing AI solutions in various sectors such as healthcare, defense, transportation, and education. By supporting AI infrastructure development and encouraging the integration of AI across industries, these initiatives are creating a robust market for AI chips, fueling their growth and development.
If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
About Us
IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.
IMARC’s information products include major market, scientific, economic, and technological developments for business leaders in pharmaceutical, industrial, and high-technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology, and novel processing methods are at the top of the company’s expertise.
Our offerings include comprehensive market intelligence in the form of research reports, production cost reports, feasibility studies, and consulting services. Our team, which includes experienced researchers and analysts from various industries, is dedicated to providing high-quality data and insights to our clientele, ranging from small and medium businesses to Fortune 1000 corporations.
Contact Us:
IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No:(D) +91 120 433 0800
United States: +1-631-791-1145