Artificial Intelligence (AI) Chipsets Market Size, Share, Growth Strategies, 2034

Market Overview
According to the report, the global artificial intelligence (AI) chipsets market size was valued at USD 8.14 billion in 2019 and is projected to reach USD 695.16 billion by 2032, exhibiting a CAGR of 37.7% during the forecast period. North America dominated the global market with a share of 36.98% in 2019.

The analysis shows that AI chipsets are crucial for offering high computing capabilities to connected devices such as laptops, smart wearables, and smartphones. They enhance operational performance through advanced analytical functions, virtual reality (VR), and augmented reality (AR). Despite initial supply chain disruptions caused by the COVID-19 pandemic, the crisis has motivated enterprises to adopt AI-based hardware and software solutions to overcome manufacturing and operational challenges, further accelerating market demand.

Major Players Profiled in the Market Report:
• NVIDIA Corporation (California, U.S.)
• Intel Corporation (California, U.S.)
• Xilinx, Inc. (California, U.S.)
• Samsung Electronics Co., Ltd. (Suwon-si, South Korea)
• Micron Technology, Inc. (Idaho, U.S.)
• Kneron (California, U.S.)
• Alibaba Group Holding Limited (Hangzhou, China)
• Qualcomm Technologies, Inc. (California, U.S.)
• International Business Machines Corporation (IBM) (New York, U.S.)
• Alphabet Inc. (Google LLC) (California, U.S.)
• Microsoft Corporation (Washington, U.S.)
• Amazon Web Services (AWS) (Washington, U.S.)
• Advanced Micro Devices, Inc. (AMD) (California, U.S.)
• General Vision, Inc. (California, U.S.)
• Huawei Technologies Co., Ltd. (Shenzhen, China)
• Graphcore Limited (Bristol, U.K.)
• MediaTek Inc. (Hsinchu, Taiwan)
• Fujitsu Limited (Tokyo, Japan)
• Wave Computing, Inc. (California, U.S.)
• Mythic Inc. (Texas, U.S.)
• Koniku Inc (California, U.S.)
• Tenstorrent Inc. (Ontario, Canada)
• SambaNova Systems Inc (California, U.S.)
• Kalray Corporation (Isere, France)
• XMOS Limited (Bristol, U.K.)
• GreenWaves Technologies (Isere, France)

Segments

Graphics Processing Unit (GPU) Segment to Gain Traction Owing to its Rising Adoption
Based on chipset type, the market is divided into GPUs, FPGAs, ASICs, and others. The GPU segment is expected to hold the largest market share driven by its rising adoption in edge devices, advanced 3D gaming, AR/VR, and virtual assistance.

Machine Learning to Hold Highest Market Share while RPA Experiences Highest Growth
By application, the market is segregated into natural language processing (NLP), robotic process automation (RPA), machine learning, computer vision, and others. Machine learning holds the highest share due to the proliferation of data generation and cloud-based services. Meanwhile, the RPA segment is experiencing the highest growth rate owing to increasing demand for automation across manufacturing and consumer electronics.

Edge Computing Segment to Dominate Due to Increasing Automation Needs
Based on computational technology, the market is segmented into cloud computing and edge computing. The edge computing segment holds the dominant share, fueled by the emergence of connected cars, autonomous vehicle infrastructure, and the need for lightweight systems with low latency.

Increasing Demand for AI Chipsets for Inference to Drive Market
By function, the market is bifurcated into training and inference. The inference segment holds the largest market share due to the increasing need for edge computing, safety, and privacy. The training segment is also expected to exhibit high growth owing to its ability to process massive parallel architectures.

Consumer Electronics to Lead, with Healthcare Gaining Rapid Traction
Based on industry, the market is segmented into consumer electronics, healthcare, BFSI, IT & telecom, manufacturing, automotive, retail, and others. The consumer electronics segment holds the dominant share due to the growing demand for connected devices like smartphones and tablets. Healthcare is gaining massive traction due to the high consumerization of smart wearables and medical devices.

Geographically, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Source: https://www.fortunebusinessinsights.com/artificial-intelligence-ai-chipsets-market-104500

Report Coverage
The report offers:
• Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
• Comprehensive insights into regional developments.
• List of major industry players.
• Key strategies adopted by the market players.
• The latest industry developments including product launches, partnerships, mergers, and acquisitions.

Drivers & Restraints

Emergence of Quantum Computing and Cloud-Based Solutions to Propel Market Growth
The rapid emergence of quantum computing, deep learning, and semiconductor nanowire laser technology is significantly boosting the AI chipsets market. Quantum computers are increasingly adopted to solve complex analytical calculations in seconds. Additionally, the rising enterprise adoption of cloud-based AI chipsets to manage mega file storage and massive business data, alongside heavy investments in Industry 4.0, is accelerating market demand.

However, the lack of a skilled AI workforce to develop, manage, and deploy complex AI algorithms acts as a major market restraint. Furthermore, the integration complexities of AI solutions into existing systems and the absence of professional certifications for advanced technologies may inhibit market growth.

Regional Insights

Established IT Infrastructure Propels Market Growth in North America
North America holds the dominant AI chipsets market share (valued at USD 3.01 billion in 2019). The region’s growth is attributed to increasing government investments in R&D, the availability of highly established IT infrastructure, and the presence of major tech giants like NVIDIA, Intel, and Google, who are continuously launching advanced AI chipsets.

Asia Pacific is emerging as the fastest-growing region in the market. This growth is driven by a vibrant startup ecosystem, a growing skilled workforce, and strong government initiatives (such as Singapore’s AI Strategy) across developing economies like South Korea, India, and China.

Artificial Intelligence (AI) Chipsets Market Future Growth:
The AI chipsets market is experiencing explosive growth, fueled by the increasing adoption of deep learning, neural networks, and quantum computing technologies. As smart cities, smart buildings, and autonomous vehicles become mainstream, the demand for highly efficient, low-latency AI processors at the edge will skyrocket. The future of the market is heavily tied to the massive expansion of cloud computing platforms and data centers handling complex machine learning inference and training tasks. Furthermore, ongoing investments in Industry 4.0 and smart manufacturing technologies will continuously drive the need for powerful, cost-effective, and specialized AI silicon across all major global industries.

Competitive Landscape

Emphasis Towards Developing Advanced AI Chipsets by Key Players to Increase Competition
The market features highly prominent players like NVIDIA, Intel, IBM, and Huawei. These leading companies are focused on developing advanced AI chipsets optimized for cloud computing, big data, and edge inference. The competitive landscape is characterized by aggressive product innovation, cost-efficiency improvements, and strategic acquisitions designed to strengthen market positioning and improve computational capabilities (such as higher TOPS and TeraFLOPS metrics).

Key Industry Development
• August 2020: Kneron launched its advanced AI chipset, the "Kneron KL 720 SoC", which provides 1.5 TOPS in performance and is enabled with an Arm Cortex M4 as its main control unit.
• May 2020: NVIDIA Corporation expanded its EGX Edge AI platform by launching new products like the EGX Jetson Xavier NX and EGX A100. NVIDIA also launched its next-generation Ampere GPU architecture, the “NVIDIA A100”.
• September 2019: Alibaba Group Holding Limited launched an AI-based chipset, "Hanguang 800", offering advanced computing capability on the cloud to accelerate machine learning tasks. Apple Inc. also built its A11, A12, and A13 Bionic Chips featuring core CPUs integrated with GPUs.