Artificial Intelligence (AI) Chip Market is Representing 29.72% Growth by 2032

Published Date : 22 May 2024

The global artificial intelligence (AI) chip market size was exhibited at USD 21.87 billion in 2023 and is estimated to grow around USD 227.48 billion by 2032, growing at a CAGR of 29.72% from 2023 to 2032. The increasing demand for widespread integration and deep learning of artificial intelligence across various industries is expected to enhance the growth of the artificial intelligence (AI) chip market.

Artificial Intelligence (AI) Chip Market Size and growth Rate From 2023 to 2032

Market Overview

The artificial intelligence (AI) chip market deals with specialized hardware devices designed to execute and process tasks associated with machine learning and artificial intelligence applications. These chips play an important role in enhancing the performance of AI technologies in several industries. Their utilization and development have become crucial in addressing the increasing demand for advanced AI applications.

The advancement of technology, especially the growing development of robotics across several sectors, has acted as a catalyst anticipated to drive market growth. In addition, the growing trend towards parallel computing in AI data centers, the growing trend towards autonomous vehicles, the need for high computing power, and increasing data traffic are further anticipated to accelerate the growth of the artificial intelligence (AI) chip market.

Increasing demand for edge computing and growing complexity and data volume to fuel the market growth

In the increasing utilization of edge computing, instead of depending on individually centralized cloud servers, data processing confirms closure to the data generation, enhancing the growth of artificial intelligence chips. Edge computing devices need powerful and efficient artificial intelligence (AI) processing to reduce latency and handle real-time applications.

In addition, the increasing complexity of data sets and the explosion of big data create the demand for more efficient and faster AI chip processing. Artificial intelligence (AI) chips are specially designed to maintain the maximum amounts of data included in executing and training complicated machine learning models. These are the major driving factors of AI chips that accelerate the growth of the artificial intelligence (AI) chip market.

Complications in adoption and high development costs of AI chips may restrain the growth of the market. The adoption of AI chips into existing services can be complicated, particularly in various industries with traditional infrastructure. The need for system redesign and compatibility issues may create challenges in the adoption of artificial intelligence chips in various applications.

In addition, the manufacturing, development, and research of advanced artificial intelligence chips include substantial costs. High initial investment is a hurdle for startups and smaller companies entering the market, and it can hinder the overall competition. These factors may impact negatively on AI chips and restrain the market.

Artificial Intelligence (AI) Chip Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 21.87 Billion
Projected Forecast Revenue by 2032 USD 227.48 Billion
Growth Rate from 2023 to 2032 CAGR of 29.72%
Largest Market North America
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Artificial Intelligence (AI) Chip Market Top Companies

  • Advanced Micro Devices Inc.
  • Apple
  • Microsoft Corporation
  • Google Inc.
  • Amazon Web Services
  • General Vision Inc.
  • NVIDIA Corporation
  • Google Inc.
  • GROQ
  • Huawei Technologies Co. Ltd.
  • Gyrfalcon Technology Inc.
  • IBM Corporation
  • Huawei Technologies Inc.
  • INTEL Corporation
  • Microsemi Corporation
  • NEC Corporation
  • Samsung Electronics Co. Ltd.

Recent Innovation in Artificial Intelligence (AI) chip by Apple

  • In May 2024, to develop and advance data centers, Apple announced the production and design of artificial intelligence (AI) chips with the partnership of Taiwan Semiconductor Manufacturing Co. The Apple AI chips focused on AI interference.

Recent Innovation in Artificial Intelligence (AI) chip by Intel Corporation

  • In April 2024, Intel Corporation announced the launch of an improved version of its artificial intelligence (AI) chipsets. The name of this advanced AI chipset was Guadi 3. The aim behind this launch will be to run the finished software and help train AI systems. The Intel company said that the upcoming chipset price will be lower than the current chipset.

Regional Insights

Asia Pacific is expected to grow fastest during the forecast period. The growing investment in the software industry and favorable government initiatives for security services are anticipated to drive the growth of the artificial intelligence (AI) chip market. China, India, Japan, and South Korea are the major leading companies in the Asia Pacific region. China is the major contributor and has the largest market share in this market. China's strong and rival support from Chinese AI chip design companies and Chinese policies have continuously gained prominence. They have demonstrated amazing performance in large models and terminal inference.

Chinese ASICs are completely customized AI chips with benefits in power integration, reliability, and consumption. Mainstream products include BPU, VPU, NPU, and TPU. Global major companies include Intel and Google, and China’s representatives include Horizon Robotics, Cambricon Technologies, Alibaba, and Huawei. In recent years, China has continuously invested in the self-developed AI chip industry. Leading companies, including Huawei, Tencent, Alibaba, and Baidu, have enhanced the development of their artificial intelligence chips, and various AI chip companies are continuously developing. These are the major factors and leading companies of artificial intelligence (AI) in China and are anticipated to enhance the growth of the market in the Asia Pacific region.

North America dominated the artificial intelligence (AI) chip market in 2023. The rising development of artificial intelligence (AI) technology in the IT industry and the increasing presence of developing technology companies are expected to drive the growth of the North American market. The U.S. and Canada are the leading companies in North America that manufacture AI chips. The U.S. also has a significant market share and has top artificial intelligence (AI) startups and companies such as Nvidia, Intel, Graphcore, Qualcomm, IBM, Mythic, Apple, Cerebras, Microsoft, Baidu, Anari AI and many more. These companies are continuously developing the AI chips industry. In the U.S., companies are using advanced technologies such as the Internet of Things, artificial intelligence, and big data to enhance or accelerate the growth of artificial intelligence chips. These are the major factors and leading companies expected to drive the growth of the artificial intelligence (AI) chip market in North America.

Market Potential and Growth Opportunity

Increasing positive impacts of AI chips in various industries

Artificial intelligence (AI) chips are especially suitable for inference tasks, which include utilizing advanced AI models to make classifications and predictions based on new data. These AI chips can enhance real-time decision-making in devices such as edge computing, robotics, and autonomous vehicles.

In addition, AI chips can be used to diagnose medical conditions by analyzing and processing medical data, including patient records, genomics, and medical images. Moreover, AI chips can operate data from environmental sensors to manage resources, predict natural disasters, and monitor water and air quality more effectively. These are the major future opportunities expected to enhance the growth and demand for the artificial intelligence (AI) chip market in the coming years.

Artificial Intelligence (AI) Chip Market News

  • In May 2024, Arm Holdings, in collaboration with SoftBank, announced the launch of artificial intelligence (AI) chips. This innovative launch will appear in 2025. The company said that Arm Holdings aims to build prototypes and set up an AI chip division by spring 2025.
  • In November 2023, in Las Vegas, to train the large language models, Amazon launched Trainium2, an artificial intelligence (AI) chip, at the Invent conference. The development came as other chipmakers and technology companies such as AWS, Nvidia, and Microsoft have launched their processors.

Market Segmentation

By Technology

  • Machine learning
  • Natural language processing
  • Context-aware computing
  • Computer vision
  • Predictive analysis

By Chip Type

  • GPU
  • ASIA
  • FPGA
  • CPU
  • Others

By Processing Type

  • Edge
  • Cloud

By Function

  • Training
  • Inference

By End-Users

  • Manufacturing
  • Healthcare
  • Automotive
  • Agriculture
  • Retail
  • Human Resources
  • Marketing
  • BFSI
  • Government
  • Others

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