Artificial Intelligence Chip Market- Industry Structure Evaluation, Demand Drivers Analysis, Regional Growth Analysis and Identification, Competitive Positioning Review & Global Market Size Forecast to 2030
Overview
Artificial Intelligence Chip Market size was valued at USD 21.73 Bn. in 2023 and the total revenue is expected to grow by 37.5% from 2024 to 2030, reaching nearly USD 202 Bn.
Artificial Intelligence Chip Market Overview:
Artificial intelligence (AI) chips, also known as AI hardware or AI accelerators, are specialized accelerators for ANN-based applications. Deep learning is used in the majority of commercial ANN applications. Artificial intelligence (AI) chips are being utilized more often in a wide range of applications, including telecommunications, smart gadgets, and autonomous processes.
Many large companies, including Nvidia, Intel, AMD, Qualcomm, and Google, dominate the Artificial Intelligence Chip Market. These companies are making significant investments in the creation of AI chips and associated technologies. With its GPUs (Graphics Processor Units), which are extensively utilized for AI-related computations, Nvidia is the industry leader in AI chips. With the acquisition of AI chip company Habana Labs and the introduction of its own AI chips, such as the Intel Nervana Neural Network Processor, Intel has also made substantial advancements in the Artificial Intelligence Chip Market.
In addition to established companies, there are several AI chip startups creating novel technology and products. Cerebras Systems, Graphcore, Mythic, and Cambricon Technologies are a few of the well-known AI chip startups. The report covered local as well as key market players with detailed annlysis of market stragergies and investment plans.
Competitive landscape
The Artificial Intelligence Chip Market is comprised of large organizations that offer software solutions and services. This diverse range of market participants gives opportunities for other players prepared to accept the industry's significant risks. This report explains the most recent strategies and advancements implemented by the leading industry participants in the Artificial Intelligence Chip Market. To lead the market and participate in the process of market growth, a company must collaborate with the top market leaders, acquire comparatively weaker companies, provide new goods and services to the market, and upgrade current products. Mergers and acquisitions are already sweeping the industry as a result of growth strategies and advances. Furthermore, the growing market for Artificial Intelligence Chip is likely to boost the engagement of enterprises from all phases of the value chain. The following companies are currently participating in the Artificial Intelligence Chip Market Alphabet, Apple, Arm, Intel, Nvidia, Advanced Micro Devices, and more.
NVIDIA's data centre revenue, which includes AI processors, has increased by more than 70% in eight consecutive quarters, albeit it has lately slowed from a triple-digit rate. No single challenger has arisen to threaten NVIDIA's supremacy in the AI industry, and competitors are satisfied to "chip" away at its advantage for the time being. Microsoft decided a long time ago to focus on a customizable processor known as a field programmable gate array (FPGA) for its Azure Cloud, a chip that can be changed by a client after production. the report covered the detailed market strategy with key benchmarking and their investment plans.
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Artificial Intelligence Chip Market Dynamics:
AI chatbots transform the artificial intelligence chip market
The conversational AI market has expanded and grown tremendously. By 2027, the chatbot sector will be worth $454.8 million USD. AI chatbots are already bringing value across corporate processes as a result of improvements in technology such as Natural Language Understanding and Machine Learning. AI chatbots are being used by organizations to establish a strong sales process, meet marketing goals, facilitate commerce, generate engagement, inspire brand loyalty, provide great customer experiences, and much more. eCommerce, retail, healthcare, BFSI, real estate, education, and travel are among the industries that have reaped the benefits of conversational AI technology. Conversational AI's growing capabilities and customized solutions are assisting other organizations in using AI chatbot capabilities. By 2023, AI chatbots will save businesses more than $8 billion per year and create $112 billion in retail sales.
A testament to conversational AI's promise. AI chatbots will enhance and assist organizations in providing amazing customer experiences, increasing engagement, improving conversions, and unlocking growth opportunities in the artificial Intelligence chip market. Haptik has been at the forefront of the conversational AI revolution, powering AI chatbot solutions for some of the most well-known businesses, including Jio, TATA, HDFC, Dream11, OLA, Kotak Mahindra, Disney, and Netflix, increasing demand for the artificial intelligence chip market.
Artificial Intelligence for smart automobiles open up new opportunities
Artificial intelligence-powered chips for smart vehicles are creat new development opportunities, as commercialization of self-driving technologies accelerates in China and domestic demand for intelligent chips surges amid a global semiconductor shortage. Revenue from self-driving chips in China is expected to reach 7.5 billion yuan ($1.2 billion) in 2024, with a growth rate of 35% to 65% between 2019 and 2024. AI Automotive chips are a critical component in the automotive market. A severe scarcity of worldwide auto chips produced a supply demand in the local market in the first half of the year. Despite accounting for more than 30% of worldwide automobile sales, China manufactures less than 2% of global auto chips."
The chip is intended to handle real-time video signals from several high-resolution cameras in order to offer situational awareness to the car's control system. It receives data from the cameras, analyzes it, and sends the findings to the host through on-chip memory. This enables the system to work under real-time limitations while maintaining low latency. Its high performance and real-time operation allow it to deliver exact information up to 300 m utilizing higher-resolution cameras than those now used in automobile applications, which increases demand for the Artificial intelligence chip market.
Growing demand for smart cities is creating demand for Artificial intelligence chip
Smart cities" are the most recent AI growth sector. A "smart city" is one that employs digital or information-communication technologies to increase human comfort and efficiency. Making cities outfitted with cutting-edge features for citizens to live, stroll, shop, and enjoy a safer and more convenient life is one approach for urbanization that aspires to achieve sustainable growth, which is expected to drive the artificial intelligence chip market.
For example, in March 2022, Saudi Arabia opened the first two stages of a new smart city project in Jeddah for light industries and car repair, the second of which is a 350-square-mile labour city. The Smart City program covers a total of three thousand square miles. Furthermore, the city is defined by a linked infrastructure and the use of digital and smart technologies to provide automated services to clients, according to Saudi Vision 2030, a Saudi Arabia-based strategy framework. . Also, Huawei has revealed a new digital platform for smart cities that it claims can be used for smart public safety, environmental protection, transportation, governance, education, and agriculture. This platform makes use of artificial intelligence (AI) and Internet of Things (IoT) technology.
Artificial Intelligence Chip Market Segment Analysis:
Based on Type, The Artificial Intelligence chip market is segmented into GPU, ASIC, FPGA, CPU and Others. CPU held a large market share in 2023. The term "CPU" stands for "central processing unit," which refers to the primary processor in the internal electrical circuitry of the system. The word "CPU" refers to a processor, which separates a computer's core components from its exterior components like I/O circuits and main memory using the terms "control unit" and "process unit." The current generation of CPUs is currently accessible as microprocessors, which include metal-oxide-semiconductor in integrated circuits.
The artificial intelligence chip market for CPU Chips is highly competitive. Processor chips are primarily produced by Intel and Advanced Micro Devices (AMD). These businesses either sell computer chips directly to consumers or sell them through distributor networks. Companies including Compaq, Digital Electronics Corporation (DEC), Hewlett-Packard (HP), International Business Machines (IBM), Motorola, Transmeta, Samsung, Texas Instruments, and Sun Microsystems are other current and previous providers of CPU chips. The report included a thorough study of market demand and CPU chip type in detailed.
Based on the Application, the Artificial Intelligence chip market is segmented into Nature Language Processing, Robotics, Computer Vision, Network Security, and Others. Robotics is expected to dominate the artificial intelligence market during the forecast period. Robotics and artificial intelligence are not industry-specific. They are the favourites in all businesses and sectors thanks to their versatility. The need for artificial intelligence chips in robots is growing across several industries, including gaming, manufacturing, retail, healthcare, and others. For example, the online gambling market is worth billions of dollars, and platforms like True Blue Casino have already begun implementing AI-based algorithms to manage games, which drive the artificial intelligence chip market.
Artificial intelligence and machine learning, two significant technology upheavals, are approaching the industrial robots sector. Industrial robots are employed in industries to do hazardous, monotonous, dull, automated, and/or time-sensitive activities. AI-based industrial robots facilitate issue finding and repair. They are equipped with ways to repair the harm and are designed to recognize flaws. Industrial robots also increase manufacturing efficiency, precision, and security. Robots also make it possible for businesses to adopt cutting-edge production methods and create a strong manufacturing sector. Robots can observe, recognize, and interact with what they see thanks to the artificial intelligence chip market.
Regional Insights:
Asia Pacific is expected to dominate the artificial intelligence chip market during the forecast period. Finance, healthcare, retail, transportation, manufacturing, and agriculture are among the key areas that introduced AI goods and services. These sectors work together to fuel the economic vitality of both the growing and developed APAC region. According to MMR analysis, In 2030, the broad area of AI will contribute up to USD 15.7 trillion to the global economy, more than China and India combined. Increased productivity is expected to generate USD 6.6 trillion, while consumption-side impacts are expected to generate USD 9.1 trillion.
The governments of China, Singapore, and South Korea are substantially investing in the development of Artificial intelligence ecosystems that will allow AI-driven enterprises and their creative business models to flourish and drive the artificial intelligence chip market. Several public-private partnerships have begun to take shape in Indonesia, Malaysia, and Thailand to promote experimental AI projects that go beyond for-profit uses of AI chips.
Accenture is collaborating with the National Association for the Blind in India to deploy an AI-powered system that uses image recognition, natural language processing, and natural language generation to inform visually impaired users about the number of people in a room, their ages, genders, and even their emotions based on facial expressions. The system can also recognize and narrate text from books and documents, such as cash notes and identify obstructions. The report covered a detailed analysis of the regional artificial intelligence chipe market with its investment plans.
Artificial Intelligence Chip Market Scope: Inquire before buying
| Artificial Intelligence Chip Market | |||
|---|---|---|---|
| Report Coverage | Details | ||
| Base Year: | 2023 | Forecast Period: | 2024-2030 |
| Historical Data: | 2018 to 2023 | Market Size in 2023: | US $ 21.73 Bn. |
| Forecast Period 2024 to 2030 CAGR: | 37.5% | Market Size in 2030: | US $ 202 Bn. |
| Segments Covered: | by Chip Type | GPU ASIC FPGA CPU Other |
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| by Technology | System on Chip System in Package Multi-Chip Module Other |
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| by Application | Nature Language Processing Robotic Computer Vision Network Security Other |
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| by Industry Vertical | Media and Advertising BFSI IT and Telecom Retail Healthcare Automotive and Transportation Others |
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Artificial Intelligence Chip Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Artificial Intelligence Chip Market Key Players
1. GRAPHCORE Ltd.
2. GROQ
3. Gyrfalcon Technology Inc.
4. Huawei Technologies Co. Ltd.
5. INTEL Corporation, KnuEdge, Inc.
6. KRTKL Inc.
7. MEDIATEK, Inc.
8. Micron Technology, Inc.
9. Microsemi Corporation
10. MYTHIC, Inc.
11. NEC Corporation
12. NVIDIA Corporation
13. NXP Semiconductors N.V.
14. Qualcomm Incorporated
15. Samsung Electronics Co. Ltd.
16. SK Hynix, Inc.
17. Tenstorrent Inc.
18. Texas Instruments Incorporated
19. Toshiba Corporation
20. Wave Computing, Inc.
Frequently Asked Questions:
1] What segments are covered in the Global Artificial Intelligence Chip Market report?
Ans. The segments covered in the Artificial Intelligence Chip Market report are based on Type, Technology, Application, and Region.
2] Which region is expected to hold the highest share in the Global Artificial Intelligence Chip Market?
Ans. The Asia Pasific region is expected to hold the highest share of the Artificial Intelligence Chip Market.
3] What is the market size of the Global Artificial Intelligence Chip Market by 2030?
Ans. The market size of the Artificial Intelligence Chip Market by 2030 is expected to reach US$ 202 Bn.
4] What is the forecast period for the Global Artificial Intelligence Chip Market?
Ans. The forecast period for the Artificial Intelligence Chip Market is 2024-2030.
5] What was the market size of the Global Artificial Intelligence Chip Market in 2023?
Ans. The market size of the Artificial Intelligence Chip Market in 2023 was valued at US$ 21.73 Bn.