Neural Processor Market: Technological Advancement in Chip Processing to Boost the Market Growth

Neural Processor Market size was valued at USD 224.58 Mn. in 2023 and is expected to reach USD 723.92 Mn. by 2030, at a CAGR of 18.2% over the forecast period (2024-2030).
Neural Processor Market Overview
A neural processor, known as a Neural Processing Unit, is a hardware component designed for accelerating artificial neural networks and deep learning tasks. The Processorare used to perform the complex operations involved in neural network, with high efficiency and speed.These processors are used in applications that depends on deep learning algorithms. By offloading the computational workload from general-purpose processors neural processors enable faster and more energy-efficient execution of neural network models parallel, which is expected to boost the Neural Processor Market growth.To know about the Research Methodology :- Request Free Sample Report
Neural Processor Market Dynamics
Increased demand for Artificial Intelligence to boost the Neural Processor Market growth

Artificial Intelligence applications are becoming increasingly popular across end use industries, such as healthcare, finance, automotive, and many more. These processors play an important role to accelerate the tasks generated by Artificial Intelligence such as image recognition, natural language processing, and deep learning, to meet the demand of solutions powered by AI, which is expected to boost the Neural Processor Market growth. Technological advancements in deep learning algorithms have shown remarkable performance in various complex tasks, which is significantly contributing for the growth of the market.

As the field of deep learning is becoming more advanced and popular, the demand for neural processors to handle the computational requirements of algorithms is also increasing day by day.Edge computing involves data processing closer to the source instead of depending on cloud infrastructure, and has gained traction due to its various advantages to reduce latency, data privacy, and bandwidth efficiency. Neural processors are optimized for edge computing that enables real-time processing of Artificial Intelligence tasks on devices such as smartphones, IoT devices, and autonomous vehicles, which is the factor to contribute significantly to the growth of the Neural Processor industry.

Neural networks are becoming larger and more complex, with models such as deep Convolutional Neural Networks and Recurrent Neural Networks consisting billions of parameters in it. The processor provides the computational power necessary to train and deploy these massive models efficiently. Increasing demand for energy efficiency traditional processors, such as CPUs and GPUs may not be optimized for neural network computations, which results in sub optimal performance and high energy consumption. Increasing investments in AI hardware technology companies, including Neural Processor key players like Google, Apple, and Intel, have been investing for the development of AI hardware, including neural processors.

These investments led to technological advancements in neural processor, which results in powerful and efficient hardware solutions and is expected to boost the Neural Processor Market growth. Neural processors are capable of handling real-time data, AI computations and are vital for the development and deployment of autonomous systems.

Limited compatibility and standardization to restrain the Neural Processor Market growth

Neural processors have proprietary architectures and programming interfaces, which lead to compatibility issues and limit interoperability with existing software frameworks and libraries. The lack of standardization during the development of processors makes it challenging for developers to utilize neural processors across various platforms and technologies.High development and manufacturing costs to designing and manufacture neural processors, which involves significant research and development investments is expected to restrain the Neural Processor Market growth.

The complex architecture and specialized hardware of neural processor require more efficient neural network computations and result in high production costs, limiting the affordability and widespread adoption of neural processors.Technological advancements in the field of Artificial Intelligence and neural networks is rapidly evolving, with new algorithms, and architectures, being developed regularly. The pace of innovation leads to the obsolescence of existing neural processor designs, which makes it necessary for Neural Processor companies to invest in research and development to stay competitive in the Neural Processor industry. AI applications depend on large amounts of sensitive data for training and inference.

Limited availability and accessibility pose challenges for businesses and developers seeking to integrate neural processors into their applications or infrastructure. Limited accessibility is expected to hamper the adoption of neural processors in certain regions or industries and is expected to limit market growth. Integration and scalability challenges is complex, especially when transitioning from traditional processors to specialized hardware. System-level integration, and software optimization for large-scale deployments are challenges that need to be addressed to fully leverage the capabilities of neural processors.

Trends in Neural Processor Market

Increasing demand for edge AI: Edge AI involves performing AI computations on devices, which is gaining momentum and this trend is expected to be driven by the need for real-time processing, reduced latency, and improved efficiency. Neural processors optimized for edge computing and are becoming more prevalent, enabling AI-powered applications on devices like smartphones, IoT devices, and autonomous systems.

Advancements in neural processor architectures: Neural processor architectures are evolving to improve their performance, energy efficiency, and scalability. Innovations such as systolic array architectures, for sparse neural networks, and mixed-precision computing are incorporated into neural processors to accelerate computations and handle larger and complex neural network models, which is expected to increase the Neural Processor Market share.

Hybrid computing approaches:The approaches allows flexible and efficient utilization of computing resources, where general-purpose processors handle non-neural tasks, while neural processors focus on accelerating neural network computations. These hybrid architectures offer a balance between versatility and AI performance and is also a trends in the market, which helps to boost the Neural Processor Industry growth.

Growing demand for low-power neural processors:Day by day AI applications are used in battery-powered devices and IoT systems due to, which there is a demand for low-power neural processors. These low-power neural processors are designed to deliver high performance during strict power constraints, and makes them suitable for mobile devices, wearables, and energy-efficient edge computing applications.

Increased adoption of cloud-based neural processors: Cloud-based neural processors provide access to hardware resources depending on Artificial Intelligence through the cloud, and are gaining traction in the market.  These processors enable users to leverage high-performance computing capabilities without the need for significant upfront investments in dedicated hardware.
Neural Processor Market Regional Insight
Asia Pacific region to dominate the Neural Processor Market over the forecast period

Asia Pacific region dominated the Market in 2023 and is expected to hold the largest Neural Processor Market share over the forecast period.Countries in the region are investing in research and development activities, leading to the growth of the neural processor industry. China, Japan, India and South Korea are significantly contributing for the growth of market. These countries have strong technological sectors and are home to major neural processor manufacturers, and research institutions.

China market has made significant growth in the development of Artificial Intelligence and is expected to become a leader in AI technology globally. The government in the countries have launched initiatives to support the development and deployment of AI technologies, including neural processors, and is expected to boost the regional Neural Processor market growth.Japanese companies have a strong presence in the semiconductor industry and are focusing on development of AI chips.

South Korea is known for its advanced technology ecosystem, and companies are investing in AI chip development to support their product portfolios and gain a competitive edge in the global Neural Processor market. The India has thriving IT sector and a growing AI ecosystem in the region. Research institutions in India are continuously working on developing AI chips and are supported by government initiatives such as the National AI Strategy.

North America region to boost the market over the forecast period

In North America region, the United States, is a major market for the neural processor market. The region has a robust technology sector and is home to chip manufacturers, and AI companies. The United States, is a leader in research and development activities, and investments in the field of innovation in the field. Silicon Valley in California is the biggest technology hubs where R&D activities are carried out extensively with new technological innovation. Prominent key players in the neural processor market are headquartered or have a significant presence in this region. AI startups in North America are focused on developing neural processors and are leveraging in cutting-edge technologies and innovative architectures to create more efficient and powerful AI chips.
Neural Processor Market Segment Analysis
Based on Type of Neural Processor, the market is segmented Central Processing Units (CPUs), Graphics Processing Units (GPUs), Field-Programmable Gate Arrays (FPGAs), Application-Specific Integrated Circuits (ASICs), and Neural Processing Units (NPUs). The Graphics Processing Units segment dominated the market in 2023 and is expected to continue the dominance over the forecast period. Graphics Processing Units are adopted for AI and machine learning tasks due to parallel processing capabilities and high computational power, which is expected to boost segment growth over the forecast period. Other segments in the market, such as ASICs and FPGAs, have gained opportunity for AI applications, offering performance and energy efficiency advantages.Based on technology, the market is segmented into Digital Neural Processors, Analog Neural Processors, and Hybrid Neural Processors. The Digital Neural Processors segment held the largest market share in 2023 and is expected to dominate the market over the forecast period. Digital Neural Processors are flexible, which can be easily reconfigured or reprogrammed and allows for versatility and adaptability. Also, the processors are having high precision, and Scalability.The requirement of digital, analog and hybrid neural processors depends on the specific application, with factors such as performance, power consumption, and the nature of the neural network model being deployed.Based on Application, the Neural Processor market is segmented based on Edge Devices, Cloud/Server, Automotive, Healthcare, Robotics, and Gaming. Cloud/Server segment dominated the market in 2023 and is expected to hold the largest Neural Processor Market share over the forecast period. The segment dominated the market due to the scalability and processing power required to handle large-scale AI workloads in data centers and cloud environments. In the automotive industry neural processor are used for neural processors for real-time AI computations in automotive applications.

Based on End Users, the market is segmented into Consumer Electronics, Automotive Manufacturers, Data Centers, Healthcare Providers, and Research Institutions. The Data Centers segment held the largest Neural processor market share in 2023 and is expected to dominate the market over the forecast period. Data centers plays an important role in providing the infrastructure and computing resources required to meet this demand.
Neural Processor Market Competitive Landscape
The company profiles and competitive analysis of the major players is provided in the Neural Processor Market report. The regions covered in the report are North America, Europe, Asia-Pacific, and LAMEA. The strategies adopted by the Neural Processor key player, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to enhance the Neural Processor industry penetration. The competitive environment in the market with technological innovation, product extensions, and different strategies are adopted by the Neural Processor key vendors.The industry is growing significantly as its facing huge demand because of the increase in research and development projects with technological development in the Neural Processor industry across the globe.

In November 2022, Renesas Electronics developed neuromorphic devices for TinyML. It is the latest generation of neural networks called spike neural networks, their operation, and the hardware necessary to run those algorithms. There are many advantages SNNs over conventional artificial neural networks.
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Global Neural Processor Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 224.58 Mn.


Forecast Period 2024 to 2030 CAGR:
18.2 %
Market Size in 2030:
US $ 723.92 Mn.


 Segments Covered:
by Application
Fraud Detection
Hardware Diagnostics
Financial Forecasting
Image Optimization
Other Applications


by End User
BFSI
Healthcare
Retail
Defense Agencies
Media
Logistics
Others



Neural Processor 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)
Neural Processor Key Players Include
1. Syntiant
2. BrainChip, Inc.
3. aiMotive
4. NVIDIA Corporation
5. Google
6. Intel
7. Qualcomm
8. Apple
9. General Vision Inc
10. IBM
11. Advanced Micro Devices
12. Groq
13. Utmel Electronics
14. Arm
15. Samsung
16. AMD
17. Cerebras Systems
18. Flex Logix
19. Renesas Electronics
20. CEVA Inc

Frequently Asked Questions:
1] What is the growth rate of the Global Neural Processor Market?
Ans. The Global Neural Processor Market is growing at a significant rate of 18.2% over the forecast period.

2] Which region is expected to dominate the Global Neural Processor Market during the forecast period?
Ans. Asia Pacificregion is expected to dominate the Neural Processor Market over the forecast period.

3] What is the expected Global Neural Processor Market size by 2030?
Ans. The market size of the Neural Processor Market is expected to reach USD 723.92 Mn. by 2030.

4] Who are the top players in the Global Neural Processor Industry?
Ans. The major key players in the Global Neural Processor Market are Google, Intel, Qualcomm, Apple, and General Vision Inc.

5] Which factors are expected to drive the Global Neural Processor Market growth by 2030?
Ans.Increased demand for Artificial Intelligence is expected to drive the Neural Processor Market growth over the forecast period (2024-2030).