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Artificial Intelligence (AI) has permeated numerous applications, revolutionizing industries such as surgery, medical diagnoses, smart homes, criminal identification, water quality monitoring, self-driving cars, drug discovery, and image processing. The implementation of AI in diverse sectors necessitates compatible hardware and software components with high computational power and low energy consumption. AI chipsets, including Graphics Processing Units (GPUs), Field-Programmable Gate Arrays (FPGAs), and Application-Specific Integrated Circuits (ASICs), play a pivotal role in providing the requisite computing power for these applications on various devices.
To meet the growing demand for AI applications, manufacturers of AI chipsets continually introduce innovative processors. For instance, on August 9, 2016, Intel Corporation made a significant move by acquiring Nervana Systems, an AI software provider. This acquisition aimed to bolster Intel's deep learning portfolio of cloud services. Subsequently, on December 6, 2017, Intel announced the launch of the Intel Nervana Neural Network Processor (NNP) architecture, designed to facilitate the testing and deployment of AI models. The NNP architecture empowers designers to iterate neural networks efficiently with large datasets, providing flexibility for software to manage data locally, thus reducing the need for data movement to and from external memory and resulting in power savings.
The training of deep learning networks involves intricate data movement, and the Nervana Engine chip, a part of the architecture, employs high bandwidth memory (HBM) technology, offering 32 GB of on-chip storage with access speeds of up to 8 TB/s. Importantly, the Nervana NNP optimizes the training time for deep learning models by eliminating a hierarchy of cache memories, allowing software to handle on-chip memory management. This innovative design enables bi-directional data transfer and large network computations on a single chip with reduced power consumption per computation.
AI chipsets are not limited to cloud services and data centers; they have also found applications in smartphones, contributing to features such as image stabilization and overall performance improvement. For example, Apple Inc. integrated augmented reality and facial recognition features into its iPhone X series through the deployment of the A11 Bionic chip, showcasing the versatile applications of AI chipsets.
The diverse applications of AI across various industries are propelling the growth of the global artificial intelligence (AI) chipset market. The continuous evolution of AI chipsets, their integration into a wide array of devices, and their role in enhancing computational efficiency underscore their significance in the ever-expanding landscape of artificial intelligence. As industries continue to embrace AI-driven solutions, the market for AI chipsets is poised for sustained growth and innovation.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | The growing implementation of AI chips in robotics |
| Market Dynamics | The increasing neuromorphic research is an emerging field within AI hardware. |
Artificial Intelligence Chipset Market Highlights:
Global Artificial Intelligence (AI) Chipset Market Overview:
The Artificial Intelligence (AI) Chipset Market size was valued at USD 2.9 Billion in 2023. The artificial intelligence (AI) chipset industry is projected to grow from USD 4.0362 Billion in 2024 to USD 41.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 33.65% during the forecast period (2024 - 2032). Increased investment in R&D activities to discover advanced AI chips and increased demand for surveillance cameras for official, institutional, or home use are the key market drivers enhancing the market growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Artificial Intelligence (AI) Chipset Market Trends
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The growing adoption of cloud-based solutions among firms is driving the market growth
Market CAGR for artificial intelligence (AI) chipsets is being driven by the advancement of cloud technology would create opportunities for major players in the artificial intelligence chipsets market. The increasing data center establishment globally in various sectors, including IT & telecom, automotive, etc., is likely to propel the demand for Al chipsets based on the cloud. Moreover, companies such as Alibaba Group Holding Limited, Intel Corporation, NVIDIA Corporation, and others offer the cloud-based Al chipset. These key players are concentrating on launching advanced cloud-based solutions to handle mega file storage and enormous business data. For example, in September 2019, Alibaba Group Holding Limited established an artificial intelligence (AI)-based chipset - "Hanguang 800," that delivers advanced computing capacity on the cloud. This chip can accelerate machine learning assignments and improves the consumer experience.
Additionally, the growing penetration of e-commerce and social media leads to a wide growth in data volume. Owing to rapid growth in the volume of data, the requirement for high-speed processors has also enhanced, which is positively influencing the growth of the market. The chipset addresses the requirement for faster processing due to enabled machine learning. Individuals' inclination towards computer vision and machine learning devices drives tech giants to invest in high-speed processor development.
Furthermore, quantum computing technology is widely adopted by firms globally to solve complex problems and perform analytical calculations. For instance, in October 2019, Google LLC's Sycamore quantum computer was the fastest computer that could work a specific task in around 200 seconds. Quantum computers are enabled with technologies including artificial intelligence, computer vision, machine learning, big data, AR/VR, and others. Thus, the emergence of quantum computing is anticipated to drive the growth of the artificial intelligence (AI) chipset market revenue.
Additionally, the application technologies for AI are autonomous vehicles, smart healthcare, smart homes, intelligent robots, smart cities, smart finance, intelligent hardware, self-service store, intelligent security, and intelligent education. AI technology is multifaceted as it runs via the algorithm mechanism, chipset type, application, and computing technology. The basic applications that run over AI are related to image/ video, natural language processing, sound and speech, device control, and high-volume computing. The chipsets help run these applications at the edge.
Artificial Intelligence (AI) Chipset Market Segment Insights:
Artificial Intelligence (AI) Chipset Component Insights
The Artificial Intelligence (AI) Chipset Market segmentation, based on components, includes hardware {processors [CPU, GPU, ASIC, and FPGA], memory, and network}, and software. The hardware segment dominated the market, accounting for 35% of market revenue (78.48 Billion). In developing economies, category growth is driven by the growing adoption of GPUs at edge devices, enhanced 3D gaming, AR/VR, virtual assistance, and others. However, software is the fastest-growing category due to rising business process automation and digitization.
Artificial Intelligence (AI) Chipset Technology Insights
The Artificial Intelligence (AI) Chipset Market segmentation, based on technology, includes machine learning, natural language processing, and others. The machine learning category generated the most income due to the growing adoption of cloud-based assistance, proliferation in data generation, technological advancement, and rising unstructured data. However, natural language processing is the fastest-growing category owing to the growing demand for AI for the automation of several tasks across the automotive, consumer electronics, and manufacturing industries.
Figure 1: Artificial Intelligence (AI) Chipset Market, by Technology, 2022 & 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Artificial Intelligence (AI) Chipset Application Insights
The Artificial Intelligence (AI) Chipset Market segmentation, based on application, includes smartphones, smart wearables, robotics, automobile, security systems, and medical imaging. The smartphone segment dominated the market, accounting for major market revenue. In developing economies, category growth is driven by an increased focus on developing smartphone AI chips. However, security systems are the fastest-growing category as they help reduce risks and prevent loss and damage.
Artificial Intelligence (AI) Chipset Verticals Insights
The Artificial Intelligence (AI) Chipset Market segmentation, based on verticals, includes consumer electronics, automotive, retail, IT & telecommunication, media & entertainment, healthcare, and BFSI. The consumer electronics category generated the most income (70.4%) owing to an increasing number of AI chipsets deployments in mobile phones and other smart devices. However, automotive is the fastest-growing category due to the deployment of artificial intelligence (AI) chipsets in autonomous vehicles for inference.
Artificial Intelligence (AI) Chipset Regional Insights
By region, the study delivers market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American artificial intelligence (AI) chipset market will dominate this market, owing to increasing government investments in R&D and the availability of established IT infrastructure, which will boost the market growth in this region. Further, the US artificial intelligence (AI) chipset market held the largest market share, and the Canadian artificial intelligence (AI) chipset market was the fastest-growing market in the North American region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Artificial Intelligence (AI) Chipset Market SHARE BY REGION 2022 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe's artificial intelligence (AI) chipset market accounts for the second-largest market share due to the growing adoption of AI technology in various industries, including automotive, manufacturing, healthcare, retail, and advertising. Further, the German artificial intelligence (AI) chipset market held the largest market share, and the UK artificial intelligence (AI) chipset market was the fastest-growing market in the European region.
The Asia-Pacific artificial intelligence (AI) chipset market is expected to grow at the fastest CAGR from 2023 to 2032. This is owing to the rising investments in Al technology. The manufacturing sector is adopting the latest and modern methods of production, which has supported the deployment of Al chips. Moreover, China’s artificial intelligence (AI) chipset market held the largest market share, and the Indian artificial intelligence (AI) chipset market was the fastest-growing market in the Asia-Pacific region.
Artificial Intelligence (AI) Chipset Key Market Players & Competitive Insights
Leading market players are investing huge amounts in R&D to improve their product lines, which will assist the artificial intelligence (AI) chipset market to grow even more. Market participants are also undertaking multiple strategic activities to enhance their global footprint, with important market developments including new product launches, mergers and acquisitions, contractual agreements, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the artificial intelligence (AI) chipset industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global artificial intelligence (AI) chipset industry to benefit clients and increase the market sector. Major players in the artificial intelligence (AI) chipset market, including IBM Corporation (US), Micro Technology (US), Samsung Electronics Co. Ltd (South Korea), Advanced Micro Devices (US), Huawei Technologies Co. Ltd (China), and others, are attempting to increase market demand by investing in research and development operations.
Intel Corp designs and develops technology products and components. The firm's product portfolio comprises microprocessors, chipsets, flash memory, graphic, network and communication, embedded processors and microcontrollers, and conferencing products. It also offers motherboards, solid-state drives, server products, wireless connectivity products and software and applications. Intel markets its products and solutions to industrial and communications equipment manufacturers, original equipment manufacturers, and original design manufacturers. The firm's products find applications in notebooks, servers, tablets and desktops. Intel markets processors under Core, Atom, Celeron, Quark, Pentium, Xeon, and Itanium brand names. In March 2021, Intel collaborated with the Central Board of Secondary Education (CBSE), aiming to introduce the 'AI For All' initiative to create a basic understanding of artificial intelligence across various industry verticals in India.
NVIDIA Corp is a designer and developer of graphics, central, and system-on-a-chip units. The company offers its products to gaming, professional visualization, data center, and automotive markets. It also delivers solutions for Artificial Intelligence and data science, design and visualization, data center and cloud computing, edge computing, high-performance computing, and self-driving vehicles. NVIDIA offers gamers, professional graphic designers, researchers, and developers products through GeForce NOW, Quadro, GeForce, SHIELD, vGPU, DOCA, JESTON, and Bluefield brand names. The company serves various sectors: architecture, engineering, construction, internet, cybersecurity, energy, financial services, healthcare and life sciences, education, gaming, manufacturing, media and entertainment, retail, robotics, telecommunication, and transportation. In January 2022, Nvidia and AMD announced that the U.S. government had placed new restrictions to cut China and Russia off from high-end AI chips.
Key Companies in the Artificial Intelligence (AI) Chipset market include
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NVIDIA Corporation
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Intel Corporation
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Xilinx, Inc.
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Samsung Electronics Co., Ltd.
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Micron Technology, Inc.
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Qualcomm Technologies, Inc.
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International Business Machines Corporation
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Google Inc.
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Microsoft Corporation
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Amazon Web Services
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Advanced Micro Devices, Inc.
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General Vision, Inc.
Artificial Intelligence (AI) Chipset Industry Developments
May 2022: Intel introduced two new deep-learning processors for instruction and inference: Habana Gaudi2 and Habana GrecoTM. These innovative processors fill a market void by offering clients high-efficiency, high-performance, deep learning computing options for simultaneous training applications and inference installations in the data center and also reducing the AI obstacle to the entrance to businesses of all sizes.
Artificial Intelligence (AI) Chipset Market Segmentation:
Artificial Intelligence (AI) Chipset Component Outlook
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Hardware
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Processors
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CPU
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GPU
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ASIC
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FPGA
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Memory
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Network
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Software
Artificial Intelligence (AI) Chipset Technology Outlook
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Machine Learning
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Natural Language Processing
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Others
Artificial Intelligence (AI) Chipset Application Outlook
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Smartphones
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Smart Wearable
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Robotics
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Automobile
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Security Systems
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Medical Imaging
Artificial Intelligence (AI) Chipset Verticals Outlook
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Consumer Electronics
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Automotive
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Retail
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IT & Telecommunication
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Media & Entertainment
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Healthcare
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BFSI
Artificial Intelligence (AI) Chipset Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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