Artificial Intelligence Chip Market Analysis and Global Forecast 2023-2033

Artificial Intelligence Chip Market Overview

Artificial Intelligence Chip Market Size is expected to reach USD 41.70 Billion by 2033. The Artificial Intelligence Chip industry size accounted for USD 18.33 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 4.94% from 2023 to 2033. The global Artificial Intelligence Chip Market is experiencing significant growth, with a projected market size of $117.07 billion by 2028, driven by a compound annual growth rate (CAGR) of 40.5%. This market encompasses application-specific integrated circuits (ASICs), field-programmable gate arrays (FPGAs), central processing units (CPUs), and GPUs, catering to various industries like media, advertising, BFSI, IT, telecom, retail, healthcare, and automotive. The market is segmented by chip type, processing type (edge, cloud), technology (system-on-chip, system-in-package), and applications such as natural language processing, robotics, computer vision, and network security. The growth is attributed to increased data generation, AI research investments, and economic expansion, with a focus on efficiency and speed for computations in diverse sectors

Global Artificial Intelligence Chip Market Synopsis

COVID-19 Impact Analysis

The Artificial Intelligence Chip market experienced a detrimental effect due to the Covid-19 pandemic. The Artificial Intelligence chip market witnessed a surge amidst COVID-19 as remote work and digital transformation accelerated demand for AI-driven technologies. Despite initial disruptions in supply chains, the market quickly adapted with increased investment in AI infrastructure for healthcare, manufacturing, and logistics. Post-pandemic, the market is poised for sustained growth driven by continued advancements in AI algorithms and applications.

Global Artificial Intelligence Chip Market Dynamics

The major factors that have impacted the growth of Artificial Intelligence Chip are as follows:

Drivers:

⮚      Advancements in AI Algorithms

As AI algorithms become more sophisticated, they require more computational power to execute complex tasks. AI chip manufacturers are continuously innovating to develop chips optimized for specific AI workloads, such as training and inference, to meet the performance demands of cutting-edge algorithms.

Restraint:

• Data Privacy and Security Risks

AI chips often process sensitive data, including personal information, proprietary algorithms, and critical business insights. As such, there are concerns regarding data privacy, security vulnerabilities, and potential breaches associated with AI chip deployments. Ensuring robust encryption, authentication, and access controls to safeguard data integrity and confidentiality is essential for building trust and mitigating risks in AI-driven systems.

Opportunity:

⮚      Expansion of AI Applications

As AI technology continues to mature, its application domains are expanding across various industries, including healthcare, automotive, finance, retail, manufacturing, and agriculture. AI chips enable real-time data processing, predictive analytics, autonomous decision-making, and personalized user experiences, unlocking new opportunities for innovation, efficiency gains, and competitive differentiation.

Artificial Intelligence Chip Market Segment Overview

By Chipset Type

Based on the Chipset Type, the market is segmented based on GPU, ASIC, FPGA, CPU. The GPU (Graphics Processing Unit) chipset type dominates the artificial intelligence (AI) chip market due to its parallel processing capabilities, which excel in handling the computational demands of deep learning and neural network algorithms. GPUs offer high performance for AI training and inference tasks, driving their widespread adoption across industries such as gaming, data centers, autonomous vehicles, and scientific research.

By Application

Based on Application, the market has been divided into Natural Language Processing, Robotic Process Automation, Computer Vision, Network Security, Others. The market was led by the smartphone category, which generated the majority of market revenue. Growing emphasis on creating AI chips for smartphones is driving category growth in developing economies.

By Technology

Based on the Technology, the market has been divided into System-on-Chip, System-in-Package, Multi-chip Module, Others. The System-on-Chip (SoC) technology dominates the artificial intelligence (AI) chip market, offering integrated solutions that combine processing units, memory, and other components on a single chip. SoC architectures provide advantages in terms of compactness, power efficiency, and cost-effectiveness, making them ideal for a wide range of AI applications across edge devices, IoT deployments, and mobile platforms.

By Industry Vertical

Based on Industry Vertical, the market has been divided into Media & Advertising, BFSI, IT & Telecom, Retail, Healthcare, Automotive & Transportation, Others. The artificial intelligence (AI) chip market is dominated by the IT & Telecom industry vertical, driven by the increasing adoption of AI-powered services and applications in areas such as data analytics, network optimization, and virtual assistants. The demand for AI chips in IT & Telecom is fueled by the need for faster processing speeds, improved efficiency, and enhanced performance to support emerging technologies like 5G networks, cloud computing, and edge computing solutions.

Global Artificial Intelligence Chip Market Regional Analysis

Based on region, the market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. The area of North America is anticipated to dominate the market for the usage of Artificial Intelligence Chip, followed by those in Asia-Pacific and Europe.

Artificial Intelligence Chip North America Market

The North American region holds a dominant position in the Artificial Intelligence Chip market. The artificial intelligence (AI) chipset market in North America is expected to be the largest in the world due to the region’s established IT infrastructure and rising government R&D expenditures. Furthermore, the artificial intelligence (AI) chipset market in the US had the biggest market share, while the market in Canada was expanding at the quickest rate in the North American continent.

Artificial Intelligence Chip Asia Pacific Market

The Asia-Pacific region is witnessing rapid growth and emerging as a significant market for the Artificial Intelligence Chip industry. The market for artificial intelligence (AI) chipsets in Asia-Pacific is anticipated to expand at the quickest rate between 2023 and 2032. The increasing investments in Al technology are the cause of this. The use of Al chips has been aided by the manufacturing sector’s adoption of the newest and most advanced production techniques. Furthermore, the artificial intelligence (AI) chipset market in China had the biggest market share, while the AI chipset market in India had the quickest rate of growth in the Asia-Pacific area.

Competitive Landscape

The competitive landscape includes key players (tier 1, tier 2, and local) having a presence across the globe. Companies such as NVIDIA Corporation, Alphabet Inc., Apple, ARM Holding, and Intel Corporation are some of the leading players in the global Artificial Intelligence Chip Industry. These players have adopted partnership, acquisition, expansion, and new product development, among others as their key strategies.

Key Market Players:

• NVIDIA Corporation
• Alphabet Inc.
• Apple
• ARM Holding
• Intel Corporation
• Advanced Micro Devices
• Xilinx
• Graphcore
• Qualcomm
• Adapteva

Key Development:

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.

Scope of the Report

Global Artificial Intelligence Chip Market, by Chipset Type

• GPU
• ASIC
• FPGA
• CPU

Global Artificial Intelligence Chip Market, by Application

• Natural Language Processing
• Robotic Process Automation
• Computer Vision
• Network Security

Global Artificial Intelligence Chip Market, by Technology

• System-on-Chip
• System-in-Package
• Multi-chip Module
• Others

Global Artificial Intelligence Chip Market, by Industry Vertical

• Media & Advertising
• BFSI
• IT & Telecom
• Retail
• Healthcare
• Automotive & Transportation

Global Artificial Intelligence Chip Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $41.70 Billion
CAGR	4.94% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Chipset Type, Application, Technology, Industry Vertical
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	NVIDIA Corporation, Alphabet Inc., Apple, ARM Holding, Intel Corporation, Advanced Micro Devices, Xilinx, Graphcore, Qualcomm, Adapteva
Key Market Opportunities	The growing implementation of AI chips in robotics
Key Market Drivers	The increasing neuromorphic research is an emerging field within AI hardware

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Artificial Intelligence Chip Industry trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities analysis in the future
• Historical market size for the year 2021, and forecast from 2023 to 2033
• Artificial Intelligence Chip market share analysis for each segment
• Competitor analysis with a comprehensive insight into its product segment, financial strength, and strategies adopted.
• Identifies key strategies adopted by the key players including new product development, mergers and acquisitions, joint ventures, collaborations, and partnerships.
• To identify and understand the various factors involved in the global Artificial Intelligence Chip market affected by the pandemic
• To provide year-on-year growth from 2022 to 2033
• To provide short-term, long-term, and overall CAGR comparison from 2022 to 2033.
• Provide Total Addressable Market (TAM) for the Global Artificial Intelligence Chip Market.