Market Highlights
The Global Artificial Intelligence Chip market is projected to be valued at USD 607.2Billion by 2033, recording a CAGR of around 4.41% during the forecast period. 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
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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.
Segmental Analysis
The global Artificial Intelligence Chip market has been segmented based on Chipset Type, Application, Technology and Industry Vertical
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.
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.
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.
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.
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Regional Analysis
The Artificial Intelligence Chip market is divided into five regions: North America, Europe, Asia-Pacific, South America, and the Middle East, &Africa. 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. 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.
