Artificial Intelligence (AI) Chipset Market Worth US$ 61.76 billion in 2027

The global artificial intelligence (AI) chipset market size is expected to be USD 8.6 billion in 2021 and reach USD 61.76 billion in 2027, registering a CAGR of 38.90% during the forecast period 2021-2027

The Artificial Intelligence (AI) chipset market refers to the industry segment that focuses on the design, manufacturing, and distribution of specialized hardware components optimized for performing AI tasks. These AI chipsets are designed to accelerate the computational demands of AI and machine learning algorithms, offering faster and more efficient processing compared to traditional general-purpose processors.

Key points related to the AI chipset market include:

1. Types of AI Chipsets: There are several types of AI chipsets, each designed for specific AI workloads:
   • Graphics Processing Units (GPUs): Originally designed for rendering graphics, GPUs are now widely used in AI due to their parallel processing capabilities.
   • Field-Programmable Gate Arrays (FPGAs): These chips are highly customizable and can be reconfigured for specific AI tasks, making them versatile for various applications.
   • Application-Specific Integrated Circuits (ASICs): ASICs are custom-designed chips optimized for specific AI workloads, offering high performance and energy efficiency.
   • Neural Processing Units (NPUs): NPUs are designed specifically for neural network computations, offering high efficiency for deep learning tasks.
   • Tensor Processing Units (TPUs): TPUs are Google's custom-designed AI accelerators, optimized for TensorFlow-based workloads.
   • System-on-Chip (SoC) AI Processors: These chipsets integrate AI processing units along with other components like CPUs, GPUs, and memory on a single chip.
2. Market Growth: The AI chipset market has been experiencing significant growth in recent years, driven by the increasing demand for AI applications across various industries such as healthcare, automotive, finance, and more.
3. AI Workloads: AI chipsets are used for a wide range of AI workloads, including image and speech recognition, natural language processing, autonomous driving, recommendation systems, and more.

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Artificial Intelligence (AI) Chipset Market Dynamics

The dynamics of the Artificial Intelligence (AI) chipset market are influenced by a wide range of factors that shape its growth, development, and impact. These dynamics encompass technological advancements, market trends, regulatory policies, industry collaboration, and more. Here are some key dynamics that play a significant role in shaping the AI chipset market:

1. Technological Advancements: Continuous innovation in AI chip design and architecture is a major driving force. Advancements include higher transistor densities, specialized AI processing units, improved memory bandwidth, and integration of AI-specific features.
2. Performance and Efficiency: AI chipsets need to balance high performance with energy efficiency. As AI workloads become more complex, chipsets that can handle larger models and datasets efficiently are in high demand.
3. Diverse Applications: The AI chipset market spans various applications such as natural language processing, computer vision, autonomous vehicles, healthcare diagnostics, robotics, and more. The versatility of AI chipsets contributes to market growth.
4. Industry-specific Requirements: Different industries have unique AI requirements. AI chipsets must be tailored to meet the demands of specific applications, such as medical image analysis, financial forecasting, or real-time industrial automation.
5. Data Center vs. Edge Computing: AI chipsets are used both in data centers for large-scale AI processing and at the edge in devices like smartphones and IoT devices. The balance between central processing and distributed processing impacts chipset design.

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Market Segmentation Analysis

The study categorizes the global Artificial Intelligence (AI) Chipset market based on equipment type, technology, type, installation method, distribution channel, application, and regions.

Global Artificial Intelligence (AI) Chipset Market, by Chip Type –

• GPU
• ASIC
• FPGA
• CPU

Global Artificial Intelligence (AI) Chipset Market, by Application -

• Natural Language Processing (NLP)
• Robotic
• Computer Vision
• Network Security

Global Artificial Intelligence (AI) Chipset Market, by Technology -

• System-On-Chip (SOC)
• System-in-Package (SIP)
• Multi-Chip Module

Global Artificial Intelligence (AI) Chipset Market, by Processing Type -

• Edge
• Cloud

Global Artificial Intelligence (AI) Chipset Market, by Industry Vertical -

• Media & Advertising
• BSFI
• IT & Telecom
• Retail
• Healthcare
• Automotive & Transportation
• Others

By Region Outlook (Sales, Production, USD Million, 2019-2033)

• North America (Mexico, Canada, US)
• South America (Peru, Brazil, Colombia, Argentina, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, the Netherlands, Norway, Sweden, Denmark, Rest of Europe)
• Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, the Philippines, Singapore, Australia & New Zealand, Rest of Asia Pacific)
• The Middle East & Africa (Saudi Arabia, UAE, South Africa, Northern Africa, Rest of MEA)

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REGIONAL ANALYSIS, 2023

Based on the region, the global Artificial Intelligence (AI) Chipset market has been analyzed and segmented into five regions, namely, North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.

North America has been a prominent market for Artificial Intelligence (AI) Chipsets due to high consumer spending on electronics and a strong demand for home entertainment systems. The United States, in particular, has a large market for Artificial Intelligence (AI) Chipsets, driven by the popularity of streaming services and the desire for immersive audio experiences.

The Asia Pacific region, including countries like China, Japan, and South Korea, has witnessed substantial growth in the Artificial Intelligence (AI) Chipset market. Factors contributing to this growth include the rising disposable income, increasing urbanization, and the growing popularity of home theater systems among consumers in the region.

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Major Key Players in the Artificial Intelligence (AI) Chipset Market

The global Artificial Intelligence (AI) Chipset market is fragmented into a few major players and other local, small, and mid-sized manufacturers/providers, they are –

The global market's leading artificial intelligence (AI) chipset manufacturers include NVIDIA, Intel Corporation, Xilink, Samsung Electronics, Micron Technology, and Qualcomm Technologies.

Other AI chipset manufacturers include IBM Corporation, Google, Microsoft Corporation, and Amazon Web Services