Global Artificial Intelligence (AI) Chip Market Report and Forecast 2024-2032

Global Artificial Intelligence (AI) Chip Market Outlook

The global artificial intelligence (AI) chip market size reached approximately USD 19.60 billion in 2023. The market is further projected to grow at a CAGR of 28.8% between 2024 and 2032, reaching a value of USD 191.24 billion by 2032.

Key Trends in the Market

Artificial intelligence (AI) chip is an integrated circuit designed for learning workload and to run machines via programming frameworks. Artificial intelligence chips include fixed-programmable gate arrays, application-specified integrated circuits, and graphics processing units. These chips gain efficiency and speed by incorporating large numbers of smaller transistors that consume less energy and run faster.

• The rising demand for artificial intelligence enabled machines as they minimise and eliminate the risk of human errors in various industry verticals is aiding the artificial intelligence (AI) chip market growth.

• The rising implementation of artificial intelligence chips in robotics along with the emergence of quantum computing is expected to boost the market expansion. Moreover, increased efforts towards the development of autonomous robots are also increasing the demand for artificial intelligence chips.

• The rising demand for smart homes and increasing development of smart cities along with huge investments in AI related startups are expected to positively influence the market growth. AI chips are an integral component of smart homes and cities as they are especially designed accelerators for artificial neural network (ANN) based applications.

Global Artificial Intelligence (AI) Chip Market Analysis

Based on chip type, the market is divided into GPU, ASIC, FPGA, and CPU, among others. On the basis of technology, the market is classified into system on chip, system in package, and multi chip module, among others. By processing type, the market is bifurcated into EDGE and cloud. Based on application, the artificial intelligence (AI) chip market segmentation includes natural language processing, robotics, computer vision, and network security, among others.

On the basis of end use, the market is categorised into automotive and transportation, BFSI, healthcare, IT and telecom, media and advertising, and retail, among others. By region, the market is segregated into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the artificial intelligence (AI) chip market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• Nvidia Corporation

• Intel Corporation

• Alphabet Inc.

• IBM Corporation

• Qualcomm Technologies, Inc

• Graphcore Limited

• Advanced Micro Devices, Inc.

• Micron Technology, Inc

• MediaTek Inc,

• SambaNova Systems

• Others

Market Share by End Use

The BFSI sector is anticipated to account for a significant artificial intelligence (AI) chip market share over the forecast period as the deployment of advanced solutions in banking and finance applications helps accelerate productivity and reduce burden by eliminating the risk of human error. Artificial intelligence chips are an integral part of AI technology which aids the BFSI sector in preventing systemic failures, lowering operational risks, and implementing fraud prevention and detection strategies.

Market Share by Region

North America is expected to account for a significant share of the market owing to the continuous efforts of various government institutions and organisations towards the development and deployment of advanced technological solutions, including robotics and automation. The rising investments by major market players in the United States towards the development of smart artificial intelligence chip solutions are also expected to boost the market growth in the region. Moreover, the rising requirement in the IT and telecom sector is also boosting the artificial intelligence (AI) chip market demand in North America.

Competitive Landscape

Intel Corporation is one of the world's largest semiconductor chip manufacturers and is known for supplying microprocessors for computer system manufacturers including Dell, HP, and Lenovo, among others. Intel also manufactures products such as graphic chips, motherboard chipsets, and embedded processors.

Alphabet Inc. is a multinational technology conglomerate holding company, headquartered in California, United States. Alphabet is the parent company of a diverse set of subsidiaries including, Calico, Google, Verily, and Wing, among others.

IBM Corporation, founded in 1911 is an IT services and IT consulting company that specialises in IT infrastructure, artificial intelligence, and technology support, among others. The company is headquartered in New York, United States.

Other market players include Nvidia Corporation, Qualcomm Technologies, Inc, Graphcore Limited, Advanced Micro Devices, Inc., Micron Technology, Inc, MediaTek Inc, and SambaNova Systems, among others.

Key Highlights of the Report