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2023

Artificial Intelligence Chip Market

Artificial Intelligence Chip Market Size, Share, Competitive Landscape and Trend Analysis Report by Chip Type, by Processing Type, by Technology, by Application, by Industry Vertical : Global Opportunity Analysis and Industry Forecast, 2023-2032

SE : Electronic Systems and Devices

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Author's: Himanshu Jangra | Sonia Mutreja
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Artificial Intelligence (AI) Chip Market Research, 2032

The Global Artificial Intelligence (AI) Chip market was valued at $14.9 billion in 2022, and is projected to reach $383.7 billion by 2032, growing at a CAGR of 38.2% from 2023 to 2032.

An AI chip refers to a specialized integrated circuit tailored for efficient and fast execution of AI tasks. These chips are purposefully crafted to expedite intricate algorithmic calculations, crucial for various AI applications. They harness parallel processing abilities, unique neural network architectures, and optimized memory structures to achieve remarkable performance improvements compared to general-purpose processors. AI chips play a pivotal role that propel AI technology forward, enabling real-time inference and training for diverse applications.

Artificial Intelligence Chip Market

Artificial Intelligence (AI) Chip Industry find practical utility across a broad spectrum of industries and applications. In the realm of autonomous vehicles, they drive tasks such as identifying objects, merging sensor data, and making decisions, thus bolstering safety and enabling self-driving capabilities. In healthcare, AI chips are instrumental in analyzing medical images, facilitating diagnoses from X-rays, MRIs, and CT scans. Language-related AI functions, such as voice recognition and language translation, owe their functionality to AI chips, leading to advances in virtual assistants and instantaneous language translation tools. Moreover, AI chips enhance the efficiency of financial services by enabling algorithmic trading, fraud detection, and risk assessment.

AI chips cater to a diverse array of end users spanning various sectors. Within the tech industry, companies creating AI-centric products and services, such as smartphones featuring AI-powered cameras or smart speakers with voice-activated helpers, incorporate AI chips to ensure smooth user experiences. Enterprises utilize AI chips within data centers to tackle tasks such as training expansive machine learning models and refining business operations through predictive analysis. Research institutions and academia leverage AI chips to push the frontiers of AI research, delving into novel algorithms and architectures. Ultimately, consumers benefit as end users of AI chips, reaping rewards from improved products and services reliant on accelerated AI processing, such as tailored streaming recommendations or intelligent home automation in Artificial Intelligence Chip Industry.

Segment Overview

The AI Chip Market size is segmented into Chip Type, Processing Type, Technology, Application and Industry Vertical.

Artificial Intelligence Chip Market by Chip Type

By chip type, the artificial intelligence chip market share is categorized into GPU, ASIC, FPGA, CPU, and others. In 2022, the CPU segment dominated the market, in terms of revenue, and ASIC segment will acquire highest CAGR during the forecast period.

Artificial Intelligence Chip Market by Processing Type

By processing type, the artificial intelligence chip market growth categorized into edge and cloud. In 2022, the edge segment dominated the market, in terms of revenue, and will acquire major market share till 2032.

Artificial Intelligence Chip Market by Technology

By technology, the market is categorized into system-on-chip, system-in-package, multi-chip module, and others. In 2022, the system-on-chip segment dominated the market, in terms of revenue, and will acquire major market share till 2032.

Artificial Intelligence Chip Market by Application

The applications analyzed in the study are natural language processing (NLP), robotics, computer vision, network security and others. In 2022, the natural language processing (NLP) segment dominated the market, in terms of revenue, and will acquire major market share till 2032.

Artificial Intelligence Chip Market by Industry Vertical

The industry verticals considered in the study include media & advertising, BFSI, IT & telecom, retail, healthcare, automotive & transportation, and others. In 2022, the healthcare segment dominated the market, in terms of revenue, and will acquire major market share till 2032.

Artificial Intelligence Chip Market by Region

Region-wise, the artificial intelligence chip Market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, Russia, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).

Competitive Analysis

Competitive analysis and profiles of the major global artificial intelligence chip market players that have been provided in the report include Qualcomm Technologies Inc., Baidu, MediaTek Inc, NVIDIA Corporation (Mellanox Technologies), Alphabet Inc., Mythic, NXP Semiconductors, Intel Corporation, Samsung Electronics Co Ltd, Advanced Micro Devices Inc.(Xilinx Inc.), and SoftBank Corp.

Country Analysis

Country-wise, the U.S. acquired a prime share in the artificial intelligence chip market in the North American region and is expected to grow at a significant CAGR during the forecast period of 2023-2032.

In Europe, UK, dominated the artificial intelligence chip market, in terms of revenue, in 2022  and is expected to follow the same trend during the forecast period. However, the Germany is expected to emerge as the fastest-growing country in Europe's artificial intelligence chip with a CAGR of 39.3%.

In Asia-Pacific, China is expected to emerge as a significant market for the artificial intelligence chip industry, owing to a significant rise in investment by prime players and government institutions to security solutions in the region.

By LAMEA region, the Africa country garner significant market share in 2022. The LAMEA artificial intelligence chip market has been witnessing improvement, owing to the growing inclination of companies towards research and development across this region. Moreover, the Africa region is expected to grow at a high CAGR of 42.2% from 2023 to 2032.

Historical Data & Information

The global artificial intelligence chip market forecast is highly competitive, owing to the strong presence of existing vendors. Vendors of artificial intelligence chip with extensive technical and financial resources are expected to gain a competitive advantage over their competitors because they can cater to market demands. The competitive environment in this artificial intelligence chip market outlook is expected to worsen as technological innovations, product extensions, and different strategies adopted by key vendors increase.

Key Developments/ Strategies

Qualcomm Technologies Inc., Baidu, MediaTek Inc, NVIDIA Corporation (Mellanox Technologies), Alphabet Inc., Mythic, NXP Semiconductors, Intel Corporation, Samsung Electronics Co Ltd, Advanced Micro Devices Inc.(Xilinx Inc.), and SoftBank Corp are the top companies holding a prime share in the artificial intelligence chip market. Top market players have adopted various strategies, such as product launch, acquisition, innovation, partnership, and others to expand their foothold in the Artificial Intelligence Chip Market Opportunity.

  • In January 2023, NXP Semiconductors announced the launch of i.MX 95 family, the newest addition to its i.MX 9 series of applications processors. The new i.MX 95 family combines high-performance computers, immersive Arm MaliTM-powered 3D graphics, an innovative new NXP accelerator for machine learning, and high-speed data processing. This technology enables advanced applications in automotive, industrial, networking, connectivity, advanced human machine interface (HMI), and others.
  • In September 2022, Kinara announced its collaboration with NXP Semiconductors. Through this collaboration, customers of NXP Semiconductors' AI-enabled product portfolio have the option to further scale their AI acceleration needs by utilizing the Kinara Ara-1 Edge AI processor for high performance inferencing with deep learning models fr AI chip technology.
  • In November 2021, NXP Semiconductors announced the i.MX 93 family of applications processors designed for automotive, smart home, smart building, and smart factory applications, which leverages edge machine learning to anticipate and automate based on user needs.
  • In September 2022, Intel launched the 4th, Gen IntelR. XeonR Artificial intelligence chipset. Scalable processors (Sapphire Rapids) and IntelR. Data Center GPUs. The introduced 13th Gen IntelR. CoreTM. processors based on AI offer the best gaming experience and stellar content creator performance.
  • In August 2022, Intel's collaborated with Aible a cloud-based solution provider to leverage artificial intelligence and delivered rapid and measurable business impact. This deep collaboration includes engineering optimizations and an innovative benchmarking program, enhanced Aible's ability to deliver rapid results to its enterprise customers.
  • In February 2022, Intel launched XeonR., which is a new dual-track roadmap of Performance-core and Efficient-core based products, moving from two optimized platforms into one common, industry-defining platform. This path maximizes performance-per-watt, segment features and Intel's overall competitiveness within the industry.
  • In August 2021, Baidu announced the launch of its artificial intelligence technology with the launch of Baidu Brain. The start of mass production of its 2nd generation Kunlun AI chip, Kunlun II, and the demonstration of industrial applications using Baidu AI Cloud.
  • In October 2022, Razer unveiled the highly anticipated Razer Edge 5G, designed in collaboration with Qualcomm Technologies, Inc. and Verizon. This groundbreaking collaboration introduced the dedicated 5G handheld gaming device, equipped with the latest processing power from the Snapdragon G3x and Razer's industry-leading gaming hardware.

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the artificial intelligence chip market analysis from 2022 to 2032 to identify the prevailing artificial intelligence chip market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the artificial intelligence chip market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global AI chip market trends, key players, market segments, application areas, and market growth strategies.

Artificial Intelligence Chip Market Report Highlights

Aspects Details
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Market Size By 2032

USD 383.7 billion

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Growth Rate

CAGR of 38.2%

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Forecast period

2022 - 2032

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Report Pages

381

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By Chip Type
  • Others
  • GPU
  • ASIC
  • FPGA
  • CPU
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By Processing Type
  • Edge
  • Cloud
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By Technology
  • System On Chip
  • System in Package
  • Multi Chip Module
  • Others
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By Application
  • Nature Language Processing
  • Robotics
  • Computer Vision
  • Network Security
  • Others
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By Industry Vertical
  • Media and Advertising
  • BFSI
  • IT and Telecom
  • Retail
  • Healthcare
  • Automotive and Transportation
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Samsung Electronics Co Ltd, SoftBank Corp., Intel Corporation, Mythic, MediaTek Inc, Advanced Micro Devices Inc.(Xilinx Inc.), NXP Semiconductors, Baidu, NVIDIA Corporation (Mellanox Technologies), Qualcomm Technologies Inc., Alphabet Inc.

Key Market Players
Other Key Market Players

GRAPHCORE LTD., GROQ, GYRFALCON TECHNOLOGY INC., HORIZON ROBOTICS, INC., HUAWEI TECHNOLOGIES CO. LTD., INTEL CORPORATION, INTERNATIONAL BUSINESS MANAGEMENT CORPORATION, KNUEDGE, INC., KRTKL INC., MEDIATEK, INC., MICRON TECHNOLOGY, INC., MICROSEMI CORPORATION, MYTHIC, INC., NEC CORPORATION, KOREA ELECTRONIC CERTIFICATION AUTHORITY, INC. (AI BRAIN, INC.), NVIDIA CORPORATION, NXP SEMICONDUCTORS N.V., QUALCOMM INCORPORATED, SAMSUNG ELECTRONICS CO. LTD., SHANGHAI THINK-FORCE ELECTRONIC TECHNOLOGY CO. LTD., SK HYNIX, INC., SOFTBANK GROUP CORP. (ARM HOLDINGS PLC), TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED, TENSTORRENT INC., TEXAS INSTRUMENTS INCORPORATED, TOSHIBA CORPORATION, UNIVERSITY OF CALIFORNIA SYSTEM (UNIVERSITY OF CALIFORNIA, DAVIS), WAVE COMPUTING, INC., XILINX, INC.

Analyst Review

According to the insights of the CXOs of leading companies, the artificial intelligence chip market holds high potential for the semiconductor industry. The current business scenario has witnessed an increase in the demand for artificial intelligence chip, particularly in the developing regions such as China and India. Companies in this industry have adopted various novel techniques to provide customers with advanced and innovative product offerings. According to the insights of the CXOs of leading companies, the AI chip market signifies a promising future for the technological industry.  

The current business scenario has witnessed an increase in the adoption of this technology, particularly in the developing regions. Companies have adopted innovative techniques to provide customers with advanced and innovative product offerings. The market is shifting toward smart homes, smart cities, and smart gadgets as a result of technical breakthroughs, which has caused the artificial intelligence (AI) chip market to experience remarkable growth. In addition, growing investments in AI start-ups and development of quantum computers are anticipated to boost market expansion during the forecast period. Other factors, such as widespread use of AI technology and development of robotics, fuel the market expansion.  

However, the artificial intelligence (AI) chip market is expected to be constrained by high research costs and shortage of competent labor during the forecast period. In addition, significant increase in R&D, greater use of autonomous robotics across a variety of industrial verticals, and introduction of high-tech products are expected to open up new market opportunities, accelerating the growth of the artificial intelligence (AI) chip market. Based on region, North America exhibits the highest adoption of AI chips.  

On the other hand, Asia-Pacific is expected to grow at a faster pace, predicting lucrative growth. The artificial intelligence chip market provides numerous growth opportunities to the market players such as Alphabet Inc. (Google Inc.), NXP Semiconductors N.V., Mythic Ltd., Intel Corporation, Baidu, Mediatek, Inc., NVIDIA Corporation, Qualcomm Incorporated, Advanced Micro Devices Inc., and Samsung Electronics Co. Ltd. 

Author Name(s) : Himanshu Jangra | Sonia Mutreja
Frequently Asked Questions?

The emergence of quantum computing and increased usage of autonomous robotic at various industry verticals.

Nature Language Processing is the leading application of Artificial Intelligence Chip Market.

North America is the largest regional market for Artificial Intelligence Chip.

The global artificial intelligence chip market was valued at $14,918.7 million in 2022.

SoftBank Group Corp., Alphabet Inc. (Google Inc.), NXP Semiconductors N.V., Mythic Ltd., Intel Corporation, Baidu, Mediatek, Inc., NVIDIA Corporation, Qualcomm Incorporated, Advanced Micro Devices Inc., and Samsung Electronics Co. Ltd.

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Artificial Intelligence Chip Market

Global Opportunity Analysis and Industry Forecast, 2023-2032