Allied Market Research

Global Artificial Intelligence Chip Market Expected to Reach $91,185 Million by 2025


Report Code : A04164

quote In 2018, the GPU segment dominated the global artificial intelligence chip market in the design chip type, in terms of revenue. However, the others segment is expected to grow at a highest CAGR during the forecast period. Furthermore, based on application, natural language processing led the global market in 2018, followed by robotics. By technology, the system-on-chip segment is anticipated to dominate the market throughout the forecast period. Moreover, the BFSI segment dominates the overall AI chip market, in terms of industry vertical. The artificial intelligence chip market holds high potential for the semiconductor industry. The current business scenario has been witnessing an increase in the demand for an artificial intelligence chip, particularly in the developing regions, such as China, India, and others. Companies in this industry have been adopting various innovative techniques to provide customers with advanced and innovative product offerings. quote

Rahul Kumar
Lead Analyst, Semiconductor & Electronics at Allied Market Research

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According to a recent report published by Allied Market Research, titled,"Artificial Intelligence Chip Market by Chip Type, Application, Technology, Processing Type, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2018 - 2025,"the global artificial intelligence chip market size was valued at $6,638.0 million in 2018, and is projected to reach $91,185.1 million by 2025, growing at a CAGR of 45.2% from 2019 to 2025.

At present, North America dominates the artificial intelligence chip market owing to technological advancements. Ongoing R&D activities in autonomous vehicles, healthcare, cyber security, and security & access control are expected to fuel the market growth. In addition, increase in penetration of head-up display screens in luxury cars, smart wearables, and growth in venture capital investments propel the adoption of AI solutions in this region, followed by Europe. In 2018, U.S. dominated the North America market and UK led the overall AI chip market in Europe. However, in Asia-Pacific, China currently dominates the market. China has progressively competed with the U.S. in technological innovations in AI. Many tech companies in China, such as Baidu, invested heavily in technology and have employed skilled employees from its foreign rivals. The enormous data generated by numerous internet users in the country is expected to be a key driving factor for the global artificial intelligence chip market growth. In addition, in May 2018, Cambricon (pioneer in the field of smart chips in the world) unveiled its 3rd generation AI chip for edge devices with the help of TSMC 7nm technology. In addition, the company aims for having one billion smart devices which is expected to be using its AI processor. 

AI chips are powerful to handle large and parallel operations efficiently. Various chip makers companies are acquiring AI startups to enhance and strengthen their AI chip product portfolio. For instance, Intel acquired Nervana, a small AI software firm for its deep learning accelerator GPU chip. GPUs are highly adopted chip for neural networks. Neural network processors are built for deep learning, offering high speed bi-direction data transfer. GPU is a crucial component of AI and Machine Learning. Nvidia, AMD, Xilinx, Qualcomm, and Intel are some of the AI chip makers. Moreover, Apple, Qualcomm, Huawei, MediaTek, and Samsung are the top AI chip makers for the smartphone market. Nvidia and AMD are the top sellers to sell GPU for AI-based services. The growth of the global artificial intelligence chip market is driven by increase in demand for smart homes, development of smart cities, and emergence of quantum computing. AI can provide impetus to initiate smart city programs in the developing countries such as India. Tools and technologies that are artificially intelligent possess a massive potential in transforming interconnected digital homes and smart cities. Furthermore, the creation of a chip that embeds inbuilt AI network has emerged as an opportunity for the AI chip market. However, dearth of skilled workforce restrains the AI chip market growth. Further, in the near future, increased adoption of AI chips in the developing regions and development of smarter robots are expected to provide lucrative opportunities for the key players operating in the artificial intelligence chip market. 

Key Findings of the Artificial Intelligence Chip Market:

  • Based on chip type, the GPU segment led the AI chip market in 2018. However, the ASIC segment is anticipated to overtake the GPU type in the near future, in terms of revenue. 
  • The natural language processing application dominated the global AI chip market in 2018. 
  • The North America region held the majority of artificial intelligence chip market share in 2018. 
  • By industry vertical, the BFSI segment dominated the global artificial intelligence chip market in 2018. However, the others segment is expected to grow at a highest CAGR during the forecast period.
  • Asia-Pacific is anticipated to exhibit the highest CAGR during the forecast period.

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quote Artificial Intelligence Chip Market by Chip Type (GPU, ASIC, FPGA, CPU, and others), Application (Natural Language Processing (NLP), Robotic, Computer Vision, Network Security, and Others), Technology (System-on-Chip, System-in-Package, Multi-chip Module, and Others), Processing Type (Edge and Cloud), and Industry Vertical (Media & Advertising, BFSI, IT & Telecom, Retail, Healthcare, Automotive & Transportation, and Others): Global Opportunity Analysis and Industry Forecast, 2019-2025 quote

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