According to a new 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, 2021–2030”, the global artificial intelligence chip market size is expected to reach $194.90 billion by 2030 from $8.02 billion in 2020, growing at a CAGR of 37.4% from 2021 to 2030. Asia-Pacific is expected to be the leading contributor to the global market during the forecast period, followed by North America and Europe.
Artificial intelligence is a technology that is used to develop methods and application systems for simulating and expanding human intelligence. In the current market scenario, factors such as emergence of big data, rise in computing power, and rapid digitalization influence the artificial intelligence chip market growth. The big tech players such as Google Inc., Facebook, Tesla, and others are either investing or planning to do so for the development of AI Chips. Moreover, deep neural network powered solutions make up most commercial AI applications. The number and importance of these applications have grown strongly and are expected to keep on growing at a similar pace.
As artificial intelligence and its applications become more widespread, the race to develop cheaper and faster chips is likely to accelerate among tech giants. Companies can either rent these on the cloud from cloud service providers such as Amazon AWS’ Sagemaker service or buy their hardware.
The prominent factors that impact the artificial intelligence chip market growth are increase in demand for smart homes & smart cities, rise in investments in AI startups, and emergence of quantum computing. However, dearth of skilled workforce restricts the market growth. On the contrary, increased adoption of AI chips in the developing regions and development of smarter robots are expected to create lucrative opportunities for the artificial intelligence chip market players. Therefore, these factors are expected to definitely affect global artificial intelligence chip industry during the forecast period.
Region-wise, the artificial intelligence chip market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). Asia-Pacific is expected to leading revenue contributor to the market due to increase in adoption of AI technologies in several industries including BFSI, IT & telecom, healthcare, and automotive. The overall artificial intelligence chip market analysis is determined to understand the profitable trends to gain a stronger foothold.
Covid-19 Impact Analysis
The ongoing COVID-19 pandemic has abruptly re-shaped the global economy. Sudden decline in development is expected to hamper the artificial intelligence chip market growth. The impact on the market was initially limited to only some regions, such as China, but expanded to other regions, including Europe and the U.S. later. This put a stop to global economic activity, which had a significant impact on product sales.
Currently, governments in various countries around the world are swiftly implementing various measures to return the economy to a recovery path. Although leading players have witnessed COVID-19 pandemic fade in some regions, it has now spread around the world, and no one is able to predict when things may settle down.
Under this situation and at this point in time, it is extremely difficult to project the performance in the remaining months of the year. From this perspective, the market players have decided to promptly disclose full year projection, once a reasonable projection can be made. However, slowdown in productions by OEMs and reduction in demand for AI chip have slightly pulled down the market.
Key Findings Of The Study
- In 2020, the CPU segment accounted for the maximum revenue and is projected to grow at a notable CAGR of 36.3%% during the forecast period.
- The system on chip segment accounted for more than 50% of the global artificial intelligence chip market share in 2020.
- The robotics segment witnessed highest growth rate during the forecast period.
- The UK was the major revenue contributor in the Europe artificial intelligence chip market share, accounting for approximately 27% share in 2020.
The key players profiled in the artificial intelligence chip market report include Advanced Micro Devices, Alphabet Inc. (Google Inc.), Apple, NXP Semiconductors N.V., Analog Devices, Inc., Intel Corporation, Mediatek, Inc., NVIDIA Corporation, Qualcomm Incorporated, and Microsemi Corporation. These players have adopted various strategies, such as partnership, agreement, collaboration, expansion, and product launch, to expand their foothold in artificial intelligence chip industry.