Neuromorphic Chip Market Expected to Reach $7.1 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Neuromorphic Chip Market by end user : Global Opportunity Analysis and Industry Forecast, 2023-2032," The neuromorphic chip market was valued at $87.89 million in 2022, and is estimated to reach $7.1 billion by 2032, growing at a CAGR of 55.8% from 2023 to 2032.

A neuromorphic chip is an application-specific integrated circuit (ASIC) microchip that is designed to mimic the functions of the nervous system and human brain. It involves the utilization of software solutions and very-large scale-integrated (VLSI) systems to imitate the human way of thinking and recognizing. In addition, it is equipped with artificial synapses and neurons, which are manufactured using silicon that facilitates the system to process such as human brain. Neuromorphic chips are increasingly integrated with AI and machine learning systems for improved data processing and decision-making. The neuromorphic chip market is experiencing rapid growth and innovation, driven by its ability to mimic the processing capabilities of the human brain. These chips offer efficient, low-power, and real-time data processing, making them valuable in various applications across industries. The primary aim of neuromorphic chips is to improve the efficiency of AI systems, especially in environments with limited resources, by utilizing the energy-efficient principles of the human brain. Unlike conventional digital processors, neuromorphic chips utilize spiking neural networks to process information, enabling energy-efficient and real-time data analysis for applications such as image and speech recognition, robotics, and autonomous vehicles. In addition, they main aim is to equip AI systems with cognitive capabilities, including adaptive learning and pattern recognition, enabling them to make more context-aware and intelligent decisions.

Furthermore, the increased demand for artificial intelligence for translation and chatterbots, computer vision and image processing, language processing, nonlinear controls and robotics accelerate the market growth. The advancement of disruptive technologies, such as artificial intelligence (AI) and machine learning (ML) and rise in demand for the technology owing to the low power consumption, higher speed, and optimum memory usage further influence the neuromorphic chip industry.

The ongoing digitization necessitates high-performance neuromorphic chips, which are manufactured utilizing advanced semiconductor production methods and materials. However, the creation and production of neuromorphic chips can be costly, which hampers their affordability and accessibility, especially in consumer electronics and smaller-scale applications. It is crucial to reduce manufacturing costs to encourage wider adoption. Developing software and algorithms to run on neuromorphic chips can be complex and requires specialized knowledge. This can limit the number of software developers and engineers capable of working with these chips. The advanced capabilities of neuromorphic computing raise concerns about data privacy and security. 

The neuromorphic chip market is segmented on the basis of end user and region. By end user, the market is classified into consumer electronics, automotive, IT and telecom, aerospace and defense, industrial, healthcare and others. In 2022, the aerospace and defense segment dominated the market in terms of revenue and is expected to follow the same trend during the forecast period. Moreover, the consumer electronics segment is expected to grow at a high CAGR during the period of 2023-2032.

By region, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Taiwan, and the rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).

KEY FINDINGS OF THE STUDY

• The neuromorphic chip market share is expected to grow significantly in the coming years, driven by the rise in demand for artificial intelligence and machine learning.
• The neuromorphic chip market growth is expected to be driven by the demand for neuromorphic chip in the consumer electronics segment.
• The neuromorphic chip market trends is highly competitive, with several major players competing for market share. The competition is expected to intensify in the coming years as new players enter the market.
• The Asia-Pacific region is expected to be a major market for neuromorphic chip market size owing to an increase in adoption of advanced technologies in the region.

Competitive analysis and profiles of the major neuromorphic chip market players, such as IBM Corporation, HRL Laboratories, LLC, SynSense, General Vision Inc., GrAI Matter Labs, SK HYNIX INC., QUALCOMM Incorporated, BrainChip, Inc, Samsung Electronics Co. Ltd and Intel Corporation is provided in this report. Product launch, agreement, partnership, and acquisition business strategies were adopted by the major market players.