The global artificial intelligence chip market was valued at $11.2 billion in 2021 and is projected to reach $263.6 billion by 2031, growing at a CAGR of 37.1% from 2022 to 2031.
According to Himanshu Jangra Lead Analyst, Semiconductor and Electronics, at Allied Market Research, the Artificial intelligence chip Market is expected to showcase remarkable growth during the forecast period of 2022-2031.
The report contains a thorough examination of the market size, Artificial intelligence chip market trends, key market players, sales analysis, major driving factors, and key investment pockets. The report on the global artificial intelligence chip market provides an overview of the market as well as market definition and scope. The ongoing technological advancements and surge in demand for artificial intelligence processors and artificial intelligence brain chip solutions have an impact on market growth. Furthermore, the report provides a quantitative and qualitative analysis of the artificial intelligence chip market opportunity, as well as a breakdown of the pain points, value chain analysis, and key regulations.
Artificial intelligence (AI) chips are specialized silicon chips, which incorporate AI technology and are used for machine learning. AI helps in eliminating or minimizing the risk to human life in many industry verticals. The need for more efficient systems for solving mathematical and computational problems has become crucial, as the volume of data has increased. Thus, the majority of the key players in the IT industry focus on developing AI chips and applications.
Furthermore, the emergence of quantum computing and the surge in the implementation of AI chips in robotics drive the growth of the global AI chip market considerably. In addition, the emergence of autonomous robotics—robots that develop and control themselves autonomously—is anticipated to provide potential growth opportunities for the market. However, the dearth of skilled workforce is one of the major restraints of the market. Most of the tasks such as testing, bug fixing, cloud implementation, and others are taken over by AI chips; however, the delivery of such tasks lacks essential skill sets, which is acting as a significant restrain for the market in the coming years.
The artificial intelligence chip market size is segmented into Chip Type, Processing Type, Technology, Application, and Industry Vertical.
The artificial intelligence chip market growth is segmented based on chip type, processing type, technology, application, industry vertical, and region. Based on chip type, the market is categorized into GPU, ASIC, FPGA, CPU, and others. In 2021, the CPU segment dominated the market, in terms of revenue, and is expected to follow the same trend during the forecast period.
Based on processing type, it is categorized into edge and cloud. The edge segment dominated the artificial intelligence chip industry, in terms of revenue, and cloud is expected to follow the same trend during the forecast period.
Based on technology, the market is categorized into system-on-chip, system-in-package, multi-chip module, and others. The system-on-chip segment acquired a major share of the market in 2021.
The applications analyzed in the study are natural language processing (NLP), robotics, computer vision, network security, and others. In 2019, the natural language processing (NLP) segment dominated the artificial intelligence chip industry, in terms of revenue, and is expected to follow the same trend during the forecast period.
The industry verticals considered in the study include media & advertising, BFSI, IT & telecom, retail, healthcare, automotive & transportation, and others. The BFSI segment dominated the market, in terms of revenue, and is expected to follow the same trend during the forecast period.
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 the rest of Europe), Asia-Pacific (China, Japan, India, Australia, and the rest of the Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). North America, specifically U.S., remains a significant participant in the global artificial intelligence chip industry. Major organizations and government institutions in the country are intensely putting resources into the technology to develop and deploy advanced technology solutions in the automotive & transportation, healthcare, and BFSI applications during the forecast period.
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 2021-2031. The U.S., holds a dominant position in the artificial intelligence chip market, owing to the rise in investment by prime vendors to boost the smart artificial intelligence chip solutions for consumer electronics and IT and telecom applications.
In Europe, the UK, dominated the artificial intelligence chip market, in terms of revenue, in 2021 and is expected to follow the same trend during the forecast period. However, Germany is expected to emerge as the fastest-growing country in Europe's artificial intelligence chip with a notable CAGR, due to advancement in the healthcare industry which drives the usage of artificial intelligence chips in the country and thus creates lucrative growth opportunities for the artificial intelligence chip market in Germany.
In Asia-Pacific, China holds a major share in the artificial intelligence chip market, owing to the presence of prime players paired with the availability of advanced manufacturing infrastructure solutions in the country. Further, Australia 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 in semiconductor research and chip startup development, to boost smart infrastructure across industrial and manufacturing sectors.
By LAMEA region, the Latin American country garner significant market share in 2021 due to the adoption of new technologies, digital transformation and connectivity are reshaping the future of healthcare and the consumer electronics industry in Latin America. Moreover, the Middle East region is expected to grow at a significant CAGR from 2022 to 2031, owing to shifts in artificial intelligence, industry 4.0, and smart technological changes in recent years, which is expected to reshape the growth of the artificial intelligence chip market in the Middle East.
TOP IMPACTING FACTORS
The significant factors impacting the growth of the global artificial intelligence chip market include an increase in demand for smart homes & smart cities paired with the rise in investment in AI startups. Further, the emergence of quantum computing is driving the market for artificial intelligence solutions in the coming years. However, the death of skilled workers acts as the major barrier to early adoption; thereby, hampering the growth of the market. In contrast, the increase in the adoption of AI chips in developing regions and the development of smarter robots is offering significant growth opportunities for the artificial intelligence chip market forecast.
IMPACT OF THE COVID-19 OUTBREAK
The semiconductor industry globally has been impacted by the spread of Covid-19 and improvements are expected to be completed in the upcoming years with more efficiency in order to make up for lost opportunities during lockdowns.
HISTORICAL DATA & INFORMATION
The global artificial intelligence chip market outlook is highly competitive, owing to the strong presence of existing vendors. Vendors of the artificial intelligence chip market 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 market is expected to increase as technological innovations, product extensions, and different strategies adopted by key vendors increase.
KEY DEVELOPMENTS/ STRATEGIES
NVIDIA Corporation, Advanced Micro Devices Inc. (Xilinx Inc.), Qualcomm Technologies Inc., NXP Semiconductors, and Intell Corporation are the top 5 companies holding a prime share in the artificial intelligence chip market. Top market players have adopted various strategies, such as product launches, contracts, and others to expand their foothold in the artificial intelligence chip market share.
In September 2022, NVIDIA unveiled a new type of graphics chip that uses enhanced artificial intelligence to create more realistic images in games.
In October 2022, Oracle and Nvidia extended the collaboration to help speed customer adoption of artificial intelligence (AI) services. As part of the deal, Oracle Cloud Infrastructure (OCI), which is Oracle's cloud service, beef up the infrastructure with tens of thousands of Nvidia GPUs, both the Ampere A100 currently on the market and the Hopper H100. Oracle also added Nvidia's AI software stack that supports AI training and deep learning.
In September 2022, AMD introduced the RyzenTM. Embedded V3000 Series processors, adding the high-performance “Zen 3” core to the V-Series portfolio to deliver reliable, scalable processing performance for a wide range of storage and networking system applications. AMD Ryzen Embedded V3000 Series processors delivered the performance and low-power options required for some of the most demanding 24x7 operating environments and workloads.
In August 2022, Qualcomm Technologies, Inc. announced that its Snapdragon 8+ Gen 1 Platform powered Samsung Electronics Co., Ltd.'s cutting-edge foldable smartphones. The Samsung Galaxy Z Fold4 and Galaxy Z Flip4.
In July 2022, Mahindra & Mahindra Ltd. announced work with Visteon Corporation and brought transformative in-vehicle experiences to the Scorpio-N, utilizing the 3rd Generation SnapdragonR. Cockpit Platforms from Qualcomm Technologies, Inc. The Scorpio-N offers a cutting-edge driving and ownership experience provided by Mahindra's connected artificial intelligence (AI) technology, which utilizes Visteon's SmartCoreTM. cockpit domain controller technology based on the Snapdragon Cockpit Platforms.
In April 2021, Avnet's development kit deployed autonomous artificial intelligence (AI) capabilities to embedded applications, thereby reducing the dependency on cloud connectivity or processing. The Avnet Edge AI Development Kit featured Avnet Embedded's robust SMARC Computer-on-module (COM), based on NXP's i.MX 8M Plus applications processor, combined with a production-ready SimpleFlex Carrier and a long-term available 10.1 touch display, provides a cost-effective, high-performance computing solution for machine learning (ML) edge applications.
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, enhancing 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. The global artificial intelligence chip market was valued at $11.2 billion in 2021 and is projected to reach $263.6 billion by 2031, growing at a CAGR of 37.1% from 2022 to 2031.
Report Metric | Details |
Report Name | Global AI Chip Market |
Base Year | 2021 |
Forecasted years | 2022-2031 |
Forecast units | USD |
Report coverage | Revenue and volume forecast, company share, competitive landscape, growth factors and trends |
Geographic regions covered | North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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CHAPTER 1:INTRODUCTION
CHAPTER 2:EXECUTIVE SUMMARY
CHAPTER 3:MARKET OVERVIEW
3.1.Market definition and scope
3.2.Key findings
3.3.Porter’s five forces analysis
3.4.Top player positioning
3.5.Market dynamics
3.6.COVID-19 Impact Analysis on the market
CHAPTER 4: ARTIFICIAL INTELLIGENCE CHIP MARKET, BY CHIP TYPE
4.1 Overview
4.2 GPU
4.3 ASIC
4.4 FPGA
4.5 CPU
4.6 Others
CHAPTER 5: ARTIFICIAL INTELLIGENCE CHIP MARKET, BY PROCESSING TYPE
5.1 Overview
5.2 Edge
5.3 Cloud
CHAPTER 6: ARTIFICIAL INTELLIGENCE CHIP MARKET, BY TECHNOLOGY
6.1 Overview
6.2 System On Chip
6.3 System in Package
6.4 Multi Chip Module
6.5 Others
CHAPTER 7: ARTIFICIAL INTELLIGENCE CHIP MARKET, BY APPLICATION
7.1 Overview
7.2 Nature Language Processing
7.3 Robotics
7.4 Computer Vision
7.5 Network Security
7.6 Others
CHAPTER 8: ARTIFICIAL INTELLIGENCE CHIP MARKET, BY INDUSTRY VERTICAL
8.1 Overview
8.2 Media and Advertising
8.3 BFSI
8.4 IT and Telecom
8.5 Retail
8.6 Healthcare
8.7 Automotive and Transportation
8.8 Others
CHAPTER 9: ARTIFICIAL INTELLIGENCE CHIP MARKET, BY REGION
9.1 Overview
9.2 North America
9.3 Europe
9.4 Asia-Pacific
9.5 LAMEA
CHAPTER 10: COMPANY LANDSCAPE
CHAPTER 11: COMPANY PROFILES
11.1 Alphabet Inc.
11.2 Intel Corporation
11.3 Mythic Ltd
11.4 Baidu
11.5 MediaTek Inc
11.6 SoftBank Corp.
11.7 NVIDIA Corporation (Mellanox Technologies)
11.8 Advanced Micro Devices Inc.(Xilinx Inc.)
11.9 Qualcomm Technologies Inc.
11.10 NXP Semiconductors
11.11 Samsung Electronics Co Ltd
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