Global Artificial Intelligence (AI) Chipset Market – Industry Trends and Forecast to 2031

Global Artificial Intelligence (AI) Chipset Market, By Hardware (Processor, Memory, and Network), Technology (Machine Learning, Natural Language Processing, Context-aware Computing, Computer Vision, and Predictive Analysis), Function (Training, and Inference), End User (Consumer Electronic, Healthcare, Manufacturing, Automotive, Agriculture, Retail, Cybersecurity, Human Resources, Marketing, Law, Fintech, and Government) – Industry Trends and Forecast to 2031.

Artificial Intelligence (AI) Chipset Market Analysis and Size

Artificial intelligence (AI) chipset market is witnessing exponential growth fueled by the latest technological advancements. Innovations such as neuromorphic computing, quantum AI, and edge computing are reshaping the landscape. With increased demand for AI-driven applications across industries such as healthcare, automotive, and finance, the market is projected to soar, offering unparalleled opportunities for artificial intelligence chip manufacturers to thrive in the dynamic tech ecosystem.

The global artificial intelligence (AI) chipset market size was valued at USD 19.47 billion in 2023, is projected to reach USD 241.59 billion by 2031, with a CAGR of 37.00% during the forecast period 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Report Scope and Market Segmentation       

Market Definition

An AI chipset is a specialized piece of hardware designed to execute artificial intelligence tasks efficiently. It consists of integrated circuits and processors optimized for tasks such as machine learning, neural network processing, and data analysis. These chipsets power various AI applications, from autonomous vehicles to natural language processing systems, enabling faster and more accurate computation of complex algorithms and data sets.

Artificial Intelligence (AI) Chipset Market Dynamics

Drivers

• Increasing Demand for AI-Enabled Devices

The surge in AI adoption across diverse sectors such as healthcare, automotive, retail, and consumer electronics fuels the demand for AI chipsets, powering functionalities in smartphones, smart speakers, autonomous vehicles, and medical equipment. For instance, AI chipsets enable advanced driver-assistance systems (ADAS) in automobiles, enhancing safety and navigation capabilities, thereby driving market growth through increased integration of AI into everyday devices.

• Rapid Advancements in AI Technologies

The rapid evolution of AI algorithms towards greater complexity necessitates more potent hardware for efficient execution. This demand fuels the development of AI-specific chip architectures tailored for tasks such as machine learning, natural language processing, and computer vision. For instance, companies such as NVIDIA and AMD are continuously innovating their GPU architectures to meet the increasing computational requirements of advanced AI models, driving growth in the AI chipset market.

Opportunities

• Expansion of Edge Computing

The surge in edge computing, driven by demands for real-time processing and reduced latency, is fueling the demand for specialized AI chipsets. These chipsets empower edge devices to swiftly execute inference and decision-making tasks without heavy reliance on cloud resources. For instance, in smart surveillance systems, AI chipsets enable on-device processing of video feeds, enhancing security by promptly identifying and responding to potential threats, thereby driving the AI chipset market.

• Growing Focus on Data Privacy and Security

Growing concerns regarding data privacy and security fuel the demand for AI chipsets equipped with robust built-in security features. These chipsets, integrating hardware-based encryption and secure enclaves, cater to applications handling sensitive data. For instance, in healthcare, AI chipsets with secure processing capabilities ensure patient confidentiality during medical data analysis, addressing regulatory compliance and bolstering trust in AI-driven healthcare solutions, thereby driving market growth.

Restraints/Challenges

• High Development Costs

High development costs associated with designing and manufacturing AI chipsets pose a significant barrier for smaller companies looking to enter the market. This financial hurdle restricts competition and innovation, limiting the growth potential of the AI chipset market and hindering accessibility to advanced AI technology for a broader range of industries and applications.

• Vulnerability in Security

Security vulnerabilities, including hacking, data breaches, and adversarial attacks, pose significant threats to AI chipsets, eroding trust in AI-powered systems. These concerns hinder market growth as they undermine confidence in the reliability and security of AI technology, leading to reluctance among businesses and consumers to adopt AI chipsets for critical applications.    

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In January 2023, NXP Semiconductors introduced the i.MX 95 family, part of the i.MX 9 series. Combining high-performance computing, Arm MaliTM-powered 3D graphics, an NXP accelerator for machine learning, and fast data processing, it enables advanced applications in automotive, industrial, networking, connectivity, advanced HMI, and more
• In September 2022, Kinara collaborated with NXP Semiconductors, offering customers the Kinara Ara-1 Edge AI processor to scale AI acceleration alongside NXP's AI-enabled product portfolio, enhancing high-performance inferencing with deep learning models
• In November 2021, NXP Semiconductors unveiled the i.MX 93 family of applications processors for automotive, smart home, smart building, and smart factory applications. Leveraging edge machine learning, it anticipates and automates based on user needs, advancing capabilities in diverse sectors
• In September 2022, Intel launched the 4th Gen IntelR. XeonR Artificial intelligence chip, alongside Sapphire Rapids scalable processors and IntelR. Data Center GPUs. Additionally, 13th Gen IntelR. CoreTM. processors, optimized for AI, promise superior gaming and content creator performance
• In August 2022, Intel collaborated with Aible, a cloud-based solution provider, harnessing AI to deliver rapid and measurable business impact. Through engineering optimizations and an innovative benchmarking program, this partnership empowers Aible to swiftly cater to the AI needs of enterprise customers

Artificial Intelligence (AI) Chipset Market Scope

The market is segmented on the basis of hardware, technology, function, and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Hardware

• Processor
  • GPU
  • ASIC
  • FPGA
  • CPU
  • Others
• Memory
• Network
  • Interconnects
  • Ethernet Adapters

Technology

• Machine Learning
  • Deep Learning
  • Supervised Learning
  • Unsupervised Learning
  • Reinforcement Learning
  • Others
• Natural Language Processing
• Context-aware Computing
• Computer Vision
• Predictive Analysis

 Function

• Training
• Inference

 End User

• Consumer Electronic
• Healthcare
• Manufacturing
• Automotive
• Agriculture
• Retail
• Cybersecurity
• Human Resources
• Marketing
• Law
• Fintech
• Government

Artificial Intelligence (AI) Chipset Market Regional Analysis/Insights

The market is analysed and market size insights and trends are provided by country, hardware, technology, function, and end user as referenced above.

The countries covered in the market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Asia-Pacific is expected to show lucrative growth in the artificial intelligence (AI) chipset market, propelled by technological advancements and widespread adoption of AI processor-enabled systems in the region. This trend reflects a significant opportunity for innovation and market expansion in the AI industry.

North America is expected to dominate the artificial intelligence (AI) chipset market during the forecast period due to its high purchasing power, sustained infrastructure investments, and governments' increasing emphasis on developing in-house AI applications, bolstering regional innovation and market leadership.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Artificial Intelligence (AI) Chipset Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Some of the major players operating in the market are:

• NVIDIA Corporation (U.S.)
• Intel Corporation (U.S.)
• Xilinx, Inc. (U.S.)
• Samsung Electronics Co., Ltd. (South Korea)
• Micron Technology, Inc. (U.S.)
• Qualcomm Technologies, Inc. (U.S.)
• IBM Corp. (U.S.)
• Google Inc. (U.S.)
• Microsoft (U.S.)
• Amazon Web Services, Inc. (U.S.)
• Advanced Micro Devices, Inc (U.S.)
• General Vision Inc. (U.S.)
• Mythic (U.S.)
• Baidu, Inc. (China)