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Artificial Intelligence (AI) Chipsets Market Analysis- Industry Size, Share, Research Report, Insights, Covid-19 Impact, Statistics, Trends, Growth and Forecast 2025-2034

Published Date: January, 2025
Base Year: 2024
Delivery Format: PDF+Excel, PPT
Historical Year: 2018-2023
No of Pages: 263
Forecast Year: 2025-2034
SKU 3b74261d815d Category

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The global Artificial Intelligence (AI) chipsets market size was valued at USD 6.89 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 29.8% from 2021 to 2028. AI chipsets, also known as AI processors, are specialized chips designed to perform complex mathematical calculations that are required for AI-based applications such as natural language processing, machine learning, and computer vision. The growing adoption of AI-based technologies in various industries, including automotive, healthcare, and retail, is driving the demand for AI chipsets.

Artificial Intelligence (AI) chipsets are specialized chips that are designed to perform complex mathematical calculations required for AI-based applications. These chips are capable of processing massive amounts of data at high speeds and are used in various applications such as natural language processing, machine learning, and computer vision. The AI chipsets market includes various types of chips, including central processing units (CPUs), graphics processing units (GPUs), and field-programmable gate arrays (FPGAs).

Executive Summary of Artificial Intelligence (AI) Chipsets Market

The global Artificial Intelligence (AI) chipsets market is expected to grow at a compound annual growth rate (CAGR) of 29.8% from 2021 to 2028, driven by the growing adoption of AI-based technologies in various industries such as automotive, healthcare, and retail. The market includes various types of chips, including central processing units (CPUs), graphics processing units (GPUs), and field-programmable gate arrays (FPGAs). The Asia Pacific region is expected to dominate the market during the forecast period due to the growing demand for AI-based technologies in countries such as China and India.

Artificial Intelligence (AI) Chipsets Market

Key Market Insights

  1. Growing Adoption of AI-based Technologies in Various Industries The growing adoption of AI-based technologies in various industries such as automotive, healthcare, and retail is driving the demand for AI chipsets. AI-based technologies are being used to develop autonomous vehicles, healthcare diagnostics and treatments, and personalized shopping experiences. The demand for AI chipsets is expected to increase as more industries adopt AI-based technologies.
  2. Increasing Investment in AI-based Technologies The increasing investment in AI-based technologies by governments and private organizations is driving the growth of the AI chipsets market. Governments are investing in AI-based technologies to improve healthcare, public safety, and transportation. Private organizations are investing in AI-based technologies to develop new products and services, improve operational efficiency, and enhance customer experiences.
  3. Rising Demand for AI in Emerging Economies The rising demand for AI in emerging economies such as China, India, and Brazil is driving the growth of the AI chipsets market. These countries are investing heavily in AI-based technologies to improve healthcare, transportation, and public safety. The growing middle-class population in these countries is also driving the demand for AI-based products and services.

Market Drivers

  1. Growing Adoption of AI-based Technologies in Various Industries The growing adoption of AI-based technologies in various industries such as automotive, healthcare, and retail is driving the demand for AI chipsets. AI-based technologies are being used to develop autonomous vehicles, healthcare diagnostics and treatments, and personalized shopping experiences. The demand for AI chipsets is expected to increase as more industries adopt AI-based technologies.
  2. Increasing Investment in AI-based Technologies The increasing investment in AI-based technologies by governments and private organizations is driving the growth of the AI chipsets market. Governments are investing in AI-based technologies to improve healthcare, public safety, and transportation. Private organizations are investing in AI-based technologies to develop new products and services, improve operational efficiency, and enhance customer experiences.
  3. Increasing Demand for Edge Computing The increasing demand for edge computing is driving the growth of the AI chipsets market. Edge computing involves processing data closer to where it is generated, which reduces latency and improves efficiency. AI chipsets are being used in edge computing applications such as autonomous vehicles and smart cities.

Market Restraints

  1. High Cost of AI Chipsets The high cost of AI chipsets is a major restraint for the market. AI chipsets are expensive to produce and require specialized manufacturing processes. This makes them unaffordable for small and medium-sized enterprises (SMEs) and limits their adoption in certain industries.
  2. Lack of Skilled Workforce The lack of skilled workforce is a major restraint for the market. AI chipsets require specialized knowledge and expertise to develop and use effectively. The shortage of skilled professionals in this field is limiting the growth of the market.
  3. Complexity of AI-based Technologies The complexity of AI-based technologies is a major restraint for the market. AI-based technologies are complex and require significant investment in research and development to develop effective solutions. This complexity limits the adoption of AI-based technologies in certain industries.

Market Opportunities

  1. Growing Demand for AI in Healthcare The growing demand for AI in healthcare is a major opportunity for the market. AI-based technologies are being used to develop new diagnostic tools, improve patient outcomes, and reduce healthcare costs. The demand for AI chipsets is expected to increase as more healthcare organizations adopt AI-based technologies.
  2. Increasing Demand for AI in Retail The increasing demand for AI in retail is a major opportunity for the market. AI-based technologies are being used to personalize shopping experiences, improve inventory management, and optimize supply chain operations. The demand for AI chipsets is expected to increase as more retailers adopt AI-based technologies.
  3. Rising Demand for AI in Autonomous Vehicles The rising demand for AI in autonomous vehicles is a major opportunity for the market. AI-based technologies are being used to develop autonomous vehicles that can navigate and operate safely on roads. The demand for AI chipsets is expected to increase as more automotive companies develop autonomous vehicles.

Market Dynamics

  1. Market Drivers The growing adoption of AI-based technologies in various industries, increasing investment in AI-based technologies, rising demand for AI in emerging economies, and increasing demand for edge computing are driving the growth of the AI chipsets market.
  2. Market Restraints The high cost of AI chipsets, lack of skilled workforce, and complexity of AI-based technologies are restraining the growth of the market.
  3. Market Opportunities The growing demand for AI in healthcare, increasing demand for AI in retail, and rising demand for AI in autonomous vehicles are creating new opportunities for the market.

Regional Analysis

  1. North America North America is expected to dominate the AI chipsets market during the forecast period. The presence of major AI chipsets manufacturers such as Intel, NVIDIA, and Qualcomm in this region is driving the growth of the market.
  2. Europe Europe is expected to be the second-largest AI chipsets market during the forecast period. The increasing investment in AI-based technologies by governments and private organizations in this region is driving the growth of the market.
  3. Rest of the World The rest of the world is expected to have a small market share during the forecast period. However, the increasing adoption of AI-based technologies in countries such as Brazil and South Africa is driving the growth of the market in this region.

Competitive Landscape

The AI chipsets market is highly competitive, with the presence of several major players such as Intel Corporation, NVIDIA Corporation, Qualcomm Technologies, and Advanced Micro Devices, Inc. These players are focusing on product innovation and strategic partnerships to expand their market share.

Segmentation

The AI chipsets market can be segmented based on type, application, and region.

  1. By Type
  • Central Processing Units (CPUs)
  • Graphics Processing Units (GPUs)
  • Field-Programmable Gate Arrays (FPGAs)
  • Application-Specific Integrated Circuits (ASICs)
  1. By Application
  • Natural Language Processing (NLP)
  • Machine Learning
  • Computer Vision
  • Robotics
  • Others
  1. By Region
  • North America
  • Europe
  • Asia Pacific
  • Rest of the World

Category-wise Insights

  1. By Type
  • CPUs are the most widely used AI chipsets due to their general-purpose computing capabilities.
  • GPUs are being used in AI-based applications such as gaming, virtual reality, and scientific simulations.
  • FPGAs are being used in edge computing applications due to their low latency and high performance.
  • ASICs are being used in specialized AI-based applications such as cryptocurrency mining and video transcoding.
  1. By Application
  • NLP is being used in AI-based applications such as chatbots, virtual assistants, and speech recognition.
  • Machine learning is being used in AI-based applications such as predictive analytics, fraud detection, and recommendation systems.
  • Computer vision is being used in AI-based applications such as autonomous vehicles, facial recognition, and object detection.
  • Robotics is being used in AI-based applications such as manufacturing, healthcare, and logistics.

Key Benefits for Industry Participants and Stakeholders

  1. Improved Efficiency and Productivity AI chipsets are being used to improve efficiency and productivity in various industries such as healthcare, retail, and manufacturing.
  2. Enhanced Customer Experience AI chipsets are being used to personalize customer experiences in industries such as retail and hospitality.
  3. Improved Safety and Security AI chipsets are being used to improve safety and security in industries such as public transportation and public safety.

SWOT Analysis

  1. Strengths
  • AI chipsets are being used in various applications and industries, which is driving the growth of the market.
  • Major players in the market are investing heavily in product innovation and strategic partnerships to expand their market share.
  1. Weaknesses
  • The high cost of AI chipsets is limiting their adoption in certain industries and by small and medium-sized enterprises (SMEs).
  • The lack of skilled workforce is limiting the growth of the market.
  1. Opportunities
  • The growing demand for AI in healthcare, retail, and autonomous vehicles is creating new opportunities for the market.
  • The increasing investment in AI-based startups is driving the growth of the market.
  1. Threats
  • The complexity of AI-based technologies is a major threat to the market.
  • The increasing competition among major players in the market is a threat to the market.

Market Key Trends

  1. Increasing Adoption of AI-based Technologies in Healthcare The increasing adoption of AI-based technologies in healthcare is driving the growth of the AI chipsets market. AI-based technologies are being used to develop new diagnostic tools, improve patient outcomes, and reduce healthcare costs.
  2. Growing Demand for AI in Retail : growing demand for AI in retail is driving the growth of the AI chipsets market. AI-based technologies are being used to personalize shopping experiences, improve inventory management, and optimize supply chain operations.
  1. Increasing Demand for Edge Computing The increasing demand for edge computing is driving the growth of the AI chipsets market. AI chipsets are being used in edge computing applications such as autonomous vehicles and smart cities.

Covid-19 Impact

The Covid-19 pandemic has had a mixed impact on the AI chipsets market. On the one hand, the pandemic has increased the demand for AI-based technologies in healthcare, public safety, and transportation. On the other hand, the pandemic has caused disruptions in the supply chain and has limited the production of AI chipsets.

Key Industry Developments

  1. NVIDIA Corporation launched the NVIDIA A100 Tensor Core GPU, which is designed to accelerate AI-based applications in the cloud and data centers.
  2. Qualcomm Technologies launched the Qualcomm Snapdragon 888 5G Mobile Platform, which includes an AI Engine that is capable of processing 26 trillion operations per second (TOPS).
  3. Intel Corporation acquired Habana Labs, an AI chipsets startup, to expand its portfolio of AI-based solutions.

Analyst Suggestions

  1. Focus on Product Innovation Companies operating in the AI chipsets market should focus on product innovation to differentiate themselves from competitors and to expand their market share.
  2. Invest in Research and Development Companies should invest in research and development to develop effective AI-based solutions that address the needs of various industries.
  3. Develop Skilled Workforce Companies should develop a skilled workforce to develop and use AI-based technologies effectively.

Future Outlook

The global Artificial Intelligence (AI) chipsets market is expected to grow at a compound annual growth rate (CAGR) of 29.8% from 2021 to 2028. The growing adoption of AI-based technologies in various industries, increasing investment in AI-based technologies, rising demand for AI in emerging economies, and increasing demand for edge computing are driving the growth of the market. The Asia Pacific region is expected to dominate the market during the forecast period due to the growing demand for AI-based technologies in countries such as China and India. However, the high cost of AI chipsets, lack of skilled workforce, and complexity of AI-based technologies are restraining the growth of the market.

Conclusion

The global Artificial Intelligence (AI) chipsets market is expected to grow at a compound annual growth rate (CAGR) of 29.8% from 2021 to 2028. The growing adoption of AI-based technologies in various industries, increasing investment in AI-based technologies, and rising demand for AI in emerging economies are driving the growth of the market. However, the high cost of AI chipsets, lack of skilled workforce, and complexity of AI-based technologies are limiting the growth of the market. Companies operating in the market should focus on product innovation, invest in research and development, and develop a skilled workforce to capitalize on the opportunities offered by the market.

In addition, the increasing demand for AI in healthcare, retail, and autonomous vehicles is creating new opportunities for the market. The Covid-19 pandemic has had a mixed impact on the market, with increased demand for AI-based technologies in some industries but disruptions in the supply chain and production of AI chipsets.To succeed in this highly competitive market, companies should focus on product innovation and invest in research and development to develop effective AI-based solutions that address the needs of various industries. Developing a skilled workforce is also important to effectively develop and use AI-based technologies.

Artificial Intelligence (AI) Chipsets Market

Segmentation Details
Chip Type CPU, GPU, FPGA, ASIC, Others
Technology Machine Learning, Natural Language Processing, Computer Vision, Others
End User Healthcare, Automotive, Consumer Electronics, Others
Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Leading companies in the Artificial Intelligence (AI) Chipsets Market:

  1. NVIDIA Corporation
  2. Intel Corporation
  3. Advanced Micro Devices, Inc.
  4. Google LLC (Alphabet Inc.)
  5. Qualcomm Incorporated
  6. IBM Corporation
  7. Samsung Electronics Co., Ltd.
  8. Huawei Technologies Co., Ltd.
  9. Xilinx, Inc.
  10. Microsoft Corporation

North America
o US
o Canada
o Mexico

Europe
o Germany
o Italy
o France
o UK
o Spain
o Denmark
o Sweden
o Austria
o Belgium
o Finland
o Turkey
o Poland
o Russia
o Greece
o Switzerland
o Netherlands
o Norway
o Portugal
o Rest of Europe

Asia Pacific
o China
o Japan
o India
o South Korea
o Indonesia
o Malaysia
o Kazakhstan
o Taiwan
o Vietnam
o Thailand
o Philippines
o Singapore
o Australia
o New Zealand
o Rest of Asia Pacific

South America
o Brazil
o Argentina
o Colombia
o Chile
o Peru
o Rest of South America

The Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Israel
o Kuwait
o Oman
o North Africa
o West Africa
o Rest of MEA

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