AI Chipset Market - Forecasts from 2024 to 2029

AI Chipset Market - Forecasts from 2024 to 2029

The AI chipsets market is projected to grow at a CAGR of 25.87% to reach US$159.167 billion in 2029 from US$31.800 billion in 2022.

AI chipsets are specialized processors designed to perform artificial intelligence (AI) applications. AI chipsets are used in various consumer electronics devices, such as smartphones, tablets, laptops, gaming consoles, and many more. It is now used in self-driving cars and other advanced driver-assistance systems (ADAS). It can be used in medical imaging analysis, drug discovery, and robotic surgery.

It can help manufacturers to identify potential problems before they occur and ensure that products are of high quality. AI chipsets are still a relatively new technology, but they can potentially revolutionize many industries. The industry is moving from the embryotic stage, with large investments and high risks, to the growth stage, where investment increases, profit rises, and spending on research development and application also increases in the field.

What are the AI chipsets market growth drivers?

Increasing focus on creating AI systems

The AI Chipsets market is expanding due to the increased attention being paid to creating AI systems that are aware of humans. AI has been significantly used in various sectors and spheres. Chipsets are designed to solve business problems in various industries.

The incorporation of GenAI throughout the Synopsys.ai suite will help chip designers with collaborative functionalities, including expert tool guidance, generative capabilities for RTL, verification, collateral creation, and autonomous capabilities for creating workflows from natural language. As such, AI continues to advance in the field of technology,

Companies like Samsung and Google are already working to strengthen their server silicon projects. They are also developing new AI chips, such as Snapdragon® 8 Gen 3 Mobile Platform, a new AI with the inaugural AI Engine capable of supporting up to 10 billion parameters of generative AI models entirely on-device.
Rising demand for consumer electronics has provided new growth prospects for the market

The growing demand for high-end specifications for various electronic gadgets, including tablets and smartphones, is increasing the demand for AI chipsets in consumer electronics. To meet this growing demand, numerous manufacturers are constantly releasing cutting-edge AI chipsets.

MediaTek, a Taiwanese chip manufacturer, unveiled the Genio architecture and Genio 1200 chip for artificial intelligence of things (AIoT) devices in May 2022. MediaTek Genio provides a comprehensive platform stack tailored for AIoT, open platform SDKs, and a developer portal equipped with extensive resources and tools.

Furthermore, the rising usage of analytical computations and complex problem-solving using quantum computing technology is also increasing the AI Chipsets market. Google introduced Cloud TPU v5p in December 2023. These TPUs served a considerable time as the backbone for training and deploying AI-driven products such as YouTube, Gmail, Google Maps, Google Play, and Android. The demand for AI chipsets will increase as understanding of quantum computing deepens, accelerating the sector’s growth.

What are some of the key geographical trends shaping the AI chipsets market?

North America is anticipated to hold a significant share of the AI (Artificial Intelligence) Chipsets Market

The North American region is anticipated to hold a considerable market share fueled by the immense applications of defense, government, robotics, automation, automobiles, etc. The USA is a major regional player, having several core companies, such as IBM Corporation, Intel Corporation, AMD Inc., etc.

The semiconductor sector is a major driving force in AI chipsets; both sectors collaborate in growth. In 2022, U.S.-based semiconductor companies commanded 48.0 percent of the overall semiconductor market share. Such growth aligns with the expanding AI Chipsets market in the North American region, which relies on AI-driven technologies for improved efficiency and precision. This synergy underscores the pivotal role of AI chipsets.

The AI (artificial intelligence) chipsets market is segmented and analyzed as below:

By Component

GPU (Graphic Processing Unit)
FGPA (Field-Programmable Gate Array)
ASIC (Application-Specific Integrated Circuit)
Others

By End-User

Automotives
Consumer Electronics
Industrial
Healthcare
Others

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
UK
Germany
France
Italy
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
Japan
India
South Korea
Taiwan
Australia
Others