AI Chipsets Market - Forecasts from 2024 to 2029

AI Chipsets Market - Forecasts from 2024 to 2029

The AI chipsets market is estimated to reach US$159.178 billion by 2029, growing at a CAGR of 25.87% from US$68.194 billion in 2024.

An artificial intelligence chipset is a type of chip specially designed by various computing devices to perform AI-based operations efficiently. Multiple types of AI chipsets exist, including AI-based GPUs, Neural Processing Units (NPUs), and memory chips. The AI chips are designed to integrate greater neural processing efficiency compared to the other types of chips, and they also offer energy efficiencies, ultra-fast computing, and lower latency.

The AI chipsets also include flexibility in their applications, as these chips offer a higher level of customization than the other chips and can also be built for specific AI training models or applications. Their performance is also greater than the other types of chips, as these chips are specifically built with higher levels of computational capacity. These chips offer more efficient and accurate results and can perform core tasks like natural language processing (NLP) and data analysis.

AI chipsets market drivers
Increasing focus on creating AI systems

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

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.

AI chipsets market geographical outlook
North America is forecasted to hold a major share of the AI 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 the 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.

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Report Coverage:

Historical data & forecasts from 2022 to 2029
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
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The AI Chipsets Market is analyzed into the following segments:

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