AI chipsets Market - Forecasts from 2024 to 2029

AI chipsets 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.

Al has evolved into a technology that is transforming numerous sectors. Al (chipsets) is specifically designed to offer high-speed manufacturing, low latency, and computing capabilities, enabling Al applications to run more quickly and effectively. Businesses are using Al to automate operations, acquire insightful data insights, increase decision-making, improve customer experiences, and spur innovation. The demand for specialized hardware that can effectively handle Al workloads is increasing as Al use spreads, fueling the expansion of the Al (chipsets) industry.

Market Drivers

Increasing focus on creating AI systems has propelled the industrial growth globally.

The AI Chipsets market is expanding as a result of the increased attention being paid to creating AI systems that are aware of humans. The absence of norms and regulations as well as a skilled labor supply are, however, limiting the AI Chipsets market expansion. As artificial intelligence continues to advance in the field of technology, there will likely be an increased demand for a significant number of ASICs. Companies like Amazon and Google are already working to strengthen their server silicon projects. Companies are developing new AI chips employing cutting-edge technology like artificial intelligence. For instance, Google is utilizing AI and machine learning to assist in creating its next generation of AI processors, according to a paper published in the journal Nature in June 2021. The business claims that AI can finish tasks that take humans months to complete in less than six hours.
Rising demand for consumer electronics has provided new growth prospects for the market

High-end specifications for a variety of electronic gadgets, including tablets and smartphones, are highly used in the AI Chipsets industry which is increasing the demand for AI chipsets in consumer electronics. To meet the growing demand, numerous manufacturers are constantly releasing cutting-edge AI chipsets. For instance, MediaTek, a Taiwanese chip manufacturer, unveiled the Genio architecture and Genio 1200 chip for artificial intelligence of things (AIoT) devices in May 2022. According to MediaTek, premium AIoT solutions based on the Genio 1200 chip will be commercially available in the second part of 2022.

Further, the rising usage of analytical computations and complex problem-solving using quantum computing technology is also increasing the AI Chipsets market. The Sycamore quantum computer from Google LLC, for example, can complete a task using the fastest computer in around 200 seconds. Artificial intelligence, machine learning, machine vision, big data, augmented reality (AR), and other technologies enable quantum computers. The demand for AI chipsets will increase as our understanding of quantum computing deepens, accelerating the growth of the sector.

Growth in data volume has bolstered the market growth.

A significant increase in data volume is brought on by the expanding use of social media and e-commerce. The need for high-speed processors has increased as a result of the data volume's quick growth, which is favorably affecting the AI Chipsets market expansion. The chipset takes care of the need for quicker processing caused by machine learning that is activated. The public's preference for computer vision and machine learning tools motivates tech companies to make developments in the development of high-speed processors. For instance, AMD released new mobile CPUs and GPUs in 2023, including the first x86 PC CPU with a dedicated AI engine. At CES 2023, AMD also unveiled a new 3D-stacked desktop CPU with outstanding gaming performance, a data center APU, and an AI inference accelerator. These developments have also increased smartphone adoption. For instance, as per GSMA, the adoption of smartphones is expected to increase by 84% in 2025 from 75% in 2021.
Favorable investments and growing usage in other applications has augmented the market growth.

The demand for high-performance AI chipsets is growing as AI applications become more complex. For example, self-driving cars require AI chipsets that can process large amounts of data in real time. And medical image analysis applications require AI chipsets that can handle complex algorithms. Moreover, technology companies are investing heavily in R&D to develop new AI chipsets. This is helping to improve the performance and efficiency of AI chipsets, which is further driving AI Chipsets industry growth. For example, NVIDIA invested US$100 million in 2022 in the development of its GPU (graphics processing unit) technology, which is used in a variety of AI applications.

North American is expected to show a significant growth

The North American region is anticipated to hold a considerable market share fueled by the booming the booming installation of industrial robots in various sectors in the major regional economies namley USA. From 2019 to 2021 reflects a substantial shift towards automation and advanced manufacturing technologies. In the automotive sector, the number of robots installed increased from 9.8 thousand in 2019 to 13 thousand in 2021, showcasing a remarkable 32% growth. The electrical/electronics sector also witnessed a steady rise, with a 20% increase in robot installations over the same period. Furthermore, according to the International Federation of Robotics, in 2022, United States accounted for 71% of the total robotics installation in the Americas market, and Mexico also witnessed 13% growth in installation. Such growth in automation aligns with the expanding AI Chipsets market in the North American region as these robots often rely on AI-driven technologies for improved efficiency and precision. This synergy underscores the pivotal role of AI chipsets in driving industrial automation and innovation.

Key Developments
In December 2023: Intel at its “AI Everywhere” event launched its new portfolio of AI products to enable consumers access to AI products across cloud, network, PC, and data centers. The portfolio included AI chipset “Gaudi 3”.

Segmentation:

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