Artificial Intelligence Chip Market Expected to Reach $383.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Artificial Intelligence Chip Market by Chip Type, Processing Type, Technology, Application, Industry Vertical: Global Opportunity Analysis And Industry Forecast, 2023-2032," The artificial intelligence chip market was valued at $14.9 billion in 2022, and is estimated to reach $383.7 billion by 2032, growing at a CAGR of 38.2% from 2023 to 2032.

AI chips, also referred to as artificial intelligence chips or AI processors, are specialized hardware components engineered to enhance and streamline the execution of artificial intelligence tasks, including computationally intensive processes like machine learning, deep learning, neural network training, and inference. These chips stand apart from conventional central processing units (CPUs) and graphics processing units (GPUs) because they are designed with a specific focus on optimizing AI workloads, delivering superior efficiency and performance. They incorporate features like parallel processing, finely tuned memory architectures, and dedicated hardware accelerators like tensor processing units (TPUs) or neural processing units (NPUs), which are tailor-made for handling the complex mathematical calculations central to AI algorithms.

AI chips have assumed a critical role in a wide spectrum of AI applications, spanning from autonomous vehicles and natural language understanding to computer vision and robotics. They enable swifter and more energy-efficient execution of AI computations, rendering it viable to deploy AI models in edge devices and data centers. As the field of AI continues to advance, AI chips are also evolving, with companies making substantial investments in research and development to craft more potent and versatile hardware solutions capable of meeting the increasing demands posed by AI applications in various industries.

Furthermore, the emergence of quantum computing and surge in implementation of AI chips in robotics drive the growth of the artificial intelligence chip market trends considerably. In addition, the emergence of autonomous robotics—robots that develop and control themselves autonomously—is anticipated to provide potential growth opportunities for the market. However, dearth of skilled workforce is one of the major restraints of the market. Most of the tasks such as testing, bug fixing, cloud implementation, and others are taken over by AI chips; however, the delivery of such tasks lack essential skill sets.

The artificial intelligence chip market analysis is segmented on the basis of chip type, processing type, technology, application, industry vertical, and region. By chip type, the market is categorized into GPU, ASIC, FPGA, CPU, and others. In 2022, the CPU segment dominated the artificial intelligence chip market size, in terms of revenue, and ASIC segment will acquire highest CAGR during the forecast period. By processing type, it is categorized into edge and cloud. In 2022, the edge segment dominated the market, in terms of revenue, and will acquire major market share till 2032. By technology, the market is categorized into system-on-chip, system-in-package, multi-chip module, and others. In 2022, the system-on-chip segment dominated the artificial intelligence chip market growth, in terms of revenue, and will acquire major market share till 2032. The applications analyzed in the study are natural language processing (NLP), robotics, computer vision, network security and others. In 2022, the natural language processing (NLP) segment dominated the market, in terms of revenue, and will acquire major market share till 2032. The industry verticals considered in the study include media & advertising, BFSI, IT & telecom, retail, healthcare, automotive & transportation, and others. In 2022, the healthcare segment dominated the artificial intelligence chip market share, in terms of revenue, and will acquire major market share till 2032.

KEY FINDINGS OF THE STUDY

• The global artificial intelligence chip market was valued at $14,918.7 million in 2022.
• The CPU segment was the highest revenue contributor to the market, with $5,491.5 million in 2022.
• The edge segment was the highest revenue contributor to the market, with $9,351.8 million in 2022.
• The system on chip segment was the highest revenue contributor to the market, with $7,625.6 million in 2022.
• The nature language processing segment was the highest revenue contributor to the market, with $4,175.6 million in 2022.
• The healthcare segment was the highest revenue contributor to the market, with $2,832.5 million in 2022.
• North America was the highest revenue contributor, accounting for $4,996.3 million in 2022 for Artificial Intelligence Chip Market.

The key players profiled in the report include Qualcomm Technologies Inc., Baidu, MediaTek Inc, NVIDIA Corporation (Mellanox Technologies), Alphabet Inc., Mythic, NXP Semiconductors, Intel Corporation, Samsung Electronics Co Ltd, Advanced Micro Devices Inc.(Xilinx Inc.), and SoftBank Corp. Market players in AI chip technology have adopted various strategies such as product launch, collaboration, partnership, joint venture, and acquisition to expand their foothold in the artificial intelligence chip industry for Artificial intelligence chipset.