Artificial Intelligence (AI) Chip Market by Chip Type (GPU, ASIC, FPGA, CPU, and Others), by Application (Natural Language Processing (NLP), Robotic Process Automation, Computer Vision, Network Security, and Others), by Architecture (System-on-Chip (SoC), System-in-Package (SIP), Multi-chip Module, and Others), by Processing Type (Edge and Cloud), by End User (Media & Advertising, BFSI, IT & Telecom, Retail, Healthcare, Automotive, and Others) - Global Opportunity Analysis and Industry Forecast, 2023 – 2030

Market Definition:

The global Artificial Intelligence (AI) Chip Market size was valued to USD 28.83 billion in 2022, and it will elevate to USD 304.09 billion by 2030, with a CAGR of 29.0% from 2023-2030.

Artificial Intelligence Chips are special silicon chips, programmed for machine learning. AI Chips can process vast amounts of data, identify the underlying patterns, interpret the trends and utilize the feed to achieve specific goals. AI Chips are multi-functioning and can proficiently manage multiple operations at a time. The demand for AI Chips is consistently raising due to the increasing adoption of artificial intelligence in almost every industry, in areas such as voice recognition, object detection, medical or military simulation, intelligent routing, and autonomous driving among others. Adoption of artificial intelligence not only reduces the cost of operations, but increases the efficiency or the response time and minimizes the risk to human life at various levels in specific industry verticals.

Market Dynamics and Trends:

With the technological advancements the market is switching towards smart devices, smart homes, and smart cities, resulting to a tremendous elevation in the Artificial Intelligence (AI) Chip market. Furthermore, increased investments in AI start-ups along with emergence of quantum computers, are expected to elevate the market growth in future.

Other factors like wide application of AI technology and increase in robotics, catalyze to promote the market growth. However, high development cost and lack of skilled work-force tend to impede the growth of AI chip market over the forecast period.

Moreover, the massive upsurge in research and development, increased use of autonomous robotic at various industry verticals, and high-tech product launches shall create new market-opportunities, fueling-up the growth-rate of artificial intelligence (AI) chip market, over the forecast period.

Market Segmentations and Scope of the Study:

The global artificial intelligence (AI) chip market share analysis is based on chip type, application, architecture, processing type, end user and geography. Based on type of chip, the market is fragmented into GPU, FPGA, ASIC, CPU, and Others. Based on application, the market is segmented into Natural Language Processing (NLP), Robotic Process Automation, Computer Vision, Network Security, and Others. Based on architecture, the market is segmented into system-on-chip (soc), system-in-package (sip), multi-chip module, and others. Based on processing type, the market is divided into edge and cloud. Based on end-user, the market is segmented into media & advertising, BFSI, IT & telecom, retail, healthcare, automotive, and others. Geographic breakdown and analysis of each of the previously mentioned segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis:

North America held the largest market share in 2022 driven by various factors. The widespread utilization of AI, including machine learning and deep learning, across industries such as cloud computing, digital assistants, and autonomous vehicles, contributes to market growth. Additionally, the presence of tech giants like NVIDIA, Google, and Apple, with their focus on R&D activities and AI deployment, plays a significant role. As an example, in February 2023, South Korean startup Rebellions launched Atom, a new AI chip designed to compete with Nvidia in the market. Atom is an inference-only chip optimized for computer vision and chatbot AI applications.

Moreover, AI chips are utilized in prominent countries like the U.S. for the automotive industry to enable autonomous driving, such as ADAS, NLP, predictive maintenance, enhanced in-car experiences, and cybersecurity. They power real-time perception, enhance safety, enable voice control, optimize maintenance, personalize infotainment, and protect against cyber threats. Which is one of the major factors propelling the growth of the AI chip market in this region.

On the other hand, Europe is experiencing steady growth in the AI chip market, which can be attributed to factors such as the rapidly growing industrialization and adoption of Industry 4.0. It is primarily increasing investments in the robotics industry to develop more human-like robots which are integrated with AI chips to perform in hazardous environments. Moreover, the growth of AI in the military sector has witnessed several significant developments in recent years. These include the integration of AI into military systems, the rising adoption of cloud-based high-performance computers and applications, increased defense funding by major countries to enhance AI capabilities, and the emergence of specialized AI chips tailored for military applications.

Competitive Landscape:

The artificial intelligence (AI) chip industry is highly competitive and consists numerous market players. Some of the major market players are, Advanced Micro Devices, Inc., IBM Corporation, Micron technology, Inc., Qualcomm Incorporated, Xilinx, Inc., Alphabet Inc. (Google), Intel Corporation, NVIDIA Corporation, Samsung electronics Co., Ltd., and Huawei Technologies Co., Ltd. among others.

There have been various developments taking place in the market that further enhance the growth of artificial intelligence (AI) chip market on a large scale. For instance, in September 2019, ZTE, a provider of integrated military communication solutions from Cambrian, jointly demonstrated the integration of edge computing and artificial intelligence in the 5G era. The business display adopts ZTE's edge computing server ES600S, video acceleration card, and contains the Cambrian Siyuan 100 intelligent processing card which not only helps in realizing the edge video data collection, but also provides the artificial intelligence analysis.

Key Benefits:

• The artificial intelligence (AI) chip market report provides the quantitative analysis of the current market and estimations through 2023-2030 that assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises a deep dive analysis of the market trend including the current and future trends for depicting the prevalent investment pockets in the market.

• The report gives a detailed information related to key drivers, restraints, opportunities and their impact on the market.

• The report incorporates a competitive analysis of the market players along with their market share in the global market.

• The study elaborates SWOT analysis and Porters Five Forces model for the market.

• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles in the global artificial intelligence (AI) chip market.

Artificial Intelligence (Ai) Chip Market Key Segments:

By Chip Type

• GPU

• ASIC

• FPGA

• CPU

• Others

By Application

• Natural Language Processing (NLP)

• Robotic Process Automation

• Computer Vision

• Network Security

• Others

By Architecture

• System-on-Chip (SoC)

• System-in-Package (SIP)

• Multi-chip Module

• Others

By Processing Type

• Edge

• Cloud

By End User

• Media & Advertising

• BFSI

• IT & Telecom

• Retail

• Healthcare

• Automotive

• Others

By Geography

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Rest of Europe

• Asia-Pacific

  • China

  • India

  • Japan

  • Australia

  • Rest of Asia-Pacific

• RoW

  • UAE

  • Saudi Arabia

  • South Africa

  • Brazil

  • Rest of RoW

Report Scope and Segmentation:

Parameters	Details
Analysis Period	2022–2030
Base Year Considered	2022
Forecast Period	2023–2030
Market Size Estimation	Billion (USD)
Market Segmentation	By Chip Type (GPU, ASIC, FPGA, CPU, Others) By Application (Natural Language Processing (NLP), Robotic Process Automation, Computer Vision, Network Security, Other Application) By Architecture (System on Chip (SOC), System in Package (SIP), Multi Chip Module, Other Architecture) By Processing Type (Edge, Cloud) By End-user Industry (Media and Advertising, BFSI, IT and Telecommunication, Retail, Healthcare, Automotive, Other Industries)
Geographical Segmentation	North America (U.S., Canada, Mexico) Europe (UK, Germany, Italy, France, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of APAC), Rest of the World (UAE, Saudi Arabia, South Africa, Brazil)
Companies Profiled	Advanced Micro Devices, Inc., IBM Corporation, Micron technology, Inc., Qualcomm Incorporated, Xilinx, Inc., Alphabet Inc. (Google), Intel Corporation, NVIDIA Corporation, Samsung electronics Co., Ltd., and Huawei Technologies Co., Ltd.