PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1880603
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1880603
The global AI accelerator market is experiencing unprecedented growth, driven by the rapid expansion of artificial intelligence applications across industries and the need for high-performance computing hardware. Valued at USD 26.03 billion in 2024, the market is projected to grow to USD 33.69 billion in 2025 and reach USD 219.63 billion by 2032, registering a remarkable CAGR of 30.7% during the forecast period. The surge is fueled by increasing AI adoption, high demand for efficient AI chips by cloud providers, and technological innovations such as generative AI and quantum computing integration.
AI accelerators, including GPUs, TPUs, ASICs, CPUs, and FPGAs, are specialized hardware designed to perform the complex calculations required by AI models, enabling faster training and inference. The growing need for real-time data processing at the edge, rather than centralized data centers, has further accelerated the adoption of AI accelerators, while large-scale cloud computing deployments have strengthened demand. Major industry players include Nvidia Corporation, AMD, Intel Corporation, TSMC, Samsung Electronics, Apple, Google, Meta, Qualcomm, and IBM.
Impact of Generative AI
The proliferation of generative AI has driven innovation in AI accelerator architecture. Spending on generative AI initiatives is expected to rise by 50% in 2025 compared to 2024, enabling AI-driven design simulations and optimization. Tools like Synopsys.ai Copilot leverage large language models (LLMs) to streamline chip design, allowing for highly efficient hardware solutions. Analysts project that chips powering generative AI will reach USD 50 billion by 2025 and potentially USD 700 billion by 2027, indicating a strong catalyst for market growth.
Market Drivers
The primary market driver is the growing need for high-performance computing to handle AI workloads. Standard CPUs often fail to process the large-scale matrix operations required for AI models. GPUs have become integral due to their ability to perform parallel processing, and ASICs are increasingly preferred by cloud providers for their energy efficiency and optimized performance. The rising complexity of AI models across sectors such as automotive, finance, healthcare, and IT is driving demand for more specialized accelerators.
Market Restraints
Despite rapid growth, the high cost of AI accelerator hardware and the substantial initial investment required for infrastructure integration pose challenges, particularly for small and medium-sized enterprises. Installation, workflow adaptation, and maintenance costs may hinder adoption in cost-sensitive regions.
Market Opportunities
The market is poised to benefit from the integration of quantum computing accelerators, which promise significant computational efficiency gains. Quantum AI accelerators are expected to revolutionize industries such as material science, drug discovery, and cryptography by solving complex problems faster than traditional hardware. Additionally, the focus on energy-efficient AI hardware is gaining traction, as companies aim to reduce electricity consumption while sustaining high-performance computation.
By Type: In 2024, GPUs dominated the market due to their effectiveness in parallel processing and broad AI application usage. ASICs are expected to achieve the highest CAGR due to adoption by hyperscalers like Google, Meta, and Amazon for cloud-based AI services.
By Technology: The cloud-based segment led in 2024, supporting large-scale AI computations without extensive on-premise hardware. Edge AI is forecast to grow rapidly, driven by real-time local processing requirements in IoT devices, smartphones, and autonomous vehicles.
By Application: Fraud detection dominated in 2024, particularly in financial systems, while autonomous vehicles are expected to witness the fastest growth due to the increasing adoption of AI-powered navigation and real-time decision-making.
By End-Use: IT & Telecom dominated in 2024, driven by massive data flow management and virtualized network functions. The automotive sector is projected to achieve the highest CAGR, powered by electric and autonomous vehicle adoption.
Asia Pacific captured the largest share in 2024, with a market value of USD 10.60 billion, driven by data center expansions, high-speed connectivity, and significant investments in AI infrastructure, particularly in India and China. Europe follows as the second-largest market, with growth supported by investments in AI R&D and industrial automation. North America is expected to register the highest CAGR, owing to early technology adoption and the presence of major global AI players. South America and Middle East & Africa show moderate growth, constrained by infrastructure and investment limitations but supported by strategic AI initiatives.
Competitive Landscape
Key players such as Nvidia, AMD, Intel, TSMC, Samsung, Google, Meta, and IBM dominate the market through product innovation, strategic partnerships, and advanced R&D. Notable developments include Intel's Gaudi 3 AI accelerator launch in April 2024 and IBM-AMD collaborations in November 2024, emphasizing the market's rapid innovation cycle and strong investment potential.
The global AI accelerator market is set to expand from USD 26.03 billion in 2024 to USD 219.63 billion by 2032, driven by growing AI adoption, generative AI, quantum integration, and energy-efficient hardware development. This growth presents substantial opportunities for investors, enterprises, and tech innovators in the AI ecosystem.
Segmentation By Type
By Technology
By Application
By End-Use
By Region
Companies Profiled in the Report Nvidia Corporation (U.S.)
AMD (Advanced Micro Devices) (U.S.)
Intel Corporation (U.S.)
TSMC (Taiwan Semiconductor Manufacturing Co.) (Taiwan)
Samsung Electronics (South Korea)
Apple Inc. (U.S.)
Google LLC (U.S.)
Meta (U.S.)
Qualcomm Incorporated (U.S.)
IBM Corporation (U.S.)