PUBLISHER: KBV Research | PRODUCT CODE: 1472540
PUBLISHER: KBV Research | PRODUCT CODE: 1472540
The Global Neural Processor Market size is expected to reach $798.2 million by 2031, rising at a market growth of 17.8% CAGR during the forecast period.
Neural processors power chatbots and virtual assistants' banks and insurance companies use to handle customer inquiries, provide support, and offer personalized recommendations. Consequently, the BFSI segment would generate approximately 17.8% share of the market by 2030. By comprehending natural language and delivering pertinent responses, these systems enhance the consumer experience. Thus, these factors can assist in the growth of the segment.
Edge computing entails processing data in proximity to the point of generation, as opposed to centralized data centers. This approach reduces latency and bandwidth usage while enabling real-time data analysis and decision-making, making it crucial for applications requiring quick responses and efficient resource utilization. Thus, these factors can assist in the expansion of the market.
Additionally, Deep learning methods, distinguished by their multi-layered, sophisticated neural network architectures, have been extensively implemented in various fields, including computer vision, natural language processing (NLP), and autonomous systems. Therefore, owing to these factors, the market will witness increased demand in the coming years.
However, While neural processors exhibit superior performance in accelerating specialized AI tasks, they often struggle to match the versatility of general-purpose processors such as CPUs and GPUs. Developing neural processors that efficiently handle various AI workloads while maintaining scalability across various applications poses formidable engineering hurdles. Therefore, these factors can lead to reduced demand in the market.
By Application Analysis
Based on application, the market is segmented into fraud detection, hardware diagnostics, financial forecasting, image optimization, and others. In 2023, the financial forecasting segment garnered a 14.9% revenue share in the market. Neural networks excel at capturing intricate patterns and relationships within financial data, leading to more accurate forecasting models. As neural processors become more powerful and specialized for financial applications, they contribute to further improvements in prediction accuracy. Thus, these aspects will propel the growth of the segment.
By End User Analysis
On the basis of end user, the market is divided into BFSI, healthcare, retail, defense agencies, media, logistics, and others. The retail segment recorded a 24.21% revenue share in the market in 2023. As AI becomes more pervasive in consumer electronics, the demand for neural processors in retail products is expected to rise. Manufacturers are integrating AI capabilities into devices such as smartphones, cameras, smart speakers, and wearables, which drives the demand for efficient neural processing units (NPUs).
By Regional Analysis
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2023, the Europe segment acquired a 29.56% revenue share in the market. Europe has been actively investing in AI research and development, with countries like the UK, Germany, France, and Switzerland being prominent hubs for AI innovation. European companies and research institutions have been at the forefront of developing neural processors for various applications, including data centers, autonomous vehicles, healthcare, and consumer electronics. Hence, the segment will grow rapidly in the upcoming years.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global Neural Processor Market Report Segmentation
By Application
By End User
By Geography