Global Artificial Intelligence Chipset Market Size, Share, Growth Analysis, By Chip Type, By Processing Type, By Technology, By Application, By Industry Vertical - Industry Forecast 2024-2031

Global Artificial Intelligence (AI) Chipset Market size was valued at USD 12.72 billion in 2022 and is poised to grow from USD 17.45 billion in 2023 to USD 218.83 billion by 2031, growing at a CAGR of 37.18% during the forecast period (2024-2031).

Advancements in technology and the ubiquity of smart devices have propelled the evolution of AI, with AI chipsets emerging as pivotal components. From smartphones to industrial robots, these chipsets enable complex computations and algorithms. Anticipated factors such as heightened investments in AI R&D, surging demand for AI-driven solutions, and their integration across diverse sectors are poised to fuel substantial growth in the global AI chipset market. The burgeoning need for more potent and efficient chipsets to support emerging technologies like autonomous vehicles and edge computing underscores this momentum. As industries increasingly embrace AI-driven innovations, particularly in healthcare, finance, and retail, the trajectory of the AI chipset market is on an upward trajectory, driven by the imperative for sophisticated algorithms and computations.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Artificial Intelligence (AI) Chipset Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Artificial Intelligence (AI) Chipset Market Segmental Analysis

The global AI chipset market can be segmented by chip type, processing type, technology, application, and industry vertical. Based on chip type, the market can be divided into GPU, ASIC, FPGA, CPU, and others. By processing type, the market can be categorized into edge and cloud. On the basis of technology, the market can be segmented into system on chip, system in package, multi-chip module, and others. In terms of application, the market can be classified into natural language processing, robotics, computer vision, network security, and others. By industry vertical, the market can be segmented into media and advertising, BFSI, IT and telecom, retail, healthcare, automotive and transportation, and others. Based on region the global Artificial Intelligence (AI) Chipset Market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.

Drivers of the Global Artificial Intelligence (AI) Chipset Market

The surge in demand for AI chipsets, essential components powering advancements in autonomous vehicles, robotics, and edge computing, is propelling the expansion of the global AI chipset market. These cutting-edge technologies rely on sophisticated AI chipsets to swiftly process vast data volumes and execute intricate computations instantaneously. For instance, the development of autonomous vehicles hinges on AI chipsets to swiftly analyze sensor data and make real-time decisions, while edge computing applications depend on these chipsets to efficiently process data at the network's periphery, minimizing latency. As these transformative technologies gain traction across diverse sectors, the need for AI chipsets is projected to escalate, thereby driving substantial growth in the global AI chipset market in the foreseeable future.

Restraints in the Global Artificial Intelligence (AI) Chipset Market

The growth of the global AI chipset market is being hampered by multiple challenges, with one prominent hurdle being the exorbitant expenses associated with these chipsets. These AI chipsets, owing to their intricate nature and the need for cutting-edge manufacturing techniques, come with hefty production costs. Consequently, their affordability becomes a pressing concern, impeding their widespread integration across industries, especially within emerging markets and small to medium-sized enterprises. Furthermore, the steep price tags on AI chipsets pose a formidable barrier for startups and researchers, curtailing their capacity to innovate and experiment with AI-driven applications.

Market Trends of the Global Artificial Intelligence (AI) Chipset Market

The global AI chipset market is experiencing notable shifts marked by a burgeoning emphasis on crafting AI chips boasting heightened computational prowess and efficacy. This surge is propelled by the escalating requirement for AI-driven offerings and solutions, coupled with the imperative to swiftly and precisely process vast data volumes. Consequently, prominent market contenders like Intel, NVIDIA, and AMD are funneling substantial investments into research and development endeavors aimed at engineering AI chipsets that are both more potent and streamlined.