AI Accelerator Chips Market: Current Analysis and Forecast (2023-2030)

AI accelerator chips are specialized microprocessors designed specifically for speeding up complex artificial intelligence computations like deep learning neural networks (DNNs), which require massive amounts of data processing power along with low latency requirements so they can perform real-time tasks efficiently without any lag issues whatsoever. The market for AI accelerator chips has been growing rapidly in recent years due to the increasing demand for AI applications in various industries such as technology, healthcare, finance, retail, and more.

The AI Accelerator Chips Market was valued at 15.1 billion in 2022 and is expected to grow at a steady rate of around 37.4% in the forecasted period (2023-2030) owing to increasing demand for AI applications in various industries such as technology, healthcare, finance, retail, and more. Moreover, continuous research & development initiatives by companies worldwide exploring new technologies related fields like neuromorphic computing based on quantum mechanics principles aiming even greater efficiency gains than traditional methods used nowadays. Also, rapidly increasing investment in AI startups and funding for AI-related projects, leading to an increase in demand for AI accelerators. For instance, on 30 November 2023, Microsoft announced a plan to pump £2.5 billion ($3.2 billion) into Britain over the next three years, which will underpin future growth in artificial intelligence.

Based on chip type, the market is categorised into GPU, ASIC, FPGA, CPU, and others. Among these, the Application-Specific Integrated Circuit (ASIC) segment currently leads the AI accelerator chips market. The growing demand for high-performance computing in various applications such as deep learning, natural language processing, and computer vision has driven this trend. Additionally, ASICs offer optimized performance and power efficiency compared to other types of chips like General Purpose Graphics Processing Units (GPGPUs) or Field Programmable Gate Arrays (FPGAs) which drives its demand.

Based on the processing type, the market is bifurcated into edge, and cloud. Among these, the Cloud segment currently holds a larger share in the AI accelerator chips market due to the increasing adoption of cloud-based services and platforms. This is because cloud computing offers scalability, flexibility, and cost savings compared to other solutions. Furthermore, cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform are investing heavily in developing their own AI accelerators to support their respective machine learning and artificial intelligence initiatives.

Based on the industry, the market is segmented into automotive, consumer electronics, healthcare, manufacturing, and others. Among these, the Consumer Electronics segment leads the AI accelerator chips market due to the growing demand for smart devices such as smartphones, tablets, and gaming consoles. These devices require advanced AI algorithms to enhance features like voice assistants, image recognition, and natural language processing. Additionally, the emergence of technologies like Augmented Reality (AR) and Virtual Reality (VR) has further fueled the need for high-performance AI processors in consumer electronics.

For a better understanding of the market adoption of AI Accelerator Chips, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The AI accelerator chips market in North America is poised for significant growth during the forecast period due to the region's strong presence of technology giants like Google, Microsoft, IBM, and NVIDIA driving innovation and investment in AI research and development. Moreover, the growing adoption of cloud computing services and edge AI applications in industries like healthcare, manufacturing, and retail will also contribute to market expansion. Furthermore, government initiatives supporting the development of AI technologies, particularly in the fields of autonomous vehicles and smart cities, will create new opportunities for AI accelerator chips.

Some of the major players operating in the market include NVIDIA Corporation; Intel technologies; Qualcomm Technologies Inc.; International Business Machines Corporation.; Micron Technology Inc.; Microsoft Corporation; Alphabet Inc. (Google Inc.); NXP Semiconductors N.V.; Advanced Micro Devices Inc. (AMD); Graphcore Limited.