Definition of Artificial Intelligence (Chipsets)

Artificial intelligence (AI) chips are specialized silicon chips, which incorporate AI technology to eliminate complex calculations or problems in human life in many industry verticals. AI chips are used for machine learning and efficiently solving crucial mathematical and computational problems that contain huge volumes of data. Artificial intelligence (AI) chips increase the operational performance of the device supplemented by virtual reality (VR), advanced augmented reality (AR), and analytical functions, and also enhance the user experience. Devices that have AI chipsets are also known to consume low power. They also offer high computing capabilities to smart devices, such as laptops, smartphones, and smart wearables among others.

Global Artificial Intelligence (Chipsets) Market: Key Insights

Global Artificial Intelligence (Chipsets) Market Highlights Over 2023 - 2035

The global artificial intelligence (chipsets) market is estimated to garner a revenue of USD 161 Billion by the end of 2035 by growing at a CAGR of ~42% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of USD 11 Billion in the year 2022. The growth of the market is primarily attributed to the rising adoption of AI to enhance the consumer services coupled with the growing technological advancement across the globe. For instance, until the first half of 2022, globally around 40% of organizations acknowledged adopting AI in their operations, while an additional 55% stated they are considering AI. Thus, such growth in the adoption of the advanced technology is anticipated to accelerate the market growth further over the forecast period.

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AI chipsets offer an architectural foundation for AI-enabled application development, making them a crucial component to include when creating AI applications. Artificial intelligence has been emerging as the most widely used technology in recent years, and it is projected to be a potential technology for upcoming smart gadgets. The worldwide surging ratio of complex datasets, followed by the rising development of AI applications in the form of chatbots, and rising computing power are some of the significant factors that are estimated to propel the growth of the artificial intelligence (chipsets) market over the projected forecast period. For instance, it was observed that, in 2021, nearly 75 zettabytes of data were created throughout the world.

Global Artificial Intelligence (Chipsets) Market: Growth Drivers and Challenges

Growth Drivers

• Emerging Implementation of Quantum Computing – Several organizations have been widely using quantum computing to efficiently perform analytical calculations, risk management, and to solve complex problems. As, quantum computers are powered by technologies such as AI, big data, machine learning, and so on. Therefore, the rapidly increasing implementation of quantum computing is estimated to accelerate the growth of the market over the forecast period. For instance, worldwide approximately 50% of startups, and nearly 40% of universities are associated with and implementing quantum computing.

• Worldwide Escalating Adoption of Robotic Process Automation (RPA) – It was observed that over 70% of firms were anticipated to already incorporate RPA into their operations by the first half of 2022, and another 25% are estimated to strategize to do so over the following three years.

• Surge in Big Data Industry – For instance, the big data sector is predicted to be worth around USD 80 billion by 2023.

• Rising Adoption of Augmented Reality – For instance, in the United States, roughly 80 million people utilized augmented reality each month in 2020.

• Globally Increasing Investment in Data Centers - Total global investment amount in data center infrastructure increased from USD nearly 28 billion in 2020 to USD 58 billion in 2021.

Challenges

• Deficit of Highly Skilled AI Professionals – AI is the combination of complex algorithms and analyzing data at a huge level. There is a high requirement for a skilled workforce to manage, develop, and implement AI systems in most of organizations. Moreover, the deployment of AI in preexisting systems architecture is another challenging fact. Hence, the shortage of skilled workforce is estimated to hinder the market growth during the projected period. For instance, as per a survey, approximately 55% of United States and United-Kingdom based organizations acknowledged that they have a significant shortage of in-house skilled professionals.

• Lack of Awareness About Technology in Emerging Countries

• High Initial Investment

The global artificial intelligence (chipsets) market is segmented and analyzed for demand and supply by chipset type into graphics processing units, and field programmable gate arrays. Out of these, the graphics processing units segment is anticipated to grasp the largest market share over the forecast period backed by the surging trend of advanced 3D gaming, growing use of augmented reality as well as virtual reality, and rapidly increasing usage of GPUs in edge devices across the globe. For instance, it was observed that, as compared to the amount of GPUs shipped in 2020, there was a substantial increase in 2021. There were around 43 million GPUs were shipped, and this number was expanded to approximately 60 million for the same in 2021. The substantial progress in GPU technology over the past years, especially during 2020-21, is estimated to push the market growth further throughout the forecast period. Moreover, escalating deployment of virtual assistance, and augmenting the count of cryptocurrency mining are some further factors that are fueling up the growth of the market over the forecast period.

Global Artificial Intelligence (Chipsets) Market Regional Synopsis

The North America artificial intelligence (chipsets) market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035 backed by the growing research and development activities, accelerating investment in AI, and emerging demand for AI technology in numerous industries, such as, manufacturing, healthcare, fintech, marketing, retail and so on. For instance, the investment in artificial intelligence was around USD 2.5 billion in the financial year 2020, and the ratio of investment soared to nearly USD 58 billion in 2021. Thus, the dynamically increasing investment in AI in those consecutive years is anticipated to drive the market growth further throughout the forecast period, as numerous AI startups are tremendously emerging in the region.

Market Segmentation

Our in-depth analysis of the global artificial intelligence (chipsets) market includes the following segments:

Key Companies Dominating the Global Artificial Intelligence (Chipsets) Market

Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global artificial intelligence (chipsets) market that are included in our report are NVIDIA Corporation, Advanced Micro Devices, Inc., Intel Corporation, Google LLC, Microsoft Corporation, International Business Machines Corporation (IBM), Amazon Web Services, Inc., Micron Technology, Inc., Samsung Electronics Co., Ltd., Iris.ai AS, and others.

Global Artificial Intelligence (Chipsets) Market: Latest Developments

• November 28^th, 2022: NVIDIA Corporation, is going to enter in a partnership with NHS Trusts to deploy AI platform across 11 NHS hospitals that are serving 18 million patients across the UK next year with the AI Deployment Engine (AIDE). Built on MONAI, an open-source AI framework for medical imaging co-created by NVIDIA and the AI Centre, it facilitates communication between AI applications and hospital systems.

• August 23rd, 2021: International Business Machines Corporation (IBM), revealed aspects about the upcoming IBM Telum Processor, designed to conduct deep learning inferences in real time to prevent fraud. IBM's Telum processor is the first to incorporate on-chip AI inferencing while handling transactions.

Geography Analysis:

The report further discusses the market opportunity, compound annual growth rate (CAGR) growth rate, competition, new technology innovations, market players analysis, government guidelines, export and import (EXIM) analysis, historical revenues, future forecasts etc. in the following regions and/or countries:

• North America (U.S. & Canada) Market Size, Y-O-Y Growth, Market Players Analysis & Opportunity Outlook
• Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC(Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market Size, Y-O-Y Growth Market Players Analys  & Opportunity Outlook
• Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Middle East and Africa  (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market Size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook

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