28th April 2023
Artificial Intelligence (AI) chips are specialized microprocessors that are designed to perform complex calculations required for machine learning, deep learning, and other artificial intelligence applications. AI chips are optimized to handle the massive amounts of data processing and computations required for AI algorithms and are more efficient at these tasks than traditional CPUs or GPUs.
AI chips are used in a variety of applications, including natural language processing, computer vision, autonomous vehicles, and robotics. They are also used in data centers to accelerate the training of large-scale deep-learning models.
There are different types of AI chips, including Graphics Processing Units (GPUs), Field Programmable Gate Arrays (FPGAs), and Application-Specific Integrated Circuits (ASICs). Each type of chip has its own unique advantages and trade-offs, depending on the specific application and use case.
The development of AI chips has been a key factor in the growth of the AI industry, enabling faster and more efficient processing of AI workloads. With the increasing demand for AI-powered technologies, the AI chip market is expected to continue to grow rapidly in the coming years.
The Global Artificial Intelligence Chip Market size was estimated to be valued at 14.91 billion USD in 2022. Artificial Intelligence Chip Market is projected to reach 221.40 billion USD by 2030 with a CAGR of 40.10% in the forecast period of 2023-2030.
The top players in the Global Artificial Intelligence Chip Market are Qualcomm Technologies, NVIDIA, Baidu, Inc., Advanced Micro Devices, Micron Technology, Microsoft, IBM, Google, Broadcom Limited, Samsung Electronics, and Intel Corporation. Major companies are focusing on cutting-edge R&D strategies in order to preserve their competitiveness in the sector.
Nvidia Corp. unveiled new video gamer flagship chips in September 2022 that employ artificial intelligence to improve gaming graphics. The Lovelace chips have improved upon this method by leveraging Al to generate whole game frames.
To compete with Nvidia, Intel Corp. unveiled the Gaudi2 chip in May 2022. It is designed specifically for artificial intelligence processing. The Habana Labs Gaudi2 CPU is the second version of the Israeli startup, which Intel acquired in 2019.
There are several drivers that are fueling the growth of the global Artificial Intelligence (AI) chip market:
Increasing demand for AI-based applications: The growing demand for AI-powered applications across a wide range of industries, including healthcare, automotive, and finance, is driving the need for more powerful and efficient AI chips.
Need for faster and more energy-efficient processing: Traditional processors are not able to keep up with the demands of AI workloads. AI chips are designed to perform complex computations required for AI algorithms more efficiently and with less energy consumption.
Advancements in deep learning: Deep learning algorithms require massive amounts of data processing, and AI chips are optimized for this type of workload. As deep learning continues to advance, the demand for AI chips is expected to increase.
Rise of edge computing: The trend towards edge computing, where processing is done closer to the source of the data, is driving the need for AI chips that are optimized for this type of computing.
Growing investments in AI technology: The increasing investment in AI technology by governments, businesses, and venture capitalists is driving the development of new and more advanced AI chips.
The Global Artificial Intelligence Chip Market is segmented based on Technology, Chip Type, Processing Type, Function, And End-User.
Processing types are divided into edge and cloud categories. In terms of revenue, the edge segment led the artificial intelligence chip market, and it is anticipated that this pattern will continue in the cloud over the projection period. By using less bandwidth, edge processing enables computation to be done close to the real location of the data. The Edge processing enhances operational effectiveness and permits algorithm processing locally.
The machine learning, natural language processing, context-aware computing, computer vision, and predictive analytic technology segments make up the worldwide artificial intelligence chip market. The market for artificial intelligence chips worldwide is dominated by the machine learning segment. The market's machine learning (ML) segment has grown as a result of the expanding use of machine learning across various industries and the accessibility of large data. Without human assistance, machine learning employs statistical methods to reach choices.
The global artificial intelligence chip market is divided into GPU, ASIC, FPGA, CPU, and others based on chip type. Each sort of AI chip possesses a special feature and purpose. The artificial intelligence chip market's dominant segment is the CPU division. Advanced AI Central Processing Unit (CPU) type chips can finish the computation more quickly. In the market for artificial intelligence chips, GPU is in second place. AI algorithms are developed and refined using graphic processing units, or GPUs. applying artificial intelligence (AI) algorithms to field-programmable gate arrays (FPGAs) for real-time data input.
Market segments include media & advertising, BFSI, IT & telecom, retail, healthcare, automotive & transportation, and others based on end-users. In terms of revenue, the BFSI segment dominated the market, and it is anticipated that this trend would continue during the projection period.
The U.S. in particular continues to play a prominent role in the worldwide artificial intelligence chip market. During the projection period, major organizations and government institutions in the nation are heavily investing in technology to develop and deploy cutting-edge solutions in the automotive & transportation, healthcare, and BFSI applications.
During the projection period, Asia Pacific is anticipated to have considerable growth due to rising investment in the software sector. The industry is expected to rise as a result of the developing economies in nations like China and India. Due to the existence of significant manufacturers, China accounts for the majority of the Asia Pacific artificial intelligence chip industry.
The global Artificial Intelligence (AI) chip market is a rapidly growing industry that is being driven by the increasing demand for AI-powered applications, the need for faster and more energy-efficient processing, and advancements in deep learning. With the rise of edge computing and growing investments in AI technology, the demand for AI chips is expected to continue to increase. The competition among chip manufacturers is also driving innovation and advancements in AI chip technology. As the AI industry continues to expand and integrate into various industries and applications, the AI chip market is expected to play a critical role in enabling faster and more efficient processing of AI workloads.