AI Chipsets Market Size, Share, Opportunities, And Trends By Component (GPU (Graphic Processing Unit), FGPA (Field-Programmable Gate Array), ASIC (Application-Specific Integrated Circuit), Others), By End-User (Automotives, Consumer Electronics, Industrial, Healthcare, Others), And By Geography - Forecasts From 2024 To 2029

  • Published : May 2024
  • Report Code : KSI061614975
  • Pages : 118

The AI chipsets market is projected to grow at a CAGR of 25.87% to reach US$159.167 billion in 2029 from US$31.800 billion in 2022.

AI chipsets are specialized processors designed for the performance of artificial intelligence (AI) applications. AI chipsets are used in a variety of consumer electronics devices, such as smartphones, tablets, laptops, gaming consoles, and many more.  AI chipsets are now used in self-driving cars and other advanced driver-assistance systems (ADAS). It can be used in medical imaging analysis, drug discovery, and robotic surgery.

It can help manufacturers to identify potential problems before they occur and ensure that products are of high quality. AI chipsets are still a relatively new technology, but they have the potential to revolutionize many industries. The industry is moving from the embryotic stage where there are large investments and high risks to the growth stage where investment increases, profit starts rising, and spending on research development, and application also increases in the field.


AI (Artificial Intelligence) chipsets market drivers:

  • Increasing focus on creating AI systems-

The AI Chipsets market is expanding as a result of the increased attention being paid to creating AI systems that are aware of humans. AI has been significantly used in various sectors and spheres. Chipsets are designed to solve business problems in various industries.

The incorporation of GenAI throughout the Synopsys.ai suite will help chip designers with collaborative functionalities, including expert tool guidance, generative capabilities for RTL, verification, and other collateral creation, as well as autonomous capabilities for creating workflows from natural language. As artificial intelligence continues to advance in the field of technology,

Companies like Samsung and Google are already working to strengthen their server silicon projects. Companies are developing new AI chips such as Snapdragon® 8 Gen 3 Mobile Platform, a new AI with the inaugural AI Engine capable of supporting up to 10 billion parameters of generative AI models entirely on-device.

  • Rising demand for consumer electronics has provided new growth prospects for the market-

With the growing demand for high-end specifications for a variety of electronic gadgets, including tablets and smartphones. The use is increasing the demand for AI chipsets in consumer electronics. To meet the growing demand, numerous manufacturers are constantly releasing cutting-edge AI chipsets.

Further, MediaTek, a Taiwanese chip manufacturer, unveiled the Genio architecture and Genio 1200 chip for artificial intelligence of things (AIoT) devices in May 2022. MediaTek Genio provides a comprehensive platform stack tailored for AIoT, open platform SDKs, and a developer portal equipped with extensive resources and tools.

Further, the rising usage of analytical computations and complex problem-solving using quantum computing technology is also increasing the AI Chipsets market. Google introduced Cloud TPU v5p on December 2023. These TPUs served as the backbone for training and deploying AI-driven products such as YouTube, Gmail, Google Maps, Google Play, and Android for a considerable time. The demand for AI chipsets will increase as understanding of quantum computing deepens, accelerating the growth of the sector.

  • Growth in data volume has bolstered the market growth -

The estimated global mobile-broadband traffic rates in 2022 soared to 913 exabytes (EB), marking an increase of over two-fold compared to 2019, which is at 419 EB. A significant increase in data volume is due to the expanding use of social media and e-commerce. The need for high-speed processors has increased as the data volume's quick growth, which is favorably affecting the AI Chipsets market expansion.

The chipset is applied for quicker processing caused by machine learning. The public's preference for computer vision and machine learning tools caused tech companies to make high-speed processors. For instance, AMD released new mobile CPUs and GPUs in 2023, including the first x86 PC CPU with a dedicated AI engine. At CES 2023, AMD unveiled a new 3D-stacked desktop CPU with outstanding gaming performance, a data center APU, and an AI inference accelerator. These developments have also increased smartphone adoption of these chipsets.

Further, Cerebras Systems unveiled the Wafer Scale Engine 3. Doubling down on its existing world record for the fastest AI chip, the WSE-3 achieves twice the performance of its predecessor, the Cerebras WSE-2. Specifically designed for training the most extensive AI models in the industry, the WSE-3, built on a 5nm architecture with 4 trillion transistors, powers the Cerebras CS-3 AI supercomputer. These are used where high processing of data is required.

AI (Artificial Intelligence) chipsets market challenges:

  • Shortage of labor and high investment cost-

The absence of norms and regulations as well as a skilled labor supply are limiting the AI Chipsets market expansion. The development of AI chipsets requires a specialized skill set, there is a shortage of engineers and scientists with the expertise needed to design and develop these chips. AI systems generate and process large amounts of data, which raises concerns about data security and privacy. Developing AI chipsets is a complex and expensive process.

North America is anticipated to hold a significant share of the AI (Artificial Intelligence) Chipsets Market.

The North American region is anticipated to hold a considerable market share fueled by the immense application of defense, government, robotics, automation, automobiles, etc. The USA is a major player in the region having several core companies IBM Corporation, Intel Corporation, AMD Inc, etc.

The semiconductor sector is the major driving force in AI chipsets, both sectors collaborate in growth. In 2022, U.S.-based semiconductor companies commanded 48.0 percent of the overall semiconductor market share. Such growth aligns with the expanding AI Chipsets market in the North American region as rely on AI-driven technologies for improved efficiency and precision. This synergy underscores the pivotal role of AI chipsets.

AI (Artificial Intelligence) Chipsets Industry Updates:

  • May 2024-  Synopsys and Samsung Electronics collaborated to achieve the production of a flagship mobile CPU, boasting leading performance on Samsung Foundry's GAA Process. This highlights the partnership between Synopsys and Samsung, at providing performance, power, and area (PPA) for shared clients. This collaboration facilitates the development of a new breed of chips with generative artificial intelligence (AI) capabilities on Samsung Foundry's advanced process nodes.
  • April 2024-  Samsung Electronics Co., Ltd., recently unveiled the industry's fastest LPDDR5X DRAM, boasting speeds of up to 10.7 gigabits-per-second (Gbps). This breakthrough comes with leading features, offering 25% higher performance, 30% more capacity, and 25% greater power efficiency.
  • March 2024- The Defense Department's largest research body, in collaboration with a Princeton-led initiative, was spearheading the development of cutting-edge microchips for artificial intelligence. DARPA revealed its intention to fund this endeavor, leveraging a set of pivotal innovations from the laboratory, through an $18.6 million grant.
  • December 2023- At Intel’s “AI Everywhere” event, Intel unveiled its Intel® Core™ Ultra mobile processors, which offer redesigned power efficiency, top-tier compute and graphics performance, and AI PC experience to mobile platforms and edge devices. These new Intel Core Ultra mobile processors are globally available, and they will be featured in over 230 of the world’s first AI PCs.

AI (Artificial Intelligence) Chipsets Players and Products:

  • AMD Ryzen™ AI-  AMD Ryzen™ AI1 is a technology embedded within the latest AMD Ryzen™ 7040 Series processors, featuring a CPU for general computations, a GPU for graphics processing, and an AI engine for various applications.
  • IBM NorthPole- NorthPole offers significant energy, space, and time efficiency enhancements. Compared to typical 12-nm GPUs and 14-nm CPUs using the ResNet-50 model as a benchmark, NorthPole demonstrates notably superior efficiency. Its capability to handle massive data processing in real-time scenarios for various applications.

AI (Artificial Intelligence) Chipsets Market is segmented and analyzed as below:

  • By Component
    • GPU (Graphic Processing Unit)
    • FGPA (Field-Programmable Gate Array)
    • ASIC (Application-Specific Integrated Circuit)
    • Others
  • By End-User
    • Automotives
    • Consumer Electronics
    • Industrial
    • Healthcare
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • UK
      • Germany
      • France
      • Italy
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Others
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Taiwan
      • Australia
      • Others

Frequently Asked Questions (FAQs)

The global AI chipsets market is projected to grow at a CAGR of 25.87% during the forecast period.
The AI chipsets market is projected to reach a market size of US$159.167 billion by 2028.
AI Chipsets Market was valued at US$31.800 billion in 2022.
North America is expected to hold a significant share of the AI chipsets market.
The AI Chipsets market is expanding as a result of the increased attention being paid to creating AI systems that are aware of humans.

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

1.8. Key benefits to the stakeholder

2. RESEARCH METHODOLOGY

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. AI CHIPSETS MARKET BY COMPONENT

5.1. Introduction

5.2. GPU (Graphic Processing Unit)

5.2.1. Market opportunities and trends

5.2.2. Growth prospects

5.2.3. Geographic lucrativeness 

5.3. FGPA (Field-Programmable Gate Array)

5.3.1. Market opportunities and trends

5.3.2. Growth prospects

5.3.3. Geographic lucrativeness 

5.4. ASIC (Application-Specific Integrated Circuit)

5.4.1. Market opportunities and trends

5.4.2. Growth prospects

5.4.3. Geographic lucrativeness 

5.5. Others

5.5.1. Market opportunities and trends

5.5.2. Growth prospects

5.5.3. Geographic lucrativeness 

6. AI CHIPSETS MARKET BY END-USER

6.1. Introduction

6.2. Automotives

6.2.1. Market opportunities and trends

6.2.2. Growth prospects

6.2.3. Geographic lucrativeness 

6.3. Consumer Electronics

6.3.1. Market opportunities and trends

6.3.2. Growth prospects

6.3.3. Geographic lucrativeness 

6.4. Industrial

6.4.1. Market opportunities and trends

6.4.2. Growth prospects

6.4.3. Geographic lucrativeness 

6.5. Healthcare

6.5.1. Market opportunities and trends

6.5.2. Growth prospects

6.5.3. Geographic lucrativeness 

6.6. Others

6.6.1. Market opportunities and trends

6.6.2. Growth prospects

6.6.3. Geographic lucrativeness 

7. AI CHIPSETS MARKET BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. By Component

7.2.2. By End-User

7.2.3. By Country

7.2.3.1. United States

7.2.3.1.1. Market Trends and Opportunities

7.2.3.1.2. Growth Prospects

7.2.3.2. Canada

7.2.3.2.1. Market Trends and Opportunities

7.2.3.2.2. Growth Prospects

7.2.3.3. Mexico

7.2.3.3.1. Market Trends and Opportunities

7.2.3.3.2. Growth Prospects

7.3. South America

7.3.1. By Component

7.3.2. By End-User

7.3.3. By Country

7.3.3.1. Brazil

7.3.3.1.1. Market Trends and Opportunities

7.3.3.1.2. Growth Prospects

7.3.3.2. Argentina

7.3.3.2.1. Market Trends and Opportunities

7.3.3.2.2. Growth Prospects

7.3.3.3. Others

7.3.3.3.1. Market Trends and Opportunities

7.3.3.3.2. Growth Prospects

7.4. Europe

7.4.1. By Component

7.4.2. By End-User

7.4.3. By Country

7.4.3.1. UK

7.4.3.1.1. Market Trends and Opportunities

7.4.3.1.2. Growth Prospects

7.4.3.2. Germany

7.4.3.2.1. Market Trends and Opportunities

7.4.3.2.2. Growth Prospects

7.4.3.3. France

7.4.3.3.1. Market Trends and Opportunities

7.4.3.3.2. Growth Prospects

7.4.3.4. Italy

7.4.3.4.1. Market Trends and Opportunities

7.4.3.4.2. Growth Prospects

7.4.3.5. Spain

7.4.3.5.1. Market Trends and Opportunities

7.4.3.5.2. Growth Prospects

7.4.3.6. Others

7.4.3.6.1. Market Trends and Opportunities

7.4.3.6.2. Growth Prospects

7.5. Middle East and Africa

7.5.1. By Component

7.5.2. By End-User

7.5.3. By Country

7.5.3.1. Saudi Arabia

7.5.3.1.1. Market Trends and Opportunities

7.5.3.1.2. Growth Prospects

7.5.3.2. UAE

7.5.3.2.1. Market Trends and Opportunities

7.5.3.2.2. Growth Prospects

7.5.3.3. Others

7.5.3.3.1. Market Trends and Opportunities

7.5.3.3.2. Growth Prospects

7.6. Asia Pacific

7.6.1. By Component

7.6.2. By End-User

7.6.3. By Country

7.6.3.1. China

7.6.3.1.1. Market Trends and Opportunities

7.6.3.1.2. Growth Prospects

7.6.3.2. Japan

7.6.3.2.1. Market Trends and Opportunities

7.6.3.2.2. Growth Prospects

7.6.3.3. India

7.6.3.3.1. Market Trends and Opportunities

7.6.3.3.2. Growth Prospects

7.6.3.4. South Korea

7.6.3.4.1. Market Trends and Opportunities

7.6.3.4.2. Growth Prospects

7.6.3.5. Taiwan

7.6.3.5.1. Market Trends and Opportunities

7.6.3.5.2. Growth Prospects

7.6.3.6. Australia

7.6.3.6.1. Market Trends and Opportunities

7.6.3.6.2. Growth Prospects

7.6.3.7. Others

7.6.3.7.1. Market Trends and Opportunities

7.6.3.7.2. Growth Prospects

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisition, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. AMD Inc

9.2. Graphcore Ltd

9.3. Huawei Technologies Co Ltd

9.4. IBM Corporation

9.5. Intel Corporation

9.6. NVIDIA Corporation

9.7. Micron Technology Inc

9.8. Samsung Semiconductor

9.9. Synopsys, Inc.

9.10. Qualcomm Technologies, Inc.

9.11. MediaTek Inc.


AMD Inc

Graphcore Ltd

Huawei Technologies Co Ltd

IBM Corporation

Intel Corporation

NVIDIA Corporation

Micron Technology Inc

Samsung Semiconductor

Synopsys, Inc.

Qualcomm Technologies, Inc.

MediaTek Inc.


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