Artificial Intelligence (AI) Processor Market Size, Share, Opportunities, COVID 19 Impact, And Trends By Processor Type (GPU, ASIC, FPGA, Others), By Technology (System-on-Chip, Multi-Chip Module, System-in-Package, Others), By Processing Type (Cloud, Edge), By Industry Vertical (BFSI, IT And Telecom, Healthcare, Retail, Media And Entertainment, Others), And By Geography - Forecasts From 2020 To 2025

Published:  Oct 2022 Report Code: KSI061611701 Pages: 114

The Artificial Intelligence (AI) processor market was valued at US$78.684 billion in 2020. Growing data volume as a result of connected device proliferation and increased high-speed internet connectivity is a key driving factor for the global artificial intelligence (AI) processor market. AI processors are used to efficiently handle large and parallel operations.

Artificial intelligence (AI) processors incorporate AI technology and are used for machine learning. With the burgeoning volume of data, there is a constantly growing need for more efficient systems to solve complex mathematical and computational problems. As such, companies have started focusing on developing AI processors for various applications across different industries. Furthermore, the emerging popularity of quantum computing and increasing demand for AI processors in the booming robotics industry are also anticipated to provide potential growth opportunities for the global artificial intelligence (AI) processor market during the forecast period. An increase in investments in smart cities across various regions also provides a great opportunity for artificial intelligence processor (AI) market players. Furthermore, growing investments in AI startups, backed by various venture capitalists, are thus positively impacting the market growth of artificial intelligence (AI) processors. A surge in demand for AI to be integrated into video surveillance and a rise in government spending for cybersecurity solutions integrated with real-time analytics and AI will further drive the global market growth of artificial intelligence during the forecast period. The growing emergence of quantum computing is another potential factor for the growth of the artificial intelligence (AI) market during the next five years.

Companies are adopting various growth strategies such as acquisitions, partnerships, collaborations, and product launches in order to strengthen their AI processor product portfolio while expanding their market share, thus positively impacting the market growth of artificial intelligence (AI) processors worldwide. For instance, in May 2022, Intel Corp. introduced its AI Gaudi2 chip, 4th generation Xeon Scalable processors, Project Apollo AI programme with Accenture, a new IPU roadmap extending through 2026, a new GPU Solution, and new 12th Gen Core HX processors for laptops. AI advancements in various industries will continue to drive demand for artificial intelligence (AI) processors during the forecast period. Elon Musk, the founder of Tesla, for example, launched the tech startup Neuralink to develop implants that use AI to connect brains with computer interfaces. AI processor manufacturers are also engaged in growth strategies including product launches, investments, partnerships, and collaborations in order to meet the emerging demand and expand their global market share, which will also fuel the growth of the artificial intelligence (AI) processor market. For instance, In June 2021, Mythic launched the industry's first analogue AI chip, the M1076 Analog Matrix Processor (Mythic AMP), a single-chip analogue computation device capable of delivering impressive compute resources while consuming very little power. Springhill, Intel's latest AI processor designed for large computing centres, was also introduced.

 However, one of the major impediments to the growth of the artificial intelligence (AI) processor market is a lack of skilled personnel.

The Artificial Intelligence (AI) Processor market is segmented by processor type, technology, processing type, industry vertical, and geography. By offering, the global Artificial Intelligence (AI) Processor market is segmented into software, hardware and services. By technology, the market is segmented into deep learning, machine vision, machine learning, and natural process learning.

North America holds a sizable market share throughout the forecast period

Geographically, the Artificial Intelligence (AI) processor market is segmented into North America, South America, Europe, Middle East, and Africa (MEA), and Asia Pacific (APAC). North America accounted for the major market share in 2020 and will remain in its position until the end of the forecast period. Early adoption of new advanced technologies and the presence of major market players in the region support the growth of this regional market. Increasing investments in artificial intelligence (AI) in countries such as the United States and Canada are also driving the growth of this regional market. In December 2018, the Canadian Prime Minister announced an investment of up to nearly $230 million in the Quebec-based AI-Powered Supply Chains Supercluster (SCALE.AI). Ongoing research and development activities in autonomous vehicles, cybersecurity, and healthcare are propelling the North American artificial intelligence (AI)processor market forward. In February 2020, California-based startup Pony.ai received funding of $462 million, out of which $400 million came from Toyota for autonomous driving.

The APAC regional market is projected to witness a substantial CAGR during the forecast period on account of major AI processor makers such as Samsung and Huawei in the region. Growing adoption of AI technology across various industry verticals such as automotive and transportation, healthcare, BFSI, and retail in countries such as South Korea, India, and China is significantly augmenting regional demand for artificial intelligence (AI)processors. Increasing investments in 5G and IoT technology is also spurring the market growth of AI processors in this region. In December 2019, leading Chinese-language Internet search provider, Baidu, together with SAMSUNG, announced the completion of the development of Baidu’s first cloud-to-edge AI accelerator- BAIDU KUNLUN. Factors such as increasing investments in smart homes and the development of smart cities backed by government investments and PPPs in smart city programmes and initiatives will further drive the market growth of artificial intelligence (AI) processors in APAC during the forecast period. In 2019, the South Korean government established a fund to promote Korean smart city models. Malaysia is also one of the APAC countries that is pushing forward with smart city initiatives by digitizing its public services and integrating smart city management systems.

Recent development and expansion

  • Fraunhofer IPMS and CAST announced a RISC-V Embedded Processor for Edge AI in December 2021. A new RISC-V processor option that can perform artificial intelligence (AI) and machine learning (ML) functions in standalone devices. The EMSA5-FS Processor core supports the execution of vector instructions, which enable parallel processing of datasets and, as a result, can improve performance and energy efficiency.
  • Cerebras creates the world's largest AI-ready processor with 850,000 cores in August 2021. It can simulate the computational equivalent of the human brain or 100 trillion synapses. It eliminates the communication lag and inefficiencies caused by connecting hundreds of small devices with wires and cables.
  • IBM launched On-Chip Accelerated Artificial Intelligence Processor in August 2021.  A new chip design enables the use of deep learning inference on high-value transactions, which is intended to greatly improve the ability to detect fraud, among other applications.
  • In February 2021, Samsung launched the industry's first high bandwidth memory with AI processing power. The new processing-in-memory (PIM) architecture embeds powerful AI computing capabilities inside high-performance memory to accelerate large-scale processing in data centres, high-performance computing (HPC) systems, and AI-enabled mobile applications.

Covid 19 impact

The pandemic was largely attributed to disrupted supply chains and limited AI adoption in various end-user industries in 2020 due to industry lockdowns and shifting priorities Many manufacturing firms halted production, causing collateral damage to the supply chain and the industry. This disruption has slowed the adoption of AI-powered software and hardware. Many SMEs and large manufacturing plants had halted/postponed any new technology upgrades in their factories to recover from the losses caused by the lockdown and economic slowdown. Although, COVID-19 had a positive impact on the educational industries, with ed-tech companies adopting it. Furthermore, AI adoption is expected to grow post-pandemic. As a result, we can predict that COVID-19 will drive the AI processor market in certain industries.

Artificial Intelligence (AI) Processor Market Scope:

Report Metric Details
 Market size value in 2019  US$71.182 billion
 Growth Rate  CAGR of during the forecast period
 Base year  2019
 Forecast period  2020–2025
 Forecast Unit (Value)  USD Billion
 Segments covered  Processor Type, Technology, Processing Type, Industry Vertical, And Geography
 Regions covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies covered Apple Inc., Huawei Technologies Co., Ltd., MediaTek Inc., SAMSUNG, Qualcomm Technologies, Inc., Alphabet, Intel Corporation, NVIDIA Corporation, Advanced Micro Devices, Inc, IBM, LG Electronics, Graphcore
 Customization scope  Free report customization with purchase

 

Market Segmentation

  • By Processor Type
    • GPU
    • ASIC
    • FPGA
    • Others
  • By Technology
    • System-on-Chip
    • Multi-Chip Module
    • System-in-Package
    • Others
  • By Processing Type
    • Cloud
    • Edge
  • By Industry Vertical
    • BFSI
    • IT and Telecom
    • Healthcare
    • Retail
    • Media and Entertainment
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
      • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • United Kingdom
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Israel
      • Others
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Thailand
      • Indonesia
      • Taiwan
      • Others

Frequently Asked Questions (FAQs)

Q1. What is the size of global artificial intelligence (AI) processor market?
A1. Artificial Intelligence (AI) Processor market was valued at US$71.182 billion in 2019. 
 
Q2. Who are the major players in the artificial intelligence processor market?
A2. Prominent key market players in the artificial intelligence processor market include Apple Inc., Huawei Technologies Co., Ltd., MediaTek Inc., SAMSUNG, Qualcomm Technologies, Inc., Alphabet, and Intel Corporation among others.
 
Q3. How is the global artificial intelligence (AI) processor market segmented?
A3. Artificial Intelligence (AI) Processor market is segmented by processor type, technology, processing type, industry vertical, and geography.
 
Q4. What factors are anticipated to drive the artificial intelligence processor market growth?
A4. Growing data volume on account of the proliferation of connected devices and increasing high-speed internet connectivity is a key driving factor for the global artificial intelligence (AI) processor market growth.
 
Q5. Which region holds the largest market share in the artificial intelligence processor market?
A5. North America holds a noteworthy share in the global artificial intelligence (AI) processor market. 

1. Introduction

1.1. Market Overview

1.2. Covid 19 Scenario

1.3. Market Definition

1.4. Market Segmentation 

 

2. Research Methodology

2.1. Research Data

2.2. Assumptions

 

3. Executive Summary

3.1. Research Highlights

 

4. Market Dynamics

4.1. Market Drivers

4.2. Market Restraints

4.3. Porters Five Forces Analysis

4.4. Industry Value Chain Analysis

 

5. Artificial Intelligence (AI) Processor Market Analysis, By Processor Type

5.1. Introduction

5.2. GPU

5.3. ASIC

5.4. FPGA

5.5. Others

 

6. Artificial Intelligence (AI) Processor Market Analysis, By Technology

6.1. Introduction

6.2. System-On-Chip

6.3. Multi-Chip Module

6.4. System-In-Package

6.5. Others

 

7. Artificial Intelligence (AI) Processor Market Analysis, By Processing Type 

7.1. Introduction

7.2. Cloud

7.3. Edge

 

8. Artificial Intelligence (AI) Processor Market Analysis, By Industry Vertical

8.1. Introduction

8.2. BFSI

8.3. IT and Telecom

8.4. Healthcare

8.5. Retail

8.6. Media and Entertainment

8.7. Others

 

9. Artificial Intelligence (AI) Processor Market Analysis, By Geography

9.1. Introduction

9.2. North America

9.2.1. USA

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1. Brazil

9.3.2. Argentina

9.3.3. Others

9.4. Europe

9.4.1. Germany

9.4.2. France

9.4.3. United Kingdom

9.4.4. Spain

9.4.5. Others

9.5. Middle East and Africa

9.5.1. Saudi Arabia

9.5.2. UAE

9.5.3. Israel

9.5.4. Others

9.6. Asia Pacific

9.6.1. China

9.6.2. Japan

9.6.3. South Korea

9.6.4. India

9.6.5. Thailand

9.6.6. Indonesia

9.6.7. Taiwan 

9.6.8. Others

 

10. Competitive Environment and Analysis

10.1. Major Players and Strategy Analysis

10.2. Emerging Players and Market Lucrativeness

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Vendor Competitiveness Matrix

 

11. Company Profiles 

11.1. Apple Inc.

11.2. Huawei Technologies Co., Ltd.

11.3. MediaTek Inc.

11.4. SAMSUNG

11.5. Qualcomm Technologies, Inc.

11.6. Alphabet

11.7. Intel Corporation

11.8. NVIDIA Corporation

11.9. Advanced Micro Devices, Inc

11.10. IBM

11.11. LG Electronics

11.12. Graphcore

Apple Inc.

Huawei Technologies Co., Ltd.

MediaTek Inc.

SAMSUNG

Qualcomm Technologies, Inc.

Alphabet

Intel Corporation

NVIDIA Corporation

Advanced Micro Devices, Inc

IBM

LG Electronics

Graphcore

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