Artificial Intelligence (AI) Processor Market Size, Share, Opportunities, 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 2025 To 2030
- Published : Jan 2025
- Report Code : KSI061611701
- Pages : 152
The artificial intelligence (AI) processor market is estimated to reach US$60.911 billion by 2030, growing at a CAGR of 17.46% from US$27.238 billion in 2025.
An AI processor is a type of specially developed processing unit that is used in various types of computing devices, like smartphones and personal computers. These processors help increase the computing devices' efficiencies, utilizing AI and ML functions. AI processors offer multiple advantages compared to other types of processors, as they offer faster computing capabilities and more accurate results. This processor also enables lower latency results.
Increasing investments in smart cities across various regions provide a great opportunity for artificial intelligence processor market players. Furthermore, growing investments in AI startups backed by multiple venture capitalists are also positively impacting market growth. 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 its demand during the forecast period. The growing emergence of quantum computing is another potential factor for the AI processors market expansion during the forecast period.
The increasing demand for AI-based applications worldwide is expected to propel the global AI processors market. Similarly, the introduction of new policies and investment opportunities in the AI technology sector by the governments of multiple countries, such as India, China, the UK, Japan, and the USA, is also forecasted to boost the AI processor market during the forecasted timeline.
What are the drivers of the Artificial Intelligence (AI) Processor Market?
- Increasing demand for AI applications
The growing need for AI applications is an important factor influencing the artificial intelligence (AI) processor industry. Integrating AI technologies into several industries, including healthcare, finance, technology, and the automotive sector, has led to an increasing demand for specialized hardware that can manage the intricate processing demands of AI workloads. AI processors that effectively carry out activities linked to machine learning, deep learning, and other AI applications are essential to satisfy these expectations. With companies looking to use AI for activities like image recognition, natural language processing, and data analysis, the speed and efficiency provided by specialized AI processors become critical.
- Growth strategies of key market players
Companies are adopting various growth strategies such as acquisitions, partnerships, collaborations, and product launches to strengthen their AI processor product portfolio while expanding their market share. This is positively impacting the market growth of artificial intelligence processors worldwide. For instance, in May 2022, Intel Corp. introduced its AI Gaudi2 chip, 4th generation Xeon Scalable processors, Project Apollo AI program 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 are anticipated to drive demand for artificial intelligence processors during the forecast period.
For example, Elon Musk, the founder of Tesla, launched the tech startup Neuralink to develop implants that use AI to connect brains with computer interfaces. AI processor manufacturers also use growth strategies, including product launches, investments, partnerships, and collaborations, to meet the emerging demand and expand their global market share.
Geographical outlook of the Artificial Intelligence (AI) Processor Market
- Artificial Intelligence (AI) Processor Market is segmented into five regions worldwide
The global artificial intelligence (AI) processor market is segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Geographically, the AI processor market is segmented into North America, South America, Europe, the Middle East, Africa (MEA), and Asia Pacific (APAC). North America accounted for the major market share in 2025 and is anticipated to remain in its position during the forecast period. Early adoption of new advanced technologies and the presence of major market players support the regional market growth. Increasing investments in artificial intelligence in countries such as the United States and Canada are also driving regional market expansion.
The APAC market is also projected to witness a substantial CAGR during the forecast period due to the presence 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 these processors. Increasing investments in 5G and IoT technology are also spurring the regional market growth.
Key players and products in the Artificial Intelligence Processor Market:
- MediaTek is among the leading global manufacturers of semiconductors. The company offers a wide range of technologies, which includes 5G, artificial intelligence, Wi-Fi, display, and CorePiots, among others. The company's products include smartphones, smart homes, networking & connectivity, IoT, automotive, and ASIC. The company offers MediaTek Neural Processing Units (NPU) for the global AI processor market, which offers multiple AI capabilities.
- Nvidia Corporation is among the leading technological solution providers based in the USA. The company offers products and solutions for multiple industries, such as cybersecurity, consumer internet, manufacturing, financial services, and automotive, among others. The company offers AI solutions, data center & cloud computing, design simulation, robotics & edge computing, and self-driving vehicles. The company provides GeForce RTX™ GPUs for the global AI processors market, which deliver 30 times faster AI model training with 13 times faster image generations.
Key developments in the Artificial Intelligence (AI) Processor Market:
- In January 2025, AMD announced new Ryzen™ AI Max Series processors, further answering the demands of high-performance computing in premium thin and light notebooks; new Ryzen™ AI 300 Series "Zen-5"-based processors to round out the stack with additional models; and to continue the legacy of AMD "Zen 4" architecture, Ryzen™ 200 Series processors for everyday productivity.
- In October 2024, the Intel Corporation launched the Core Ultra 200S series processors, aiming to boost desktop PCs' AI capabilities. The Core Ultra 200S series processors offer enhanced performance in AI and content creation and can extend platform compatibility with up to 24 PCle.
- In October 2024, Qualcomm Technologies, Inc., a global leader in the technological leader, launched Snapdragon 8 Elite, one of the fastest mobile CPUs. The new processor offers generative AI and can seamlessly handle complex multimodal AI functions.
Artificial Intelligence (AI) Processor Market Scope:
Report Metric | Details |
Artificial Intelligence (AI) Processor Market Size in 2025 | US$27.238 billion |
Artificial Intelligence (AI) Processor Market Size in 2030 | US$60.911 billion |
Growth Rate | CAGR of 17.46% |
Study Period | 2020 to 2030 |
Historical Data | 2020 to 2023 |
Base Year | 2024 |
Forecast Period | 2025 – 2030 |
Forecast Unit (Value) | USD Billion |
Segmentation |
|
Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
List of Major Companies in Artificial Intelligence (AI) Processor Market |
|
Customization Scope | Free report customization with purchase |
The artificial intelligence (AI) processor market is segmented and analyzed as follows:
- 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
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- United Kingdom
- Germany
- France
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Israel
- Others
- Asia Pacific
- Japan
- China
- India
- South Korea
- Indonesia
- Thailand
- Others
- North America
Frequently Asked Questions (FAQs)
The artificial intelligence (ai) processor market is expected to reach a total market size of US$60.911 billion by 2030.
Artificial Intelligence (AI) Processor Market is valued at US$27.238 billion in 2025.
The artificial intelligence (ai) processor market is expected to grow at a CAGR of 17.46% during the forecast period.
Rising demand for AI-driven applications, advancements in deep learning, and increased adoption of smart devices are key drivers of AI processor market growth.
The North American region is anticipated to hold a significant share of the artificial intelligence (ai) processor market.
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 for the Stakeholders
2. RESEARCH METHODOLOGY
2.1. Research Design
2.2. Research Process
3. EXECUTIVE SUMMARY
3.1. Key Findings
3.2. Analyst View
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Supplier
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
5. ARTIFICIAL INTELLIGENCE (AI) PROCESSOR MARKET BY PROCESSING TYPE
5.1. Introduction
5.2. GPU
5.3. ASIC
5.4. FPGA
5.5. Others
6. ARTIFICIAL INTELLIGENCE (AI) PROCESSOR MARKET 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 BY PROCESSING TYPE
7.1. Introduction
7.2. Cloud
7.3. Edge
8. ARTIFICIAL INTELLIGENCE (AI) PROCESSOR MARKET 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 BY GEOGRAPHY
9.1. Introduction
9.2. North America
9.2.1. United States
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. United Kingdom
9.4.2. Germany
9.4.3. France
9.4.4. Spain
9.4.5. Others
9.5. The 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. Japan
9.6.2. China
9.6.3. India
9.6.4. South Korea
9.6.5. Indonesia
9.6.6. Thailand
9.6.7. Others
10. COMPETITIVE ENVIRONMENT AND ANALYSIS
10.1. Major Players and Strategy Analysis
10.2. Market Share Analysis
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Competitive Dashboard
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. Intel Corporation
11.7. NVIDIA Corporation
11.8. Advanced Micro Devices, Inc
11.9. IBM
11.10. LG Electronics
11.11. Alphabet (Google)
11.12. Cerebras Systems
Apple Inc.
Huawei Technologies Co., Ltd.
MediaTek Inc.
SAMSUNG
Qualcomm Technologies, Inc.
Intel Corporation
NVIDIA Corporation
Advanced Micro Devices, Inc
IBM
LG Electronics
Alphabet (Google)
Cerebras Systems
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