The Artificial Intelligence (AI) Processor market was valued at US$71.182 billion in 2019. 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. AI processors are used to handle large and parallel operations in an efficient manner.
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 for 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, thus positively impacting the market growth of artificial intelligence (AI) processor. A surge in demand for AI to be integrated into video surveillance and rise in government spending for cybersecurity solutions solutions integrated with real-time analytics and AI will further boost 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 artificial intelligence (AI) market during the next five years.
Companies are adopting various growth strategies such as acquisitions, partnerships, collaborations, and product launch in order to strengthen their AI processor product portfolio while expanding their market share, thus positively impacting the market growth of artificial intelligence (AI) processor worldwide. For instance, Intel acquired a small AI software firm, Nervana, for its deep learning accelerator GPU chip. In May 2018, Cambricon unveiled its 3rd generation AI processor for edge devices using TSMC 7nm technology. Advancements in technologies across various industries using AI will continue to drive the demand for artificial intelligence (AI) processors during the forecast period. For example, Tesla founder Elon Musk launched tech startup Neuralink to build implants that connect brains with computer interfaces via AI. AI processor manufacturers are also engaged in growth strategies including product launch, investments, partnerships and collaborations in order to meet the emerging demand and expanding their global market share which will also drive the artificial intelligence (AI) processor market growth. For instance, in August 2019, Huawei launched the world’s most powerful AI processor- the Ascend 910- along with an AI computing network called MindSpore. Intel also launched its latest AI processor-Springhill- which is designed for large computing centers.
However, the lack of skilled personnel is one of the major restraining factors that is hindering the growth of artificial intelligence (AI) processor market.
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 hardware, software, and services. By technology, the market is segmented into machine learning, deep learning, machine vision, natural process learning.
North America holds the largest market share throughout the forecast period
Geographically, the Artificial Intelligence (AI) Processor market is segmented as North America, South America, Europe, Middle East, and Africa (MEA), and Asia Pacific (APAC). North America accounted for the major market share in 2019 and will remain at 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 supports the growth of this regional market. Increasing investments in artificial intelligence (AI)in countries like the U.S. and Canada is also a driving factor for the growth of this regional market. In December 2018, The Canadian Prime Minister announced an investment of up to nearly $230 million for AI-Powered Supply Chains Supercluster (SCALE.AI) based in Quebec. Ongoing R&D activities in autonomous vehicles, cybersecurity, and healthcare are further boosting the growth of the North American artificial intelligence (AI)processor market. Recently in February 2020, California-based startup Pony.ai has received a funding of $462 million, out of which $400 million came from Toyota for autonomous driving.
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 like South Korea, India, and China is significantly augmenting the demand for artificial intelligence (AI)processors across the region. Increasing investments in 5G and IoT technology is also spurring the market growth of AI processor in this region. In December 2019, leading Chines-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. In 2018, Huawei unveiled its AI chipset for its mobile devices in order to compete with global market players such as Qualcomm, SAMSUNG, and Apple. Factors such as increasing investments in smart homes and the development of smart cities backed by government investments and PPPs in smart cities programs and initiatives will further drive the market growth of artificial intelligence (AI) processor in APAC during the forecast period. In 2019, the South Korean government launched a fund to back the promotion of Korean smart city models. Malaysia is also one of the APAC countries that is pushing forward smart city initiatives by digitizing its public services and integrating smart city management systems.
Prominent key market players in the Artificial Intelligence (AI) Processor market include Apple Inc.,Huawei Technologies Co., Ltd., MediaTek Inc., SAMSUNG, Qualcomm Technologies, Inc., Alphabet, and Intel Corporationamong others. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the Artificial Intelligence (AI) Processor market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.
|Market size value in 2019||US$71.182 billion|
|Growth Rate||CAGR of during the forecast period|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Processor Type, Technology, Processing Type, Industry Vertical, And Geography|
|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|
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