Global Machine Learning Processor market is projected to grow at a CAGR of 27.16% during the forecast period, reaching a total market size of US$118.835 billion in 2025 from US$28.105 billion in 2019. The global machine learning processor market is rising due to the growing popularity of artificial intelligence and the trend towards big data. Increasing IoT devices is further growing the demand for the machine learning processor, thereby driving the market growth. The growing number of AI applications, improving computer power and declining hardware cost is pushing the sales of the machine learning processors. The high adoption of artificial intelligence by various industries for automation purpose is driving the market for machine learning processors. The increasing data generated nowadays from all technical sources is growing the requirement for faster and advanced machine learning processors for faster analysis. Companies are heavily investing in research and development for introducing new and updated products to occupy a larger market share. The machine learning processor is improving consumer services and reducing operational costs which are significantly driving the market growth.
However, the lack of a skilled workforce and the absence of standards and protocol are restraining the market growth of machine learning processors. AI is a complex system and for developing, managing, and implementing it requires employees with certain skill sets.
The Global Machine Learning Processor market is segmented by processor type, technology, end-user industry, and geography. By processor type, the market is segmented into GPU, ASIC, CPU, and FPGA. By technology, the global machine learning processor market is segmented into System-On-Processor (SIC), System-In-Package (SIP), multi-processor module, and others. By industry vertical, the market is segmented into consumer electronics, communication and technology, retail, healthcare, automotive, and others.
GPU has a significant share in the market
GPU (graphics processing units) is increasingly being used for gaming and video viewing purposes. Advancing and new technology like AR (Augmented Reality) is driving the demand for GPU processors in the market. CPU is expected to witness a decent CAGR during the forecast period due to the increasing use of Quantum computing. Quantum computing takes only a few seconds to complete a calculation that otherwise may take thousands of years. FPGA is driving the machine learning processor market as the new and advance technology is coming every year and people are continuously updating according to the current trend and the FPGAs processor makes it faster to configure. ASICs processor is increasingly being used by different industries for carrying out specific tasks according to the requirement of the industry, thereby positively impacting the market growth.
By technology, System-On-Chip one of the major segments
System-On-Chip has a noteworthy share in the global machine learning processor market on account of the growing market of smartphones. System-On-Chip includes a central processing unit, memory, input/output ports, and secondary storage – all on a single substrate or microprocessor, the size of a coin which perfectly suitable for smartphones. System-On-Chip is usually used in smartphones for better performance and faster processing of multi-task activities. System-in-package is increasingly boosting the market for machine learning processor due to its usage in 3D development. The heavy inflow of investments by market players into this technology is expanding its scope of application from smartphones and media players to many more applications across a wider range of industries. Since this technology supports a wider range of integration techniques than many other technologies, end-users seeking more flexibility in solutions are showing a continuously increasing adoption of this technology, thus fueling the market growth.
Consumer Electronics one of the major industries for machine learning processor market players
The consumer electronics segment accounts for significant market share during the forecast period. The increasing advancement in technology is building the market for better devices with improved applications. The future of technology is depended on the increasing use of artificial intelligence and big data. Companies are using a machine learning processor in smartphones for improving its features and maximizing capabilities like a faster processor and improved multi-tasking ability. Smartphones and tablets are coming embedded with artificial intelligence for enhancing customer experience and a better user interface. Hence, the growing demand for advanced consumer electronics is spurring the demand for machine learning processors. Increased usage of advanced technologies in healthcare and communication & technology is giving rise to the use of machine learning processor as new devices are highly embedded with machine learning processor for better performance. The retail sector is expected to experience significant market growth during the forecast period owing to the booming global e-commerce industry. The automotive industry is poised to grow at a substantial CAGR during the forecast period owing to the investments in connected and autonomous cars.
By geography, North America has a notable share in the market
Regionally, the global machine learning processor market is classified into North America, South America, Europe, Middle East and Africa, and Asia Pacific. North America is expected to have a notable market share in the global machine learning processor market owing to the early adoption of advanced technologies and the presence of major market players in the region. Global software and hardware companies present in this region are increasingly using artificial intelligence, big data, and augmented reality for improving technology and providing better services to customers. High investments in artificial intelligence further bolster the market growth of machine learning processor across this region throughout the forecast period. For example, a Seattle-based AI-enabled sales enablement platform, Highspot, raised US$75 million in Series D-1 investment round with ICONIQ Capital being the lead investor, with other investors including Madrona Venture Group, Sapphire Ventures, Salesforce Ventures, and OpenView. With this round, the company’s total funding valuation reached US$200 million.
Market Players and Competitive Intelligence
The competitive intelligence section deals with major players in the market, their market shares, growth strategies, products, financials, and recent investments among others. Key industry participants profiled as part of this section of the global machine learning processor market are ARM Limited, NVIDIA Corporation, Samsung, Alphabet, Amazon, Intel, Qualcomm, Graphcore, and Apple.