Neuromorphic Chips Market Size, Share, Opportunities, And Trends By Component (Hardware, Software), By End-User Industry (Aerospace & Defense, Automotive, Healthcare, Industrial, Consumer Electronics, Others), And By Geography - Forecasts From 2023 To 2028

The neuromorphic chips market was valued at US$3.07 billion in 2021.

A neuromorphic chip refers to a type of device that use silicon-based physical artificial neurons for performing computations. The neuromorphic chips market can be classified in the following ways: by component type, end-user industry, and geographic region. The major drivers for the growth of this market include increased demand in several booming industries such as automotive, healthcare, and aerospace.

The surge in demand for neuromorphic chips by growing industries like automotive and electronics is positively impacting the market growth.

Neuromorphic chips find applications in several industries such as automotive and electronics, which is a key factor in the growth of the market for this product. Several industries are widely adopting neuromorphic chips for various applications such as in consumer electronics, machines, and automated processes. Key consumer electronics such as smartphones and laptops benefit from the use of neuromorphic chips as it helps improve the computing power of these devices without significantly draining the battery of the device.

Further, the use of biometrics and other forms of recognition in smartphones will drive the demand for neuromorphic chips. Thus, as the electronics industry continues to grow, the demand for neuromorphic chips for the production of these products will also continue to grow proportionately. Further, the use of neuromorphic chips for artificial intelligence and machine learning opens possibilities for its applications in automotive engineering and medical research. For example, neuromorphic chips have been used in the healthcare industry to diagnose the coronavirus’s impact and origin with the help of artificial intelligence tools. In the automotive industry, neuromorphic chips can be used to consistently improve and advance the field of autonomous driving, popularly known as, self-driving cars. These chips help in increasing the efficiency of artificial intelligence tools and algorithms used in the making of self-driving cars and help lower the amount of energy consumption too.

Lack of research and development and the complexity of operations are expected to restrain the industry's expansion.

A significant challenge faced by this industry relates to the lack of significant research and developmental activities which acts as a hindrance to the growth of the industry as it negatively impacts product advancement. There are several limitations to the development of neuromorphic software and hardware due to existing technological levels. For example, any changes in hardware architecture make them incompatible with algorithms as algorithms are written for specific hardware. Due to these limitations, the neuromorphic computing industry is growing at a slower pace. Additionally, as end-use devices become more miniature, it increases the complexity of designing the hardware and maintaining backend operations which acts as a deterrent to the growth of the global neuromorphic market.

The North American region is expected to hold a significant share of the neuromorphic chips market.

North America is expected to constitute a significant market share and similar trends are expected to be followed in the forecast period. This market share is owed to the presence of a majority of global manufacturers of neuromorphic chips such as Intel, IBM, and Hewlett Packard in this region. Further, continued investments into the industry by these major players as well as governmental support help in driving the market for neuromorphic chips in this region. The United States is a key market for neuromorphic chips in this region as most of the big neuromorphic chip manufacturers are American-based and the government provides support to the industry too. For example, the Department of Energy of the United States government announced funding of US$15 million in 2022 for several neuromorphic computing research projects. It is expected that the Asia-Pacific market will experience moderate growth too. The market for neuromorphic chips in developed economies such as China and Japan is expected to increase as artificial intelligence and machine learning is increasingly adopted by these markets. The markets for consumer electronics in developing countries like India and South Korea will also drive the demand for neuromorphic chips and result in market share expansion for the entire region.

Key Developments.

• In September 2021, Intel announced the launch of its latest generation neuromorphic processor, Loihi, with an improved processor and increased computational abilities as well as hardware changes that enable it to run a new class of algorithms.
• In August 2022, a new AI-focused neuromorphic chip was announced to be designed by a team of international researchers that lowers power consumption and increases computational power for artificial intelligence-based processes.
• In November 2022, POLYN announced the launch of the first-ever analog neuromorphic chip for voice extraction called NeuroVoice. The chip employs voice detection and voice extraction functions for its work.

Neuromorphic Chips Market Scope:

• BY COMPONENT
  • Hardware
  • Software
• BY END-USER INDUSTRY
  • Aerospace & Defense
  • Automotive
  • Healthcare
  • Industrial
  • Consumer Electronics
  • 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
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others