AI Chipsets Market is projected to grow at a CAGR of 25.61% to reach US$132.584 billion by 2028

The AI chipsets market is expected to grow at a CAGR of 25.61% during the forecasted period, with a market valuation of US$26.872 billion in 2021 and is expected to reach US$132.584 billion by 2028.

The AI chipsets market is influenced by factors such as the growing emphasis on developing artificial intelligence (AI) systems, increasing consumer electronics demand and the expansion of data volumes are key factors contributing to this trend.

As per the report, the AI chipsets market is expected to grow at a steady pace.

Artificial intelligence (AI) has undergone significant advancements, becoming a transformative force across various industries. AI chipsets are specifically crafted to provide high-speed manufacturing, low latency, and enhanced computing capabilities, facilitating faster and more efficient AI applications. Businesses are leveraging AI to automate operations, gain valuable data insights, enhance decision-making processes, elevate customer experiences, and foster innovation. The growing use of AI is driving demand for specialized hardware capable of effectively handling AI workloads, leading to the expansion of the AI chipsets industry.

The AI chipsets market is witnessing growth due to increased efforts in developing AI systems with human awareness. However, the lack of established norms and regulations, along with a shortage of skilled labour, poses challenges to the market’s expansion. As AI continues to progress in technology, there is a rising demand for a substantial number of application-specific integrated circuits (ASICs). Companies are innovating by developing new AI chips that incorporate advanced technologies such as artificial intelligence. For example, In May 2023, Google enabled generative AI, unveiling a next-generation language model featuring enhanced multilingual, reasoning, and coding capabilities. This model was developed using new foundations, embeddings, and tuning tools in conjunction with Vertex AI.

Categorized based on components, the largest share in the artificial intelligence chipsets market is anticipated to be held by the graphics processing unit (GPU) segment. The growth is expected to be driven by the increasing adoption of GPUs in edge devices, as well as advancements in gaming, augmented reality/virtual reality (AR/VR), virtual assistance, and other applications.

Based on end-users, the market can be segmented into automotive, consumer electronics, automation, healthcare, and others. The period from 2019 to 2021 witnessed a significant adoption of industrial robots across various sectors in the USA, indicating a notable shift toward automation and advanced manufacturing technologies. In the automotive industry, the installed robot count rose from 9.8 thousand in 2019 to 13 thousand in 2021, marking an impressive 32% growth. Similarly, the electrical/electronics sector experienced a consistent increase, with a 20% uptick in robot installations during the same timeframe. This trend towards automation is in line with the expanding AI chipsets market in the USA, as these robots often leverage AI-driven technologies to enhance efficiency and precision. This collaboration underscores the crucial role of AI chipsets in propelling industrial automation and fostering innovation.

The deployment of industrial robots across various sectors in the USA between 2019 and 2021 indicates a significant shift towards the adoption of automation and advanced manufacturing technologies. Specifically, in the automotive industry, the number of installed robots surged from 9.8 thousand in 2019 to 13 thousand in 2021, reflecting an impressive 32% growth. Similarly, the electrical/electronics sector experienced a consistent increase, with a 20% rise in robot installations during the same period. This trend towards increased automation is by the expanding AI chipsets market in the USA, as these robots frequently utilize AI-driven technologies to enhance their efficiency and precision. This collaboration underscores the crucial role played by AI chipsets in propelling advancements in industrial automation and innovation.

While both small and large global companies have made an impact on the market, the AI chipsets market is anticipated to be moderately consolidated. The market is still in its early developmental stages. Key participants in the current industry landscape include NVIDIA Corp., Xilinx Inc., Samsung Electronics, Intel Corporation, and Micron Technology. These entities are actively involved in competitive strategic initiatives, such as collaborations, the introduction of new products, and expanding into new markets, to secure leading positions in the AI chipsets market. In August 2021, IBM introduced a new chip called Telum, designed to enable its clients to effectively utilize deep learning inference on a large scale. The chip’s centralized design allows clients to harness the full power of the AI processor for specific AI workloads, making it particularly suitable for financial services tasks like loan processing, trade clearing and settlement, fraud detection, anti-money laundering, and risk analysis.

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These analytics report segments the AI chipsets market on the following basis:

Segmentation:

• By Component
  • GPU (Graphic Processing Unit)
  • FGPA (Field-Programmable Gate Array)
  • ASIC (Application-Specific Integrated Circuit)
  • Others
• By End-User
  • Automotives
  • Consumer Electronics
  • Automation
  • Healthcare
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Taiwan
    • Australia
    • Others