IT & Telecom

AI Chip Market Segmentation by Type (ASIC, FPGA, CPU, GPU, and Others); by Application (Computer Vision, Network Security, Natural Language Processing, Robotic, and Others); by End User (Healthcare, Automotive & Transportation, IT & Telecom, Retail, BFSI, and Others) – Global Demand Analysis & Opportunity Outlook 2030

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Inflation and Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.


In The News

  • April 12, 2021: NVIDIA announced its first data center CPU for giant AI and large performance computing workloads.
  • August 23, 2019: Huawei launched Ascend 910 and claims it to be the most powerful AI processor in the world.

AI Chip Market Highlights 2020 – 2030

The AI chip market is estimated to garner a sizeable revenue by growing at a remarkable CAGR over the forecast period, i.e., 2021 – 2030. The growth of the market can be attributed to the growing adoption of artificial intelligence (AI) based technologies around the world, increasing volume of the data stored and the rising need to solve computational and mathematical problems effectively. In 2019, more than USD 11 billion were spent on AI based business operations worldwide. The amount rose up to USD 17 billion in the following year. Along with these, the emergence of quantum computing and increase in investments in building smart homes and cities are also expected to drive growth to the market in the coming years. Furthermore, growing emphasis on autonomous robotics is projected to offer abundant growth opportunities to the market in the future.

Global-AI-Chip-Market-Overview

The market is segmented by end user into healthcare, automotive & transportation, IT & telecom, retail, BFSI, and others, out of which, the IT & telecom segment is anticipated to hold the largest share in the AI chip market on account of rise in demand for smart appliances, and surge in need for devices providing enhanced user experience and efficient output. The market for smart appliances is evaluated to gather a revenue of approximately USD 8 billion by the end of 2021. Furthermore, by 2025, almost 19% households are expected to use smart appliances. Wide adoption of internet of things (IoT) and sensor driven algorithms for robotics is also assessed to drive growth to this market segment. In addition, the BFSI segment is also evaluated to occupy a major market share during the forecast period owing to the availability of large amount of data in this industry vertical.   


Major Macro-Economic Indicators Impacting the Market Growth

Global-Research-and-Development-Expenditure

The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.


Global AI Chip Market Regional Synopsis

On the basis of geographical analysis, the AI chip market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in the Asia Pacific region is estimated to witness noteworthy growth over the forecast period on the back of intensifying adoption of AI based technologies and growing investments to establish AI startups, especially in countries such as China, Japan and India. For instance, China is placing a strong focus on building artificial intelligence capabilities in the country. Beijing alone foreseen establishment of more than 445 AI companies by 2020. On the other hand, the market in the North America is predicted to grab the largest market share during the forecast period, which can be credited to the increasing demand for AI solutions from industries, namely, retail, BFSI and IT & telecom. Moreover, the market is backed by a strong presence of a well-established cloud infrastructure and some of the biggest tech giants in the world, which is another factor expected to boost the expansion of the AI chip market in this region.

The AI chip market is further classified on the basis of region as follows:

  • North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
  • Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
  • Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
  • Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis
  • Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis

Market Segmentation

Our in-depth analysis of the AI chip market includes the following segments:

By Type

  • ASIC
  • FPGA
  • CPU
  • GPU
  • Others

By Application

  • Computer Vision
  • Network Security
  • Natural Language Processing
  • Robotic
  • Others

By End User

  • Healthcare
  • Automotive & Transportation
  • IT & Telecom
  • Retail
  • BFSI
  • Others

Growth Drivers

  • Rising Adoption of AI Based Technology Globally
  • Increase in the Volume of Data Stored Worldwide

Challenges

  • Lack of Technically Skilled Workforce in Developing Economies


Global-AI-Chip-Market-Overview
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Global-Research-and-Development-Expenditure
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Top Featured Companies Dominating the Market

    • NVIDIA Corporation
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Intel Corporation
    • Apple Inc.
    • Huawei Technologies Co., Ltd.
    • International Business Machines Corporation
    • Advanced Micro Devices, Inc
    • Baidu, Inc.
    • Microsoft Corporation
    • Arm Limited
    • Graphcore Limited

Key Questions Answered in the Report

1) What are the major factors driving the growth of the AI chip market?

Ans: The major market growth drivers are rising adoption of AI technology globally and increasing volume of data stored worldwide.

2) What would be the CAGR of AI chip market over the forecast period?

Ans: The market is anticipated to attain a remarkable CAGR over the forecast period, i.e., 2021 – 2030.

3) What are the challenges affecting the AI chip market growth?

Ans: Lack of skilled workforce in developing nations estimated to hamper the market growth.

4) Which region will provide more business opportunities for growth of AI chip market in future?

Ans: Asia Pacific region will offer more business growth opportunities on the back of growing adoption of AI technologies and increasing investments to establish AI startups in the region.

5) Who are the major players dominating the AI chip market?

Ans: The major players in the market are NVIDIA Corporation, Intel Corporation, Apple Inc., Huawei Technologies Co., Ltd., and others.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the AI chip market?

Ans: The market is segmented by type, application, end user, and by region.

8) Which segment captures the largest market size in the end user segment in the AI chip market?

Ans: The IT & telecom segment is anticipated to hold largest market size and is estimated to grow at a notable CAGR over the forecast period and display significant growth opportunities.

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