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.
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.
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.
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:
Our in-depth analysis of the AI chip market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The major market growth drivers are rising adoption of AI technology globally and increasing volume of data stored worldwide.
The market is anticipated to attain a remarkable CAGR over the forecast period, i.e., 2021 – 2030.
Lack of skilled workforce in developing nations estimated to hamper the market growth.
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.
The major players in the market are NVIDIA Corporation, Intel Corporation, Apple Inc., Huawei Technologies Co., Ltd., and others.
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.
The market is segmented by type, application, end user, and by region.
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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