What Was The Historic And Current Performance Of The Artificial Intelligence Chip Market?
The Artificial Intelligence Chip Market has witnessed remarkable growth in the recent past, with increasing implementation across numerous sectors.
• In 2024, the market size had expanded to $29.65 billion, advancing further to reach $40.79 billion in 2025 with a compound annual growth rate (CAGR) of 37.6%.
This growth surge can be traced back to the rise in data generation, increased investment in AI research, growth in the retail and e-commerce sector, an uptick in the healthcare sector, and overall economic growth.
What is the Forecasted Market Size and Growth Rate for the Artificial Intelligence Chip Market?
The artificial intelligence chip market is slated to experience exponential growth in the coming years.
• By 2029, the market size is expected to reach $164.07 billion, expanding at a CAGR of 41.6%.
This foreseeable growth can be attributed to growing demand for data-intensive applications, advancements in machine learning algorithms, rising automotive sector, surging financial services, and escalating urbanization. Major trends include customized AI hardware, edge AI acceleration, quantum computing integration, neuromorphic computing, and energy-efficient AI chips.
What Are The Key Factors Driving The Growth Of The Artificial Intelligence Chip Market?
A rise in demand for smart homes and smart cities is expected to propel the growth of the artificial intelligence chips market. Smart city refers to a city that employs digital technology to improve the comfort and efficiency of human life. For instance, in March 2022, an article by Arab News highlighted Saudi Arabia's unveiling of a new smart city project in Jeddah. According to Saudi Vision 2030, the city leverages digital technology to offer automated services to customers, reflecting the growing influence of smart spaces in driving the growth of the artificial intelligence chip sector.
How Is The Artificial Intelligence Chip Market Segmented?
The artificial intelligence chip market is segmented as follows:
1) By Chip Type: GPU, ASIC, FPGA, CPU, Other Chip Types
2) By Processing Type: Edge, Cloud
3) By Technology: System-On-Chip (SoC), System-In-Package (SIP), Multi-Chip Module, Other Technologies
4) By Application: Natural Language Processing (NLP), Robotics, Computer Vision, Network Security, Other Applications
5) By Industry: Media and Advertising, BFSI, IT and Telecom, Retail, Healthcare, Automotive and Transportation, Other Industries
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What Trends Are Shaping the Artificial Intelligence Chip Market?
Major companies in the AI chip market are progressing in terms of new technologies and research and development. A notable example is Atom, an AI chip developed by Rebellions Inc. that excels at running computer vision and chatbot AI applications. Launched in February 2023, Atom uses a unique decentralized programming model that customers can use to equip themselves with powerful yet energy-efficient AI hardware. The chip is designed to consume only about 20% of the power compared to other powerful chips in the market, highlighting the ongoing trend toward energy-efficient AI chips.
Who Are The Key Players In The Artificial Intelligence Chip Market?
The major companies leading the advancements in the artificial intelligence chip market are:
• Intel Corporation
• Mediatek Inc
• NVIDIA Corporation
• Qualcomm Technologies Inc.
• Advanced Micro Devices Inc
• Alphabet Inc
• NXP Semiconductors N.V
• Micron Technology Inc
• IBM Corporation
• Apple Inc
• Huawei Technologies Co Ltd
• Mythic Inc
• Samsung Electronics Co ltd.
• LG Corporation
• Google LLC
• Advanced Micro Devices Inc
• Baidu
• Mellanox Technologies
• Xilinx Inc.
• Graphcore
• Cerebras Systems
• Habana Labs
• Vinova Pte Ltd.
• MemryX Inc.
• BrainChip Holdings Ltd.
• NeuReality Ltd.
What Are The Regional Insights Into The Artificial Intelligence Chip Market?
In 2024, North America was the largest player in the artificial intelligence chip market. The market report covers other regions as well, including Asia-Pacific, Western Europe, Eastern Europe, South America, Middle East, and Africa.
