The global market for artificial intelligence chips was valued at over $5 billion in 2018 and could reach as much as $83 billion by 2027 with a CAGR growth rate of 35.0% in the forecast period from 2019 to 2027.
Who is driving this growth?
North America is the leading geographic region in the artificial intelligence chip market and is anticipated to be the largest revenue contributor throughout the forecast period. In North America, artificial intelligence implementation is backed by large-scale investments from technological giants. North America’s artificial intelligence chip market is primarily driven by the growing demand of artificial intelligence solutions from the BFSI, retail, IT & communication sectors.
Who are the biggest players in the market?
A large number of well-funded start-ups have already entered the marketplace with their innovative artificial intelligence based solutions and services. In addition to this, the US also has a well-established cloud infrastructure which is driving the growth of the market. With tech giants like NVIDIA, Google and Apple present in the U.S, their focus on artificial intelligence R&D and deployment is expected to be the dominant country in the artificial intelligence chip market during the forecast period.
With the availability of an enormous amount of data and vast scalability of cloud-based computing power, artificial intelligence has become a huge trend across industries in the last few years. In today’s digital world, information is the key for enterprises to be successful and to maintain sustainable growth. Most industries especially service sector rely deeply on analytics to provide them with useful business insights and enable them to remain competitive in the market.
Why is the industry growing?
Enterprises have been continuously automating their business processes that were earlier conducted either programmatically or manually. With advancements in AI chips and introduction of application-specific custom chips, enterprises now have the capability to collect real-time analytics and to transform their data into actionable insights. There are numerous use cases available in the market of AI being successfully implemented across industry verticals.
In the global AI chip market, new market initiatives is a strategy adopted by various companies to expand their footprint across the world and meet the growing demand of customers. The main players in this market are focused on product enhancements by implementing advanced technologies. Most of the AI chip market initiatives were observed in Asia Pacific, North America, and Europe regions, which have a high density of AI implementations.
The artificial intelligence chip market is segmented into Data centre/Cloud and edge. Artificial intelligence chips are majorly used for training and inference purposes in data centre/cloud computing. However, with recent breakthroughs, AI chips have evolved to cater to a wide range of applications especially inference at the edge. With tech giants like NVIDIA, Apple, Google, Huawei, and Intel among others investing in edge inferencing, the edge segment is going to drive the growth of artificial intelligence chip market through the adoption of specialized AI chips and accelerators during the forecast period.
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