NEW
YORK, July 9, 2024 /PRNewswire/ -- The global
artificial intelligence (AI) chips market is estimated to grow by
USD 389.25 billion from 2024-2028, at
a CAGR of over 68.13%, according to Technavio. Increasing adoption
of AI chips in data centers and the convergence of AI and IoT are
driving market growth. However, a dearth of technically skilled
workers poses a challenge. Key players include Advanced Micro
Devices Inc., Alphabet Inc., Baidu Inc., Broadcom Inc., Cerebras,
Fujitsu Ltd., Graphcore Ltd., Huawei Technologies Co. Ltd., Intel
Corp., and NVIDIA Corp., the leader in the AI chip market.
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Product (ASICs, GPUs,
CPUs, and FPGAs), End-user (Media and advertising, BFSI, IT and
telecommunication, and Others), and Geography (North America,
Europe, APAC, South America, and Middle East and Africa)
|
Region
Covered
|
North America, Europe,
APAC, South America, and Middle East and Africa
|
Key companies
profiled
|
Advanced Micro Devices
Inc., Alphabet Inc., Baidu Inc., Broadcom Inc., Cerebras, Fujitsu
Ltd., Graphcore Ltd., Huawei Technologies Co. Ltd., Intel Corp.,
International Business Machines Corp., MediaTek Inc., Microchip
Technology Inc., NVIDIA Corp., NXP Semiconductors NV, Qualcomm
Inc., SambaNova Systems Inc., Samsung Electronics Co. Ltd.,
SenseTime Group Inc., Taiwan Semiconductor Manufacturing Co. Ltd.,
and Tesla Inc.
|
Key Market Trends Fueling Growth
The Internet of Things (IoT) market is experiencing significant
growth due to the numerous advantages it offers in various
industries, including aerospace and defense, automotive, consumer
electronics, healthcare, and others. IoT devices, which include
cameras, drones, smart speakers, smartphones, smart TVs, and more,
are increasingly integrating Human-Machine Interface (HMI)
technologies. This integration leads to the deployment of
Artificial Intelligence (AI) chips in IoT devices, enabling
power-efficient data processing and machine learning computation.
The demand for IoT devices is escalating due to the focus on smart
city projects and automation in homes and enterprises. Market
players are collaborating to develop software and hardware
solutions to integrate AI technology in IoT devices, driving the
growth of the AI chips market in the forecast period.
Artificial Intelligence (AI) chips are making waves in various
industries by powering innovative applications in personalized
health and treatment devices for the elderly population. Machine
Learning (ML) and Deep Learning (DL) are driving this trend, with
computer vision technologies like pose detection and behavioral
pattern recognition becoming increasingly important. Structured
data from IoT devices, Industry 4.0 manufacturing, wearable
devices, smart homes, and connected cars are fueling this growth.
AI chips are being integrated into processors, GPUs, FPGAs, CPUs,
ASICs, DSPs, microcontrollers, and programmable logic chips to
handle the demands of AI applications. These chips enable
high-quality images, animations, and videos in mobile phones,
embedded systems, personal computers, gaming consoles, and more.
The theoretical and algorithmic basis of AI is being transformed by
automatic analysis, extraction, and estimation of single images and
sequences of images.
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Market Challenges
- The AI chips market is witnessing significant growth due to the
potential revenue benefits that companies can derive from investing
in artificial intelligence. However, the implementation of AI comes
with challenges, particularly the shortage of skilled workers with
expertise in AI technology. This talent gap poses a major obstacle
for enterprises seeking to integrate AI into their operations. The
high R&D costs associated with AI and the lack of available
talent are hindering the growth of the market. To overcome this
hurdle, organizations must prioritize talent acquisition and
retention, recruiting professionals with strong technical
backgrounds and investing in skill development programs. The
shortage of AI engineers and technicians is hindering the
deployment of AI in enterprises, thereby limiting market growth
during the forecast period.
- The Artificial Intelligence (AI) Chips Market is experiencing
significant growth due to the increasing demand for
energy-efficient solutions for AI applications in various
industries such as healthcare, retail, finance, automotive, and IoT
devices. Companies like Nvidia and Huawei are leading the market
with their AI chip lines, including the Nvidia A100 chip and Huawei
Ascend 910B chipset. However,
challenges such as energy efficiency, latency, and ethical concerns
remain. Centralized cloud servers from Microsoft Azure, Amazon Web
Services, Google Cloud, and Oracle Cloud Infrastructure offer high
computing power but face challenges with real-time applications and
big data processing. Edge computing and Edge devices are gaining
popularity for their ability to process data locally, reducing
latency and improving performance. Patent filing and system failure
are also concerns for companies investing in AI chips. Specific
integrated circuits like CPU, FPGA, GPU, and system on chip,
multichip module, and high computing parallel computing are
essential for AI data centers, cognitive computing, machine
intelligence, image recognition, and other AI applications. Ethical
concerns around AI use in mobile applications, health monitoring,
and health information access are becoming increasingly important.
The market for AI chips is expected to continue growing, with
continued innovation and investment in this area.
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Segment Overview
This artificial intelligence (AI) chips market report
extensively covers market segmentation by
- Product
- 1.1 ASICs
- 1.2 GPUs
- 1.3 CPUs
- 1.4 FPGAs
- End-user
- 2.1 Media and advertising
- 2.2 BFSI
- 2.3 IT and Telecommunication
- 2.4 Others
- Geography
- 3.1 North America
- 3.2 Europe
- 3.3 APAC
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 ASICs- Artificial Intelligence (AI) chips,
specifically Application-Specific Integrated Circuits (ASICs), are
driving innovation in the tech industry. ASICs are customized,
non-configurable chips that offer faster performance than GPUs and
FPGAs for parallel algorithms. Their use in cloud-based data
centers is increasing, as ASIC-based AI chips, like
Google's Tensor Processing Unit (TPU), provide superior speed and
efficiency. TPUs, a network of software and hardware, are designed
for deep neural networks and can learn specific tasks with large
data sets. Data centers are integrating these ASICs into servers to
manage data effectively. TPUs have an instruction set that allows
TensorFlow programs to be modified, enabling new algorithms to be
developed. As an open-source machine learning library, TensorFlow's
data flow graph structure simplifies complex computations, making
ASICs a preferred choice for AI applications. The market for
ASIC-based AI chips is expected to grow significantly
due to their performance advantages.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Research Analysis
Artificial Intelligence (AI) Chips Market: The global AI Chips
Market is experiencing significant growth due to the increasing
adoption of AI technologies in various industries. Deep learning
and machine learning algorithms require specialized hardware
components, leading to the development of AI chips. These chips are
designed to accelerate AI workloads and improve the performance of
AI applications. AI chips include specific integrated circuits like
CPUs, GPUs, FPGAs, and system on chips. Quantum computing is also
emerging as a potential technology to enhance AI capabilities. The
market for AI chips is expanding across sectors such as healthcare,
retail, finance, automotive, autonomous vehicles, IoT devices, and
more. However, ethical concerns surrounding AI and its impact on
jobs are raising questions about the future of this technology.
High bandwidth memory and Trainium2 chip are some of the advanced
hardware components driving the market. The market is segmented
into cloud and edge computing, with the edge computing segment
expected to grow due to the increasing demand for real-time AI
processing.
Market Research Overview
Artificial Intelligence (AI) Chips Market: An Overview The AI
Chips Market is witnessing significant growth due to the increasing
demand for advanced AI technologies, such as deep learning and
machine learning, in various industries. AI chips are specialized
hardware components designed to accelerate AI algorithms and
technologies, including neural networks, quantum computing, and
cognitive computing. These chips are essential for powering AI
applications in robotics, computer vision, natural language
processing, and generative AI. The market for AI chips includes a
range of hardware components, such as CPUs, GPUs, FPGAs, and system
on chips, each with unique advantages in terms of energy
efficiency, parallel computing, and high computing power. Major
applications of AI chips include data processing in centralized
cloud servers and edge devices, real-time applications, big data
analysis, and AI applications in healthcare, retail, finance,
automotive, and IoT devices. Ethical concerns surrounding AI
technologies and potential system failures or malfunctioning are
also driving the development of more energy-efficient and reliable
AI chips. Some of the emerging trends in the AI Chips Market
include the development of AI chip lines, such as Nvidia's A100
chip and Ascend 910B chipset, and
H200 chipset, as well as the integration of high
bandwidth memory and quantum computing technologies. The
market is also witnessing the growth of edge computing and the
increasing use of AI in industries such as manufacturing, wearable
devices, smart homes, and connected cars. In conclusion, the AI
Chips Market is a dynamic and rapidly evolving field, driven by the
increasing demand for AI technologies in various industries and the
need for more energy-efficient and reliable hardware components.
The market is expected to continue growing in the coming years,
with new innovations and applications emerging in areas such as
healthcare, finance, and autonomous vehicles.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Product
-
- End-user
-
- Media And Advertising
- BFSI
- IT And Telecommunication
- Others
- Geography
-
- North America
- Europe
- APAC
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio