Artificial Intelligence Chipsets Market Size, Share, Growth Analysis, By Chipset Type, By Workload Domain, By Computing Technology, By Industry Vertical, By Region - Industry Forecast 2024-2031

Global Artificial Intelligence (AI) Chipset market size was valued at USD 22.1 Billion in 2022 and is poised to grow from USD 29.9 Billion in 2023 to USD 338 Billion by 2031, growing at a CAGR of 35.4% during the forecast period (2024-2031).

The AI chipset market is experiencing significant growth driven by increasing data traffic, the demand for higher computing power, and the expanding trend of autonomous vehicles. The adoption of AI chipsets in fields like autonomous driving and consumer electronics is creating new opportunities within the semiconductor industry, as these technologies enable advanced functionalities such as L5 autonomous driving and improved data processing capabilities. However, challenges like skill shortages and the lack of standards may hinder growth. Companies like Amazon and Google are leading the charge in AI technology adoption, with over 50% of major U.S.-based firms already utilizing AI products. This figure is expected to rise, indicating continued expansion in the AI chipset market in the coming years, according to SkyQuest's in-depth analysis.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Artificial Intelligence (AI) Chipset market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Artificial Intelligence (AI) Chipset Market Segmental Analysis

The Global Artificial Intelligence (AI) Chipset Market is segmented on the basis of Chipset Type, Workload Domain, Computing Technology, Industry Vertical, and Region. Based on Chipset Type, the market is segmented into CPU, GPU, FPGA, ASIC, and Others. Based on Workload Domain, the market is segmented into Training, and Inference. Based on Computing Technology, the market is segmented into edge AI computing and cloud AI computing. Based on Industry Vertical, the market is segmented into Healthcare, Manufacturing, Automotive, Retail & E-Commerce, Marketing, Consumer Electronics, BFSI, and Others. Based on region the global Artificial Intelligence (AI) Chipset Market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

Drivers of the Global Artificial Intelligence (AI) Chipset Market

The growing demand for autonomous vehicles is significantly driving the expansion of the AI chipset market. These chipsets provide essential processing power, machine learning capabilities, and real-time decision-making necessary for a safe and organized self-driving experience. For example, Tesla activated a massive supercomputing array in August 2023, featuring around 10,000 Nvidia H100 AI processors to accelerate advancements in fully autonomous driving technology. Additionally, the increasing implementation of 5G technology is expected to further fuel the growth of the AI chipset market. 5G's high-speed, low-latency, and enhanced connectivity support seamless AI integration into networks, improving communication efficiency and network management. Qualcomm's launch of application-specific semiconductors and 5G chipsets in September 2023 underscores the critical role of 5G in advancing AI processing capabilities at the network edge and driving innovation across industries, making 5G technology a key growth factor for the AI chipset market.

Restraints in the Global Artificial Intelligence (AI) Chipset Market

The AI Chipset Market faces significant restraints due to both the shortage of skilled AI hardware professionals and the high cost of AI chipsets. Developing and implementing AI systems requires specialized expertise in areas such as machine learning, deep learning, and cognitive computing, which are in short supply. Additionally, integrating AI technology into existing systems demands extensive in-house research, patent filing, and substantial funding, where even minor errors can lead to significant failures. Furthermore, the steep cost of AI chipsets, driven by complex manufacturing processes, hampers their adoption, particularly in emerging markets, developing economies, and among small and medium-sized enterprises. This high expense also restricts startups and researchers from developing and experimenting with AI-driven applications, further limiting market growth.

Market Trends of the Global Artificial Intelligence (AI) Chipset Market

The AI chipset market is witnessing rapid growth, driven by continuous product innovations that are shaping the industry's future. Companies are focusing on developing advanced chipsets to stay competitive, with innovations like Nvidia's GeForce RTX 40 series, known for its power efficiency and low carbon footprint, playing a key role in market expansion. Simultaneously, AI-based tools in the healthcare sector are fueling demand for high-performance chipsets, as advancements in diagnostics, personalized treatments, and predictive analytics require significant processing power. This trend is enhancing precision medicine and optimizing patient care, further propelling the AI chipset market's growth.