AI Chipsets Market Size, Share, Opportunities, And Trends By Component (GPU (Graphic Processing Unit), FGPA (Field-Programmable Gate Array), ASIC (Application-Specific Integrated Circuit), Others), By End-User (Automotives, Consumer Electronics, Industrial, Healthcare, Others), And By Geography - Forecasts From 2024 To 2029

The AI chipsets market is estimated to reach US$159.178 billion by 2029, growing at a CAGR of 25.87% from US$68.194 billion in 2024.

An artificial intelligence chipset is a type of chip specially designed by various computing devices to perform AI-based operations efficiently. Multiple types of AI chipsets exist, including AI-based GPUs, Neural Processing Units (NPUs), and memory chips. The AI chips are designed to integrate greater neural processing efficiency compared to the other types of chips, and they also offer energy efficiencies, ultra-fast computing, and lower latency.

The AI chipsets also include flexibility in their applications, as these chips offer a higher level of customization than the other chips and can also be built for specific AI training models or applications. Their performance is also greater than the other types of chips, as these chips are specifically built with higher levels of computational capacity. These chips offer more efficient and accurate results and can perform core tasks like natural language processing (NLP) and data analysis.

What are AI chipsets market drivers?

• Increasing focus on creating AI systems

The growing need for high-end specifications for various electronic gadgets, including tablets and smartphones, is increasing the demand for AI chipsets in consumer electronics. Numerous manufacturers are constantly releasing cutting-edge AI chipsets to meet this growing demand.

MediaTek, a Taiwanese chip manufacturer, unveiled the Genio architecture and Genio 1200 chip for artificial intelligence of things (AIoT) devices in May 2022. MediaTek Genio provides a comprehensive platform stack tailored for AIoT, open platform SDKs, and a developer portal equipped with extensive resources and tools.

Furthermore, the rising usage of analytical computations and complex problem-solving using quantum computing technology is also increasing the AI Chipsets market. Google introduced Cloud TPU v5p in December 2023. These TPUs served a considerable time as the backbone for training and deploying AI-driven products such as YouTube, Gmail, Google Maps, Google Play, and Android. The demand for AI chipsets will increase as understanding of quantum computing deepens, accelerating the sector’s growth.

• Growth in data volume is propelling the AI chipset market growth

The estimated global mobile-broadband traffic rates in 2022 soared to 913 exabytes (EB), marking an increase of over twofold compared to 2019, which was at 419 EB. A significant increase in data volume is due to the expanding use of social media and e-commerce. The need for high-speed processors has increased as the data volume has grown quickly, favoring the AI Chipsets market expansion.

The chipset is applied for quicker processing caused by machine learning. The public's preference for computer vision and machine learning tools caused tech companies to make high-speed processors. For instance, AMD released mobile CPUs and GPUs in 2023, including the first x86 PC CPU with a dedicated AI engine. At CES 2023, AMD unveiled a new 3D-stacked desktop CPU with outstanding gaming performance, a data center APU, and an AI inference accelerator. These developments have also increased smartphone adoption of these chipsets.

Further, Cerebras Systems unveiled the Wafer Scale Engine 3. Doubling down on its existing world record for the fastest AI chip, the WSE-3 achieves twice the performance of its predecessor, the Cerebras WSE-2. Specifically designed for training the most extensive AI models in the industry, the WSE-3, built on a 5nm architecture with 4 trillion transistors, powers the Cerebras CS-3 AI supercomputer. These are used where high data processing is required.

Major challenges hindering the AI chipsets market:

• Shortage of labor and high investment cost

The absence of norms and regulations, as well as a skilled labor supply, are limiting the AI Chipsets market expansion. The development of AI chipsets requires a specialized skill set, and there is a shortage of engineers and scientists with the expertise needed to design and develop these chips. AI systems generate and process large amounts of data, which raises concerns about data security and privacy. Developing AI chipsets is a complex and expensive process.

Geographical outlook of the AI chipsets market:

• North America is forecasted to hold a major share of the AI Chipsets Market.

The North American region is anticipated to hold a considerable market share fueled by the immense applications of defense, government, robotics, automation, automobiles, etc. The USA is a major regional player, having several core companies, such as IBM Corporation, Intel Corporation, AMD Inc., etc.

The semiconductor sector is the major driving force in AI chipsets; both sectors collaborate in growth. In 2022, U.S.-based semiconductor companies commanded 48.0 percent of the overall semiconductor market share. Such growth aligns with the expanding AI Chipsets market in the North American region, which relies on AI-driven technologies for improved efficiency and precision. This synergy underscores the pivotal role of AI chipsets.

Key players and products of the AI chipsets market:

• Intel Corporation is among the leading technological companies based in the USA. The company offers various solutions for multiple industries, including automotive, education, energy, financial services, government, and others. Their products include AI accelerators, processors, network-to-edge, software, and select systems & devices. In the global AI chipset market, the company offers Gaudi 3 AI Accelerator, which is among the best AI chipsets, mainly aimed at enterprise AI solutions. This chipset features multiple capabilities, like scalability, ethernet support, and better efficiency.
• Advanced Micro Devices, Inc., or AMD, is among the biggest developers of technological solutions worldwide. The company offers a wide range of products and solutions, including processors, accelerators, graphics, software, and adaptive SoCs. The company provides solutions for multiple industries, like aerospace & defense, energy, healthcare, manufacturing, and media & entertainment. The company offers AMD Instinct Accelerators in the global AI chipset market, which aims to enhance AI capabilities and is based on the AMD CDNA architecture.

Key developments in the AI chipsets market:

• In May 2024, Synopsys and Samsung Electronics collaborated to achieve the production of a flagship mobile CPU boasting leading performance on Samsung Foundry's GAA Process. This highlights the partnership between Synopsys and Samsung in providing performance, power, and area (PPA) for shared clients. This collaboration facilitates the development of a new breed of chips with generative AI capabilities on Samsung Foundry's advanced process nodes.
• In April 2024, Samsung Electronics Co., Ltd. recently unveiled the industry's fastest LPDDR5X DRAM, boasting speeds of up to 10.7 gigabits-per-second (Gbps). This breakthrough comes with leading features, offering 25% higher performance, 30% more capacity, and 25% greater power efficiency.

AI Chipsets Market Scope:

Report Metric	Details
AI Chipsets Market Size in 2024	US$68.194 billion
AI Chipsets Market Size in 2029	US$159.178 billion
Growth Rate	CAGR of 25.87%
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segmentation	Component End-User Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the AI Chipsets Market	AMD Inc Graphcore Ltd Huawei Technologies Co Ltd IBM Corporation Intel Corporation
Customization Scope	Free report customization with purchase

 

The AI Chipsets Market is analyzed into the following segments:

• By Component
  • GPU (Graphic Processing Unit)
  • FGPA (Field-Programmable Gate Array)
  • ASIC (Application-Specific Integrated Circuit)
  • Others
• By End-User
  • Automotives
  • Consumer Electronics
  • Industrial
  • Healthcare
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Taiwan
    • Australia
    • Others 

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. AI CHIPSETS MARKET BY COMPONENT

5.1. Introduction

5.2. GPU (Graphic Processing Unit)

5.3. FGPA (Field-Programmable Gate Array)

5.4. ASIC (Application-Specific Integrated Circuit)

5.5. Others

6. AI CHIPSETS MARKET BY END-USER

6.1. Introduction

6.2. Automotives

6.3. Consumer Electronics

6.4. Industrial

6.5. Healthcare

6.6. Others

7. AI CHIPSETS MARKET BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. By Component

7.2.2. By End-User

7.2.3. By Country

7.2.3.1. United States

7.2.3.2. Canada

7.2.3.3. Others

7.3. South America

7.3.1. By Component

7.3.2. By End-User

7.3.3. By Country

7.3.3.1. Brazil

7.3.3.2. Argentina

7.3.3.3. Others

7.4. Europe

7.4.1. By Component

7.4.2. By End-User

7.4.3. By Country

7.4.3.1. United Kingdom

7.4.3.2. Germany

7.4.3.3. France

7.4.3.4. Italy

7.4.3.5. Spain

7.4.3.6. Others

7.5. Middle East and Africa

7.5.1. By Component

7.5.2. By End-User

7.5.3. By Country

7.5.3.1. Saudi Arabia

7.5.3.2. UAE

7.5.3.3. Others

7.6. Asia Pacific

7.6.1. By Component

7.6.2. By End-User

7.6.3. By Country

7.6.3.1. China

7.6.3.2. Japan

7.6.3.3. India

7.6.3.4. South Korea

7.6.3.5. Taiwan

7.6.3.6. Australia

7.6.3.7. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. AMD Inc

9.2. Graphcore Ltd

9.3. Huawei Technologies Co Ltd

9.4. IBM Corporation

9.5. Intel Corporation

9.6. NVIDIA Corporation

9.7. Micron Technology Inc

9.8. Samsung Semiconductor

9.9. Synopsys, Inc.

9.10. Qualcomm Technologies, Inc.

9.11. MediaTek Inc.

9.12. Cerebras

AMD Inc

Graphcore Ltd

Huawei Technologies Co Ltd

IBM Corporation

Intel Corporation

NVIDIA Corporation

Micron Technology Inc

Samsung Semiconductor

Synopsys, Inc.

Qualcomm Technologies, Inc.

MediaTek Inc.

Cerebras