Latest News- AI In Semiconductor Devices Market: Machine learning is expected to lead the Technology segment during 2025-2029

The AI In Semiconductor Devices Market is being driven by Escalating demand from generative AI and LLM

The AI In Semiconductor Devices Market is expected to grow at a CAGR of 26.9% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 112132.6 million. The global AI semiconductor market is undergoing a significant transformation, marked by the transition from centralized, cloud-based processing to decentralized, on-device intelligence. This trend, referred to as Edge AI, entails executing artificial intelligence computations locally on a device, such as a smartphone, automobile, or industrial sensor, instead of sending data to a distant server for processing. The impetus behind this migration stems from several compelling factors. These include the necessity of reduced latency for real-time applications, heightened data privacy and security through local data processing, substantial savings in data transmission and cloud computing costs, and enhanced power efficiency for battery-operated hardware. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Technology
  • Machine learning
  • Deep learning
  • NLP
  • Others
• Component
  • Processors
  • Memory devices
  • Storage devices
  • Sensors and analog ICs
  • Networking chips
• Application
  • Data centers and cloud AI
  • Edge devices
  • Autonomous vehicles and ADAS
  • Healthcare and medical devices
  • Others
• Geography
  • North America
    • US
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • South America
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Escalating demand from generative AI and LLM
• Proliferation of AI capabilities at network edge
• Application of AI in semiconductor value chain

However, the market also witnesses some limitations, which are as follows:

• Navigating intensifying geopolitical tensions and supply chain volatility
• Overcoming prohibitive research and development costs and critical talent deficit
• Addressing heightened data security, privacy, and ethical compliance mandates

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Market Scope in AI In Semiconductor Devices Market Research Report

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Research Analysis Overview

The AI in Semiconductor Devices Market is witnessing significant growth due to the integration of advanced technologies like deep learning models, neural networks, computer vision, and natural language processing. Big data, cloud computing, high-performance computing, parallel processing, and distributed computing are key enablers. AI applications include process monitoring, quality control, yield enhancement, cost reduction, energy conservation, device performance assessment, reliability assessment, fault tolerance, and design optimization. Technologies like circuit design, logic synthesis, verification techniques, simulation software, hardware design languages, integrated circuits, memory technologies, logic devices, analog circuits, mixed-signal circuits, and IoT devices are essential for semiconductor manufacturing and AI implementation.

Market Research Overview

The global semiconductor materials and equipment market encompasses companies engaged in the production of semiconductor materials, equipment manufacturing and fabrication, as well as wafer processing and back-end semiconductor manufacturing equipment. According to Technavio, market size is determined by the revenue generated from sales of wafer processing, mask/reticle manufacturing, wafer manufacturing, fab facilities equipment, assembly and packaging, and test equipment. Market expansion will be fueled by escalating investments in semiconductor fabrication. The establishment of new fabrication plants is on the rise due to the surging demand for integrated circuits worldwide. AI-driven chip design and machine learning algorithms are revolutionizing semiconductor fabrication, leading to process optimization and increased efficiency.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/