Latest News- Artificial Intelligence (AI) Chips Market: ASICs is expected to lead the Product segment during 2025-2029

The Artificial Intelligence (AI) Chips Market is being driven by Increased focus on developing AI chips for smartphones

The Artificial Intelligence (AI) Chips Market is expected to grow at a CAGR of 81.2% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 902649.3 million. In the Internet of Things (IoT) ecosystem, interconnected devices, objects, and machines execute tasks autonomously, driven by the data they receive. IoT's appeal lies in its numerous benefits across sectors like aerospace and defense, automotive, consumer electronics, healthcare, and others. To enhance device capabilities, Human-Machine Interface (HMI) technologies are integrated into IoT devices such as cameras, drones, smart speakers, smartphones, smart TVs, and more. This integration necessitates the deployment of AI chips, enabling power-efficient data processing and machine learning computations within these devices, thereby driving their autonomy and decision-making abilities. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Product
  • ASICs
  • GPUs
  • CPUs
  • FPGAs
• End-user
  • Media and advertising
  • BFSI
  • IT and telecommunication
  • Others
• Processing Type
  • Edge
  • Cloud
• Application
  • Nature language processing
  • Robotics
  • Computer vision
  • Network security
  • Others
• Technology
  • System on chip
  • System in package
  • Multi chip module
  • Others
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • APAC
    • China
    • India
    • Japan
  • South America
    • Brazil
  • 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: 

• Increased focus on developing AI chips for smartphones
• Increasing adoption of AI chips in data centers
• Development of AI chips in autonomous vehicles

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

• Dearth of technically skilled workers for AI chips development
• Complexities in understanding data
• Challenges pertaining to ethical issues

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Market Scope in Artificial Intelligence (AI) Chips Market Research Report

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Research Analysis Overview

The Artificial Intelligence (AI) Chips Market is experiencing significant growth due to the increasing adoption of deep learning and machine learning algorithms in various industries. Key players in this market include Advanced Micro Devices and NVIDIA, who are developing specialized hardware components like Trainium2 chip for AI technologies. AI chips, which include CPU, FPGA, and GPU, are essential for powering AI algorithms in robotics, healthcare, retail, finance, automotive, and IoT devices. Quantum computing and highbandwidth memory are also driving advancements in this field. Ethical concerns surrounding AI technologies are prompting the development of specific integrated systems on chip and multichip modules. AI algorithms are being used in generative AI, supercomputers, and autonomous vehicles, making AI a crucial component in the cloud and edge computing landscape.

Market Research Overview

The Artificial Intelligence (AI) Chips market is a significant segment of the global semiconductor industry, encompassing hardware components such as deep learning and machine learning processors, AI algorithms, and quantum computing chips. Key players in this sector include Advanced Micro Devices (AMD) and their new Trainium2 chip, as well as companies specializing in generative AI and supercomputers. The market's expansion is driven by substantial investments in constructing new semiconductor fabrication plants (fabs) and expanding existing ones, fueled by the growing demand for AI technologies in robotics, quantum computing, and large language models. Semiconductor vendors, including both fabless and IDM companies, supply these advanced ICs to OEMs and ODMs for integration into their AI-enabled products. The global semiconductor market's growth is further boosted by the increasing adoption of highbandwidth memory and the integration of AI algorithms into various industries, leading to an ever-growing need for high-performance AI chips.. 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/