Artificial Intelligence Chip Market Size, Share, Growth, and Industry Analysis, By Type (System-on-chip, System-in-package, Multi-chip module, Others), By Application (Predictive maintenance, Image recognition, Contract analytics, Others) and Regional Forecast to 2035

ARTIFICIAL INTELLIGENCE CHIP MARKET REPORT OVERVIEW

The global Artificial Intelligence Chip Market size estimated at USD 36662.51 million in 2026 and is projected to reach USD 101466.69 million by 2035, growing at a CAGR of 40.4% from 2026 to 2035.

The novel technology in the chip sector is the Silicon-based chipsets are the hardware parts, equipped with artificial technology, which provide high computing power to the devices such as smartphones, smart wearables, laptops and other things. The artificial intelligence chipsets utilized to carry out activities associated with machine learning and artificial intelligence applications.

The main feature of artificial intelligence chipsets is to enhance deice operating system. Business and industries are adopting artificial applications and their associated technologies to enhance their productivity. The utilization of artificial intelligence chipsets is not limited to one sector as the medical field is also adopting cloud-based solutions and AI technology to analyses data and image recognition.

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COVID-19 Impact: Sharp Decline In Demand Due To Lockdown Restrictions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The global spread of the covid 19 pandemic has resulted in the closure of manufacturing facilities, a sharp decline in artificial intelligence chip market. The manufacturing and supply chain disruptions hurt construction market. Thus, it significantly contributes to the recovery of the economy and the entire construction industry. When the pandemic broke out, the sudden drop in passenger traffic negatively affected the demand for artificial intelligence chipsets. Thus, the commercial sector industry is expected to recover slowly. There has been significant economic harm from COVID-19. Lockdowns around the country have put an end to construction and affected this labor-intensive industry, since migrant laborers quitting their colonies at construction sites are seriously impeding global construction activity. Global to a sharp decrease in car sales volumes, as economic and industrial activities have essentially stopped. Since the market's expansion is closely tied to the manufacturing of technological solutions, the scenario is anticipated to have an effect on it. In contrast, COVID-19 is speeding up the pace of digitization in the artificial intelligence sector. Software solutions are being used more and more by artificial intelligence businesses for damage assessments and audits.

LATEST TRENDS

"Increasing adoption of Metaverse Technologies In The Automotive Sector To Open Up New Market Opportunities For Industry Participants and integration of 5G Technology Market Lead To Market Expansion"

Adoption of Artificial intelligence silicon specialized chips are utilized for machine learning and equipped with AI technology propel the artificial intelligence chip market growth. In a variety of industrial verticals, AI chips help prevent or lower risks to human life. These chipsets are designed to boost the operational performance, use less power, and provide smart devices like laptops, smartphones, and wearables with high-capacity computing. The demand for artificial intelligence is being met by ever-larger and more sophisticated datasets; these factors, along with rising processing power and falling hardware costs, are propelling the global artificial intelligence chipset market. With the advent of time, adoption of artificial intelligence to lower operating costs and enhance customer services, together with the development of new AI applications, will drive market expansion in the coming years. Automakers are utilizing augmented and virtual reality technologies to enhance design and manufacturing processes. The necessity for actual prototypes is diminished by these technologies, which enable virtual prototyping and testing of new car designs and features in lifelike virtual settings. As a result, the largest automotive Metaverse firms, such NVidia and Unity technology, are utilizing AR/VR technology for prototype by automakers like BMW, Honda, and others.

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ARTIFICIAL INTELLIGENCE CHIP MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into System-on-chip, System-in-package, Multi-chip module, Others.

• System-on-chip: This segment includes system-on-chip which consists of all the necessary electronic circuits and other components for given system.

• System-in-package: This segment includes system-in-package as the name suggests, it deals with the bundling of two or more integrated circuits inside one package.

• Multi-chip module: This segment includes multi-chip-module which describes a packing arrangement with a maximum of five chips, wire bonded to a multilayer circuit board, and shielded by an inexpensive ceramic package or a molded encapsulant.

• Others: This segment includes the other integrated circuit packing arrangement of different modules.

By Application

Based on application the global market can be categorized into Predictive maintenance, Image recognition, Contract analytics, Others.

• Predictive maintenance: This segment includes the predictive maintenance of integrated circuits to prevent it from any damage.

• Image recognition: This segment includes the modules used for image recognition in different sectors such as forensic science and healthcare sectors for identification purposes.

• Contract analytics: This segment includes the chips modules utilization for data analytics in different sectors such as forensics departments.

• Others: This segment includes the chips modules utilization for other purposes other than data analysis and decoding of images. Businesses are adopting artificial technologies such as augmented and virtual reality.

DRIVING FACTORS

"Healthcare Industry to Benefit from Digitalization and Future-Shaping Product Innovations in the AI Chipsets Market to Spur Market Growth"

One of the major factors propelling market growth is the integration of digitization and future-shaping product innovations. Businesses are adopting cloud-based solutions at an increasing rate which is augmenting market growth. The development of cloud technology is driving the artificial intelligence chip industry's compound annual growth rate, which will present opportunities for market leaders. The need for Al chipsets based on cloud computing is expected to increase because to the growing number of data centers being established globally in a variety of industries, such as IT & telecom, automotive, etc. Additionally, cloud-based Al chipsets are offered by firms like Alibaba Group Holding Limited, NVIDIA Corporation, Intel Corporation, and others. Large amounts of healthcare data are being produced as a result of the rapid adoption of digital health technology by nations like Germany, South Korea, India, and others. These advancements include telemedicine, electronic health records, and other innovations. The rapid processing and analysis of data by AI chips has resulted in a notable surge in demand from medical device manufacturers worldwide.  The trend of new product inventions follows the direction taken by the AI chipsets sector. Leading the charge on new product development is essential for big businesses looking to gain and hold leadership in the artificial intelligence chip market. Together, these characteristics deliver exceptional performance, satisfying the needs of gamers and creatives who want the best possible quality.

"Growing Enterprise Adoption of Cloud-Based Solutions and AI-powered instruments in the medical field to Support Market Growth"

Another factor propelling the market growth is the widespread applications of artificial intelligence in the healthcare sector and adoption in the enterprise sector. Artificial intelligence chipsets that are cloud-based are computational chipsets made especially for AI inference and training tasks. The market for artificial intelligence chipsets would see opportunities as cloud technology advanced. The need for AI chipsets based on the cloud is anticipated to increase due to the expanding number of data centers being established globally in a variety of industries, including IT & telecom, automotive, etc. Furthermore, cloud-based AI chipsets are provided by firms like NVIDIA Corporation, Alibaba Group Holding Limited, Intel Corporation, and others. These industry participants are concentrating on releasing cutting-edge cloud-based solutions to handle enormous amounts of commercial data and mega file storage. Advanced AI chipsets are in high demand as a result of the change in the healthcare industry brought about by AI-based technologies. The incorporation of AI is being facilitated by advancements in individualized treatment plans, diagnostic algorithms, and predictive analytics, all of which call for highly developed processing capabilities. This development is critical to the market for AI chipsets since it improves patient care and precision medicine.

RESTRAINING FACTORS

"Insufficient Skill In AI Workers To Restrain The Market Growth"

Complicated algorithms make up AI. In order to create, oversee, and implement AI systems, businesses need employees with a specific set of abilities. In order to emulate human behavior, integrating AI-based solutions into the current systems is a difficult operation that calls for massive data processing. The market for artificial intelligence chipsets is also being limited by the lack of professional certifications and standards in cutting-edge technologies like artificial intelligence (AI), machine learning (ML), and others. These constraints on AI professionals and a lack of technological understanding are the causes of these market restraints.

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ARTIFICIAL INTELLIGENCE CHIP MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"North America Dominating the Market due to Presence of Ongoing Infrastructure Developments "

A significant portion of the artificial intelligence chip market share is held by North America. This is a result of the quantity of US-based tech behemoths with headquarters in the artificial intelligence chip market. The North America zone is home to a large and highly marketable populace with a lot of spending power, ongoing infrastructure developments, and government involvement in producing artificial intelligence software. North America also has a well-developed and established educational system and robust healthcare infrastructure which helps to adopt and integrate the advanced artificial intelligence software technology. Innovation and technology adoption strengthen the region and create its overall market dominance. The fact that the majority of the companies in this sector are American-based serves as another evidence of the American enterprises' supremacy in the manufacturing of AI chipsets. Among the main players are Google Inc., Microsoft Corporation, Amazon Web Services, Inc., NVIDIA Corporation, Intel Corporation, Micron Technology, Qualcomm Technologies, EPIC, and IBM Corporation. Despite the rivalry, the North American industry has seen a rise in the adoption of AI technology, utilizing it across many sectors such as automotive, manufacturing, healthcare, retail, and advertising. The market for AI chipsets has an opportunity due to the rapid growth of AI-reasonable applications.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The artificial intelligence chip market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. In addition, these industry titans never stop funding R&D, bringing cutting-edge styles, materials, and practical functions to collections in order to meet changing customer demands and tastes. These big businesses' combined efforts have a big impact on the market's future direction and level of competition.

LIST OF MARKET PLAYERS PROFILED

• Graphcore (U.K.)
• Mythic (U.S.)
• Google (U.S.)
• Adapteva (U.S.)
• Intel (U.S.)
• AMD (Advanced Micro Devices) (U.S.)
• Baidu (China)
• UC-Davis (U.S.)
• Qualcomm (U.S.)
• NVIDIA (U.S.)

INDUSTRIAL DEVELOPMENT

April 2024: Intel announced that the third quarter of this year will see the general release of their forthcoming processor, the Gaudi 3. Although the initial edition of Intel's Gaudi AI chipsets failed to achieve the expected market share, Intel believes the latest version will have a more significant effect. This chipset is designed to provide improved performance, making it easier to train AI systems and run finished software.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.