Artificial Intelligence (AI) Chipsets Market Size, Share, Growth Analysis, By Chipset Type(CPU, GPU, FPGA, ASIC), By Workload Domain(Training, Inference), By Computing Technology(Cloud AI Computing, Edge AI Computing), By Industry Vertical(Healthcare, Manufacturing, Automotive, Retail & E-Commerce), By Region - Industry Forecast 2024-2031


Report ID: SQMIG45K2081 | Region: Global | Published Date: September, 2024
Pages: 197 |Tables: 162 |Figures: 78

Artificial Intelligence (AI) Chipsets Market Insights

Global Artificial Intelligence (AI) Chipsets 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 being propelled by increasing data traffic and the need for higher computing power. The growing trend of autonomous vehicles and the rising adoption of parallel computing in AI data centers increases acceptance of AI technology, such as chipsets into these fields. For instance, AI chipsets in the auto industry make driverless cars that reach the L5 level of autonomous technology. AI is becoming an integral part of consumer electronics including everything. This growth in the semiconductor industry is accompanied by new opportunities. They have the ability to deal with a growing volume of data which is a considerable factor for driving the market size of the AI chips. Furthermore, the development of human aware AI systems is also contributing to the growth of the market. On the other hand, skill deficiency and the absence of standards and protocols can limit market growth. Companies like Amazon and Google are already pursuing the silicon project. They are also incorporating new technologies.  

Based on skyquest in-depth analysis, it is found that over 50% of major US based companies with more than 5000 workforces currently use AI and its product. This number grows to 60% for companies having double workforce. This trend showcases the expansion of the AI chipset market in the upcoming year.

US Artificial Intelligence (AI) Chipsets Market is poised to grow at sustainable CAGR for the next forecast year.

Market snapshot - 2024-2031

Global Market Size

USD 15.36 billion

Largest Segment

Cloud AI Computing

Fastest Growth

Edge AI Computing

Growth Rate

37.1% CAGR

Artificial Intelligence (AI) Chipset Market ($ Bn)
Country Share for North America Region (%)

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Artificial Intelligence (AI) Chipsets 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. 

Analysis by Computing Technology 

Cloud AI computing has the largest market share in AI chipset market in 2023, the year when technology had become widely used in training workload-based chipsets. Server consolidation reduced operational costs, better infrastructure management, and the growing adoption of cloud-based computing in data centers are the driving forces behind the growth of the cloud AI computing segment. Based on our analysis, 70% of companies get their AI capabilities through cloud-based software, and 65% create AI applications using cloud services. The manufacturers of artificial intelligence microprocessors-like Intel, Google Inc., NVIDIA, and Advanced Micro Devices, Inc. carry out both cloud computing and edge computing. The segment of artificial intelligence based on cloud computing is generating higher revenue for these companies. 

In contrast, edge AI computing exhibit to be fastest growing segment with a substantial amount incorporated for many advanced products such as autonomous automobiles, smartphones, and security devices, the deployment of chips is shifting toward edge computing. Today, most of the artificial chipsets operating at the edge are used for inference purposes, while the artificial intelligence chipsets for edge are in the early phase of development. Several large players are competing in the market with AI chipsets available both on cloud and edge, providing the example of Google Inc., Baidu Inc., and Graphcore. These firms provide AI chipsets placed on the network for training purposes and deployed on the edge for inference purposes. Based on our analysis, the edge AI market is expected to generate a revenue of around $25.2 billion by the year 2033 along with a growth rate of around 26.5 percent during the forecasted period. This significant growth is reflecting the rising demand for advanced AI technologies and chipsets just driving innovations and expansions in the AI industry, increasing their capabilities and efficiency for the AI applications in different sectors. 

Analysis by Industry Vertical 

Consumer electronics is the largest segment in the AI chipset market. These offer AI-related tasks such as voice recognition, linguistic translation, image processing, and self driving vehicles. The infusion of AI-enhanced technology has profoundly transformed the consumer electronics sector, molding customer anticipations, revolutionizing business frameworks, and producing novel market avenues. As individuals grow increasingly accustomed to intelligent devices in their quotidian existence, their expectations and desires for intuitive electronics escalate. Their specialized architecture renders them typically for data centers, AI research laboratories, and integrated systems in consumer electronics that leverage AI capabilities. Cloud AI computing has the largest market share in AI chipset market in 2023, the year when technology had become widely used in training workload-based chipsets. Server consolidation reduced operational costs, better infrastructure management, and the growing adoption of cloud-based computing in data centers are the driving forces behind the growth of the cloud AI computing segment. Based on our analysis, 70% of companies get their AI capabilities through cloud-based software, and 65% create AI applications using cloud services. The manufacturers of artificial intelligence microprocessors-like Intel, Google Inc., NVIDIA, and Advanced Micro Devices, Inc. carry out both cloud computing and edge computing. The segment of artificial intelligence based on cloud computing is generating higher revenue for these companies. 

On the other hand, automotive and transportation exhibited the fastest growth in the field of AI and its products. Based on our analysis, it is found that United States holds the highest disposable income with an average of $42,800 per year. Furthermore, rise in disposable income is directly linked with purchasing power of consumers in automotive and transportation. From this observation it is quite evident that the automotive industry will grow and simultaneously the demand for AI chipset will increase. AI chipsets are used in the automotive industry to enable vehicles to perceive and respond to their surroundings, which can improve safety and convenience. Additionally, AI chipsets are used in a variety of automotive systems, including Advanced driver assistance systems (ADAS), Autonomous driving, and In-vehicle entertainment. 

Artificial Intelligence (AI) Chipset Market Size By Computing Technology ($ Bn)

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Artificial Intelligence (AI) Chipsets Market Regional Insights

The North America market has a market share of more than 39%. This is because the number of the headquartered US based tech giants in the market for AI chipsets. NA zone is full of highly marketable population with high purchasing power, continuous investments in infrastructure and governmental interest in production AI apps. For instance, the budget allocated for AI R&D by the federal government has been raised over the past few years in the National AI R&D Strategic Plan. This initiative is designed to increase the availability and the integrity of the cyber infrastructure, which is considered a vital component of the nation's digital infrastructure. The dominance of the market for AI chipsets manufacturing by the American corporations is reinforced by the fact that most of the players in this segment are based in the U.S. The major participants are NVIDIA Corporation, Intel Corporation, Micron Technology, Qualcomm Technologies, EPIC, IBM Corporation, as well as Google Inc., Microsoft Corporation, and Amazon Web Services, Inc. The competition, however, the industry in North America has seen an increased acceptance of AI technology, the industry has employed AI in different sectors like automotive, manufacturing, healthcare, retail and advertising among others. The AI chipsets market gets a chance because of fast increase of AI-reasonable applications.For instance, SambaNova System (an AI hardware and software startup) secured around $200 million funding in 2024 quarter 1 for increasing the development and deployment of the AI chip solutions. Therefore, contributing to further investments, increasing the expansion of the AI applications and its technical advancements. 

On the other hand, Asia Pacific is the fastest growing region in the AI chipset market. The adoption of AI technology is increasing across different sectors such as healthcare, automotive, and manufacturing which is driving the regional growth. Furthermore, the region is experiencing a boost in the investments in AI startups and research, which is driving the growth of the market. The countries which include China, Japan, and South Korea are leading the path of AI development, by providing significant investments in research and development. Therefore, the Asia Pacific region is experiencing significant growth in the global AI chipset market. Based on our analysis, the China’s market for semiconductor industry is anticipated to be around $29 billion by 2024. This growth is considerably contributing to the AI chipset market and will increase investments and advancements in China which will drive innovations and production of AI chipsets within the region, supporting the expansion of the market.

Artificial Intelligence (AI) Chipset Market By Geography
  • Largest
  • Fastest

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Artificial Intelligence (AI) Chipsets Market Dynamics

Artificial Intelligence (AI) Chipset Market Drivers 

Growing Demand for Autonomous Vehicles is Expanding the Market:

  • The continuously rising demand for self driving vehicles is driving the expansion of the market. These chipsets are important for autonomous vehicles and offers crucial processing power, machine learning capacity, and real time decision making which helps them in certainly a secure and organized self driving experience. For instance, Tesla in August 2023, activated an immense supercomputing array which comprises of around 10,000 Nvidia H100 AI processors for speeding up their advancements in fully autonomous driving technology. 

5G Technology Market Stimulates the Growth of AI Chipset Market:

  • Increasing 5G implementation is foreseen to fuel the development of AI (artificial intelligence) chipsets going forward. 5G technology meant to provide high-speed, low latency, and better connection for wireless devices and applications. The incorporation of AI into 5G networks would help in providing seamless network management and increasing communication efficiency. For instance, in September 2023 Qualcomm technologies launched application specific semiconductors and 5G chipsets along with the entities expertise in private 5G for fortifying the 5G environment, enhancing AI process capabilities at the network edge, and catalyzing innovation across various industries. Consequently, 5G technology expansion is the major factor for AI chipset market growth. 

Restraints 

Shortage of AI hardware professionals and skilled workforce:

  • AI is a complex system; companies need specialized expertise and a skilled staff to build, administer, and employ AI systems. In examples, people working with artificial intelligence might include ML (Machine Learning), cognitive computing, deep learning, machine intelligence, and image recognition technologies. Also, putting AI technology into the existing systems is not an easy way as it requires fully supported in-house research and patent filing with heavy funding. For instance, seemingly minor mistakes can be revealed in the systematic failure or erroneous fix to a problem, which can greatly affect the desired output. 

High cost of AI chipsets 

  • The excessive cost of AI chips is a major restraint in the market. These two facets are complex and involve sophisticated manufacturing techniques, making them costly for their production. The steep price of these chipsets is obstructing their adoption across different sectors, particularly in emerging markets, developing economies and among small and medium sized enterprises. Moreover, this expense can pose a daunting barrier for startups and researchers, restricting their capacity to develop and experiment with AI-driven applications.

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Artificial Intelligence (AI) Chipsets Market Competitive Landscape

The global market is experiencing exponential growth, driven by the increasing integration of artificial intelligence across various sectors such as automotive, healthcare, consumer electronics, and industrial automation. Leading players dominate the landscape, leveraging their expertise in GPU and CPU technologies to develop high-performance AI chipsets. Additionally, emerging players are intensifying competition with their specialized AI chipsets tailored for mobile devices, edge computing, and cloud infrastructure. Strategic partnerships, acquisitions, and investments in R&D are key strategies employed by companies to maintain their competitive edge in this rapidly evolving market landscape.

Artificial Intelligence (AI) Chipset Market Top Player’s Company Profiles

  • Intel Corporation (US) 
  • Nvidia Corporation (US) 
  • Advanced Micro Devices (US) 
  • Qualcomm Technologies, Inc. (US) 
  • IBM Corporation (US) 
  • Samsung Electronics Co., Ltd. (South Korea) 
  • Kneron (US) 
  • NXP Semiconductors N.V. (Netherlands) 
  • MediaTek Inc. (Taiwan) 
  • Texas Instruments Incorporated (US) 
  • Broadcom Inc. (US) 
  • Arm Holdings PLC (UK) 
  • Fujitsu Limited (Japan) 
  • Graphcore Ltd. (UK) 
  • Huawei Technologies Co., Ltd. (China) 
  • Baidu, Inc. (China) 
  • Mythic AI, Inc. (US)

Artificial Intelligence (AI) Chipset Market Recent Developments

  • In April 2024, Intel unveiled that its upcoming processor, Gaudi 3, will become broadly accessible in the third quarter of this year. While earlier versions of Intel's Gaudi AI chipsets did not capture the anticipated market share, Intel anticipates the new iteration to have a more substantial impact. This chipset is engineered to deliver enhanced performance, facilitating both the training of AI systems and the execution of finalized software. 

  • In January 2024, Rebellions announced to launch its ATOM chip in South Korea. The chip purposes to compete with Nvidia Corp., positioning itself as the latest Korean artificial intelligence technology hardware contender. 

  • In September 2023, Intel declared its inaugural artificial intelligence-equipped chipset for personal computers, marking the USA chipmaker's entry into the artificial intelligence-powered PC competition. The move is expected to revitalize the PC market and reclaim global semiconductor industry leadership.

Artificial Intelligence (AI) Chipsets Key Market Trends

  • Edge AI Computing: A key trend in the global artificial intelligence (AI) chipsets market is the growing adoption of edge AI computing. Edge AI involves processing data locally on devices, such as smartphones, IoT devices, and autonomous vehicles, rather than relying on centralized cloud servers. This trend is driven by the need for low-latency processing, enhanced data privacy, and reduced bandwidth usage. Edge AI chipsets enable real-time data analysis and decision-making at the edge, making them increasingly popular in various applications, including smart cities, healthcare, and industrial automation.

Artificial Intelligence (AI) Chipsets Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research. 

According to our analysis, we found that AI chipset market is following an upward journey but with the development of the AI that impacts the industries. As the domain of deep learning algorithms takes off and the number of AI-powered apps rises, the call for hardware with high processing capabilities designed for complex AI tasks has also escalated. As highlights, the main players have exerted emphasis on investing a lot of resources in the research and development sector to ensure higher performance, energy efficiency and scalability of AI chipsets, which is equally fueling the demand for the market. Moreover, on-going growth in AI technology embedded devices like smartphones, and autonomous vehicles is perpetually expanding the market. On the other hand, building and maintaining these systems can be quite costly and there can also be some regulatory limitations, which will somewhat affect market penetration. In the leading place, the AI chipset market will have massive growth in the coming years. The players in the chipset industry will have lucrative opportunities to get the profits they need from this benevolent AI ecosystem.

Report Metric Details
Market size value in 2022 USD 22.1 Billion
Market size value in 2031 USD 338 Billion
Growth Rate 35.4%
Base year 2023
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Chipset Type
    • CPU, GPU, FPGA, ASIC, Others
  • Workload Domain
    • Training, Inference
  • Computing Technology
    • Cloud AI Computing, Edge AI Computing
  • Industry Vertical
    • Healthcare, Manufacturing, Automotive, Retail & E-Commerce, Marketing, Consumer Electronics, BFSI, Others
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Intel Corporation (US) 
  • Nvidia Corporation (US) 
  • Advanced Micro Devices (US) 
  • Qualcomm Technologies, Inc. (US) 
  • IBM Corporation (US) 
  • Samsung Electronics Co., Ltd. (South Korea) 
  • Kneron (US) 
  • NXP Semiconductors N.V. (Netherlands) 
  • MediaTek Inc. (Taiwan) 
  • Texas Instruments Incorporated (US) 
  • Broadcom Inc. (US) 
  • Arm Holdings PLC (UK) 
  • Fujitsu Limited (Japan) 
  • Graphcore Ltd. (UK) 
  • Huawei Technologies Co., Ltd. (China) 
  • Baidu, Inc. (China) 
  • Mythic AI, Inc. (US)
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Artificial Intelligence (AI) Chipsets Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Artificial Intelligence (AI) Chipsets Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Artificial Intelligence (AI) Chipsets Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Artificial Intelligence (AI) Chipsets Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

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Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

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FAQs

Global Artificial Intelligence (AI) Chipsets 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 global market is experiencing exponential growth, driven by the increasing integration of artificial intelligence across various sectors such as automotive, healthcare, consumer electronics, and industrial automation. Leading players dominate the landscape, leveraging their expertise in GPU and CPU technologies to develop high-performance AI chipsets. Additionally, emerging players are intensifying competition with their specialized AI chipsets tailored for mobile devices, edge computing, and cloud infrastructure. Strategic partnerships, acquisitions, and investments in R&D are key strategies employed by companies to maintain their competitive edge in this rapidly evolving market landscape. 'Intel Corporation (US) ', 'Nvidia Corporation (US) ', 'Advanced Micro Devices (US) ', 'Qualcomm Technologies, Inc. (US) ', 'IBM Corporation (US) ', 'Samsung Electronics Co., Ltd. (South Korea) ', 'Kneron (US) ', 'NXP Semiconductors N.V. (Netherlands) ', 'MediaTek Inc. (Taiwan) ', 'Texas Instruments Incorporated (US) ', 'Broadcom Inc. (US) ', 'Arm Holdings PLC (UK) ', 'Fujitsu Limited (Japan) ', 'Graphcore Ltd. (UK) ', 'Huawei Technologies Co., Ltd. (China) ', 'Baidu, Inc. (China) ', 'Mythic AI, Inc. (US)'

The continuously rising demand for self driving vehicles is driving the expansion of the market. These chipsets are important for autonomous vehicles and offers crucial processing power, machine learning capacity, and real time decision making which helps them in certainly a secure and organized self driving experience. For instance, Tesla in August 2023, activated an immense supercomputing array which comprises of around 10,000 Nvidia H100 AI processors for speeding up their advancements in fully autonomous driving technology. 

Edge AI Computing: A key trend in the global artificial intelligence (AI) chipsets market is the growing adoption of edge AI computing. Edge AI involves processing data locally on devices, such as smartphones, IoT devices, and autonomous vehicles, rather than relying on centralized cloud servers. This trend is driven by the need for low-latency processing, enhanced data privacy, and reduced bandwidth usage. Edge AI chipsets enable real-time data analysis and decision-making at the edge, making them increasingly popular in various applications, including smart cities, healthcare, and industrial automation.

The North America market has a market share of more than 39%. This is because the number of the headquartered US based tech giants in the market for AI chipsets. NA zone is full of highly marketable population with high purchasing power, continuous investments in infrastructure and governmental interest in production AI apps. For instance, the budget allocated for AI R&D by the federal government has been raised over the past few years in the National AI R&D Strategic Plan. This initiative is designed to increase the availability and the integrity of the cyber infrastructure, which is considered a vital component of the nation's digital infrastructure. The dominance of the market for AI chipsets manufacturing by the American corporations is reinforced by the fact that most of the players in this segment are based in the U.S. The major participants are NVIDIA Corporation, Intel Corporation, Micron Technology, Qualcomm Technologies, EPIC, IBM Corporation, as well as Google Inc., Microsoft Corporation, and Amazon Web Services, Inc. The competition, however, the industry in North America has seen an increased acceptance of AI technology, the industry has employed AI in different sectors like automotive, manufacturing, healthcare, retail and advertising among others. The AI chipsets market gets a chance because of fast increase of AI-reasonable applications.For instance, SambaNova System (an AI hardware and software startup) secured around $200 million funding in 2024 quarter 1 for increasing the development and deployment of the AI chip solutions. Therefore, contributing to further investments, increasing the expansion of the AI applications and its technical advancements. 

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