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

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.