Artificial Intelligence Chipsets Market - Forecast (2021 - 2026)

Artificial Intelligence Chipsets market size is anticipated to reach $56.2 billion by 2026 at a CAGR of 38.29% during the forecast period 2021-2026. The market growth is mainly driven by the factors including technological development, massive volume growth in large and complex datasets, increasing investments in artificial intelligence (AI) & machine learning (ML) as well as the wide adoption of IoT across industries. In addition, the growing demand for smart devices with advance features and latest technology is set to boost the growth of the artificial intelligence chipsets industry. Apart from this, Government’s support for the development of AI-based solutions plays a major role in growth. This in turn creates huge demand for various AI-chipset incorporated products such as Central processing unit (CPU), graphic processing unit (GPU), neural network processor (NNP), application specific integrated circuit (ASIC), field programmable gate array (FPGA) and others. Furthermore, the increasing penetration of robotic process automation (RPA) and rising adoption of autonomous intelligent agents will trigger the growth of artificial intelligence chipsets market during 2021-2026.

Report Coverage

The report: “Artificial Intelligence Chipsets Market– Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Artificial Intelligence Chipsets market.

By component: hardware (processors, network, memory and others), software.

By Product: Central processing unit (CPU), Vision Processing Unit (VPU), graphic processing unit (GPU), neural network processor (NNP), application specific integrated circuit (ASIC), field programmable gate array (FPGA), reduced instruction set computer (RISC) processor, accelerators and others.

By Processing: Edge and cloud.

By technology: Machine learning (supervised learning, unsupervised learning and reinforced learning, deep learning and others), Natural Language Processing (NLP), Computer Vision, Network Security and others.

By type: System-on-Chip, System-in-Package, Multi-chip Module and Others.

By application: speech recognition, medical imaging, precision farming, robotics, livestock monitoring, autonomous driving, security systems and others.

By end-user industry: automotive, healthcare, education, agriculture, BFSI, retail and e-commerce, general manufacturing, IT and telecommunication, government and others.

By Geography: North America (U.S, Canada, Mexico), Europe (Germany, France, UK, Italy, Spain and Others), APAC (Japan, China, India, South Korea, Australia and Others), South America (Brazil, Argentina and others) and RoW (Middle east and Africa).

Key Takeaways

• North America dominated the market with a 38% artificial intelligence chipsets market share in 2020, early adoption for new technologies and increasing investment for the development of this technology are the key factors, set to boost the market growth.
• AI-Chipsets are estimated to register significant amount of growth during the forecast period owing to rising investments on AI focused start-ups, which will drive the market in the forecast period. 
• Artificial Intelligence Chipsets top companies include NVIDIA Corporation, Intel Corporation, Graphcore Limited, Samsung Electronics Co., Ltd., Qualcomm Technologies, Inc. and others.

Artificial Intelligence Chipsets Market, by Geography, 2020

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Artificial Intelligence Chipsets Market Segment Analysis - By Technology

Based on technology, this market is segmented into machine learning, Natural Language Processing (NLP), Computer Vision, Network Security and others. Machine learning is estimated to grow with a CAGR of 36.81%, during the forecast period 2021-2026 owing to rising investment for the development of ML along with increasing adoption of cloud-based services. Apart from that, development and adoption of Deep learning, a sub-part of Machine learning is a major growth driver for AI-chipset market. For instance, in March 2020, NVIDIA launched a deep learning neutral network, DLSS 2.0 which offers higher-resolution images and real-time rendering through Artificial Intelligence. In May 2020, GigaSpaces, had raised $12m fund which will be used for scaling the expansion and accelerating the R&D of the in-memory computing solutions AI and ML. Such developments and strategic investments will provide significant growth opportunities for AI-Chipset market in the forecast period 2021-2026.

Artificial Intelligence Chipsets Market Segment Analysis - By End User Industry

By end-user industry, artificial intelligence chipsets market is segmented into automotive, healthcare, education, agriculture, BFSI, retail and e-commerce, general manufacturing, IT and telecommunication, government and others. According to Artificial Intelligence Chipsets market report of IndustryARC, Healthcare sector is the fastest growing end user segment in the artificial intelligence chipsets market with a CRGR of 40.76%, owing to increasing investment for the development of healthcare sector and rapid digitalization. The usage of advanced and developed technology in healthcare sector for various actions such as operational assistance, health-monitoring, digital consultations and others, is rising over time. However, in current situation, AI technology is highly being used in healthcare sector due to the outbreak of COVID-19. For instance, According to a study report of University of Central Florida, AI algorithm can detect covid-19 pneumonia in CT scans, with up-to 90% of accuracy like a virtual physician and can distinguish Covid-19 cases from general influenza cases. Recently, Vidooly launched an AI-enabled surveillance solution, COVIDSHIELD, in order to contain the spread of covid-19. Similarly, in April 2020, Mumbai based three students and a professor, launched a voice based AI-tool to detect COVID-19, and it was used on over 300 individuals in a University of Rome, with a result of 98% accuracy. Apart from that, many key players of this market are investing heavily to develop new and advance AI-enabled health-care solutions across the world.

Artificial Intelligence Chipsets Market Segment Analysis - By Geography

North America dominated the market by a market share of more than XX% in 2020, early adoption for new technologies and increasing investment for the development of AI-chipsets are the key factors contributing to the market growth. Investments offered by organizations to develop AI technology in the region are a major factor for this growth. In February 2019, Facebook announced about the development plan of its own AI supporting application specific integrated circuit (ASIC) chip to offer faster computing capabilities for digital assistant. Furthermore, APAC is anticipated to witness the fastest growth during the forecast period, owing to growing adoption of new technologies and emergence of AI-focused start-up companies in this region especially in China, India and Japan. Apart from that, manufacturers of this region are launching developed and advanced AI Chipsets for their customers, fuelling the market growth of this region. In August 2019, Huawei Technologies launched Ascend 910, a powerful AI chipset processor based on System-on-Chip (SoC). Similarly, in November 2020, SK telecom launched SAPEON X220, a new AI chip for data centres, in order to capture growing global demand for chips. This type of developments and product launches is set to boost the market growth which is analysed to drive the market of this region during 2021-2026.

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Artificial Intelligence Chipsets Market Drivers

Integration of AI in Smart-phones and Other Smart-devices makes life easy

The integration of AI technology into smart-phones and other smart devices such as cameras, drones, wearable devices, is one of the major drivers, accelerating the market growth during the forecast period 2021-2026. With technological advancement and economic development, the demand for smart devices is rising along with the integration of artificial indigence into those devices. In November 2019, Intel announced that, its new chip for on-device artificial intelligence will be available globally in the year 2020. With this product Intel gained a prominent ground in the market of chips capable of running AI inside the cameras, drones and other devices without connecting it to the data centers. Hence these types of developments are analyzed to drive the market in the forecast period 2021-2026.

Rising Investment on AI Start-ups helps to grow the market at a faster rate

Organizations are investing heavily on start-up companies for the development AI-Chipsets which is set to drive the Artificial Intelligence Chipsets market during the forecast period 2021-2026. In May 2020, Intel announced about its global investment plan of $132 million on 11 start-up companies focusing on AI, automation and chipset designs. Similarly, in March 2020, Graphcore, a start-up company selling chips custom-made for AI, had -raised $150 million fund from financial asset firms and investment funds. Such strategic investments by organizations on start-ups are augmenting the global AI-chipset market.

Artificial Intelligence Chipsets Market Challenges

Lack of Skills and Expertise Related to this Technology facing by AI chipset manufacturing companies

Although this market is growing at a rapid phase, the lack of expertise of the technology is anticipated to hinder the market growth. AI system is very complex system to develop as well as very hard to manage. A small error can create massive adverse impact and in order to avoid these types of error, experienced developers with specific skills are required which is hard to find. Hence the lack of skilled experienced developers hinders the market growth in the forecast period 2021-2026.

Artificial Intelligence Chipsets Market Landscape

Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Artificial Intelligence Chipsets market. In 2020, the market of Artificial Intelligence Chipsets industry outlook has been fragmented by several companies. Artificial Intelligence Chipsets top 10 companies include :

• NVIDIA Corporation
• Intel Corporation
• Graphcore Limited
• Samsung Electronics Co., Ltd.
• Qualcomm Technologies, Inc.
• Google Inc.
• Microsoft Corporation
• Micron Technology, Inc.
• Xilinx, Inc.
• Tenstorrent, Inc.

Acquisitions/Technology Launches

• In December 2019, Intel Corporation acquired an Israel-based chip start-up company, Habana Labs for $2 billion to strengthen its AI portfolio and to accelerate its efforts in the developing, fast growing AI market.
• In April 2020, Tenstorrent launched its first conditional execution architecture for AI, Grayskull, facilitating scalable deep learning and interface.

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