Artificial Intelligence (AI) Chipsets Market Size - By Product (GPU, ASIC, FPGA, CPU), By Technology (NLP, RPA, Computer Vision, Network Security), By Processing Type (Edge, Cloud), By Industry Vertical & Forecast, 2024-2032

Artificial Intelligence Chipsets Market Size

Artificial Intelligence (AI) Chipsets Market size was valued at USD 35.05 Billion in 2023 and is anticipated to register a CAGR of over 34% between 2024 and 2032. The global push towards smart homes and smart cities is significantly boosting the demand for AI chipsets. In smart homes, AI chipsets power a range of devices, including smart speakers, thermostats, security systems, and home appliances, enabling features like voice recognition, energy management, and personalized user experiences.
 

Similarly, smart cities leverage AI chipsets for infrastructure management, traffic control, and public safety systems, utilizing AI to process large volumes of data and make real-time decisions. The integration of AI in urban planning and household applications is driven by the need for energy efficiency, improved security, and enhanced living standards, making this sector a major contributor to the growth of the AI chipsets market.
 

For example, in December 2023, MediaTek unveiled its latest chipsets, the Dimensity 9300 and Dimensity 8300, which are designed to enhance connectivity and integrate advanced generative AI capabilities. This launch marks a significant step in MediaTek's commitment to driving innovative technologies across various sectors. MediaTek’s introduction of these chipsets is poised to reshape the landscape of mobile technology, particularly in the realm of AI and connectivity. The company emphasizes the importance of personalized user experiences, leveraging AI to provide hyper-customized interactions across devices. This aligns with industry trends where AI is becoming increasingly integral to user engagement and device functionality
 

The automotive industry is increasingly adopting AI chipsets to enhance vehicle safety, efficiency, and user experience. AI-driven technologies, such as advanced driver assistance systems (ADAS), autonomous driving, and in-car infotainment systems, rely heavily on AI chipsets for real-time data processing and decision-making. These chipsets power machine learning algorithms that enable features like automatic emergency braking, lane departure warnings, and adaptive cruise control. As automakers push towards fully autonomous vehicles, the demand for high-performance AI chipsets continues to grow.
 

This trend is fueled by consumer demand for safer, more convenient driving experiences, and stringent safety regulations worldwide, making the automotive sector a critical driver of the AI chipsets market. For instance, in March 2024, MediaTek introduced its Dimensity Auto chipsets, which are designed to enhance in-vehicle user experiences through AI and NVIDIA's graphics technologies. These chipsets aim to improve safety and connectivity in vehicles, creating an intelligent cockpit environment.
 

The collaboration with NVIDIA allows MediaTek to utilize NVIDIA's GPU and AI software technologies, enhancing the capabilities of their automotive SoCs. This partnership is expected to provide comprehensive solutions for a wide range of vehicles, from luxury to entry-level models.
 

The development and production of AI chipsets involve significant financial investment. Designing advanced chipsets requires cutting-edge research and development, sophisticated manufacturing processes, and specialized materials. This can drive up the cost of production, particularly for custom-built Application-Specific Integrated Circuits (ASICs) or state-of-the-art Graphics Processing Units (GPUs). The high costs can be a barrier for smaller companies or startups looking to enter the market, as well as for larger firms seeking to scale production. These expenses can also impact the end price of AI-enabled devices, potentially slowing down adoption rates among cost-sensitive consumers or industries.
 

Artificial Intelligence Chipsets Market Trends

Edge AI is increasingly being integrated into Internet of Things (IoT) devices, allowing for faster data processing and decision-making at the source, rather than relying on cloud-based servers. This trend is driven by the need for real-time analytics and reduced latency in applications such as smart home devices, industrial sensors, and autonomous vehicles.
 

For instance, in August 2022, NVIDIA announced its new Jetson Orin series, designed to bring powerful AI computing to edge devices. These chipsets offer enhanced performance for AI workloads directly on the device, supporting complex applications like autonomous robotics and real-time video analytics without relying on centralized cloud servers.
 

AI chipset miniaturization is a key trend in the industry, driven by the need to embed advanced AI capabilities into increasingly compact and portable devices. This trend is essential for integrating powerful AI functions into consumer electronics, wearables, and other compact gadgets. Miniaturization involves shrinking the size of AI chipsets while maintaining or even enhancing their performance. This trend is fueled by the growing demand for smarter, more efficient devices in various sectors.
 

Smaller chipsets allow for the inclusion of sophisticated AI features in devices with limited space, such as smartphones, smartwatches, and other wearable technology. The advantages of miniaturization include reduced power consumption, improved energy efficiency, and the ability to incorporate AI directly into devices without relying on cloud-based processing.
 

For example, in September 2023, Apple introduced the A17 Pro chip, which powers the iPhone 15 Pro and iPhone 15 Pro Max. Built using a cutting-edge 3nm process, the A17 Pro chip represents a significant advancement in miniaturization technology. The A17 Pro boasts 19 billion transistors, an increase from the 16 billion in the A16 Bionic chip. This enhancement is crucial as more transistors enable better processing capabilities and power efficiency.
 

Artificial Intelligence Chipsets Market Analysis

Based on product, the market is segmented into GPU, ASIC, FPGA, and CPU. In 2023, the GPU segment accounted for the largest market share with over 47% of the market share.
 

• GPUs (Graphics Processing Units) dominate the market due to their exceptional parallel processing capabilities, which are crucial for handling complex AI and machine learning tasks. Unlike traditional CPUs, GPUs can perform multiple computations simultaneously, making them ideal for training deep learning models and executing large-scale AI algorithms efficiently. This performance advantage allows GPUs to accelerate data processing tasks, leading to their widespread adoption across various AI applications.
   
• The GPU segment’s prominence is also driven by strong ecosystem support and widespread adoption in both consumer and enterprise markets. Major tech companies, including NVIDIA and AMD, have developed specialized GPUs optimized for AI workloads, further enhancing their appeal. Additionally, the availability of robust software frameworks and libraries, such as TensorFlow and PyTorch, tailored for GPU acceleration, contributes to their dominant market position. This comprehensive support makes GPUs the preferred choice for AI researchers, developers, and companies seeking high-performance computing solutions.
   

Based on industry vertical, the AI chipsets market is divided into consumer electronics, media & advertising, BFSI, IT & telecom, retail, healthcare, automotive and others. The automotive segment is poised to record a CAGR of 40% through 2032. The market value of the automotive segment is expected to reach over USD 66 billion by 2032 due to this significant growth rate.
 

• The automotive industry's rapid growth in AI chipsets can be attributed to the significant advancements in autonomous driving technology. AI chipsets are crucial for powering advanced driver assistance systems (ADAS), such as adaptive cruise control, lane-keeping assist, and automatic emergency braking. The demand for these technologies is increasing as automakers and tech companies push towards higher levels of vehicle automation, including fully autonomous driving solutions. This drive for innovation and safety features have made the automotive sector the fastest-growing segment in the AI chipsets market.
   
• Major automotive manufacturers and tech companies are investing heavily in AI technologies to enhance vehicle performance, safety, and user experience. For instance, companies like Tesla, Waymo, and General Motors are integrating sophisticated AI systems into their vehicles, driving the need for advanced AI chipsets. Additionally, the industry's focus on developing electric and smart vehicles further propels the demand for AI-enabled solutions. This influx of investment and development in automotive AI technologies is a key factor driving the rapid growth of the automotive segment in the market.
   

Asia Pacific held the largest artificial intelligence chipsets market share of over 50% in 2023, due to its rapid adoption of advanced technologies and significant investments in AI research and development. Countries like China, Japan, and South Korea are at the forefront of AI innovation, with substantial funding allocated to developing AI infrastructure and applications. This region’s robust tech industry, including major semiconductor manufacturers and AI-driven companies, drives high demand for AI chipsets, supporting diverse applications from consumer electronics to automotive technologies.
 

The region's large population base and burgeoning middle class contribute to the expanding consumer electronics market, which drives the demand for AI chipsets in devices such as smartphones, smart home products, and wearable technology. Additionally, rapid urbanization and industrial growth in countries like China and India fuel the need for AI in sectors such as healthcare, automotive, and smart cities. The combination of high consumer demand and substantial industrial investment positions in Asia Pacific as the leading market for AI chipsets.
 

China has emerged as a critical market for AI chipsets, fueled by its aggressive national strategies to become a global leader in AI technology. The Chinese government’s substantial investment in AI research, coupled with the presence of major tech companies like Huawei and Alibaba, drives the demand for advanced AI chipsets. The country’s focus on smart cities, industrial automation, and consumer electronics accelerates the adoption of AI technologies.
 

Additionally, China's large manufacturing base and growing consumer market enhance its position as a significant player in the artificial intelligence chipsets market. For instance, in May 2024, CXMT, China's leading DRAM chip manufacturer, has made significant progress in producing high bandwidth memory (HBM) semiconductors for AI chipsets.
 

The U.S. is a major player in the AI chipsets market, driven by its leading technology companies and robust R&D ecosystem. Silicon Valley, home to tech giants like NVIDIA, Intel, and AMD, serves as a hub for AI innovation and development. The country's significant investments in AI research and startups, along with a strong focus on advanced applications in areas such as autonomous vehicles, healthcare, and consumer electronics, contribute to its dominant market position. Additionally, the U.S. benefits from a supportive infrastructure and favorable policies for tech advancement, further solidifying its leadership in the AI chipsets industry.
 

Germany stands out in the artificial intelligence chipsets market within Europe due to its strong industrial base and emphasis on technological innovation. Known for its engineering prowess and automotive industry, Germany is at the forefront of integrating AI into manufacturing and vehicle technologies. Companies like Siemens and Bosch are leading efforts in industrial automation and smart manufacturing, driving demand for specialized AI chipsets. The country’s strategic initiatives to foster tech innovation and its role as a hub for high-tech industries support its significant presence in the market.
 

Japan is a key player in the AI chipsets market, leveraging its expertise in electronics and robotics to drive growth. Major Japanese technology companies, such as Sony, Toshiba, and Fujitsu, are actively involved in developing advanced AI solutions and chipsets. Japan’s focus on integrating AI into robotics, consumer electronics, and industrial applications fuels demand for high-performance chipsets. Additionally, the country’s emphasis on research and development in AI technologies and its strong infrastructure support contribute to its prominent position in the market.
 

South Korea is rapidly expanding its presence in the AI chipsets market, supported by its leading tech companies and strong focus on innovation. Companies like Samsung and LG are at the forefront of developing AI technologies and chipsets, driving growth in areas such as consumer electronics, automotive, and industrial automation. South Korea’s investment in AI research and development, coupled with its technological advancements and government initiatives to support tech innovation, positions it as a significant player in the market. The country’s strategic emphasis on becoming a global leader in AI further boosts its market presence.
 

Artificial Intelligence Chipsets Market Share

NVIDIA Corporation and Qualcomm Technologies, Inc holds a significant share of over 20% in the market. In the AI chipsets industry, companies like Intel Corporation and NVIDIA Corporation stand out for their technological leadership and innovation. Intel, with its extensive portfolio of CPUs and AI-focused chipsets, continues to push the boundaries of performance and efficiency in AI applications. NVIDIA, renowned for its high-performance GPUs, has become synonymous with AI acceleration, particularly in deep learning and data analytics. Both companies drive the market through continuous advancements and strategic partnerships, reinforcing their positions at the forefront of AI technology.
 

Major players like AMD, Qualcomm Technologies, and Samsung Electronics bring diverse strengths to the AI chipsets market. AMD’s GPUs and CPUs offer competitive alternatives to NVIDIA’s products, focusing on high-performance computing and gaming applications. Qualcomm, known for its mobile processors, is expanding its AI capabilities into smartphones and IoT devices, emphasizing energy-efficient AI solutions. Samsung Electronics leverages its expertise in semiconductor manufacturing to produce AI chipsets for various applications, including consumer electronics and data centers, thereby broadening its market influence.
 

Artificial Intelligence Chipsets Market Companies

Major players operating in the artificial intelligence (AI) chipsets industry are:

• Intel Corporation
• NVIDIA Corporation
• IBM
• AMD (Advanced Micro Devices)
• Micron Technology Inc
• Qualcomm Technologies, Inc
• Samsung Electronics Co., Ltd.
   

Artificial Intelligence Chipsets Industry News

• In June 2024, Etched introduced the Sohu chip, a specialized AI chipset designed exclusively for running transformer models. This application-specific integrated circuit (ASIC) promises significant performance improvements over traditional GPUs.
   
• In June 2024, Intel has recently announced its new artificial intelligence chips, specifically the Xeon 6 processors, designed for data centers. This announcement was made during the Computex tech conference in Taiwan. The Xeon 6 processors promise enhanced performance and power efficiency, catering to high-intensity workloads typical in data centers.
   

The artificial intelligence (AI) chipsets market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Product   

• GPU
• ASIC
• FPGA
• CPU

Market, By Technology         

• NLP
• RPA
• Computer Vision
• Network Security
• Others

Market, By Processing Type  

• Edge
• Cloud

Market, By Industry Vertical

• Consumer Electronics
• Media  & Advertising
• BFSI
• IT & Telecom
• Retail
• Healthcare
• Automotive
• Others 

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA