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AI Chip Market size was over USD 104.65 billion in 2023 and is poised to cross USD 1.07 trillion by 2036, witnessing more than 19.6% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of AI chip is evaluated at USD 121.06 billion. The growth of the market can be attributed to the growing adoption of artificial intelligence (AI) based technologies around the world, increasing volume of the data stored and the rising need to solve computational and mathematical problems effectively. The amount rose up to USD 17 billion in the following year. Along with these, the emergence of quantum computing and increase in investments in building smart homes and cities are also expected to drive growth to the market in the coming years. Furthermore, growing emphasis on autonomous robotics is projected to offer abundant growth opportunities to the market in the future.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
19.6% |
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Base Year Market Size (2023) |
USD 104.65 billion |
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Forecast Year Market Size (2036) |
USD 1.07 trillion |
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Regional Scope |
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The market is segmented by end user into healthcare, automotive & transportation, IT & telecom, retail, BFSI, and others, out of which, the IT & telecom segment is anticipated to hold the largest share in the AI chip market on account of rise in demand for smart appliances, and surge in need for devices providing enhanced user experience and efficient output. The market for smart appliances is evaluated to gather a revenue of approximately USD 8 billion by the end of 2021. Furthermore, by 2025, almost 19% households are expected to use smart appliances. Wide adoption of internet of things (IoT) and sensor driven algorithms for robotics is also assessed to drive growth to this market segment. In addition, the BFSI segment is also evaluated to occupy a major market share during the forecast period owing to the availability of large amount of data in this industry vertical.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Application |
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End User |
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On the basis of geographical analysis, the AI chip market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in the Asia Pacific is estimated to hold largest revenue share by 2036, on the back of intensifying adoption of AI based technologies and growing investments to establish AI startups, especially in countries such as China, Japan and India. For instance, China is placing a strong focus on building artificial intelligence capabilities in the country. Beijing alone foreseen establishment of more than 445 AI companies by 2020. On the other hand, the market in the North America is predicted to grab the largest market share during the forecast period, which can be credited to the increasing demand for AI solutions from industries, namely, retail, BFSI and IT & telecom. Moreover, the market is backed by a strong presence of a well-established cloud infrastructure and some of the biggest tech giants in the world, which is another factor expected to boost the expansion of the market in this region.
Author Credits: Abhishek Verma
Copyright © 2024 Research Nester. All Rights Reserved
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