ID: MRFR/SEM/3552-CR | December 2019 | Region: Global | 247 pages
Artificial Intelligence Chipset Market Analysis
Artificial Intelligence (AI) Chipset Market is predicted to touch USD 38.46 Billion at a whopping 39.18% CAGR between 2019- 2025, reveals the latest Market Research Future’s (MRFR) artificial intelligence chipset market forecast report. The strong growth of the AI chipset industry can be accredited to the growing number of AI-enabled applications.
The AI chipset market has been hit due to limited use of AI in different end-user industries and affected supply chains owing to various industries shifting priorities and lockdowns. The COVID-19 outbreak has resulted in disruptions in economies. A lot of manufacturing companies have brought their production to a halt that has damaged the industry and the supply chain collaterally. It is this disruption that resulted in a delay in the use of hardware and software products that are AI-based.
On the brighter side, there are certain industries that are profiting from this on-going outbreak, such as the educational industry. Ed-tech companies are adopting AI technology for imparting education to students during the lockdown. They have deployed these tools to improve online learning & the experience of the virtual classroom for students.
The COVID-19 outbreak also had a positive impact on the healthcare industry. The rise in COVID positive cases has posed a serious risk to public health. The healthcare industry is using technologically advanced devices for diagnosing and reducing the spread of the deadly virus. Devices that are AI-enabled are playing a pivotal part in detecting this virus’s early stage. Intel Corporations, for instance, has created a solution which helps physicians in diagnosing the virus accurately through CT chest scan to prevent infected patients from spreading the infection to other people and offer treatment to the patient at the same time. Market players, besides, are striving in reaching with these solutions to health experts and different countries across the world.
The banking sector, too is no different. With the implementation of artificial intelligence chatbots, the customers can access 24/7 support for all their queries. It is this initiative that is likely to bolster the demand for artificial intelligence chipset in the banking sector.
Again, this outbreak has transformed the shopping habits of consumers. People prefer to purchase essential goods and other goods from online stores. As a result, most businesses are making the most of technologically advanced setups for offering a better customer experience. Gucci, for instance, developed artificial store for customers together with lights and cameras. In this artificial store, machine learning and artificial intelligence play an imperative part in improving customer experience, which is predicted to boost the demand for AI chipsets both during as well as the post-pandemic situation.
AI solutions are likely to contribute largely while handling this outbreak, along with addressing the subsequent emergence of challenges. This outbreak has prompted different healthcare establishments and pharmaceutical firms to increase their R&D funding in artificial intelligence. Artificial intelligence solutions assist in e-learning. Its demand is likely to skyrocket with the closing down of different educational institutes such as schools and universities. This technology also assists in offering remote assistance and at the same time preventing unnecessary travel, which is the key focus during the on-going outbreak. Besides, the increasing use of smart devices and smartphones seems to work in favor of the artificial intelligence chipset market worldwide.
Growing Demand for Smart Cities and Smart Homes to Bolster Market Growth
Increasing demand for smart cities and smart homes is likely to bolster market growth over the forecast period. Artificial intelligence possesses the capacity to offer impetus to the launch of various smart city initiatives, especially in developing countries. Innovations and artificially intelligent tools have the capability of transforming smart cities and integrated digital homes. Besides, the creation of a built-in AI network chip is likely to boost the artificial intelligence chipset market growth over the forecast period.
Additional factors adding to the artificial intelligence chipset market share include developments in big data analytics, the growing number of AI-enabled applications, integration of AI with edge computing devices, development of human-aware AI systems, and increasing use of AI chipset in different end-user industries such as IT and telecommunications, banking and financial services, healthcare, and others.
Need to Improve Consumer Experience to Offer Robust Opportunities
The use of AI-based services and products to improve consumer experience may offer robust opportunities to market players during the forecast period.
Shortage of Skilled Workforce to Act as Market Restraint
Artificial intelligence has complex algorithms for its development. Besides, managing automated and AI systems is challenging at times. This demands notable experience and good software engineering skills to deal with concurrent and distributed programming/debugging with communication protocols. Unfortunately, most regions lack people with these skills. Thus, a shortage of skilled workforce may act as a market restraint over the forecast period.
Absence of Standards to Act as Market Challenge
The absence of AI standards and protocols may act as a major challenge for market players over the forecast period.
Global Artificial Intelligence Chipset Market has been segmented based on Vertical, Application, Technology, and Component.
Hardware Segment will Lead the Artificial Intelligence Chipset Market
By component, the AI chipset market is segmented into memory, network, and hardware, and software. The hardware segment is again segmented into ASIC, FPGA, CPU, and GPU. Of this, the hardware segment will lead the market over the forecast period.
Machine Learning Segment will Dominate the Artificial Intelligence Chipset Market
By technology, the artificial intelligence chipset market is segmented into machine learning, natural language processing, and others. Of these, the machine learning segment will dominate the market over the forecast period.
Smartphone Segment will Spearhead the Artificial Intelligence Chipset Market
By application, the artificial intelligence chipset market is segmented into medical imaging, robotics, automobile, smartphones, security systems, and smart wearable. Of these, the smartphone segment will spearhead the market over the forecast period.
Consumer Electronics Segment to Command Largest Share in the Artificial Intelligence Chipset Market
By verticals, the artificial intelligence chipset market is segmented into automotive, BFSI, retail, media and entertainment, IT and telecommunication, consumer electronics, and healthcare. Of these, consumer electronics will command the largest share in the market over the forecast period.
North America to Lead Artificial Intelligence Chipset Market
By region, the global artificial intelligence chipset market report covers the opportunities and recent trends across Europe, North America, the Asia Pacific (APAC), South America, and the Middle East and Africa (MEA). Of these, North America will lead the market over the forecast period. The presence of leading tech giants, the presence of a huge population with huge purchasing power, increasing investments in infrastructure, increasing focus to build in-house production sites for AI applications, increase in start-ups that develop advanced AI chipsets are adding to the global artificial intelligence chipset industry growth in the region. Besides, high consumerization of personal care products, the routine inspection of wearable devices and medical instruments, and government support in the US are also adding to the artificial intelligence chipset market size.
APAC to Grow at the Highest CAGR
The artificial intelligence chipset market in the APAC region is predicted to grow at the highest CAGR over the forecast period. Frequent advances in developing nations such as China and India with regards to retail, healthcare, media and advertising, automotive and transportation, finance, and others, increase in skilled workers, the adoption of AI in agricultural industries, robotics, automotive, healthcare, and consumer electronics, the growing application of AI chipset in consumer electronics like laptops, tablets, smartphones, presence of smartphone manufacturers and semiconductor industries, and increase in the use of smartphones due to increasing population are adding to artificial intelligence chipset market demand in the region.
The global artificial intelligence chipsets market is competitive due to the presence of a huge pool of players. These players have adopted several strategies to stay at the forefront as well as cater to the consumers growing needs, such as mergers and acquisitions, partnerships, and strategic alliances, among others.
Global Artificial Intelligence Market offers a comprehensive analysis of the market dynamics, which entails market drivers, opportunities, restraints, and challenges. It also highlights the market dynamics, on-going trends, and broad segmentation for a better understanding of the readers.
|Market Size||USD 38.46 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Component, Technology, Application, Vertical|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||IBM Corporation (US), Micro Technology (US), Samsung Electronics Co. Ltd (South Korea), Advanced Micro Devices (US), Huawei Technologies Co. Ltd (China), Intel Corporation (US), Qualcomm Technologies Inc. (US), NVIDIA Corporation (US)|
|Key Market Opportunities||The use of AI-based services and products to improve consumer experience.|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
Global artificial intelligence (AI) chipset market is projected to grow at approximately 39.18% CAGR during the assessment period (2019 -2025).
The valuation of the global artificial intelligence (AI) chipset market is estimated to increase to approximately USD 38.46 BN by the end of 2025.
Increasing number of AI-enabled applications and products & services to improve consumer experience and the rising penetration of big data analytics are major tailwinds pushing the growth of the global artificial intelligence (AI) chipset market.
Qualcomm Technologies Inc. (US), NVIDIA Corporation (US), Intel Corporation (US), Advanced Micro Devices (US), Huawei Technologies Co. Ltd (China), Samsung Electronics Co., Ltd (South Korea), IBM Corporation (US), and Micro Technology (US), are some of the top players operating in the global artificial intelligence (AI) chipset market.
North America is expected to hold the highest market share in the global artificial intelligence (AI) chipset market.