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AI Chipset Market size was valued at more than USD 15 billion in 2022 and is projected to record over 35% CAGR through 2023 and 2032. The growing use of advanced voice assistant features in smartphones would boost product uptake over the forecast period.
AI enhances smartphone functionality in several ways, including voice assistants, intelligent photography, and object detection. Nowadays smartwatch manufacturers are offering products integrated with AI capabilities that can carry out tasks like playing music, taking calls, and creating reminders.
Emerging usage of these devices among millennials and Gen Z would drive the demand for AI chipsets. According to estimates, around 45% of Americans regularly wear smartwatches such as Apple Watches or Fitbits. New investments by the major AI chip manufacturers such as Alphabet, Apple, Arm, Intel, Nvidia, and Qualcomm to enhance product capabilities will fuel market growth.
Report Attribute | Details |
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Base Year: | 2022 |
Artificial Intelligence (AI) Chipsets Market Size in 2022: | USD 15 billion |
Forecast Period: | 2023 to 2032 |
Forecast Period 2023 to 2032 CAGR: | 35% |
2032 Value Projection: | USD 400 billion |
Historical Data for: | 2018 to 2022 |
No. of Pages: | 230 |
Tables, Charts & Figures: | 343 |
Segments covered: | Product, Technology, Processing Type, Industry Vertical, Industry Vertical |
Growth Drivers: |
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Pitfalls & Challenges: |
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Data security concerns and a lack of skilled workforce could impede the AI chipset industry to some extent. AI systems generate enormous amounts of data and information from a variety of applications, such as fingerprint recognition, biometrics, and public surveillance cameras. Such information can be used by cybercriminals and hackers for commercial and personal gains. For instance, in the Europe region, ransomware is one of the major cyber threats, with more than 10 TB of stolen data each month. Installation of advanced security software could support the adoption of AI chipsets without the concern of data loss.
AI chipset market share from CPU segment is expected to surpass USD 75 billion by 2032. CPUs are less expensive compared to FPGA and ASIC processors and allow workload isolation in a shared infrastructure environment. Many chipset manufacturers are delving into the production of new AI-based CPUs dedicated to specific applications. For instance, in 2021, NVIDIA announced its first data center CPU that will deliver 10x the performance of the fastest servers on the most complex AI and high-performance computing workloads.
AI chipsets market share from computer vision technology segment is expected to be valued at more than USD 150 billion by 2032. The use of AI chips with computer vision helps in image identification. These chipsets are used across various applications like industrial robots and autonomous cars. Computer vision technology can also help take pictures of objects using sensors. Companies are trying to develop new chipsets using computer vision.
Based on industry vertical, artificial intelligence chipsets market share from the consumer electronics segment is anticipated to record more than 30% CAGR from 2023 to 2032. The demand for AI chipsets will be influenced by rising sales of smartphones and laptops in the consumer electronics sector. Additionally, smart home technology and appliances based on AI chips are becoming mainstream in residencies across emerging nations. The introduction of compact AI chipsets and robust R&D activities in the consumer electronics sector will foster market growth.
Asia Pacific region is predicted to hold over 45% share of the global AI chipsets market by 2032 owing to the rising investments in AI technology. The manufacturing sector is adopting the latest and modern methods of production which has supported the deployment of AI chips. Moreover, new smartwatch and wristband manufacturing companies are steadily integrating AI features in their products and are focusing on expanding their business footprint into international markets.
are the leading companies in the global AI chipset market. To maintain their competitiveness in the industry, major firms are concentrating on innovative R&D tactics.
Artificial intelligence (AI) chipsets market was majorly affected by the semiconductor chip shortage which halted the production of consumer electronics like smartphones, laptops, and much more. Lockdowns and travel restrictions promoted the adoption of remote working solutions which increased the demand for such devices. However, the revival of the global economy post-pandemic restriction and rapid transition toward digital solutions is anticipated to boost the demand for AI chipsets in the coming years.
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