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Neural Processor Market Size - By Type, By Technology Node, By Deployment Mode, By Processing Precision, By Application, & By End Use Industry - Global Forecast, 2025 - 2034

Report ID: GMI14658
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Published Date: August 2025
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Report Format: PDF

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Neural Processor Market Size

The global neural processor market was valued at USD 2.9 billion in 2024. The market is expected to grow from USD 3.8 billion in 2025 to USD 11.2 billion in 2030 and USD 27.3 billion by 2034, at CAGR of 24.4% during the forecasted period of 2025-2034, according to Global Market Insights Inc.

Neural Processor Market

  • The growth of neural processor market is attributed to the increasing demand for on-device AI acceleration in consumer electronics, real-time processing for autonomous and connected vehicles, AI workload expansion across edge and enterprises, growth of generative AI and large language models (LLMs), and the increasing demand for energy-efficient and scalable AI compute.
     
  • AI models are being used worldwide and are getting more complex, the need for efficient processors that can handle AI/ML workloads more efficiently. Neural processors execute complex data calculations leading to quick decision making with low latency and reduced energy costs. By removing heavy ML tasks from the cloud, these chips trim latency, lighten data traffic, and improve user privacy. For instance, the global AI in consumer electronics market was valued at approximately USD 7.8 billion in 2022 and AI integration in smart home devices is expected to grow at a CAGR of 26.5% from 2023 to 2030.
     
  • Neural processors supply the heavy computing support that enables a vehicle to accurately see its surroundings, recognize hazards, and execute time-sensitive commands. By delivering high performance at low energy draw, these processors have become the driving force of next-generation vehicular technology.
     
  • The growth of AI workloads at the edge and enterprises is driving the neural-processor market, as organizations seek fast, energy-efficient, real-time computing. In turn, demand for chips capable of executing complex AI tasks locally-on smartphones, sensors, or entire data centers-is surging, reducing reliance on distant cloud resources.
     
  • On the basis of application, the global neural processor market is segmented into natural language processing (NLP), computer vision, predictive analytics, speech recognition, and others. Under the application segment, computer vision accounted for 32.2% of the market share in 2024. This segment of the market has increased drastically due to the increasing demand for image, video, and data analytics in applications such as facial recognition, autonomous vehicles, security, and smart manufacturing.
     
  • Asia Pacific reported for the largest share of the global neural processor market in 2024, representing 34.9% with a market value of USD 1.01 billion. The region’s growth is driven by rapid digital transformation, strong government initiatives to advance semiconductor development, rising adoption of AI-enabled devices, and the presence of major electronics manufacturing hubs.
     

Neural Processor Market Trends

  • AI is being incorporated in neural processors to enable on-device capabilities in phones, digital assistants, clinical diagnostics, and autonomous mobility. As the number of applications grows, the computational demands for faster, local processing increases. This demand is driving the development of silicon-based NPUs and specialized co-processors that are accelerated for vision, speech, and language processing directly on the device, rather than using a cloud-transmitted model. The shift in model is fuelling investment in NPU prototype types that are battery-efficient, with higher performance.
     
  • Industries such as automotive, robotics, and aerial systems are moving toward edge AI processing in order to reduce latency for inference and to better secure sensitive data. Edge-based neural processors are positioned where data is produced in a factory floor robot, in a car control unit, or in a delivery drone. This enables real-time decision making with low latency. It helps to migrate technical dependence away from cloud infrastructure that is reliant on sourced data with heavy bandwidth drain. It secures vulnerable sensor streams of sensitive data.  
     
  • The landscape of neural processors continues to transform with an increasing focus on energy-efficient design, sustainability, and performance. New methods have emerged to cut the power necessary for execution while maintaining accuracy on AI tasks, such as analog computing, in-memory dataflow, and chiplet-based modularity. The collaboration of hardware makers, AI software providers, and OEMs is leading to the creation of a scalable ecosystem with usable components and modules that tool handle compute, training, and inference workflows across multiple workloads.               
     

Neural Processor Market Analysis

Neural Processor Market Size, By Type, 2021-2034, (USD Million)

Based on type, the market is divided into application-specific integrated circuits (ASICs), graphics processing units (GPUs), field-programmable gate arrays (FPGAs), neural processing units (NPUs), and digital signal processors (DSPs). The GPU segment accounts for the highest market share of 25.2% and the NPU segment is the fastest-growing segment with a CAGR of 26.4% during the forecast period.
 

  • The graphics processing units (GPUs) market is valued at USD 700 million in 2024. Graphics Processing Units (GPUs) continue to lead the neural processor market because their massively parallel designs suit the training of deep neural networks. NVIDIA’s Ampere and Hopper generations exceed 1,000 TFLOPs of AI performance, well ahead of general-purpose CPUs in matrix-dominated tasks. MLPerf benchmark data indicate that the best GPUs shorten model training times by more than 80 percent when compared to CPU-based configurations.
     
  • To maintain market leadership, manufacturers are embedding tensor cores, refining memory hierarchies, and leveraging energy-efficient chiplet designs to boost performance per watt. Enterprises expanding their AI operations find that investment in cutting-edge GPUs yields swift time-to-value and strong return on investment, especially in environments where accelerated model iteration and deployment cycles are critical.
     
  • The neural processing units (NPUs) market is expected to grow at a CAGR of 26.4% by 2034. Neural Processing Units (NPUs) are quickly becoming a dominant part of the neural processor market, specifically used for acceleration of AI workloads, such as deep learning inference and on-device intelligence.
     
  • Architecturally, NPUs allow for optimizing memory access, minimizing data movement, and executing tensor operations more efficiently than general-purpose chips can. The leverage that NPUs can provide is remarkable, gaining a five-times better performance-per-watt compared with GPUs or CPUs for edge applications such as voice recognition, facial detection, and predictive maintenance, according to manufacturers like Qualcomm and Huawei.
     
  • Manufacturers includes investment into heterogeneous compute etc., software SDKs, and modular chips. With the demand for privacy-first, low-latency AI, NPUs are poised to take over next-gen edge AI in consumer and enterprise devices.

 

Neural Processor Market Share, By Technology Node, 2024

Based on technology node, the neural processor market is divided into above 16nm, 10nm–16nm, and below 10nm. The 10nm-16nm segment accounts for the highest market share of 42.2%.
 

  • The 10nm-16nm market is valued at USD 1.2 billion in 2024. The 10nm–16nm technology node in the neural processor ecosystem is gaining momentum as a performance-efficiency sweet spot, particularly for high-volume AI inference use cases where cost-competitive power and throughput are desired without the substantial cost of sub-7nm fabrication. These nodes can achieve adequate transistor density to enable advanced parallel computing and allow for AI acceleration, while still enjoying mature manufacturing yields and cost structure sources.
     
  • To capitalize on this segment, semiconductor companies need to explore IP reuse, ensure improved voltage control library breadth and depth, and scale the adaptive power management design requirement in these node ranges. This is especially important if semiconductor companies are working with OEMs on mid-range edge AI products. We anticipate 10nm– 16nm is going to provide a commercially-relevant means of supporting shared costs, over the next 3–5 years of cost-competitive AI deployment.
     
  • The below 10nm market is expected to grow at a CAGR of 25.2% by 2034. As sub-10nm technology nodes in the neural processor sector begin to cement themselves as the choice for next-generation AI workloads, notably in high-performance computing (HPC), cloud datacenters, and top end mobile and edge AI devices, they will optimize the use of extreme ultraviolet (EUV) lithography and next-generation FinFET or gate-all-around (GAA) transistor architectures to maximize transistor density, maximize the speed of executing neural networks, and minimize power (watts) per computation.
     
  • In order to capitalize on sub-10nm technology, semiconductor manufacturers should consider investments in EUV lithography mensuration, advanced chiplet packaging, and scaling power delivery. Working with foundries, cloud providers, and AI software developers to secure the best time-to-market for dare-I-say, ultra-efficient neural processors suitable for edge-to-cloud AI infrastructure.
     

Based on deployment mode, the neural processor market is divided into edge devices, and cloud data centres. The cloud data centres segment accounts for the highest market share of 64.6% and is projected to grow with a CAGR of 24.7% during the forecast period.
 

  • The cloud data centres market is valued at USD 1.8 billion in 2024. The vast majority of neural processors are being deployed in cloud data centers. With enterprises, hyperscalers, and AI research labs seeking scalable, performance-oriented compute infrastructure to handle models of increasing complexity with deep learning, it is logical to focus on deploying neural processors in cloud environments. With compute infrastructure centralized in the cloud and elastic data center operations, organizations can consume neural processors, most notably NPUs and AI-optimized GPUs, on-demand to train large-scale LLMs, computer vision models, or recommendation engines.
     
  • Infrastructure vendors and NPU designers should look to optimize energy efficiency, thermal designs, and memory bandwidth on server-grade neural processors in the cloud. It is critical that CSPs work with programming frameworks for AI and open-source communities to provide workload compatibility and reduce latency across other programing, multi-node training, and inferencing deployments on cloud-based infrastructure.
     
  • The edge devices market is expected to grow at a CAGR of 26% by 2034. Edge devices are seeing widespread adoption as a deployment mode in the neural processor space due to the need for real-time inference, lower latency, and data privacy in applications such as autonomous vehicles, smart surveillance, healthcare monitoring, and industrial automation. These devices perform neural processing at the source of the data, with advances in battery life optimization available on-board, eliminating time for cloud connection and accelerating decision-making.
     
  • Product manufacturers must leverage specialized toolkits, co-design hardware-software platforms, and pre-trained models for edge inference. By working closely with IoT device makers, telecommunications providers, and OEMs in specific verticals, they can encourage widespread adoption of neural-processors in constrained environments, such as micro-wearable devices, drones, and remote monitoring.
     

Based on processing precision, the neural processor market is divided into 32-bit, 16-bit, and 8-bit and lower. The 16-bit segment accounts for the highest market share of 43.2% and the 8-bit and lower segment is the fastest-growing segment with a CAGR of 24.9% during the forecast period.
 

  • The 16-bit market is valued at USD 1.2 billion in 2024. Given the key developments in the neural processor space, 16-bit processing precision is being revisited, as a good balance (or “sweet spot”) between compute power and levels of model accuracy, especially for examples such as, traditional speech recognition, gesture control and mobile inferencing. Compared to 8-bit formats, 16-bit floating point or fixed-point numerical precision retains more numerical fidelity, and is especially suited in any context where quantization loss would be an issue and is a good fit for deep neural networks. The 16-bit format is gaining traction as the go-to option for edge-AI solutions and real-time analytics at the edge inferencing domain, where 32-bit precision is a much narrower use-case but can use much higher bandwidth (especially double precision).
     
  • Vendors will need to focus on having robust compiler support for 16-bit options, training toolkits that can optimize for 16-bit models, and maintaining collaborative interoperability with AI frameworks (hence supporting a cadence with TensorFlow Lite and PyTorch Mobile, etc). However, if structure is maintained, moving to a natural 16-bit default will have many uses cases with mid-complexity AI modeling, especially for embedded and consumer electronic applications.
     
  • The 8-bit and lower market is estimated to reach a CAGR of 24.9% by 2034. In the market for neural processors, 8-bit and lower processing precision, or the model of executing calculations based on a reduced precision level (e.g. 4-bit binary) rather than a floating point, continues to penetrate saturated applications in demand for ultra-low-power artificial intelligence (AI) applications such as keyword spotting, wake-word detection, and vision-based object classification in smart home devices and Internet-Connected IoT devices. Reduced precision reduces the memory bandwidth and compute burden, making it feasible to infer on-device with battery-operated devices that have tight energy budgets.
     
  • Manufacturers should invest in adaptive quantization toolchains, narrowed architecture models designed for edge deployment (e.g. MobileNet and TinyML), and searched for co-design software frameworks that align with sub-8-bit paths during model execution. These movements will position vendors for the anticipated expansion of the AI deployment market towards edge AI, in areas like wearables, smart sensors, and consumer electronic products, where cost, energy consumption, and form factor predominate the design considerations.
     

Based on application, the market is divided into natural language processing (NLP), computer vision, predictive analytics, speech recognition, and others. The computer vision segment accounts for the highest market share of 32.3%.
 

  • The computer vision market is valued at USD 75 million in 2024. Due to the important factors around real-time perception in areas including autonomous vehicles, surveillance, industrial automation, and consumer electronics, computer vision is becoming a primary use case in the neural processor ecosystem. Neural processors are making use of high-accuracy, high-speed deep learning image classification, object detection, and segmentation methods to promote machine understanding of visual data.
     
  • Vendors need to emphasize on-chip memory hierarchy enhancements, dataflow architecture optimization, and investment in programmable inference engines for extensive deployment needs, from cloud-connected smart cameras to fully edge-deployed robotics. Partnering with vision AI developers and launching computer vision SDKs will complement the ecosystem and decrease time-to-market.
     
  • The natural language processing (NLP) market is expected to reach a CAGR of 25.8% by 2034. Natural Language Processing (NLP) continues to be the primary application area within the neural processor realm as demand for real-time, on-device natural language understanding continues to increase across a wide range of applications, such as chatbots, virtual assistants, customer support automation, and enterprise AI systems. NLP use cases such as sentiment analysis, language translation, summarization, and question answering are also very compute-heavy, and therefore are particularly suited for discrete neural acceleration.
     
  • For chip vendors to stay relevant, they need to increase support for low power inference, managed sequence length (plus the ability to optimize for token sparsity), and partner with open-source NLP framework developers (and expand language model compiler toolchains of their own) and support pre-optimized NLP libraries to keep up with the rapidly evolving landscape of needs of enterprises, edge devices, and low-latency and multi-lingual applications.
     

Based on end use industry, the neural processor market is divided into consumer electronics, automotive, healthcare, robotics & drones, industrial automation, defense & aerospace, and others. The automotive segment is the fastest growing segment with a CAGR of 28.4% during the forecast period.
 

  • The consumer electronics market is valued at USD 171 million in 2024. Consumer electronics is shaping up to be the largest and most dynamic end-use market for neural processors. There is growing demand for neuroone of the biggest use cases is in consumer electronics. Demand for faster, smarter and more intuitive consumer electronic products, especially mobile ones, is growing. These products include smartphones, tablets, televisions, AR/VR headsets, and wearables. There is a growing demand for simpler and faster tasks such as image enhancement in real-time, voice recognition, facial authentication, and on-device AI assistants. Neural Processing Units (NPUs) are being integrated into these devices to enhance user experience. 
     
  • Manufacturers should target innovations in area-efficient chip architectures,  handling 5G modems, and advanced packaging to create compact products. The ability to move quickly will depend on the relationships developed with consumer brands and OEMs. Installing AI SDKs and edge ML tools will be necessary, as will developer adoption to ensure all AI models can run on-device, and to create a healthy ecosystem.
     
  • The automotive market is expected to grow at a CAGR of 28.4% by 2034. The automotive industry is adopting neural processors full throttle for advanced driver-assistance systems (ADAS), autonomous-driving capabilities, and in-car infotainment. As vehicles evolve to become more software- and AI-defined, NPUs will become essential for processing large amounts of sensor data in real time leveraging data from a wide range of sensors (cameras, LiDAR, radar, ultrasonic, etc.) to enable routines such as object detection, lane changing, predictive maintenance, etc.
     
  • Chip vendors and Tier 1 suppliers will require automotive-specific toolchains, ML compilers, and simulation platforms. Vendors will also need to work with OEMs to incorporate NPUs into central compute and zonal designs. Support for over-the-air OTAs and hardware encryption of AI models will be required to meet connected vehicle and autonomous vehicle standards.

 

U.S. Neural Processor Market Size, 2021-2034, (USD Million)

The North America neural processor market held 27.2% market share in 2024 and is growing at a 24.8% CAGR, driven by rapid AI adoption in cloud data centers, strong edge AI integration across automotive and consumer electronics, and increasing investments in high-performance, energy-efficient neural processors for enterprise and industrial automation applications.
 

  • The U.S. neural processor market was valued at USD 623.6 million in 2024. Rising AI workloads in industries such as cloud computing, consumer electronics, autonomous vehicles, and defense are driving demand for neural processors in the U.S. As noted by the Semiconductor Industry Association (SIA), almost 46% of all global semiconductor sales come from the U.S., and the U.S. is the center of innovation for AI-oriented chip design. Likewise, significant investments in the neural processor space will arrive from firms like NVIDIA, Intel, and AMD, which will create exponential demand for neural processors in edge devices and hyperscale data centers, and for training AI applications or models.
     
  • The first priority for neural processor manufacturers seeking to compete in the U.S. neural processor space is to begin prioritizing their fabrication localization as part of the CHIPS and Science Act, aimed to promote U.S. semiconductor manufacturing rather than just fabrication. Secondly, manufacturers should invest in advanced packaging and heterogeneous integration focused on performance and energy usage. Thirdly, for higher adoption and longer adoption time horizons, strategic partnerships with U.S. cloud service providers, auto OEMs, and defense contractors will provide high visibility into U.S. demand.
     
  • The Canada neural processor market was valued at USD 171 million in 2024. Canada's market is emerging as its industries increasingly enhance adoption of AI and machine learning in applications such as smart cities, autonomous vehicles, fintech and healthcare. Federal and provincial government AI initiatives - including the Pan-Canadian AI Strategy and the proximity to leading research institutes like the Vector Institute and MILA - foster an innovation-oriented environment that is creating demand (for edge and cloud-based neural processors) to enable real-time decision making and model inference.
     
  • To maximize this opportunity for NPU developers and solution providers, it is essential to align with Canada's growing emphasis on ethical AI and regulations/best practices around data privacy by creating energy-efficient NPUs suitable for federated learning and on-device processing. Collaborating with Canadian universities, AI startups, and cloud providers can open doors to lucrative public sector contracts and enterprise use cases. Designing and manufacturing locally or locating North American fabs can also help navigate growing problems and limitations in worldwide supply chains that match the emerging nationalist consumer sentiment around tech sovereignty.
     

The Europe neural processor market held 20.5% market share in 2024 and is growing at a 23.5% CAGR, driven by expanding AI research initiatives, robust semiconductor innovation, and growing deployment of neural processors in automotive, industrial automation, and healthcare applications aligned with stringent data privacy and energy efficiency regulations.
 

  • Germany neural processor is expected to grow with a CAGR of 24.5% by 2034. Germany's neural processor market is experiencing significant growth due to the country's strong capabilities across industrial automation, automotive innovation, and AI-enabled research and development. Increasingly popular programs such as "AI Made in Germany" and strong public sector investment in Industry 4.0 are driving a growing demand for on-device intelligence in the high-tech manufacturing, robotics and mobility sector. Major OEMs and research institutions are investing in NPUs to enable real time processing of sensor data, predictive maintenance and control of autonomous systems. In addition, they will need to comply with stringent data privacy regulations under GDPR.
     
  • Neural processor manufacturers targeting the German industry should focus on building power efficient chips that are safety compliant (both procured and used), and specifically designed for edge inference in industrial and automotive environments. Opportunities will increase for neural processors that are compatible with European standards (for example ISO 26262 for automotive functional safety), and through the development of technology partnerships with Tier-1 suppliers and AI-friendly research institutes. This will leverage Germany’s engineering culture where values of innovation have long standing cycles of adoption.
     
  • The U.K. neural processor market was valued at USD 137 million in 2024. The growing emphasis on AI deployment in healthcare, defense, and financial services has driven accelerating interest, and ultimately adoption, of neural processors across the U.K. The infrastructure and expertise available through government-led work within the National AI Strategy, focus on AI applications for social good, and growing venture capital funding around U.K. based AI startups are driving demand for efficient, energy-conscious neural processing units capable of high-performance workloads like NLP, computer vision, and edge inference. The AI revolution across healthcare is compounded by growing smart healthcare infrastructure and a proliferation of applied cybersecurity innovations.
     
  • In terms of taking advantage of neural processing market conditions in the U.K, developers of neural processors should employ strategies that align with existing U.K.-specific regulatory landscapes (e.g. NHS Digital standards), incorporating supply chain assessment of infrastructure, secure AI chipset and low-latency edge solutions, while partnering with U.K AI research hubs and working with public-private partnerships to build local trust and greater awareness for AI developments under U.K. government support.
     

The Asia-Pacific region is the fastest growing in the neural processor market and is expected to grow at a CAGR of 25.5% during the forecasted period, driven by rapid urbanization, surging demand for AI-enabled consumer electronics, expanding 5G infrastructure, and increasing investments in data centers, autonomous vehicles, and smart manufacturing across emerging economies like China, India, and Southeast Asia.
 

  • The China neural processor market is projected to grow significantly, reaching USD 4.9 billion by 2034. The neural processor industry in China is being fueled by strong government backing for AI development via the “New Generation Artificial Intelligence Development Plan,” increased funding for smart city development, and a strong consumer electronics sector.  Domestic companies like Huawei, Alibaba, and Baidu are developing AI accelerators optimized for custom language models, autonomous driving, and facial recognition applications. This leads to strong demand for neural processors.
     
  • To compete in this environment, neural processor manufacturers must localize their hardware-software optimization for Mandarin NLP, adhere to China’s laws pertaining to cybersecurity and data localization, and design for power optimization in mobile and surveillance applications. Manufacturers may see greater market access at local fabs, based on strategic partnerships with state-backed organizations invested in semiconductors and the country’s goal of making the semiconductor industry self-sufficient.
     
  • Japan market is poised for significant growth, projected to reach USD 130 million by 2034. The neural processor market in Japan continues to grow at a steady pace, driven in part due to the country's emphasis on robotics, autonomous systems, and smart manufacturing through programs like Society 5.0. Japan's aging population is creating unique requirements for the development of various healthcare solutions driven by AI, especially solutions that can deliver on-device inference, which require highly efficient neural processors. Meanwhile, leading technology players in Japan, like Sony, Renesas, and others, are looking to develop a new generation of edge AI chips to support design needs for automotive, consumer electronics, and industrial robotics applications.
     
  • To capitalize on these opportunities, neural processor companies in Japan will want to consider ultralow power consumption, reliability, and small form factor to support compact embedded systems. It will also be important to collaborate with Japanese automotive OEMs, healthcare device manufacturers, and industrial automation technologies. Understanding Japan's preference for vertically integrated and very high-quality systems will help foster adoption in this precision-based market.
     

The Latin America neural processor market held 9.3% market share in 2024 and is growing at a 20.9% CAGR, driven by growing adoption of AI in healthcare and agriculture, rising smartphone penetration, government support for digital transformation, and increasing demand for intelligent edge devices and energy-efficient computing solutions.
 

The Middle East & Africa neural processor market held 8% market share in 2024 and is growing at a 24.4% CAGR, driven by expanding digital infrastructure, increasing investments in AI and smart city initiatives, rising demand for edge computing in surveillance and industrial automation, and growing adoption of AI-enabled consumer electronics across urban centers.
 

  • The South Africa neural processor market is projected to grow significantly, reaching USD 240 million by 2034. The neural processor industry in South Africa is slowly making headway as the nation continues to pursue its digital transformation, AI research, and smart infrastructure. Demand continues to increase in industries like fintech, healthcare, and surveillance, where edge-AI and on-device intelligence offer better data privacy and decision-making capabilities.
     
  • Universities and tech hubs are looking into AI accelerators and embedded NPUs for real-time robotics and smart diagnostic processing. Government-led innovation programs and public-private partnerships are helping to cultivate local AI skillsets. However, high hardware costs, limited access to semiconductor manufacturing, and an over-reliance on importation create issues, which have led to collaborations with global chipmakers and cloud providers that utilize hybrid deployments.
     
  • UAE market is poised for significant growth, projected to reach USD 310 million by 2034. The neural processor market in the U.A.E. is experiencing growth as the country speeds up implementation of its national AI strategy to become a global leader in AI by 2031. Investments in smart city initiatives such as NEOM, along with developments in autonomous transport, digital healthcare, and surveillance, will increase the demand for AI accelerators and edge computing solutions. Additionally, there is a push in the region towards data localization for reasons such as security and response time latency that has the potential to spur the growth of neural processors in edge devices and data centers.
     
  • In order to capture this opportunity, neural processor vendors should align themselves with government-led innovation programs and techno-political infrastructure projects. The emphasis should be on making processors designed for real time inference in challenging environments that maintain strong cybersecurity capabilities. Partnerships with regional cloud providers and system integrators will also be critical in developing scalable AI-ready solutions for the Middle Eastern market.
     

Neural Processor Market Share

  • The neural processor industry is highly competitive NVIDIA, Intel, AMD, Qualcomm, Google, and Samsung Electronics are the top 6 companies accounting for a significant share of 66% in the market in 2024. These possess a considerable share of the neural processor market due to their combined hardware-software ecosystems, proprietary acceleration stacks for AI, and considerable research and development investments in chip architecture. Their ability to cover the entire role of integrating hardware to a software stack allows them to provide established AI development tools and built global developer communities. These factors create significant barriers to entry. The industries commitment to edge AI, data center acceleration, and generative workloads along with a shared focus on performance benchmarks, scalability, and ecosystem lock-in serve to further cement their position as a pace lead in NRFI markets.
     
  • NVIDIA commanded 17% of the neural processor market share in 224, because of its market leadership with its CUDA and TensorRT platforms, with deep integration with AI frameworks, and continuous pace of innovation in GPU and NPU architectures. NVIDIA's strategic edge is its company-wide commitment to accelerated computing, AI supercomputing, and platforms like DGX and Grace Hopper, and a hardware-software ecosystem that is optimized for deep learning, high-throughput inference, and large language models. NVIDIA's inferencing leadership is exemplified through usage in data centers, autonomous systems and enterprise AI workloads.
     
  • Intel holded 14% of the global neural processor market in 2024, attributed to its broadening array of AI-enabled processors (Core Ultra and Xeon with integrated NPUs). The company continues to promote its OpenVINO toolkit and oneAPI framework to maximize compatibility and performance in edge and enterprise AI workloads. Its investments in hybrid architectures, on-device inferencing acceleration, and partner relationships with software and cloud suppliers reinforce its position in client computing and embedded AI workloads.
     
  • AMD commanded 13% of the market share, driven by its high-performance chiplet-based architecture and GPU accelerators with a focus on AI workloads. The company's current products include AI inference capabilities in its Ryzen and EPYC series targeting gaming, the data center and the edge. AMD's acquisition of Xilinx allowed it to expand the AI footprint even further into adaptive computing and embedded systems, with the added advantage of flexible deployment models and scaling of power-performance efficiency.
     
  • Qualcomm had 10% of the global neural processor market, driven by its poder in mobile AI related to Snapdragon chipsets that have integrated Hexagon NPUs provide fully integrated support for always-on AI subsystems in smartphones, XR devices and automotive ecosystems. Qualcomm's AI Engine delivers real-time on-device speech, vision, and language processing, while OEMs on Android and automotive applications are becoming key partners accelerating the scale. Qualcomm's primary differentiation is power-efficient AI acceleration for edge intelligence workflows.
     
  • Google had 7% of the global neural processor market share in 2024, attributed to its own Tensor Processing Units (TPUs) and Google Tensor SoCs. These chips are used for AI experiences in Pixel devices and run extensive training workloads in its data centers. Google's use of AI in Android, Search, and Cloud allows it to develop optimized software and hardware. Google is also a leader in many areas of AI in consumer and enterprise products because of its open-source development software such as TensorFlow and large generative AI models.
     
  • Samsung electronics holds roughly 5% of the global neural processor market in 2024, driven by the Exynos chipsets featuring built-in Neural Processing Units, which yield efficient execution of artificial intelligence (AI) tasks on-device. The NPUs are responsible for real-time tasks provided in the flagship Galaxy devices, like facial recognition, camera scene interpretation, and language translation. Samsung is vertically integrated from semiconductors to smartphones, which provides advantages for hardware software integration. Samsung’s efforts in next-gen AI chips in mobile, automotive, and IoT applications, and their partnerships on frameworks for AI, reinforce its competitive profile in edge AI.
     

Neural Processor Market Companies

List of prominent players operating in the neural processor industry include:

  • NVIDIA
  • Intel
  • AMD
  • Qualcomm
  • Google
  • Samsung Electronics
  • MediaTek
  • Amazon (AWS Inferentia & Trainium)
  • Graphcore
  • Cerebras Systems
  • Tenstorrent
  • Hailo
  • Syntiant
  • ARM
  • IBM
     
  • NVIDIA Corporation, Intel Corporation, Google LLC, Qualcomm Technologies Inc., and Samsung Electronics are leaders. They collectively possess substantial market share as a result of innovation and deployment at scale, as well as the unique synergy that stems from well-designed hardware and software together in the marketplace. The five companies also benefit from vertical integration, resource and investment, exceptionally well-funded R&D and the feeding networks of developers and ecosystems in their respective geographies, that now and going forward will provide them a continued competitive advantage as the demand for edge and cloud AI continues to ramp steadily upward and into the middle ground.
     
  • In the neural processor space, MediaTek, Amazon (AWS Inferentia & Trainium) currently sit in the challenger category. Each of the firms is actively trying to gain traction by addressing workloads specifically focused on AI, while employing differentiated architectural execution. By prioritizing energy efficiency, scalability, interoperability across ecosystems and when appropriate specifically implementing a chiplet architecture, AMD, Amazon and ARM are working to close the gap between these challenger firms and the leaders while extending wider consumption between cloud, edge and embedded AI consumption.
     
  • Graphcore, Cerebras Systems, Tenstorrent and IBM are followers in the neural processor market. Their respective business models are giving them good visibility by providing respective specialized, high-performance AI processor hardware to cutting-edge research and enterprise experimentation. Each of these company's approaches provide impressive levels of innovation and performance in the realm of hardware however, the size of their hardware footprints and capabilities, their niche customer bases, and the sheer scale of larger companies with complete stacks and more commercial size have given them a largely footnote size brand awareness in the market.
     
  • Hailo, Syntiant and ARM represent those niche players in the neural processor space focused on limited use cases and a specific performance profile. Hailo designs very efficient edge AI chips for computer vision applications in smart cameras, industrial automation and automotive applications, typically operating in low-power settings. Syntiant focuses on always-on speech and audio processing in wearables, earbuds and IoT devices, where latency and energy profile are large considerations. MediaTek is using its mobile SoCs strengths to add NPUs in mid-range smartphones that could use strong AI performance in the low-priced markets. These companies focus on solutions made for a more specific set of needs, and they do this while attempting to keep their solutions small, efficient and easy to integrate.
     

Neural Processor Industry News

  • In April 2024, Syntiant introduced its NDP250 Neural Decision Processor, powered by its next-gen Core 3 architecture. Delivering five times the tensor output of previous models—reaching over 30 GOPS-the NDP250 supports a wide range of low-power applications including vision, speech, sensor fusion, ASR, and TTS in the microwatt to milliwatt power range. Its features include an integrated Arm Cortex-M0 core, HiFi 3 DSP, multiple neural network support (CNNs, RNNs, LSTM, GRU), and robust sensor I/O interfaces, all packed into a compact eWLB package and accompanied by SDK and training tools. Its ultra-low power consumption-under 30 mW for always-on vision-enabling entirely on-device AI that boosts battery life, reduces latency and cloud costs, and enhances privacy.
     
  • In May 2025, Cadence launched the Tensilica NeuroEdge 130 AI Co-Processor, designed to work alongside NPUs and enable execution of modern “physical AI” networks on automotive, consumer, industrial, and mobile SoCs. Based on its Tensilica Vision DSP lineage, NeuroEdge 130 delivers over 30% area savings and reduces dynamic power consumption by more than 20% compared to earlier generations-while preserving performance. Its VLIW-SIMD architecture supports offloading non-MAC tasks (e.g., ReLU, sigmoid, tanh), serving as both an AI controller and efficient co-processor. Extensible compatibility with Cadence Neo NPUs and third-party IP allows seamless integration, and it comes with the unified NeuroWeave SDK built on the TVM stack, along with a standalone AI library for direct layer programming.
     

The neural processor market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue (USD billion) from 2021 – 2034 for the following segments:

Market, By Type

  • Application-specific integrated circuits (ASICs)
  • Graphics processing units (GPUs)
  • Field-programmable gate arrays (FPGAs)
  • Neural processing units (NPUs)
  • Digital signal processors (DSPs)

Market, By Technology Node

  • Above 16nm
  • 10nm–16nm
  • Below 10nm

Market, By Deployment Mode

  • Edge devices
  • Cloud data centers

Market, By Processing Precision

  • 32-bit
  • 16-bit
  • 8-bit and lower

Market, By Application

  • Natural language processing (NLP)
  • Computer vision
  • Predictive analytics
  • Speech recognition
  • Others

Market, By End Use Industry

  • Consumer electronics
    • Application-specific integrated circuits (ASICs)
    • Graphics processing units (GPUs)
    • Field-programmable gate arrays (FPGAs)
    • Neural processing units (NPUs)
    • Digital signal processors (DSPs)
  • Automotive
    • Application-specific integrated circuits (ASICs)
    • Graphics processing units (GPUs)
    • Field-programmable gate arrays (FPGAs)
    • Neural processing units (NPUs)
    • Digital signal processors (DSPs)
  • Healthcare
    • Application-specific integrated circuits (ASICs)
    • Graphics processing units (GPUs)
    • Field-programmable gate arrays (FPGAs)
    • Neural processing units (NPUs)
    • Digital signal processors (DSPs)
  • Robotics & drones
    • Application-specific integrated circuits (ASICs)
    • Graphics processing units (GPUs)
    • Field-programmable gate arrays (FPGAs)
    • Neural processing units (NPUs)
    • Digital signal processors (DSPs)
  • Industrial automation
    • Application-specific integrated circuits (ASICs)
    • Graphics processing units (GPUs)
    • Field-programmable gate arrays (FPGAs)
    • Neural processing units (NPUs)
    • Digital signal processors (DSPs)
  • Defense & aerospace
    • Application-specific integrated circuits (ASICs)
    • Graphics processing units (GPUs)
    • Field-programmable gate arrays (FPGAs)
    • Neural processing units (NPUs)
    • Digital signal processors (DSPs)
  • 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
    • South Korea
    • Rest of APAC
  • Latin America
    • Brazil
    • Mexico
    • Others
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • South Africa
    • Rest of MEA
Authors: Suraj Gujar , Alina Srivastava
Frequently Asked Question(FAQ) :
Who are the key players in the neural processor market?
Key players include NVIDIA, Intel, AMD, Qualcomm, Google, Samsung Electronics, MediaTek, Amazon (AWS Inferentia & Trainium), Graphcore, Cerebras Systems, Tenstorrent, Hailo, Syntiant, ARM, and IBM.
What are the upcoming trends in the neural processor industry?
Key trends include adoption of sub-5nm and 3D architectures, integration of unified AI compute platforms (NPU+GPU+CPU), expansion into healthcare and robotics, and rising demand for energy-efficient, edge AI chips.
What was the valuation of the U.S. neural processor market in 2024?
The U.S. market was valued at USD 623.6 million in 2024, driven by strong demand in cloud computing, consumer electronics, autonomous vehicles, and defense sectors.
What is the growth outlook for edge devices from 2025 to 2034?
Edge devices are projected to grow at a 26% CAGR through 2034, supported by demand for low-latency, privacy-first AI in autonomous vehicles, healthcare, and IoT.
What was the valuation of the cloud data centers deployment segment in 2024?
Cloud data centers held 64.6% market share and generated USD 1.8 billion in 2024, driven by hyperscaler and enterprise demand for large-scale AI training and inference.
How much revenue did the GPU segment generate in 2024?
The GPU segment was valued at USD 700 million in 2024, accounting for 25.2% market share.
What is the projected value of the neural processor market by 2034?
The market size for neural processor is expected to reach USD 27.3 billion by 2034, fueled by growth in edge AI, autonomous vehicles, and high-performance computing across cloud data centers.
What is the market size of the neural processor in 2024?
The market size was USD 2.9 billion in 2024, with a CAGR of 24.4% expected through 2034, driven by demand for real-time AI processing, on-device intelligence, and generative AI workloads.
What is the current neural processor market size in 2025?
The market size is projected to reach USD 3.8 billion in 2025.
Neural Processor Market Scope
  • Neural Processor Market Size
  • Neural Processor Market Trends
  • Neural Processor Market Analysis
  • Neural Processor Market Share
Authors: Suraj Gujar , Alina Srivastava
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Premium Report Details

Base Year: 2024

Companies covered: 16

Tables & Figures: 600

Countries covered: 19

Pages: 180

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