AI Chipsets Market worth over $70bn by 2026
Published Date: March 30, 2020 Authors: Preeti Wadhwani, Shubhangi Yadav
AI Chipsets Market size is set to surpass USD 70 billion by 2026, according to a new research report by Global Market Insights, Inc.
The growing adoption of robotics for general purpose, military & defense, industrial applications, and household worldwide will accelerate opportunities for the AI chipsets market growth. The AI chips used in robotics help in real-time course correction for complex manufacturing sectors such as aerospace. Furthermore, robots integrated with AI chips deliver lower cost, more accurate, and quicker packaging options, leading to increase in adoption of robotics in industries, driving the market revenue.
ASIC is gaining market traction due to rising investment by industry leaders
The ASIC product segment is set to witness a growth rate of nearly 45% in the AI chipsets market during the forecast period. The growth is attributed to increasing focus of market leaders, such as Facebook, Amazon, and Google, on creating their own AI chips and improving the computing efficiency.
For instance, Google’s Tensor Processing Units (TPUs) uses ASICs for machine learning, which is optimized to run open source machine learning software. These ASICs can be used to address very specific and narrow functions and handle the workload in a parallel manner for both cloud as well as edge applications. Amazon is working on building ASIC-based AI chipset in order to power its Alexa home assistance.
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Surging demand for Edge AI for storage processing in real-time applications is driving the market growth
The edge computing segment is expected to contribute significantly to the AI chipsets market through 2026, rapidly growing at over 40%. The market growth can be credited to its feature to run without any cloud connection through AI chipsets processing on edge.
The edge AI offers various benefits, such as running AI processing on device itself instead of remote server, and it also offers speed of processing and privacy. The edge AI has found a wide range of applications by bringing the intelligence to the device such as virtual reality, video monitoring, autonomous vehicles, unmanned aerial vehicle, and others in the global market.
Browse key industry insights spread across 250 pages with 245 market data tables and 36 figures & charts from the report, “Artificial Intelligence (AI) Chipsets Market Size By Product (Graphics Processing Unit (GPU), Application Specific Integrated Circuit (ASIC), Central Processing Unit (CPU), Field-Programmable Gate Array (FPGA), By Technology (Natural Language Processing (NLP), Robotic Process Automation (RPA), Computer Vision, Network Security), By Processing Type (Edge, Cloud), By Industry Vertical (Media & Advertising, Consumer Electronics, BFSI, IT & Telecom, Retail, Healthcare, Automotive), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Growing adoption of 5G technology will propel the demand for AI chipsets in the IT & Telecom sector
The IT &Telecom sector will create significant market opportunity majorly due to rising adoption of 5G technology worldwide. The AI chipsets are capable of structuring and analyzing large volumes of data, creating growth opportunities in the telecom industry. This helps in the enhancement of network infrastructure of 5G technology to deliver high-performance and capacity function.
Surging demand for face recognition system is proliferating the demand for computer vision in the AI chipsets market
The computer vision segment accounted for over 40% market share in 2019 and will witness a substantial growth from 2020 to 2026 owing to increasing adoption of face recognition systems in smartphones.
Also, the advent of deep learning with computer vision will deliver low latency and private deep learning interface, fueling the market growth. Moreover, the research & development intuitive by companies has expanded the adoption of facial recognition system in several other industries.
Increasing penetration of data centers is laying a significant impact on North America Region
North America AI chipsets market accounted for 35% revenue share in 2019 and is predicted to exhibit around 38% CAGR till 2026. The region is characterized by consumers with high purchasing power, developed infrastructure, and inclination toward intelligent devices.
Also, continuous research & development activities in cyber security, autonomous vehicles, and smart wearables are expected to fuel the growth of the market. Business sectors including retail, banking, and telecom are employing huge amounts of data to boost their business operations, thereby, companies are focusing on increasing the data centers in the region, creating market opportunities.
Some of the key players in the market include Advanced Micro Devices, Inc, Amazon Web Services (AWS), Baidu, Inc., Google, Intel Corporation, Xilinx, Microsoft, and Nvidia. The AI chipset startup includes Adapteva, Inc., AIBrain Inc, BitMain Technologies Holding Company, Graphcore Ltd., Horizon Robotics, and ThinkForce.
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