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AI Chipsets Market size to surpass $400 Bn by 2032

  • Published Date: February 21, 2023

Artificial Intelligence (AI) Chipsets Market size is expected to cross USD 400 billion by 2032, according to a recent research report announced by Global Market Insights Inc.

The introduction of new policies and standards to improve passenger and vehicle safety should boost the demand for AI-driven solutions like advanced driver assistance systems (ADAS) in the automotive sector. Governments and lawmakers are mandating the use of automotive safety features to improve passenger safety.

Partnerships between automakers and vehicle part suppliers over safety features should support the expansion of the AI chipset market. In February 2023, automotive supplier Valeo and BMW partnered to work on advanced ADAS domain controllers, software for parking, and sensors.

Expanding gaming sector to influence GPU demand

AI chipsets market share from the GPU segment is anticipated to witness over 30% CAGR between 2023 and 2032. The advent of AR and VR technologies in the gaming sector as well as the use of integrated GPUs in portable electronics is expected to fuel this growth. Leading chip manufacturers are looking to tap into the gaming sector by means of launching new AI chipsets and GPUs.

Expansion of data center infrastructure

The cloud processing segment is anticipated to account for over 25% share of the AI chipsets market by 2032. A variety of industries, including BFSI, IT, and communications are depending on data centers to satisfy workload requirements and security compliance. It is estimated that rising sales of cloud computing servers could drive the demand for AI chipsets in the coming years. The evolving need to accelerate the speed of memory access could also influence market expansion.

Browse key industry insights spread across 230 pages with 301 market data tables and 42 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), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2018 – 2032” , in detail along with the table of contents:

Increasing requirement for data encryption in the IT & telecom sector

The IT & telecom sector is expected to account for more than 10% share of the global AI chipsets market share by 2032. The transition to digital networks in the telecom sector has widened the application scope of AI chipsets. Emerging demand for 5G networks and the upgradation of existing telecom infrastructure have driven the deployment of AI technology. The pressing need for strong data encryption techniques for end-user interface and data confidentiality could stimulate market growth from the IT & telecom domain.

Rising use of smart wearables across North America

The North America AI chipsets market is expected to record a 35% CAGR during the forecast period of 2023-2032. Growing consumer preference for smart appliances and devices has offered a boost to the AI chipset market in North America. The region is home to some of the leading IT and semiconductor chip manufacturing companies worldwide.

Companies are actively engaged in R&D (research and development) activities for developing chips for smart wearable devices. Evolving trend of smart wearables and the addition of advanced health monitoring features in smartwatches would offer a boost to the demand for AI chipsets. As per a survey by Ericson, 43% of people believe that wearables will soon replace smartphones, while 40% of smartwatch users are already interacting less with their smartphones.

Technological innovations in AI chipset technology

NVIDIA, Advanced Micro Devices, Micron Technology, Qualcomm Technologies, Microsoft, Broadcom Limited, Google, IBM, and Samsung Electronics are the leading companies in the global AI chipsets market. To maintain a competitive edge over related firms, companies are concentrating on innovative R&D activities. For example, in May 2022, MediaTek introduced the Dimensity 1050 SoC, a mmWave 5G chipset that will enable modern 5G devices to offer improved connection, displays, gaming, and power efficiency. The processor offers unparalleled speeds and capacity necessary to give smartphone consumers an exclusive experience with the aid of dual connection.

Authors: Preeti Wadhwani, Aayush Jain

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