AI Chip Market Introduction & Overview

Artificial intelligence chips are the latest trends in the world of computing. They are set to transform the field of computing with their impressive processing speeds. They are more valuable now as they are being utilized in most areas such as self-driving vehicles, smartphones, among others. There has been an exponential growth in conventional neural network areas. Through 2017, VC's had increased investments in AI chip start-ups, hitting nearly USD 1 billion by 2019. Graphcore received USD 200 million led by Microsoft and BMW while others, such as Mythia Inc and Computing, raised millions in funding. Some major firms such as Qualcomm, Nvidia, and AMD have all joined this category at the moment. Currently, firms such as Cornami, Graphcore, Flex Logix, and Effinix are involved in AI startups.

 The AI chip market is driven by factors such as the increasing implementation of AI in robotics and the emergence of quantum computing. Also, the emergence of autonomous robots that autonomously develop and controls themselves is likely to further provide growth opportunities for the AI chip market. The new Eyeriss AI chip provides large-scale computing and has 10–10000 times greater performance. The chip is versatile for utilize in customized applications. This is based and designed for utilization in Field-Programmable Gate Arrays (FPGA) and Application-Specific Integrated Circuits (ASIC). Capabilities of AI chip, such as higher efficiency, the flexibility of adapting to different applications, and faster predictive analysis, and query processing, are boosting the market growth.

The dearth of skilled workforce is likely to restrain the market growth. AI chips take over most of the functions, such as testing, bug fixing, cloud implementation, among others. However, the delivery of these functions lacks essential skillsets.

The global AI chip market can be segmented into chip type, technology, processing type, application, industry vertical, and region.

AI Chip Market By Chip Type

Based on the chip type, the market can be segmented into GPU, ASIC, FPGA, CPU, and others. The GPU segment is expected to grow at the highest CAGR owing to increasing utilization in applications, such as data centers and autonomous cars, as this model consumes less data center infrastructure and less time to train the neural networks.

AI Chip Market By Processing Type

Based on the processing type, the market can be classified into edge and cloud. The edge segment is expected to grow at the highest CAGR during the forecast period. It allows running AI processing on a device itself, rather than on a remote server, which offers great privacy advantages and efficiency when managing such requests.

 AI Chip Market By Industry Vertical

Based on the industry vertical, the market can be classified into automotive & transportation, healthcare, Banking, Financial Services and Insurance (BFSI), IT & telecom, media & advertising, semiconductor & electronics, aerospace & defense, retail, and others. The automotive & transportation industry vertical is expected to grow at the highest CAGR owing to factors such as time and cost benefits, and the increasing adoption of AI chip in electric vehicles.

AI Chip Market By Region

Based on the region, the market can be segmented into North America, Europe, Asia-Pacific, and the Rest of the World (ROW). Asia Pacific dominated the global AI chip market and is expected to grow at the highest CAGR owing to the increasing adoption of gadgets such as wearable devices, adoption of electric vehicles, and increasing utilization of smartphones, among others. Also, the increasing adoption of AI across various industry verticals, such as automotive & transportation, media & advertising, healthcare, among others, is supplementing the growth of the AI chip market.

AI Chip Market Prominent Players

Some of the key players operating in the AI chip market include Advanced Micro Devices, Inc, Intel Corporation, NVIDIA Corporation, Xilinx, IBM, Qualcomm Technologies, Inc., Alphabet Inc., Huawei Technologies Co., Ltd., SAMSUNG, and others.