Artificial Intelligence (AI) Chipsets Market

Global Artificial Intelligence (AI) Chipsets Market Size, Share & Trends Analysis Report By Computing Technology, By Function (Inference and Training), By Chipset Type (GPU, CPU, FPGA, ASIC, and Others), By Vertical, By Regional Outlook and Forecast, 2024 - 2031

Report Id: KBV-23334 Publication Date: July-2024 Number of Pages: 323
USD 37 Billion
USD 278 Billion
Historical Data
2020 to 2022

Market Report Description

The Global Artificial Intelligence (AI) Chipsets Market size is expected to reach $278 billion by 2031, rising at a market growth of 29.4% CAGR during the forecast period.

Retailers and e-commerce platforms leverage AI chipsets to provide personalized shopping experiences to customers. AI-driven recommendation engines analyze customer data, purchase history, and browsing behavior to offer tailored product recommendations, promotions, and offers. Consequently, the retail & e-commerce segment would acquire nearly 11% of the total market share by 2031. personalizing the shopping experience, retailers and e-commerce platforms can increase customer engagement, satisfaction, and conversion rates.

Artificial Intelligence (AI) Chipsets Market Size - Global Opportunities and Trends Analysis Report 2020-2031

Cloud-based AI services, offered by major cloud service providers like Microsoft Azure, Amazon Web Services (AWS), and Google Cloud Platform, provide access to vast computational resources for training and deploying AI models. Cloud-based AI services support various AI workloads, including training, inference, natural language processing, computer vision, and speech recognition. Therefore, expansion of cloud-based AI services is driving the growth of the market. Additionally, Edge computing reduces latency and permits real-time decision-making by allowing data processing and analysis closer to the data source or endpoint device. Similarly, edge computing enables AI-driven applications to operate autonomously and independently of internet connectivity, ensuring continuity and resilience in offline or low-connectivity environments. Thus, the proliferation of edge computing is propelling the market's growth.

However, Developing AI chipsets requires substantial investment in research and development (R&D) activities. This includes designing and testing new chip architectures, algorithms, and hardware components tailored to AI workloads. Likewise, prototyping and testing AI chipsets involve multiple iterations of design refinement, simulation, and validation to ensure performance, reliability, and compatibility with AI algorithms and applications. Therefore, high development costs are hindering the growth of the market.

Artificial Intelligence (AI) Chipsets Market Share 2023

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.

Driving and Restraining Factors
Artificial Intelligence (AI) Chipsets Market
  • Expansion of cloud-based AI services
  • Proliferation of edge computing
  • Rapid adoption of AI technologies
  • High development costs
  • Complexity and integration challenges
  • Government initiatives and funding
  • Focus on energy efficiency and performance
  • Data privacy and security concerns
  • Limited availability of skilled talent

Computing Technology Outlook

By computing technology, the market is bifurcated into cloud computing and edge computing. The edge computing segment acquired 37.2% revenue share in the market in 2023. Edge computing brings computing resources closer to the location where data is generated (i.e., at the edge of the network), minimizing latency. This is critical for AI applications that require real-time or near-real-time processing, such as autonomous vehicles, industrial automation, and augmented reality/virtual reality (AR/VR) experiences.

Function Outlook

Based on function, the market is segmented into inference and training. In 2023, the training segment held 42.4% revenue share in the market. Deep learning algorithms, such as convolutional neural networks (CNNs) and recurrent neural networks (RNNs), are widely used in AI for tasks like image and speech recognition, natural language processing, and autonomous driving.

Artificial Intelligence (AI) Chipsets Market Share and Industry Analysis Report 2023

Chipset Type Outlook

Based on chipset type, the market is divided into FPGA, ASIC, CPU, and GPU. The CPU segment attained 23.3% revenue share in the market in 2023. CPUs are widely used for general-purpose computing tasks in AI applications, including data preprocessing, feature extraction, and post-processing tasks. While specialized AI accelerators such as GPUs and TPUs excel in parallel processing and AI-specific workloads, CPUs offer versatility and compatibility with various software frameworks and programming languages, making them essential for running AI algorithms in diverse computing environments.

Vertical Outlookk

On the basis of vertical, the market is segmented into consumer electronics, BFSI, manufacturing, government, retail & e-commerce, healthcare, automotive, marketing, and others. The automotive segment acquired 17.6% revenue share in the market in 2023. The development of autonomous vehicles relies heavily on AI technologies to perceive the environment, make real-time decisions, and navigate safely. AI chipsets power the perception systems, sensor fusion algorithms, and decision-making modules in autonomous vehicles.

Free Valuable Insights: Global Artificial Intelligence (AI) Chipsets Market size to reach USD 278 Billion by 2031

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 39.2% revenue share in the market in 2023. North America is a global center for technical innovation and entrepreneurship, especially in Silicon Valley, the United States. The region is home to many leading AI chip manufacturers, technology giants, startups, research institutions, and venture capital firms that drive innovation and investment in AI hardware technologies.

Artificial Intelligence (AI) Chipsets Market Report Coverage
Report Attribute Details
Market size value in 2023 USD 37 Billion
Market size forecast in 2031 USD 278 Billion
Base Year 2023
Historical Period 2020 to 2022
Forecast Period 2024 to 2031
Revenue Growth Rate CAGR of 29.4% from 2024 to 2031
Number of Pages 323
Number of Tables 490
Report coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives
Segments covered Computing Technology, Function, Chipset Type, Vertical, Region
Country scope
  • North America (US, Canada, Mexico, and Rest of North America)
  • Europe (Germany, UK, France, Russia, Spain, Italy, and Rest of Europe)
  • Asia Pacific (China, Japan, India, South Korea, Taiwan, Malaysia, and Rest of Asia Pacific)
  • LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA)
Companies Included Intel Corporation, NVIDIA Corporation, IBM Corporation, Micron Technology, Inc., Qualcomm Incorporated (Qualcomm Technologies, Inc.), Samsung Electronics Co., Ltd. (Samsung Group), Apple, Inc., Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Texas Instruments, Inc. and NXP Semiconductors N.V.
Need a report that reflects how COVID-19 has impacted this market and its growth? Download Free Sample Now

List of Key Companies Profiled

  • Intel Corporation
  • NVIDIA Corporation
  • IBM Corporation
  • Micron Technology, Inc.
  • Qualcomm Incorporated (Qualcomm Technologies, Inc.)
  • Samsung Electronics Co., Ltd. (Samsung Group)
  • Apple, Inc.
  • Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
  • Texas Instruments, Inc.
  • NXP Semiconductors N.V.

Artificial Intelligence (AI) Chipsets Market Report Segmentation

By Computing Technology

  • Cloud Computing
  • Edge Computing

By Function

  • Inference
  • Training

By Chipset Type

  • GPU
  • CPU
  • FPGA
  • ASIC
  • Others

By Vertical

  • Consumer Electronics
  • Automotive
  • Healthcare
  • Manufacturing
  • Retail & E-Commerce
  • BFSI
  • Marketing
  • Others

By Geography

  • North America
    • US
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Taiwan
    • Malaysia
    • Rest of Asia Pacific
    • Brazil
    • Argentina
    • UAE
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of LAMEA


Call: +1(646) 600-5072


  • Buy Sections of This Report
  • Buy Country Level Reports
  • Request for Historical Data
  • Discounts Available for Start-Ups & Universities

Unique Offerings Unique Offerings

  • Exhaustive coverage
  • The highest number of Market tables and figures
  • Subscription-based model available
  • Guaranteed best price
  • Support with 10% customization free after sale

Trusted by over
5000+ clients

Our team of dedicated experts can provide you with attractive expansion opportunities for your business.

Client Logo