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Artificial Intelligence Chips Market Size 2025-2029

The artificial intelligence (AI) chips market size is forecast to increase by USD 902.65 billion, at a CAGR of 81.2% between 2024 and 2029. The market is experiencing significant growth, driven by the increasing demand for advanced AI capabilities in consumer electronics, particularly in smartphones.

Major Market Trends & Insights

North America dominated the market and accounted for a 42% share in 2023.
The market is expected to grow significantly in Europe region as well over the forecast period.
Based on the Product, the ASIC's segment led the market and was valued at USD 10.49 billion of the global revenue in 2023.
Based on the End-user, the media and advertising segment accounted for the largest market revenue share in 2023.

Market Size & Forecast

Market Opportunities: USD 48.69 Billion
Future Opportunities: USD 902.65 Billion
CAGR (2024-2029): 81.2%
North America: Largest market in 2023

This growth is fueled by the integration of AI in various sectors, including data center infrastructure, edge AI processing, and natural language processing. Moreover, the ongoing development of AI model optimization, hardware security modules, and real-time processing is leading to advancements in AI chip architecture. These innovations enable better clock speed performance, system-on-a-chip design, and power efficiency metrics, making AI chips increasingly attractive for low latency applications. Additionally, the silicon fabrication process is undergoing significant improvements, with a focus on cryptographic acceleration, thermal management design, and chip packaging technology. These advancements will lead to more secure and efficient AI chips, further boosting the market's growth potential.

What will be the Size of the Artificial Intelligence (AI) Chips Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, driven by the insatiable demand for more powerful and energy-efficient solutions. Companies are investing heavily in research and development to create chips that can handle high-bandwidth memory, computer vision, and high-throughput computing. For instance, a leading semiconductor manufacturer recently announced a 50% increase in sales for its AI inference engine, which utilizes a tensor processing unit and an on-chip memory system for efficient data processing. The GPUs segment is the second largest segment of the product and was valued at USD 9.87 billion in 2023.

For example, a leading cloud computing platform has integrated a secure boot process and a neural network accelerator into its AI chip architecture, enabling faster and more secure AI inference. This innovation is expected to significantly reduce the latency associated with AI model deployment and improve overall system performance. In conclusion, the AI chips market is a dynamic and evolving landscape, with ongoing innovations in energy-efficient design, high-bandwidth memory, computer vision chip, high-throughput computing, and other areas driving growth and expansion. Companies that can successfully navigate this complex and rapidly changing market will be well-positioned to capitalize on the opportunities it presents.

The convergence of AI and Internet of Things (IoT) technologies is also fueling market expansion, as more devices require AI processing capabilities to analyze and respond to data in real-time. However, the market faces a notable challenge: the dearth of technically skilled workers specialized in AI chips development. This shortage may hinder market growth and necessitates strategic partnerships and collaborations between industry players to overcome this obstacle.

Companies seeking to capitalize on the opportunities presented by the AI Chips Market must focus on attracting and retaining top talent while collaborating to address the skills gap. By doing so, they can effectively navigate the competitive landscape and stay ahead of emerging trends.

How is this Artificial Intelligence (AI) Chips Industry segmented?

The artificial intelligence (AI) chips industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  ASICs
  GPUs
  CPUs
  FPGAs


End-user

  Media and advertising
  BFSI
  IT and telecommunication
  Others


Processing Type

  Edge
  Cloud


Application

  Nature language processing (NLP)
  Robotics
  Computer vision
  Network security
  Others


Technology

  System on chip (SoC)
  System in package (SiP)
  Multi chip module (MCM)
  Others


Function

  Training
  Inference


Geography

  North America

    US

The artificial intelligence (AI) chip market is experiencing rapid growth, with projections indicating it will reach close to ** billion U.S. dollars by 2025. This surge reflects the increasing demand for AI technologies across various industries. The market's expansion is driven by advancements in machine learning, deep learning, and generative AI applications, which are reshaping how businesses operate and interact with customers. Nvidia leads the AI chip race Nvidia has emerged as a dominant player in the AI chip market, with its data center revenue skyrocketing in its 2025 fiscal year. The company's graphics processing units (GPUs) are crucial for training and running large language models, including OpenAI's ChatGPT. Nvidia's success helped propel it into the exclusive tech three trillion club, alongside industry giants like Apple and Microsoft. GPU market growth and AI applications The global GPU market, valued at **** billion U.S. dollars in 2024, has caught much of the world’s attention. This growth is largely fueled by the expanding AI market, particularly in machine learning and deep learning applications. The generative AI market is also contributing significantly, with projections suggesting it will reach surpass *** billion U.S. dollars by 2030. These trends underscore the increasing importance of AI chips in powering next-generation technologies and applications.

The AI chip market size is projected to grow from USD 31.6 billion in the current year to USD 846.85 billion by 2035, representing a CAGR of 34.84%, during the forecast period till 2035

The Artificial Intelligence (AI) Chip Market was valued at USD 52.92 Bn in 2024, and it is projected to reach USD 295.56 Bn by 2030 with the CAGR of 33.2%.

The artificial intelligence (chipset) market is projected to be valued at US$ 27.6 billion in 2024. It is expected to rise to US$ 287.0 billion by 2034. The demand for artificial intelligence chipsets is expected to grow at a CAGR of 26.4% over the forecast period.

Attributes	Key Statistics
Artificial Intelligence (Chipset) Market Value (2024)	US$ 27.6 billion
Anticipated Forecast Value (2034)	US$ 287.0 billion
Estimated CAGR (2024 to 2034)	26.4%

Category-wise Insights

Attributes	Details
Top Chip Type	CPU
CAGR (2024 to 2034)	26.2%

Attributes	Details
Top Workload Domain	Training
CAGR (2024 to 2034)	25.9%

Country-wise Insights

Countries	CAGR (2024 to 2034)
United States	26.5%
United Kingdom	28.0%
China	27.2%
Japan	28.2%
South Korea	27.6%

Artificial Intelligence Chip Market size was valued at USD 30.96 Billion in 2023 and is projected to reach USD 504.01 Billion by 2031, growing at a CAGR of 46.03% during the forecast period 2024-2031.

Artificial Intelligence Chip Market: Definition/ Overview

An Artificial Intelligence (AI) chip is a specialized hardware component designed to efficiently perform tasks related to artificial intelligence, such as machine learning, natural language processing, and computer vision. These chips are engineered to handle complex computations, enabling faster execution of AI algorithms compared to traditional processors. They include various types, such as Graphics Processing Units (GPUs), Application-Specific Integrated Circuits (ASICs), and Field-Programmable Gate Arrays (FPGAs), each optimized for specific AI workloads. By utilizing parallel processing capabilities, AI chips significantly enhance the performance and efficiency of AI applications.

Global artificial intelligence chip market to reach $164.07 billion by 2029 at 41.6% CAGR, driven by growing demand for smart homes, cities, and intelligent devices.

Edge Artificial Intelligence Chips Market is Segmented by Chipset (CPU, GPU, ASIC, FPGA, and Neuromorphic), Device Category (Consumer Devices, and Enterprise/Industrial Devices), End-User Industry (Manufacturing and Industrial 4. 0, Automotive and Transportation, and More), Process Node (≥14 Nm, 7-10 Nm, and ≤5 Nm), and Geography (North America, South America, Europe, Asia-Pacific, and Middle East and Africa).

Edge Artificial Intelligence (AI) Chip Market Outlook

The global market size for Edge Artificial Intelligence (AI) Chips was estimated at USD 3.8 billion in 2023 and is projected to reach USD 18.7 billion by 2032, reflecting a compound annual growth rate (CAGR) of 19.6% during the forecast period. This remarkable growth is driven by the increasing demand for real-time processing capabilities, the proliferation of IoT devices, and the need for efficient and low-latency data processing at the edge.

One of the primary growth factors in the edge AI chip market is the rising need for real-time data processing and analytics. Traditional cloud computing models, while powerful, often introduce latency that is unacceptable for applications requiring immediate decision-making. Edge AI chips bring computational power closer to the data source, enabling faster data processing and reduced latency. This is particularly crucial for applications in healthcare, autonomous driving, and industrial automation where split-second decisions are critical.

Another significant growth driver is the exponential increase in connected devices, commonly referred to as the Internet of Things (IoT). As IoT devices continue to proliferate globally, the volume of data generated at the edge of networks is skyrocketing. Edge AI chips are uniquely positioned to handle this influx by enabling localized data processing, reducing the need for bandwidth, and alleviating the load on centralized data centers. This capability not only enhances efficiency but also supports the scalability of IoT ecosystems.

The advancements in AI technologies and algorithms are further propelling the market. Today's edge AI chips are equipped with sophisticated machine learning and deep learning capabilities, enabling them to perform complex tasks such as image and speech recognition, anomaly detection, and predictive maintenance. These advancements are opening up new possibilities across various sectors, from healthcare diagnostics to smart retail solutions, thereby expanding the market's potential.

Regionally, North America is expected to dominate the edge AI chip market, owing to the presence of major technology companies, substantial R&D investments, and early adoption of advanced technologies. Europe and Asia Pacific are also significant markets, with Asia Pacific anticipated to witness the fastest growth. This is driven by rapid industrialization, the growing implementation of smart city projects, and increasing investments in AI and IoT technologies in countries like China, Japan, and South Korea.

Component Analysis

The edge AI chip market is segmented by component into hardware, software, and services. Hardware components, including processors, accelerators, and memory modules, constitute the backbone of edge AI solutions. These hardware components are essential for performing intensive computations directly at the source of data generation. The evolution of specialized AI processors, such as neural processing units (NPUs) and tensor processing units (TPUs), has significantly enhanced the performance and efficiency of edge AI systems.

Software plays a pivotal role in the functionality and versatility of edge AI chips. This segment encompasses AI frameworks, development kits, and runtime environments that enable developers to design, train, and deploy AI models on edge devices. The continual evolution of AI software, with improvements in algorithms and support for a wide range of hardware platforms, is critical for unlocking the full potential of edge AI technology. Additionally, software solutions often incorporate features for model optimization, energy efficiency, and security, which are paramount for edge deployments.

The services component includes consulting, integration, and maintenance services that facilitate the deployment and operation of edge AI solutions. As organizations adopt edge AI technologies, the need for expert guidance and support becomes essential. Service providers offer bespoke solutions tailored to the specific needs of different industries, ensuring seamless integration with existing systems and workflows. Moreover, ongoing maintenance services are vital for optimizing performance, ensuring reliability, and addressing any technical issues that may arise.

The synergy between hardware, software, and services is crucial for the successful deployment of edge AI solutions. Hardware advancements provide the necessary computational power, software optimizes performance and functionality, and services en

AI Chip Market is projected to reach USD 501.97 billion by 2033, growing at a CAGR of 35.50% from 2025-2033.

Artificial Intelligence Chip Market Report, size , Growth, Industry analysis by Technology, By Hardware, By Industry & Forecast, 2020-2027

Edge Artificial Intelligence Chips Market size was valued at USD 1.72 Billion in 2024 and is projected to reach USD 2.05 Billion by 2032, growing at a CAGR of 2.27% during the forecast period 2026-2032.

The market for Edge Artificial Intelligence (AI) Chips is experiencing significant expansion due to many influential reasons. The market expansion is being driven by the widespread adoption of edge computing applications in many industries, such as IoT devices, autonomous vehicles, smart cities, and industrial automation. Edge AI chips have benefits such as minimal delay, real-time processing capabilities, and energy efficiency, making them crucial components for edge computing devices that necessitate on-device AI inference and decision-making. Furthermore, the progress in AI algorithms, deep learning models, and neural network architectures is fueling the need for dedicated AI processors that are specifically designed for edge computing activities, including image recognition, natural language processing, and sensor data analysis. Moreover, the growing amount of data produced at the periphery, along with the requirement for confidentiality, protection, and control over data, is propelling the acceptance of edge AI chips for on-site data processing and analysis. Furthermore, the increasing utilization of edge AI solutions in new sectors such as augmented reality, virtual assistants, and smart surveillance systems is generating prospects for market growth in the Edge Artificial Intelligence Chips Market.

Artificial Intelligence Chip Market is expected to grow at a CAGR of 25.12% during the forecast period 2024-2031 | DataM Intelligence

North America Artificial Intelligence Chip market size will be USD 8633.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 37.7% from 2024 to 2031. North America has emerged as a prominent participant, and its sales revenue is estimated to reach USD 85653.0 Million by 2031. This growth is mainly attributed to the region's growing government innitiativs.

Check out Market Research Intellect's Artificial Intelligence Chips Market Report, valued at USD 15.5 billion in 2024, with a projected growth to USD 50.2 billion by 2033 at a CAGR of 14.5% (2026-2033).

Global Edge Artificial Intelligence Chips market size is expected to reach $13.83 billion by 2029 at 18.2%, segmented as by central processing unit (cpu), multi-core cpus, high-performance cpus

Artificial Intelligence Chips Market Outlook

The global Artificial Intelligence (AI) chips market size is projected to grow from USD 12.5 billion in 2023 to an astounding USD 95 billion by 2032, registering a compound annual growth rate (CAGR) of 25.5% during the forecast period. This rapid growth can be attributed to the increasing adoption of AI across various industries, driven by advancements in machine learning, deep learning algorithms, and the exponential rise in data generation. The demand for high-performance computing and efficient data processing capabilities is pushing the development and deployment of AI chips, essential components for enabling sophisticated AI functionalities.

One of the primary growth factors for the AI chips market is the escalating use of AI technologies in the healthcare sector. AI-driven diagnostics, personalized treatment plans, and predictive analytics are revolutionizing patient care and management. AI chips are the backbone of these innovations, providing the required computational power to process vast amounts of medical data swiftly and accurately. Additionally, the rise of telemedicine, particularly post the COVID-19 pandemic, has further accelerated the need for robust AI-backed solutions, thereby boosting the demand for AI chips.

Another significant growth driver is the proliferation of AI in the automotive industry. Autonomous vehicles and advanced driver-assistance systems (ADAS) rely heavily on AI to ensure safety, efficiency, and enhanced user experience. AI chips are integral to processing the massive data from sensors, cameras, and other components in real-time, enabling the vehicle to make informed decisions. Furthermore, the push towards electric vehicles (EVs) and the integration of AI to optimize battery performance and energy management are additional catalysts for the AI chips market.

The finance sector is also a substantial contributor to the marketÂ’s growth. AI is being extensively used for fraud detection, algorithmic trading, risk management, and customer service automation. AI chips enable financial institutions to analyze transaction data at lightning speed, identify anomalies, and make real-time decisions. The transition to digital banking and the increasing adoption of blockchain technology further underscore the need for advanced AI chip solutions to enhance security and operational efficiency.

The gaming industry is another sector experiencing a transformative impact from Artificial Intelligence in Video Games. AI is being leveraged to create more immersive and dynamic gaming experiences, where non-player characters (NPCs) can learn and adapt to players' strategies, providing a more challenging and engaging gameplay. The integration of AI chips in gaming consoles and PCs enhances the processing power required for real-time decision-making and complex simulations. This advancement not only improves the gaming experience but also opens up new possibilities for game design and storytelling, making AI a critical component in the future of video games.

Regionally, North America currently dominates the AI chips market, driven by the presence of major tech giants, substantial R&D investments, and a supportive regulatory environment. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period, propelled by rapid technological advancements, increasing AI adoption across various sectors, and government initiatives promoting digital transformation. Countries like China, Japan, and South Korea are at the forefront of AI research and development, significantly contributing to the regional market expansion.

Chip Type Analysis

The AI chips market can be segmented by chip type into GPU, ASIC, FPGA, CPU, and others. Graphics Processing Units (GPUs) are renowned for their parallel processing capabilities, making them highly suitable for training deep learning models. Companies like NVIDIA have been at the forefront, innovating GPUs that cater specifically to AI applications. GPUs are favored in data centers and research institutions due to their flexibility and high computation power, which are essential for handling complex AI tasks.

Application-Specific Integrated Circuits (ASICs) offer another significant segment. These chips are customized for specific AI applications, providing high efficiency and performance for particular tasks. GoogleÂ’s Tensor Processing Unit (TPU) is

Asia Pacific Artificial Intelligence Chip market USD 4964.37 million in 2024 and will grow at a compound annual growth rate (CAGR) of 41.5% from 2024 to 2031. Rising investments in Al technology is expected to aid the sales to USD 56806.2 million by 2031

The Global Artificial Intelligence Chip Market size was valued at USD 15.23 billion in 2022 & is estimated to grow at a CAGR of around 37.89% during the forecast period 2023-28. NVIDIA Corporation, Intel Corporation, QUALCOMM Technologies are top companies.

Explore global AI chip market trends, forecasts & growth drivers. Insightful analysis for investors, OEMs & tech leaders in AI semiconductors.