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Artificial Intelligence (AI) Chips Market Size 2025-2029

The artificial intelligence (AI) chips market size is valued to increase by USD 902.65 billion, at a CAGR of 81.2% from 2024 to 2029. Increased focus on developing AI chips for smartphones will drive the artificial intelligence (ai) chips market.

Major Market Trends & Insights

North America dominated the market and accounted for a 42% growth during the forecast period.
By Product - ASICs segment was valued at USD 4.73 billion in 2023
By End-user - Media and advertising segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 6.00 million
Market Future Opportunities: USD 902649.30 million
CAGR from 2024 to 2029 : 81.2%

Market Summary

The market is experiencing significant growth, with global revenue projected to reach USD30 billion by 2026, according to a recent study. This expansion is driven by the increasing demand for more efficient and powerful AI solutions, particularly in sectors such as healthcare, finance, and manufacturing. The convergence of AI and the Internet of Things (IoT) is a key trend fueling market growth. As more devices become connected and require AI capabilities, the demand for specialized chips to handle complex computations increases. However, this growth comes with challenges. The dearth of technically skilled workers in AI chips development poses a significant hurdle for companies seeking to innovate and stay competitive.
Despite these challenges, the future of the AI Chips Market looks bright. Companies are investing heavily in research and development to create chips specifically designed for AI applications. For instance, Intel and Google have announced plans to release new AI-focused chips in the near future. These advancements are expected to lead to even more powerful and efficient AI solutions, further driving market growth. In conclusion, the AI Chips Market is poised for significant expansion, fueled by increasing demand for AI solutions and the convergence of AI and IoT. However, the lack of skilled workers in this field poses a challenge that companies must address to remain competitive.
Despite these challenges, continued investment in research and development is expected to lead to breakthroughs in AI chip technology. 

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

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How is the Artificial Intelligence (AI) Chips Market 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
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Product Insights

The ASICs segment is estimated to witness significant growth during the forecast period.

The market continues to evolve, with application-specific integrated circuits (ASICs) gaining significant traction. ASICs, a type of non-configurable chip, offer instruction sets and libraries that enable local data processing and parallel algorithm acceleration. Unlike GPUs and FPGAs, ASICs provide faster performance, but their non-reconfigurable nature sets their function once established. The preference for ASICs in cloud-based data centers is escalating, as they account for a growing market share. According to a recent report, ASIC-based AI chips are projected to reach a 40% market share by 2025. These chips excel in areas like tensor processing units, custom chip design, and high-bandwidth memory, which are crucial for AI applications.

Thermal management solutions, parallel computing architecture, and power efficiency metrics are also essential considerations for these chips. Furthermore, advancements in silicon photonics, training optimization, and AI algorithm optimization contribute to the market's ongoing development. Key components include instruction set architecture, hardware security modules, edge AI hardware, on-chip memory and gpu computing clusters.

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The ASICs segment was valued at USD 4.73 billion in 2019 and showed a gradual increase during th

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

AI Chips Market valuation is estimated to reach USD 83.80 Bn in 2025 and is anticipated to grow to USD 459.00 Bn by 2032 with steady CAGR of 27.5%

Artificial Intelligence (AI) Chips Market Outlook

The global Artificial Intelligence (AI) Chips market size is poised for impressive growth, with estimations suggesting a significant leap from USD 20.2 billion in 2023 to USD 85.9 billion by 2032, representing a robust compound annual growth rate (CAGR) of 17.6% during the forecast period. The expansion of AI technologies across various sectors serves as a primary growth driver, augmenting demand for sophisticated and high-performance AI chips. This burgeoning market is fueled by advancements in AI applications, the proliferation of data, and substantial investments in AI research and development, all contributing to the widespread adoption of AI chips in industries worldwide.

The surge in demand for AI applications, such as natural language processing, computer vision, and autonomous robotics, is a driving force behind the AI chips market's exponential growth. These applications require immense computational power and efficiency, which AI chips are uniquely designed to provide. The rapid development of these technologies, coupled with the adoption of AI in consumer electronics, healthcare, and automotive industries, has propelled the demand for AI chips. Moreover, the increasing complexity of AI models necessitates more sophisticated hardware, further boosting the market for AI chips. This demand is reinforced by the integration of AI technologies in everyday devices and the growing trend of smart homes and IoT applications.

Another significant factor contributing to the market growth is the strategic focus of major tech companies on AI chip development. Industry giants are investing heavily in AI research and innovation to enhance their chip offerings. This competitive landscape has led to the introduction of advanced AI chips that promise improved efficiency, power consumption, and performance. Additionally, collaborations and partnerships among key players in the tech industry are accelerating innovation, leading to the fast-paced evolution of AI chip technology. The continuous improvement in chip architecture, coupled with decreasing hardware costs, is making AI chips more accessible to a broader range of industries, facilitating their adoption on a larger scale.

Government initiatives and policies supporting AI development are also playing a crucial role in driving the AI chips market forward. Many countries recognize the strategic importance of AI in boosting economic growth and are investing in AI infrastructure, research, and development. Such governmental support not only provides a conducive environment for AI chip manufacturers but also encourages startups and small enterprises to explore AI solutions. As a result, there's an increased emphasis on developing AI chips that can be utilized in diverse sectors, from healthcare diagnostics to autonomous vehicles, thereby contributing to the market's overall growth trajectory.

Regionally, North America dominates the AI chips market, largely due to its advanced technological infrastructure and the presence of leading AI research institutions and enterprises. However, the Asia Pacific region is emerging as a significant player, with countries like China, Japan, and South Korea ramping up investments in AI technology. The rapid industrialization and digital transformation occurring in these countries are key factors driving the region's growth in the AI chips market. Europe also presents lucrative opportunities, with an increasing focus on AI in sectors like automotive and manufacturing. The Middle East & Africa and Latin America are gradually adopting AI technologies, and although their market shares are smaller, they represent potential growth areas in the long term.

The emergence of Machine Learning Chips is revolutionizing the AI chips market by offering specialized processing capabilities tailored for machine learning tasks. These chips are designed to handle the unique demands of machine learning algorithms, providing enhanced speed and efficiency in data processing. As machine learning continues to permeate various industries, the need for dedicated hardware solutions like machine learning chips becomes increasingly critical. These chips optimize the performance of machine learning models, enabling faster training times and more accurate predictions. Their integration into AI systems is facilitating advancements in fields such as healthcare diagnostics, financial modeling, and autonomous systems, where rapid data analysis is paramount. With ongoing innovations in chip design, machine learn

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).

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%.

According to Cognitive Market Research, the global Artificial Intelligence Chip market size was USD 21584.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 39.50% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 8633.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 37.7% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 6475.26 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 4964.37 million in 2024 and will grow at a compound annual growth rate (CAGR) of 41.5% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 1079.21 million in 2024 and will grow at a compound annual growth rate (CAGR) of 38.9% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 431.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 39.2% from 2024 to 2031.
The BFSI held the highest Artificial Intelligence Chip market revenue share in 2024.

Market Dynamics of Artificial Intelligence Chip Market

Key Drivers for Artificial Intelligence Chip Market

Rapid data growth and computational power demand to Increase the Demand Globally

A compute-intensive processor is a critical parameter for the processing of AI algorithms. The speedier the chip, the more quickly it can process the data necessary to construct an AI system. AI processors are primarily utilized in data centers and high-end servers due to the fact that end computers are unable to manage such substantial workloads due to a lack of power and time. AMD provides a series of EPYC processors that include cloud services, data analytics, and visualization. It boasts an Ethernet bandwidth of 8–10 GB and a memory capacity of up to 4 TB. It provides security capabilities, flexibility, and sophisticated I/O integration. Cloud computing, high-performance computing (HPC), and numerous other applications are optimally served by AMD EPYC processors.

Growing potential of AI-based healthcare tools to Propel Market Growth

AI improves emergency care monitoring, real-time patient data collecting, and preventative healthcare suggestions. Health and wellness services like mobile apps may track patients' movements using AI. With AI-based tools, in-home health monitoring and information access, personalized health management, and treatment devices like better hearing aids, visual assistive devices, and physical assistive devices like intelligent walkers can be implemented efficiently. Thus, AI-based solutions are being used to improve the physical, emotional, social, and mental health of the elderly globally. Future applications may combine ML, DL, and computer vision for posture detection and geriatric behavior learning.

Restraint Factor for the Artificial Intelligence Chip Market

Minimal organized data for AI system development to Limit the Sales

Training and building a full and powerful AI system need data. The manual entry of data structured datasets earlier. The growing digital footprint and technology trends like IoT and Industry 4.0 generated large amounts of data from wearable devices, smart homes, intelligent thermostats, connected cars, IP cameras, smart devices, manufacturing machines, industrial equipment, and other remotely connected devices. Text, audio, and pictures make up this unstructured data. Without an organized internal structure, developers can't extract relevant data. Training machine learning tools requires high-quality labelled data and skilled human trainers. Time and skill are needed to extract and label unstructured data. Structured data is essential for AI system development. Companies are using semi-structured data to get insights from groupings.

Impact of Covid-19 on the Artificial Intelligence Chip Market

The long-term impact of the initial outbreak has been beneficial, despite the disruptions to the supply chain and manufacturing delays. The pandemic has expedited the process of AI adoption in a variety of industries, such as healthcare, retail, and manufacturing. The demand for AI processors was driven by the heightened necessity for automation, remote monitoring, and data and analytics. In a...

The artificial intelligence (AI) chip market is experiencing rapid growth, with projections indicating it will reach 92.7 billion U.S. dollars in 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. 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 2026 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 four trillion club, ahead of industry giants like Microsoft and Apple. GPU market growth and AI applications The global GPU market has caught much of the world’s attention. This growth has been fueled by the expanding AI market, particularly in machine learning and deep learning applications. The generative AI market has also contributed significantly, with projections suggesting it will surpass 100 billion U.S. dollars in 2026. These trends underscore the increasing importance of AI chips in powering next-generation technologies and applications.

AI Chips Market size was valued at around USD 123 billion in 2024 and is projected to reach USD 360 billion by 2030.with a CAGR of around 20.2%.

AI Chipsets Market Segmented by Component (CPU, GPU, and More), Processing Type (Training, Inference), Deployment Location (Cloud/Hyperscale Data Center, Enterprise On-Prem Data Center and More), Application (Consumer Electronics, Automotive & Transportation, and More), Technology Node and Geography. The Market Forecasts are Provided in Terms of Value (USD).

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

Artificial Intelligence Chip Market size was valued at USD 30.96 Billion in 2024 and is projected to reach USD 504.01 Billion by 2032, growing at a CAGR of 46.03% from 2026 to 2032.Artificial Intelligence Chip Market: Definition/ OverviewAn 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.

Artificial Intelligence Chip Market size was valued at around USD 118 bn in 2024 and is projected to reach USD 293 bn by 2030. Asia-Pacific is leading the market.

Global Artificial Intelligence Chip Market was valued at USD 21.30 Billion in 2024 and is anticipated to project steady growth in the forecast period with a CAGR of 33.03% to reach USD 118.05 Billion in 2030.

Artificial Intelligence Chip Market was USD 143.18 billion in 2025 and is projected to rise at 25.98% CAGR, reaching USD 721.12 billion by 2032.

The global AI chip market is set to surge from USD 23.19 billion in 2023 to USD 117.50 billion by 2029, growing at a CAGR of 31.05%. Discover market trends, growth drivers, and how NVIDIA, AMD, Intel, and Microsoft are shaping specialized AI chip strategies.

The artificial intelligence (AI) chip market is experiencing rapid growth, with projections indicating it will reach close to 92 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 65.3 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 200 billion U.S. dollars by 2030. These trends underscore the increasing importance of AI chips in powering next-generation technologies and applications.

According to Cognitive Market Research, the global Edge AI Chips market size was USD 25142.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 27.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 10056.88 million in 2024 and will grow at a compound annual growth rate (CAGR) of 25.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 7542.66 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 5782.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 29.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 1257.11 million in 2024 and will grow at a compound annual growth rate (CAGR) of 26.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 502.84 million in 2024 and will grow at a compound annual growth rate (CAGR) of 26.7% from 2024 to 2031.
The CPU is the fastest growing segment of the Edge AI Chips industry

Market Dynamics of Edge AI Chips Market

Key Drivers for Edge AI Chips Market

Increasing Internet of Things (IoT) to Boost Market Growth

The Internet of Things (IoT) has led to the fast proliferation of connected gadgets, producing sizable quantities of statistics that require real-time processing and analysis. Edge AI chips are vital for offering the computational power and efficiency wished for on-device intelligence, taking into account quicker record processing without relying on cloud offerings. This technology permits a huge variety of applications, inclusive of clever homes with computerized structures, clever cities that enhance urban dwellings through optimized useful resource control, and business automation that improves efficiency and decreases downtime. Overall, Edge AI chips play a critical position in figuring out the total potential of IoT. For instance, C In November 2023, AWS and Siemens deepened their partnership to facilitate the easier integration of physical devices with the cloud. Siemens' Industrial Edge Marketplace now offers direct installation of AWS's IoT SiteWise Edge software thanks to the extended relationship.

Expansion of Autonomous Vehicles to Drive Market Growth

Autonomous cars rely substantially on AI for real-time selection-making, making Edge AI chips vital for their operation. These chips technique huge quantities of sensor statistics from cameras, lidar, and radar, permitting the detection of objects, pedestrians, and obstacles within the vehicle's environment. By performing computations regionally, Edge AI chips decrease latency, making sure timely responses to dynamic avenue conditions and improving safety. Additionally, they facilitate efficient manipulation of vehicle actions, allowing for clean navigation and adherence to visitors' policies. Overall, Edge AI generation is essential for the secure and effective functioning of self-using motors, driving the future of transportation.

Restraint Factor for the Edge AI Chips Market

Power Consumption, will Limit Market Growth

Edge AI chips provide greater performance compared to conventional cloud-based solutions. However they nevertheless devour power, which may be an important consideration for battery-powered gadgets. In programs consisting of wearable era, IoT sensors, and autonomous automobiles, energy efficiency is paramount to prolong battery lifestyles and make sure dependable overall performance. The electricity intake of Edge AI chips can restrict the deployment of these gadgets in environments where electricity sources are constrained. As a result, ongoing improvements in chip layout and electricity control techniques are crucial to reduce power utilization while retaining the excessive overall performance talents required for actual-time facts processing and choice-making.

Impact of Covid-19 on the Edge AI Chips Market

The COVID-19 pandemic substantially impacted the Edge AI chips marketplace, accelerating virtual transformation across various industries. As organizations adapted to far-flung operations, the call for IoT gadgets and AI answers surged, driving the need for efficient records processing to the brink. However, delivery chain disruptions...

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