The Artificial Intelligence Chips Market is projected to grow from USD 7.6 billion in 2020 to USD 70.9 billion by 2026 at a CAGR of around 42.3% during the forecast period.
What is an artificial intelligence chip?
An artificial intelligence chip is known as a silicon chip which integrates AI technology to minimize human errors and solve computational & mathematical problems. Artificial intelligence chips are designed to handle large and parallel systems effectively. Artificial intelligence chips address the increasing necessity for faster processing due to enabled machine learning.
Key Players
Key players operating in the Artificial Intelligence Chips market are-
- Alphabet Inc. (US)
- Broadcom Inc. (US)
- Intel Corporation (US)
- Nvidia Corporation (US)
- Qualcomm (US)
- Advanced Micro Devices, Inc. (US)
- Huawei Investment & Holding Co., Ltd (China)
- International Business Machines Corporation (US)
- Samsung Electronics Co., Ltd (South Korea)
- Taiwan Semiconductor Manufacturing Company Limited (Taiwan).
Market Dynamics
The growth of the artificial intelligence chips market is primarily driven by the rising adoption of advanced technologies across verticals including healthcare, automotive, retail, and cybersecurity. Increasing growth of the end-use industries primarily healthcare and automotive is likely to drive the market growth at a significant rate during the review period. In addition to this, increasing demand for advanced chips in developing countries is likely to create lucrative opportunities for the players operating in the global market in the coming years.
Segments Analysis
End-UseTrends
- The artificial intelligence chips market has been bifurcated into healthcare, manufacturing, automotive, retail, cybersecurity, and others.
- The automotive segment accounted for the largest market share in 2020 and is projected to register significant growth during the review period.
- The segment growth can be attributed to the rising adoption of advanced technologies in the automotive industry.
Regional Trends
“North America accounted for the largest market share in 2020 and is projected to grow at a significant CAGR during 2021-2026“
- The regional growth can be attributed to the high adoption rate of advanced technologies in the end-use industries coupled with the presence of key market players such as Alphabet Inc. (US) and Broadcom Inc. (US).
- The market in Asia-Pacific is expected to be driven by the rising adoption of artificial intelligence in the end-use industries, particularly in China and India.
COVID-19 Impact on Artificial Intelligence Chips Market
The covid-19 outbreak impacted the growth of the artificial intelligence chips market positively. The spread of coronavirus led to the enforcement of lockdown to curb the spread of the virus. This led to travel restrictions and supply chain disruptions, which in turn resulted in an increased emphasis on the adoption of advanced technologies to monitor business operations manually.
