Artificial Intelligence Chip Market to Reach $91.19 Billion by 2025, Report Says
Artificial intelligence (AI) Chips, also known as AI accelerators, are microprocessors for AI-related computing tasks. With most software applications leveraging AI and machine learning (ML), the ML technology places great demands on computing power for training algorithms and running applications, which cannot be handled by traditional computing hardware. As a result the demand for specialized AI chips is growing rapidly. The AI chip startup scene is buzzing with heavy inflow of investments into artificial intelligence (AI) startups coupled with rise in demand for smart cities & smart homes, and emergence of quantum computing. In 2017 alone, the global artificial intelligence chip market generated $4.51 billion. According to a new market report from research firm AlliedMarketResearch, titled:”Artificial Intelligence Chip Market,” the AI chip market is expected to reach $91.19 billion, globally, by 2025. Major companies profiled in the report include AMD (Advanced Micro Devices), Google, Inc., Intel Corporation, NVIDIA, Baidu, Graphcore, Qualcomm, Adapteva, UC-Davis, Mythic, and others.
The report offers comprehensive insights on the top investment pockets, market size & estimations, growth factors & opportunities, strategic developments, and competitive landscape. Increase in investments in AI startups, proliferation of smart city & smart home projects, and rise in adoption of quantum computing drive the growth of the market. However, scarcity of skilled workforce would restrain the growth of the industry. On the other hand, adoption of AI chips in developing countries and intensive R&D activities in the field of smart robotics would create new opportunities for the market players in future.
Artificial intelligence (AI) chips are specialized Silicon chips or accelerators, which incorporate AI technology and are used for machine learning. AI helps to eliminate or minimize the risk to human life in many industry verticals. The need for more efficient systems to solve mathematical and computational problems has been becoming crucial, as the volume of data has been increasing. Thus, the majority of the key players in the IT industry have focused on developing AI chips and applications. Furthermore, emergence of quantum computing and increase in implementation of AI chips in robotics drive the growth of the global AI chip market considerably. In addition, emergence of autonomous robotics-robots that develop and control themselves autonomously-is anticipated to provide potential growth opportunities for the market.
However, dearth of skilled workforce is one of the major restraints of the artificial intelligence chip market. Most of the tasks, such as testing, bug fixing, cloud implementation, and others, are taken over by AI chips; however, the delivery of such tasks lacks essential skillsets.
Top Impacting Factors
The significant impacting factors in the global artificial intelligence chip industry include increase in demand for smart homes, development of smart cities, and emergence of quantum computing. In addition, the market is also influenced by lack of skilled workforce, increased adoption of AI chips in the developing regions, and development of smarter robots. Each of these factors is anticipated to have a definite impact on the artificial intelligence chip market size during the forecast period.
Increase in Demand for Smart Homes and Smart Cities
AI has the ability to provide impetus to initiate smart city programs in the developing countries, such as India. Tools and technologies that are artificially intelligent possess a massive potential to transform interconnected digital homes and smart cities. Furthermore, the creation of a chip that embeds an inbuilt AI network has emerged as an opportunity for the AI chip market.
Rise in Investments in AI Startups
Multiple countries, especially the U.S., witness a considerable growth in tech start-ups every year, which are backed by various venture capitalists and venture capitals, thus increasing the market scope. Various key players have been innovating to build a dedicated platform; for instance, Mythic’s platform has an advantage of processing of digital/analog calculations in memory, which results in enhanced performance, accuracy, and power life. Furthermore, surge in need to integrate video surveillance and AI and rise in government spending for cyber security solutions that are integrated with real-time analytics and AI are anticipated to boost the growth of the market.
Emergence of Quantum Computing
Quantum computers take seconds to complete a calculation that would otherwise take thousands of years; for instance, Google has a quantum computer that is 100 million times faster than today’s computing systems. Quantum computers are an innovative transformation of artificial intelligence, big data, and machine learning. Thus, emergence of quantum computing has fueled the growth of the market.
Dearth of Skilled Workforce
AI consists of complex algorithms for its development. In addition, management of AI and automated systems is difficult at times. This requires exceptional software engineering skills and a notable experience in dealing with distributed and concurrent programming or debugging with communication protocols. However, many regions, particularly the emerging economies, lack people with such skills. Hence, dearth of a skilled workforce is a prominent restraining force of the market.
Increased Adoption of AI Chips in the Developing Regions
Recent developments in the emerging economies, such as China and India, across various industry verticals, which include media & advertising, finance, retail, healthcare, automotive & transportation, and others, have created a major growth potential for AI. The time and cost benefits provided by AI are the major growth factors leading to its increased adoption in the developing regions. All these factors together fuel the growth of the market.
Development of Smarter Robots
Many players have been building superior robot brains, which would enable machines to operate autonomously by deploying; for instance, Rethink Robotics’ Baxter is a research robot that is trained accordingly. Similarly, human-like robots are invented by Hanson Robotics, which are capable to carry a peculiar conversation and recall personal history. Furthermore, development of smarter virtual assistants is opportunistic for the overall market. A notable illustration is Jarvis Corp, which is a start-up in the conceptual phases, to build a virtual assistant that answers questions by accessing the internet and acting as an internet server and as a control for connected devices.
- This study comprises analytical depiction of the global AI chip market size with current trends and future estimations to depict the imminent investment pockets.
- The overall AI chip market potential is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current AI chip market size is quantitatively analyzed from 2018 to 2025 to benchmark the financial competency.
- Porter’s Five Forces analysis illustrates the potency of the buyers and suppliers in the AI chip market.
- The report includes the artificial intelligence chip market share of key vendors and AI chip market trends.
Artificial Intelligence Chip Market Key Segments:
By Chip Type
- Machine learning
- Deep learning (Image recognition, Computer vision)
- Predictive analysis
- Natural language processing (NLP)
- Classification & clustering
- Information extraction
- Robotic process automation
- Speech recognition
- Speech to text
- Text to speech
- Others (Expert systems, planning, scheduling)
- System-on-chip (SoC)
- System-in-package (SIP)
- Multi-chip module
By Industry Vertical
- Media & advertising
- IT & telecom
- Automotive & transportation
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
Key Market Players Profiled
- AMD (Advanced Micro Devices)
- Google, Inc.
- Intel Corporation
You can get more information about this report: here