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Leading Element Driving Change in the Generative Artificial Intelligence (AI) Chipset Market in 2025: Growing Adoption Of Cloud-Based Solutions Is Driving The Growth Of The Generative AI Chipset Market. Driver
What combination of drivers is leading to accelerated growth in the generative artificial intelligence (ai) chipset market?The generative artificial intelligence (AI) chipset market is projected to grow due to the increased utilization of cloud-based solutions. These solutions involve services and resources that are provided via the internet, eliminating the need for local servers or physical hardware. Businesses are increasingly adopting these cloud-based solutions due to their scalability, cost-effectiveness, and convenience to access data and applications from virtually anywhere, providing increased operational flexibility and infrastructure cost reduction. In relation to this, generative AI chipsets augment cloud-based services by accelerating the processing of sophisticated AI models, enhancing data management efficiency, and facilitating real-time, high-performance computations. This allows for the development of more sophisticated and prompt cloud services and applications. For example, a report released by Eurostat, the government agency based in Luxembourg, stated that in December 2023, 42.5% of EU firms utilized cloud computing services primarily for email, file storage, and office software, a 4.2 percentage point rise from 2021. Consequently, the proliferation of cloud-based solutions propels the growth of the generative AI chipset market.
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What is the projected compound annual growth rate (CAGR) of the generative artificial intelligence (ai) chipset market from 2025 to 2034, and what factors influence it?
The market size for generative artificial intelligence (AI) chipsets has witnessed rapid expansion in the past few years. It is projected to surge from $32.2 billion in 2024 to $41.26 billion in 2025, reflecting a compound annual growth rate (CAGR) of 28.1%. Several factors have contributed to the growth during the historic period, including the escalating need for computational power, a rise in deep learning, increased investment in AI research, a surge in demand for instantaneous AI processing, and growing consumer fascination with AI-driven devices.
In the coming years, the market size of generative artificial intelligence (AI) chipsets is predicted to experience remarkable growth. The market is projected to expand to $110.15 billion by 2029, growing at a compound annual growth rate (CAGR) of 27.8%. Factors contributing to this surge during the forecast period include the rise of big data, advancements in GPUs, the expansion of cloud computing, support for mixed precision computing, as well as government initiatives and funding. Key trends for the forecast period comprise the consolidation of edge computing, integration with FPGA and ASIC technologies, development of superior cooling systems, cross-platform compatibility, and improved interconnect technology.
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How are the latest trends influencing the growth of the generative artificial intelligence (ai) chipset market?
Leading corporations in the generative artificial intelligence (AI) chipset market are concentrating efforts on creating innovative solutions, such as superior mobile platforms, to amplify generative AI abilities on devices. Superior mobile platforms containing a generative AI chipset imply high-quality mobile devices enriched with sophisticated AI hardware capable of assembling and refining content and augmenting user interactions. For example, in October 2023, Qualcomm Technologies Inc., a semiconductor company based in the US, introduced its most recent elite chipset, the Snapdragon 8 Gen 3, aimed at augmenting generative AI capacities for high-end smartphones. The Snapdragon 8 Gen 3 is devised to accommodate advanced generative AI applications, permitting smartphones to carry out operations like instantaneous voice translation, automated content fabrication, and superior image editing directly on the device. This trend toward on-device operation reduces the dependence on cloud services, culminating in increased speeds and heightened privacy for users.
What are the major segments of the generative artificial intelligence (ai) chipset market and their role in driving growth?
The generative artificial intelligence (AI) chipset market covered in this report is segmented -
1) By Type: Central Processing Unit (CPU), Graphics Processing Unit (GPU), Field-Programmable Gate Array (FPGA), Application-Specific Integrated Circuit (ASIC), Other Types
2) By Application: Information Cognition, Traffic Prediction And Classification, Resource Management And Network Adoption, Performance Prediction And Configuration Extrapolation
3) By End-Use: Automotive, Banking, Financial Services, And Insurance (BFSI), Consumer Electronics, Healthcare, Manufacturing, Retail, Telecommunication, Other End Users
Subsegments:
1) By Central Processing Unit (CPU): General-Purpose CPUs, Multi-Core CPUs, High-Performance CPUs, Low-Power CPUs
2) By Graphics Processing Unit (GPU): Integrated GPUs, Dedicated GPUs, High-End GPUs, Mid-Range GPUs, Low-End GPUs
3) By Field-Programmable Gate Array (FPGA): High-Density FPGAs, Low-Density FPGAs, High-Speed FPGAs, Low-Power FPGAs
4) By Application-Specific Integrated Circuit (ASIC): Neural Network ASICs, Digital Signal Processing ASICs, Mixed-Signal ASICs, Custom ASICs
5) By Other Types: Digital Signal Processors (DSP), System-On-Chip (SoC), Neuromorphic Chips, Quantum Chips
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Which regions are key players in the growth of the generative artificial intelligence (ai) chipset market?
North America was the largest region in the generative artificial intelligence (AI) chipset market in 2024. The regions covered in the generative artificial intelligence (AI) chipset market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the key firms paving the way for growth in the generative artificial intelligence (ai) chipset market?
Major companies operating in the generative artificial intelligence (AI) chipset market are Samsung Electronics Co Ltd., Microsoft Corporation, Huawei Technologies Co. Ltd., Amazon Web Services Inc., LG Electronics Inc., Intel Corporation, Cisco Systems Inc., Qualcomm Technologies Inc., Broadcom Inc., Micron Technology Inc., NVIDIA Corporation, Advanced Micro Devices Inc., MediaTek Inc., Synopsys Inc., Arm Holdings plc, Lattice Semiconductor Corporation., Rambus Inc., Cerebras Systems Inc., Hailo Technologies Ltd., SiMa.ai Inc
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What Is Covered In The Generative Artificial Intelligence (AI) Chipset Global Market Report?
•Market Size Forecast: Examine the generative artificial intelligence (ai) chipset market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the generative artificial intelligence (ai) chipset market for a structured understanding.
•Key Players Overview: Analyze major players in the generative artificial intelligence (ai) chipset market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the generative artificial intelligence (ai) chipset market.
•Segment Contributions: Evaluate how different segments drive overall growth in the generative artificial intelligence (ai) chipset market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the generative artificial intelligence (ai) chipset market.
•Industry Challenges: Identify potential risks and obstacles affecting the generative artificial intelligence (ai) chipset market.
•Competitive Landscape: Review strategic developments in the generative artificial intelligence (ai) chipset market, including expansions, agreements, and new product launches.
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