AI Accelerator Market Size Forecasted To Achieve 53.23 Billion By 2029 With Steady Growth

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What Is the AI Accelerator Market Size and Projected Growth Rate?
The market size of AI accelerators has witnessed a significant surge over the past few years. It is projected to accelerate from $16.55 billion in 2024 to $20.95 billion in 2025, with a compound annual growth rate (CAGR) of 26.6%. This rapid expansion during the historical phase is primarily due to the escalating demand for deep learning models, increase in government funding, growing acceptance of AI in image and speech recognition technologies, higher use of AI in precision agriculture, and a burgeoning consumer electronics sector.The AI accelerator industry is anticipated to witness substantial expansion in the approaching years, with its value potentially reaching $53.23 billion by 2029, equating to a compound annual growth rate (CAGR) of 26.2%. Factors contributing to this predicted growth encompass the escalating implementation of AI servers, rising demand for real-time information processing, the surging launch of IoT gadgets, heightened investment into AI exploration and increased generation of consumer data. Key trends projected in the forecast period incorporate technological progress, machine learning, AI solutions in the cloud, AI chips and cybersecurity.

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What Are the Major Segments in the AI Accelerator Market?
The AI accelerator market covered in this report is segmented -

1) By Type: Graphics Processing Units (GPUs), Tensor Processing Units (TPUs), Application-Specific Integrated Circuits (ASICs), Central Processing Units (CPUs), Field-Programmable Gate Arrays (FPGAs)
2) By Technology: Cloud-Based AI Accelerators, Edge AI Accelerators
3) By End User: Information Technology And Telecom, Healthcare, Automotive, Finance, Retails, Other End Users

Subsegments:
1) By Graphics Processing Units (GPUs): AI Training GPUs, AI Inference GPUs, Cloud-Based AI GPUs, Edge AI GPUs, High-Performance Computing (HPC) GPUs
2) By Tensor Processing Units (TPUs): Cloud TPUs, Edge TPUs, AI Model Training TPUs, AI Model Inference TPUs, Energy-Efficient TPUs
3) By Application-Specific Integrated Circuits (ASICs): Deep Learning ASICs, Speech And Language Processing ASICs, Computer Vision ASICs, Edge AI ASICs, Low-Power AI ASICs
4) By Central Processing Units (CPUs): AI-Optimized Multi-Core CPUs, Cloud AI CPUs, Edge AI CPUs, Real-Time AI Processing CPUs, High-Performance AI Workstation CPUs
5) By Field-Programmable Gate Arrays (FPGAs): AI Model Customization FPGAs, Low-Latency AI Processing FPGAs, Edge AI FPGAs, Reconfigurable AI Hardware FPGAs, High-Throughput AI Computing FPGAs

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What Are The Driving AI Accelerator Market Evolution?
The growth of the AI accelerator market is anticipated to be driven by the expanding use of IoT devices. IoT devices, which are physical objects equipped with sensors, software, and connectivity capabilities allowing them to gather, share, and analyze data via the internet, are being deployed increasingly. The surge in IoT devices' deployment is because of growing automation needs, enhanced connectivity, and an increasing consumer affinity for smart devices. AI accelerators empower IoT devices to process data locally, diminishing the requirement for cloud transmission. This leads to speedier decision-making, less latency, and decreased bandwidth consumption which improves efficiency in real-time applications such as smart homes, industrial automation, and healthcare. For example, a report by Ericsson, a telecommunications company based in Sweden, revealed that global IoT connections hit 15.7 billion in 2023 and are projected to rise by 16% to 38.8 billion by 2029. Thus, the growing use of IoT devices underpins the expansion of the AI accelerator market.

Which Firms Dominate The AI Accelerator Market Segments?
Major companies operating in the AI accelerator market are Samsung Electronics Co. Ltd., Huawei Technologies Co. Ltd., Taiwan Semiconductor Manufacturing Company, Intel Corporation, Cisco Systems Inc., Qualcomm Technologies Inc., Broadcom Inc., NVIDIA Corporation, Advanced Micro Devices Inc. (AMD), Baidu Inc., NXP Semiconductors N.V., Microchip Technology Incorporated, Synopsys Inc., Marvell Technology Inc., Arista Networks Inc., Xilinx Inc., Hailo Ltd., Rebellions.ai, Furiosa AI Inc., Graphcore Limited, BrainChip Holdings Ltd., LeapMind Inc.

What Trends Are Expected to Dominate the AI Accelerator Market in the Next 5 Years?
The leading companies in the AI accelerator market are focusing on creating innovative technologies such as the 5 nm node process technology to amplify performance, boost energy efficiency and cater to the growing needs of AI workloads. The 5 nm node process technology is a specific manufacturing process for semiconductors where transistors are simply 5 nanometers in size, leading to enhanced performance, decreased power usage, and more compact chip layouts. To illustrate, IBM, a technology company based in the US, introduced the Spyre accelerator chip in August 2024, an advanced AI processing unit made for IBM Z systems. This chip includes 32 cores and 25.6 billion transistors, using 5nm node process technology for achieving superior performance and energy efficiency. The chip, installed on PCIe cards, can be grouped together to increase processing power and support large-scale AI inferencing and complicated applications, like fraud detection and generative AI for business process automation and code modernization. The chip's architecture is fine-tuned to manage AI workloads, enabling businesses to securely and efficiently introduce AI models on-premises.

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Which Is The Largest Region In The AI Accelerator Market?
North America was the largest region in the AI accelerator market in 2024. The regions covered in the AI accelerator market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Frequently Asked Questions:
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3. What Are the Key Innovations Transforming the AI Accelerator Industry?
4. Which Region Is Leading the AI Accelerator Market?

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