Driving Artificial Intelligence (Chipsets) Market Growth in 2025: The Role of Increasing Demand For Autonomous Vehicles Boosts The Artificial Intelligence (Chipsets) Market Growth

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Artificial Intelligence (Chipsets) Market Size Growth Forecast: What to Expect by 2025?
The market size for artificial intelligence (chipsets) has seen a significant expansion in the past few years. The market, which stands at $23.81 billion in 2024, is predicted to swell up to $31.33 billion in 2025, with an impressive compound annual growth rate (CAGR) of 31.6%. The remarkable growth in the historic period is due to early advancements in machine learning algorithms, the boom of big data analytics, the growing need for computational strength, strides taken in neural network research, and the uptick in cloud computing infrastructure.

How Will the Artificial Intelligence (Chipsets) Market Size Evolve and Grow by 2029?
We can anticipate a substantial enlargement in the artificial intelligence (chipsets) market, which is projected to surge to $92.41 billion in 2029 with a compound annual growth rate (CAGR) of 31.0%. Several factors, including a swift uptake of AI across different sectors, amplified edge computing abilities, high demand for distinct AI chipsets and escalated investment in AI R&D, contribute to this growth during the prediction period. Key market trends for the forecast duration encompass the development of AI chip structures, usage of AI in new application realms, progress in natural language processing, emergence of explainable AI ensuring transparency, and incorporation of AI in the spheres of robotics and automation.

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What Drivers Are Propelling the Growth of Artificial Intelligence (Chipsets) Market Forward?
The increasing interest in autonomous vehicles is anticipated to fuel the expansion of the artificial intelligence (chipsets) market. Such vehicles, also referred to as driverless or self-driving cars, are designed to maneuver and operate on roads without any human input. These vehicles use artificial intelligence chipsets to process sensor-gathered data, analyze the immediate environment, make real-time choices, and enable uninterrupted and safe navigation sans human intervention. For example, data from the National Highway Traffic Safety Administration (NHTSA), a government agency based in the U.S, predicts that by December 2022, there will be around 3.5 million autonomous vehicles on U.S roads and this figure is expected to jump to 5.5 million by 2030. As a result, the surge in the demand for these autonomous vehicles is bolstering the growth of the artificial intelligence (chipsets) market.

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Which Emerging Trends Are Transforming the Artificial Intelligence (Chipsets) Market in 2025?
The trend of product innovation is gathering momentum in the artificial intelligence (chipsets) market. A significant emphasis is placed by big-name companies in this industry on the creation of inventive solutions to deliver dependable services for their clientele. A case in point would be Advanced Micro Devices Inc., an American semiconductor enterprise, which announced the introduction of the AI-based accelerator chip, AMD Instinct MI300X in December 2023. This chip, carrying 192 gigabytes of memory capacity, offers approximately 1.9x superior performance-per-watt. The chip has the potential to reach a peak theoretical memory bandwidth of 5.3 terabytes per second, surpassing the previous flagship AI chipset, the MI250X, by 1.5 and 1.7 times respectively.

What Are the Key Segments in the Artificial Intelligence (Chipsets) Market?
The artificial intelligence (chipsets) market covered in this report is segmented -

1) By Hardware: Processor, Memory, Network
2) By Technology: Machine Learning, Natural Language Processing, Context-Aware Computing, Computer Vision, Predictive Analysis
3) By Function: Training, Inference
4) By Computing Technology: Cloud AI Computing, Edge AI Computing
5) By Industry Vertical: Consumer Electronics, Media And Advertising, Banking, Financial Services And Insurance (BFSI), Information Technology (IT) And Telecom, Retail, Healthcare, Automotive, Other Industry Verticals

Subsegments:
1) By Processor: Central Processing Units (CPUs), Graphics Processing Units (GPUs), Application-Specific Integrated Circuits (ASICs), Field-Programmable Gate Arrays (FPGAs), Digital Signal Processors (DSPs)
2) By Memory: Dynamic Random Access Memory (DRAM), Static Random Access Memory (SRAM), Non-Volatile Memory (NVM), Flash Memory
3) By Network: Network Interface Cards (NICs), Network Processors, Switches And Routers

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Who Are the Key Players Shaping the Artificial Intelligence (Chipsets) Market's Competitive Landscape?
Major companies operating in the artificial intelligence (chipsets) market include Apple Inc., Alphabet Inc., Samsung Electronics Co. Ltd., Microsoft Corporation, Huawei Technologies Co. Ltd., Intel Corporation, International Business Machines Corporation, Qualcomm Technologies Inc., Micron Technology Inc., NVIDIA Corporation, AMD, MediaTek Inc., Baidu Inc., Xilinx Inc., Ampere Computing LLC, Cambricon Technologies Corporation, Horizon Robotics Inc., VeriSilicon Holdings Co., Cerebras Systems Inc., Greenwave Technology Solutions, Hailo, Graphcore Limited, SambaNova Systems Inc., Mythic Inc., Wave Computing Inc., Esperanto Technologies Inc., CogniTensor Inc., Syntiant Corporation, Tenstorrent Inc., BrainChip Holdings Ltd.

What Geographic Markets Are Powering Growth in the Artificial Intelligence (Chipsets) Market?
North America was the largest region in the artificial intelligence (chipsets) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (chipsets) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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