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Artificial Intelligence (AI) Chipsets Industry to Grow at an Impressive 30.6% CAGR Through 2032 | Persistence Market Research Report
Artificial Intelligence (AI) Chipsets Market
The global Artificial Intelligence (AI) chipsets market is projected to reach US$ 60.5 billion in 2025 and grow to US$ 392.3 billion by 2032, exhibiting a CAGR of 30.6% during the forecast period. AI chipsets are purpose-built hardware designed to accelerate AI-driven tasks such as machine learning (ML), deep learning (DL), and neural network processing. Their growing adoption is fueled by demand for high-performance computing, edge AI capabilities, and next-generation data-intensive applications.
Graphics Processing Units (GPUs) are set to lead the market with around 35% share, thanks to their ability to process massive datasets in parallel - a necessity for AI model training. North America is expected to dominate the market, with a projected 36% share in 2025, supported by a robust tech ecosystem, strong R&D investments, and the presence of industry leaders such as NVIDIA, Intel, and AMD.
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Key Highlights from the Report
• North America is projected to hold over 36% share of the global market in 2025.
• Asia Pacific is the fastest-growing region, driven by AI infrastructure investments.
• Europe's market growth is supported by the €43B European Chips Act and green tech focus.
• GPUs are expected to account for 35% of total AI chipset revenue share.
• Consumer electronics is projected to be the leading end-user segment at 30% share.
• Strong trend toward ASIC adoption for improved speed and energy efficiency.
Market Segmentation
The AI chipsets market is segmented by chipset type, including GPUs, CPUs, ASICs, FPGAs, NPUs, and others. Among these, GPUs dominate due to their parallel architecture, making them ideal for AI workloads like deep learning and computer vision. Meanwhile, ASICs are gaining ground in hyperscale data centers and AI inference, as they offer customized performance, low power consumption, and higher efficiency for specific AI applications.
In terms of end-users, consumer electronics leads with around 30% share, driven by AI-powered smartphones, wearables, and smart TVs that require real-time on-device processing. The healthcare sector is also witnessing rapid adoption for AI-powered diagnostic tools, medical imaging, and personalized treatment systems, all demanding low-latency and energy-efficient AI chips.
Regional Insights
North America continues to dominate due to strong AI R&D investments, large-scale government support, and a concentration of market leaders. NVIDIA, Intel, and Google are expanding domestic production, backed by U.S. CHIPS Act funding.
Asia Pacific is the fastest-growing market, fueled by China, India, South Korea, and Japan's strategic investments in AI chip manufacturing and edge computing. Government-backed AI initiatives and local production capabilities are accelerating adoption across industries.
Market Drivers
The adoption of edge computing is a major growth driver, enabling real-time data processing closer to the source and reducing latency. This is vital for applications like autonomous vehicles, IoT, industrial automation, and smart cities. Energy-efficient AI chips that can process large datasets locally are in high demand.
Market Restraints
Geopolitical tensions and export controls are hindering market growth, particularly restrictions by the U.S. on selling advanced AI chips to certain countries. These policies disrupt supply chains, limit market reach, and force companies to adjust product and market strategies.
Market Opportunities
Advances in chip architectures such as neuromorphic computing and specialized AI accelerators are opening new possibilities. These innovations will enable AI chipsets to power next-gen applications in healthcare, automotive, and smart city infrastructure, creating lucrative growth avenues.
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Frequently Asked Questions (FAQs)
How big is the Artificial Intelligence (AI) chipsets market in 2025?
Who are the key players in the global Artificial Intelligence (AI) chipsets market?
What is the projected growth rate of the AI chipsets market from 2025 to 2032?
What is the market forecast for Artificial Intelligence (AI) chipsets by 2032?
Which region is estimated to dominate the AI chipsets industry during the forecast period?
Company Insights
• NVIDIA Corporation
• Intel Corporation
• Advanced Micro Devices, Inc. (AMD)
• Qualcomm Incorporated
• Apple Inc.
• Google LLC (Alphabet Inc.)
• Tesla, Inc.
• Graphcore Ltd.
• ARM Holdings
• Palladyne AI Corp.
Recent Developments
1. January 2025 - Palladyne AI Corp. secured a U.S. Air Force Research Laboratory contract to migrate its Pilot AI platform to next-gen domestic AI chipsets.
2. December 2024 - Google launched "Willow," a quantum chip capable of solving problems in minutes that would take the fastest supercomputer billions of years.
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About Persistence Market Research:
At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 2012, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.
Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.
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