Artificial Intelligence Chip Market Landscape to 2034: Key Forces Shaping the Next Decade of Growth

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How Large Will the Artificial Intelligence Chip Market Size By 2025?
In recent times, there has been a marked increase in the size of the artificial intelligence chip market. It is predicted to expand from $29.65 billion in 2024 to $40.21 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 35.6%. This voluminous growth in the historic phase can be ascribed to factors such as the expansion of data generation, growth in the healthcare segment, increased funding in AI study, a surge in retail and e-commerce, and economic progression.

How Big Is the Artificial Intelligence Chip Market Size Expected to Grow by 2029?
The market size of the artificial intelligence chip is predicted to witness substantial growth in the upcoming years. Its worth is projected to surge to $157.98 billion in 2029, exhibiting a compound annual growth rate (CAGR) of 40.8%. The anticipated expansion in the prediction period can be associated with an increase in demand for data-intensive applications, progress in machine learning algorithms, advancement in the automotive industry, growth in financial services, and escalating urbanization. Primary trends anticipated in the forecast period consist of personalized AI hardware, edge AI acceleration, quantum computing integration, neuromorphic computing, and energy-efficient AI chips.

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Which Key Market Drivers Powering Artificial Intelligence Chip Market Expansion and Growth?
The artificial intelligence chips market is set to expand, fuelled by a surge in demand for smart homes and smart cities. Smart cities utilise digital or information-communication technology to enhance the comfort and efficiency of human life, signifying an urbanisation strategy that aims for sustainable growth by furnishing cities with advanced features for residents to live, stroll, shop, and relish a safer and more convenient life. An example of this took place in March 2022, when, according to an article by Arab News, a Middle East English-language daily, Saudi Arabia inaugurated a new smart city project in Jeddah for light industries and auto repair, revealing the initial two phases of the city, the second of which is a 500,000 square metre labour city. The Smart City project encapsulates a total of 5 million square metres. More so, the Saudi Vision 2030, a strategic initiative based in Saudi Arabia, highlights the city's distinguishing features of an integrated infrastructure and the employment of digital and intelligent technologies to extend automated services to customers. Thus, the escalating demand for smart homes and smart cities is propelling the development of artificial intelligence chips.

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Which Emerging Trends Are Transforming the Artificial Intelligence Chip Market in 2025?
Major firms in the artificial intelligence chip industry are making progress with new technologies and research in the sector, like the Atom AI chip, which excels in operating computer vision and chatbot AI applications. For example, in February 2023, the South Korea-based company, Rebellions Inc., known for its expertise in generative AI chip development, introduced Atom. Atom operates on an innovative decentralized programming model and utilizes technology that equips customers with the most potent yet energy-efficient AI hardware and seamless software integration. This latest chip is engineered to use only about 20% of the energy compared to other high-powered chips currently available in the market, and offers a specialized AI processor along with optimized software.

What Are the Emerging Segments in the Artificial Intelligence Chip Market?
The artificial intelligence chip market covered in this report is segmented -

1) By Chip Type: GPU, ASIC, FPGA, CPU, Other Chip Types
2) By Processing Type: Edge, Cloud
3) By Technology: System-On-Chip (SoC), System-In-Package (SIP), Multi-Chip Module, Other Technologies
4) By Application: Natural Language Processing (NLP), Robotics, Computer Vision, Network Security, Other Applications
5) By Industry: Media and Advertising, BFSI, IT and Telecom, Retail, Healthcare, Automotive and Transportation, Other Industries

Subsegments:
1) By GPU (Graphics Processing Unit): Consumer GPUs, Data Center GPUs, Integrated GPUs
2) By ASIC (Application-Specific Integrated Circuit): Deep Learning ASICs, Neuromorphic ASICs
3) By FPGA (Field-Programmable Gate Array): Standard FPGAs, High-Performance FPGAs
4) By CPU (Central Processing Unit): General-Purpose CPUs, AI-Optimized CPUs
5) By Other Chip Types: DSP (Digital Signal Processor), RISC-V Chips, Hybrid Chips

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Who Are the Global Leaders in the Artificial Intelligence Chip Market?
Major companies operating in the artificial intelligence chip market include Intel Corporation, Mediatek Inc, NVIDIA Corporation, Qualcomm Technologies Inc., Advanced Micro Devices Inc, Alphabet Inc, NXP Semiconductors N.V, Micron Technology Inc, IBM Corporation, Apple Inc, Huawei Technologies Co Ltd, Mythic Inc, Samsung Electronics Co ltd., LG Corporation, Google LLC, Advanced Micro Devices Inc, Baidu, Mellanox Technologies, Xilinx Inc., Graphcore, Cerebras Systems, Habana Labs, Vinova Pte Ltd., MemryX Inc., BrainChip Holdings Ltd., NeuReality Ltd.

Which are the Top Profitable Regional Markets for the Artificial Intelligence Chip Industry?
North America was the largest region in the artificial intelligence chip market in 2024. The regions covered in the artificial intelligence chip market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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