Status : Published Published On : Oct, 2024 Report Code : VRSME9157 Industry : Semiconductor & Electronics Available Format : Page : 198
2025
2030

Global AI Chip Market Size & Share | Growth Forecast Report 2030

Industry Insights By Chip Type ( Application-Specific Integrated Circuits (ASICs), Field-Programmable Gate Arrays (FPGAs), System on a Chip (SoC), and General-Purpose Graphics Processing Units (GPGPUs)), By Application ( Data Centers, Automotive, Consumer Electronics, Healthcare, Industrial, and others), By End-User (IT & Telecom, Automotive, Healthcare, Retail, Banking & Finance, and Others), By Architecture (Von Neumann Architecture, Harvard Architecture, and Neuromorphic Architecture), By Manufacturing Process ( 7nm, 5nm, 3nm, and Others), By Pricing (Low-Cost, Mid-Range, and High-End) and By Geography ( North America, Europe, Asia Pacific and Middle East & Africa)

Industry Overview

The global AI Chip market size was valued at USD 126 billion in 2023. It is likely to grow up to USD 315.7 billion by 2030 at a CAGR of 22% during the forecast period ranging between 2025 and 2030.

AI Chip Market

AI chips are special types of hardware such as GPUs, TPUs, and custom ASICs that are designed to perform artificial intelligence tasks quickly. These tasks include machine learning and deep learning. These chips improve the computational power for AI applications and are extensively used in several sectors such as healthcare, robotics, autonomous vehicles, smart devices, and more. With the faster data processing abilities, the AI chips help in making real-time decisions after analyzing large datasets and increase energy efficiency. These chips are therefore very useful for complex tasks like natural language processing, image recognition, and predictive analytics. 

The principal growth factors of the global AI Chip market include the rising adoption of AI in different industries and developments in chip technology. A large number of industries like financing, healthcare, and automotive are integrating AI to improve their operations, data analysis, automation, and decision-making process. This boosts the demand for AI chips and propels the market growth. Furthermore, the continual developments in semiconductor technology, including the development of high-performance, energy-efficient AI processors help in faster computational tasks and more powerful applications. This boosts AI adoption in edge computing, cloud services, and IoT devices, further driving the market growth. The growth of the market is somewhat hindered by the increasing complexity and higher consumption of energy by the AI models due to their sophistication. With an increase in demand for handing large amounts of data more efficiently, the demand for AI chips increases which increases the costs and possibility of bottlenecks in the development and deployment of AI applications. Despite the challenges, the market is offered significant growth opportunities due to the widespread adoption of AI across several industries and surge in demand.

Global AI Chip Market Report Coverage

Report Metric

Details

Historical Period

2018 - 2023

Base Year Considered

2024

Forecast Period

2025 - 2030

Market Size in 2023

U.S.D.  126 Billion

Revenue Forecast in 2030

U.S.D.  315.7 Billion

Growth Rate

22%

Segments Covered in the Report

By Chip Type, By Application, By End-User, By Architecture , By Manufacturing Process and By Pricing

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America, Europe, Asia Pacific and Middle East & Africa

Global AI Chip Industry Dynamics

Global AI Chip Market Trends/ Growth Drivers:

Growing emphasis on AI-specific hardware

The global AI Chip market is experiencing an increasing shift towards the development and adoption of AI-specific hardware. This is mainly because the traditional CPUs and GPUs are typically not efficient enough to handle excessive AI workloads. These are also very energy-intensive. Due to the growing complexity of AI models, the demand for AI-specific hardware has increased so that AI computations can be accelerated. This trend has resulted in the development of AI accelerators, such as neural processing units (NPUs) and tensor processing units (TPUs). These solutions offer better energy efficiency and higher performance gains.

One of the most significant growth drivers of the global AI Chip market is the increasing demand for edge computing. This needs AI-specific chips to bring data processing closer to the source, enhancing real-time decision making and lowering latency. This is a significant help for the edge devices, such as smartphones, smart cameras, and IoT sensors to improve their performance of AI tasks locally with reduced reliance on cloud-based AI processing. It also enhances security and energy efficiency, driving higher adoption of AI chips in different industries and market expansion.

Another significant factor driving the growth of the market is the growing investment in AI research and development initiatives worldwide. Several tech companies and governments are investing heavily in AI to increase innovation and achieve competitive advantages. This significant growth in funding is leading to the development of more advanced AI algorithms which need advanced hardware, such as AI chips, to perform efficiently. As a result, the demand for AI-specific hardware grows since industries want to integrate such solutions into their operations, thereby pushing the market forward. 

The rising adoption of AI in autonomous systems is also a significant factor driving the growth of the global AI Chip market. Drones, robots, and other autonomous vehicles need AI for navigation, real-time data analysis, and decision making. It involves complex computation of large number of data sets for these systems to operate efficiently. As the investment in automation by industries like automotive, logistics, and aerospace increases, the demand for AI chips also increases which accelerate developments in autonomous technology and contribute to the market growth.

Global AI Chip Market Challenges

Supply chain disruptions is the most significant challenge 

The global AI chip market depends heavily on supply chain involving many countries and manufacturers. Any disruptions within this supply chain resulting from different factors like natural disasters, geopolitical tensions, and trade restrictions, can affect the availability of the AI chips significant and may also influence its pricing. This will eventually lead to delay in production and delivery, shortage of crucial components, and higher costs, all ultimately hindering the adoption and growth of the AI technologies and the market.

Global AI Chip Market Opportunities

Edge AI and IoT integration offers significant growth opportunities

Both Edge AI and the Internet of Things (IoT) offers a substantial growth opportunity for the global AI Chip market. This is because Edge AI involves local data processing on IoT devices. As a result, there is no need for uninterrupted cloud connectivity. It also reduces latency and enables real-time decision-making. It endorses wide range of applications across different domains such as smart cities, autonomous vehicles, and industrial automation. The rise in demand for Edge AI solutions is expected to drive the development of specialized AI chips to reduce power consumption and enhance, thereby pushing the market forward.

Recent Development By Key Players

Huawei Technologies chips. collaborated with ByteDance, that shall focus on building its latest artificial intelligence model due to the US restrictions on advanced AI chip exports.

MediaTek and Infineon collaborated for the devleopment purpose. Infineon Technologies has unveiled a new microcontroller unit (MCU) series for automotive system-on-chip (SoC) solutions, which focuses on applications such as smart cockpits. 

Google parent Alphabet has opened new tab to unveil a product called Trillium in its artificial intelligence data center chip family which is nearly five times as fast as its prior version.

Global AI Chip Market Segmentation 

VynZ Research provides an analysis of the key trends in each segment of the global AI Chip Market report, along with forecasts at the global, regional and country levels from 2025-2030. Our report has categorized the market based on Chip Type, Application, End-User, Architecture, Manufacturing Process and Pricing

Market Segmentation

Insight by Chip Type

  • Application-Specific Integrated Circuits (ASICs)
  • Field-Programmable Gate Arrays (FPGAs)
  • System on a Chip (SoC)
  • General-Purpose Graphics Processing Units (GPGPUs)

The most dominating subsection is the Application-Specific Integrated Circuits (ASICs)

The global AI Chip market is divided by the chip types into Application-Specific Integrated Circuits (ASICs), Field-Programmable Gate Arrays (FPGAs), System on a Chip (SoC), and General-Purpose Graphics Processing Units (GPGPUs). Out of these major segmentations, the ASICs segment is the most dominant and is expected to grow at a faster rate during the forecast period due to the ability to offer better performance and energy efficiency for any given AI workloads. The customized design of these chips makes them much better than general-purpose processors in performance making them ideal solutions for complex applications such as deep learning, natural language processing, and computer vision. this increases the demand and the growth trajectory of the market.

Insight by Application

  • Data Centers
  • Automotive
  • Consumer Electronics
  • Healthcare
  • Industrial
  • Others

Data centers section is the most dominant 

The global AI Chip market is also segregated by different applications into Data Centers, Automotive, Consumer Electronics, Healthcare, Industrial, and others. Among all these subsections, data center section is most dominant being the major user of AI chips. It is also expected to grow at a faster rate during the projected period due to the higher demand for these chips to handle large-scale AI workloads for research and developments and cloud-based services. It is also attributed to the growing adoption of AI across different industries along with the increase in demand for data-intensive applications, both driving the market growth.

Insight by End-User

  • IT & Telecom
  • Automotive
  • Healthcare
  • Retail
  • Banking & Finance
  • Others

IT & Telecom subsection dominates the market

Different end users divide the global AI Chip market into different subsections such as IT & Telecom, Automotive, Healthcare, Retail, Banking & Finance, and others. Among these segments, the IT and telecom sector is the major contributor to the market share due to higher adoption and use for different applications and purposes such as data analytics, cybersecurity, and network optimization. It is also the result of the growing demand for more effective data-driven solutions.

Insight by Architecture

  • Von Neumann Architecture
  • Harvard Architecture
  • Neuromorphic Architecture

Von Neumann architecture is the most dominant section

The global AI Chip market is divided by architecture of the chip into different segments such as Von Neumann Architecture, Harvard Architecture, and Neuromorphic Architecture. The Von Neumann architecture is the most dominant section amongst all. It is also anticipated to grow more during the forecast period being the most widely used architecture in AI chips. It is attributed to its flexibility and simplicity that allows for more effective execution of both data processing and instruction processing. However, the neuromorphic architectures section is also gaining significant traction due to its potential to mimic the processing capabilities of the human brain.

Insight by Manufacturing Process

  • 7nm
  • 5nm
  • 3nm
  • Others

7nm is the most dominating subsection

Different manufacturing processes also divide the global AI Chip market into 7nm, 5nm, 3nm, and other segments. Out of these the 7nm manufacturing processes section is expected to grow more and dominate during the study period due to its extensive use in the production process of AI-specific chips. It is also the most advanced processes amongst all that offer higher transistor density and improved performance but lowers power consumption compared to the earlier generations. Furthermore, the continual developments in the manufacturing technology are driving the adoption of 7nm as well as smaller process nodes. This eventually enables the development of more efficient and powerful AI chips and drive the market growth.

Insight by Pricing

  • Low-Cost
  • Mid-Range
  • High-End

The mid-range subsection dominates the market

According to pricing, the global AI Chip market is divided into low-cost, mid-range, and high-end segments. Out of them, the mid-range section is expected to grow more and dominate during the projected period due to higher performance, lower cost, and efficient power consumption. The chips offer an appropriate solution for a varied range of AI applications including data centers and edge devices. This increases the demand for AI-powered services and devices which consequently drives the growth of the mid-range segment of the global AI chip market.

Global AI Chip Market: Geographic Overview

North America dominates the global AI Chip market due to the large number of leading technology companies in this region. It is also attributed to several research institutions, significant investments in AI development, a robust and well-developed infrastructure, favorable regulatory environment, and a more conducive ecosystem.

The European market is also growing substantially due to higher emphasis on developing advanced solutions and promotion of a collaborative research environment. 

The Asia Pacific region is expected to grow at a higher rate during the forecast period due to higher investments in technology and R&D, large and growing population, focus on industrial automation, emerging major players in developing economies like India and China, and increase in demand for AI-powered solutions.

The Middle East and Africa regions are growing due to higher investment and interest in AI technologies, the realization of the potential of AI by the governments to drive economic growth and handle societal challenges, and greater AI adoption in different sectors such as oil and gas, healthcare, and finance.

Global AI Chip Market Competitive Insight

  • Amazon
  • Advanced Micro Devices
  • Google
  • Gyrfalcon Technology
  • Huawei Technologies
  • General Vision
  • IBM
  • Infineon Technologies
  • Intel
  • Microsoft
  • MYTHIC
  • Nvidia
  • NXP Semiconductors
  • Kneron
  • Qualcomm Incorporated
  • Samsung Electronics
  • Toshiba
  • Wave Computing

AI Chip Market Size

Source: VynZ Research

AI Chip Market Analysis

Frequently Asked Questions

The global AI Chip market was valued at USD 126 billion in 2023.
The market is expected to grow to USD 315.7 billion by 2030, with a compound annual growth rate (CAGR) of 22% from 2025 to 2030.
Industries such as healthcare, robotics, autonomous vehicles, finance, and smart devices are integrating AI to enhance operations, data analysis, and decision-making processes, which boosts the demand for AI chips.
Key growth drivers include the rising adoption of AI across various sectors, advancements in semiconductor technology, increasing demand for edge computing, and significant investments in AI research and development.
Industries such as healthcare, robotics, autonomous vehicles, finance, and smart devices are integrating AI to enhance operations, data analysis, and decision-making processes, which boosts the demand for AI chips.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle

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Key Takeaways