Introduction:
Artificial intelligence (AI) is transforming various industries, from healthcare to manufacturing, by enabling smarter, faster, and more efficient processes interjecting bigger market. AI chipsets are the hardware components that provide the high-performance computing capabilities required for AI applications.
These chipsets are designed to accelerate AI tasks, including machine learning, natural language processing, computer vision, and more.

In this article, we will explore the global AI chipset market, its key drivers, challenges, opportunities, and trends. We will also look at the major players, segments, and regions in this market, and provide a detailed outlook for the future.
AI Chipset Market Overview
According to a report by MarketsandMarkets, the global AI chipset market is expected to grow from USD 18.6 billion in 2023 to USD 64.5 billion by 2028, at a compound annual growth rate (CAGR) of 28.1%. The report attributes this growth to the increasing adoption of AI across various end-user industries, the emergence of autonomous vehicles, the advancement of semiconductor technologies, and the rising demand for edge computing.
Another report by Fortune Business Insights estimates the global AI chipset market size to be USD 8.14 billion in 2019 and projects it to reach USD 108.85 billion by 2027, at a CAGR of 38.9%. The report cites the factors such as the development of 3D technology, the growing use of neural networks and deep learning, and the proliferation of smart devices as the key drivers for the market growth.

A third report by Market.us forecasts the global AI chipset market to reach USD 91.18 billion by 2032, at a CAGR of 35.5%. The report highlights the increasing investment in AI research and development, the rising adoption of cloud-based services, and the growing demand for smart homes and smart cities as the main growth opportunities for the market.
AI Chipset Market Segmentation
The global AI chipset market can be segmented by chip type, application, industry vertical, and region.
By Chip Type
Further divisions in the chip type segment include graphics processing units (GPUs), application-specific integrated circuits (ASICs), central processing units (CPUs), and field-programmable gate arrays (FPGAs).

GPU is the dominant chip type segment, as it offers high parallel processing capabilities and performance for AI tasks, such as machine learning, computer vision, and gaming. ASIC is the fastest-growing chip type segment, as it offers customized and optimized solutions for specific AI applications, such as natural language processing, speech recognition, and facial recognition.
CPU is the most common and widely used chip type for general-purpose computing and AI inference applications. FPGA is the most flexible and adaptable chip type, as it allows reconfiguration and reprogramming of the hardware for different AI applications and workloads.
By Application
The application segment can be further divided into consumer electronics, retail, IT and telecom, healthcare, automotive, agriculture, and others.
Consumer electronics is one of the leading application segments, as it uses AI chipsets for various products and services, such as smartphones, smart wearables, smart speakers, and smart TVs, that enhance the user experience and functionality with AI features, such as voice assistants, intelligent cameras, and object detection.
Retail is another major application segment, as it uses AI chipsets for applications, such as inventory management, customer service, product recommendation, and price optimization, that improve the efficiency and profitability of the retail business.
By Industry Vertical
Further divisions in the industry vertical segment include media and advertising, BFSI, IT and telecom, retail, healthcare, automotive and transportation, and others.
Media and advertising are one of the leading industry verticals, as it uses AI chipsets for applications, such as content creation, content recommendation, audience analysis, and digital marketing, that enhance the quality and reach of the media and advertising content.
BFSI is another major industry vertical, as it uses AI chipsets for applications, such as fraud detection, risk assessment, credit scoring, and algorithmic trading, that improve the security, accuracy, and efficiency of the financial services. Healthcare is a fast-growing industry vertical, as it uses AI chipsets for applications, such as diagnosis, treatment, drug discovery, and patient monitoring, that improve the quality and accessibility of the healthcare services.
By Region
Further divisions in the region segment include North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the largest regional market for AI chipsets, as it has a strong presence of leading AI chipset vendors, such as NVIDIA, Intel, IBM, and Qualcomm. North America also has a high adoption rate of AI across various industry verticals, such as healthcare, manufacturing, and automotive.
Asia-Pacific is the fastest-growing regional market for AI chipsets, as it has a large population of potential AI users, such as smartphone users, smart home owners, and smart city residents. Asia-Pacific also has a rising investment in AI research and development, especially in countries such as China, Japan, and South Korea.
Read More: 3 Ways Artificial Intelligence (AI) is Revolutionizing Semiconductor Industry
AI Chipset Market Key Players
The global AI chipset market is highly competitive and fragmented, with many players offering various types of AI chipsets for different applications and industries. Some of the key players in the market are:

- NVIDIA Corporation: NVIDIA, a leading provider of GPU-based AI chipsets, widely utilizes them for applications such as machine learning, computer vision, and gaming. NVIDIA also offers AI platforms, such as NVIDIA Jetson, NVIDIA DRIVE, and NVIDIA EGX, which integrate AI chipsets with software and tools for various end-user industries, such as automotive, healthcare, and manufacturing.
- Intel Corporation: Intel, a leading provider of CPU-based AI chipsets, widely employs them for general-purpose computing and inference applications. Intel also offers AI platforms, such as Intel Nervana, Intel Movidius, and Intel OpenVINO, which integrate AI chipsets with software and tools for various end-user industries, such as healthcare, retail, and cybersecurity.
- IBM Corporation: IBM is a leading provider of AI solutions and services, which leverage its AI chipsets, such as IBM Power and IBM Z, for various applications and industries. IBM also offers AI platforms, such as IBM Watson, IBM Cloud Pak for Data, and IBM Research AI Hardware Center, which integrate AI chipsets with software and tools for various end-user industries, such as fintech, law, and government.
- Qualcomm Technologies, Inc.: Qualcomm is a leading provider of AI chipsets for mobile devices, such as smartphones, tablets, and wearables. Qualcomm also offers AI platforms, such as Qualcomm AI Engine and Qualcomm Neural Processing SDK, which integrate AI chipsets with software and tools for mobile device developers and users.
Read More: What are Major Players in AI Ecosystem
Conclusion
AI chipsets are the hardware components that provide the high-performance computing capabilities required for AI applications. The global AI chipset market is poised for substantial growth, driven by increased AI adoption in diverse industries and the proliferation of autonomous vehicles. Advancements in semiconductor technologies and a growing demand for edge computing further contribute to this trend. Challenges include a shortage of AI hardware experts and skilled workforce, while opportunities arise from increased investments in AI research and development. Ethical and social concerns related to AI, along with emerging trends and applications, also influence the market dynamics. The key players in the market are NVIDIA, Intel, IBM, and Qualcomm, who offer various types of AI chipsets for different applications and industries.