- It will register a CAGR of 45.2 per cent from 2019 to 2025
- The Asia Pacific is expected to witness the highest growth during the forecast period
The global Artificial Intelligence (AI) Chipsets market size is projected to reach $91,185 Million by 2025 as per a report by Valuates Reports. It will register a CAGR of 45.2 per cent from 2019 to 2025. It was valued at $6,638 million.
Major factors driving the growth of Artificial Intelligence (AI) Chipsets market size are, increasingly large and complex datasets driving the need for AI, the adoption of AI for improving consumer services and reducing operational costs. Other factors include the growing number of AI applications, the improving computing power, and growing adoption of deep learning and neural networks. The increasing number of AI-enabled applications, advances in big data analytics, and the use of AI-based products and services to enhance customer experience are expected to increase the growth of the artificial intelligence (AI) chipset market size during the forecast period.
The report said that an increase in demand for smart homes and smart cities is in turn expected to drive the growth of AI chipset market size. AI has the capacity to provide impetus to the launch of smart city initiatives in developing countries. AI tools and innovations have the ability to transform integrated digital homes and smart cities. The development of a chip that is part of the built-in AI network is expected to provide lucrative growth opportunities for the artificial intelligence chip industry.
Asia Pacific is expected to witness the highest growth
As per the report, “Rising investments in AI startups will fuel the growth of the AI chipset market size. Multiple countries, particularly the U.S., are experiencing a substantial increase in tech start-ups every year, funded by various venture capitalists, thus increasing the market growth. In addition, an increase in the need to incorporate video surveillance & AI and a raise in government spending on cyber security solutions that are integrated with real-time analytics & AI is expected to fuel the artificial intelligence chip market size.”
North America was the highest contributor to the global Artificial intelligence Chip market, with $ 2,437.0 million in 2018. It is estimated to reach $28,258.3 million by 2025, registering a CAGR of 41.7 per centduring the forecast period. This is due to high consumerization of personal care products, routine inspection of medical instruments and wearable devices. It increases the growth of AI-enabled healthcare devices in North America, driving the growth of the AI chipset industry. Government support, particularly in the US, is driving the growth of AI chipsets in automotive applications in this region.
The report added, “The Asia Pacific is expected to witness the highest growth during the forecast period. Developing economies in the Asia Pacific region, such as South Korea, India, etc., are creating a vibrant and powerful start-up ecosystem, supported by a rising number of skilled workers, which is driving the growth of this industry. In addition, the Singapore government formed the AI Ethics Advisory Council as part of its AI strategy to deploy AI applications across different industries in 2018.”