Global Artificial Intelligence chipsets market is likely to exhibit a promising growth curve as far as the short-term outlook is considered. The report will uncover the insights into how the market growth will unfold in the next few years.
Proliferating Userbase of Smartphones, and Other Smart Devices Bodes Well for Artificial Intelligence (AI) Chipsets Market
Data volume increases dramatically as social media, and e-commerce become more widely used. Around 2.14 billion people worldwide will be shopping online as of May 2022. The need for high-speed processors has grown due to exponential growth in data volume, which is favorably affecting the expansion of Artificial Intelligence market. Since machine learning is now enabled, the chipset answers the demand for speedier processing. The demand for computer vision and machine learning devices motivates big tech companies to invest in developing high-speed CPUs. Additionally, the growth of the Artificial Intelligence chipsets market has undoubtedly been supported by the rising number of smartphone and smart device users. Nearly 15 billion mobile devices were used worldwide in 2021, up from slightly over 14 billion the year before. Artificial Intelligence has been the most widely used technology in recent years and is projected to be a promising technology for emerging smart products. A significant factor driving the Artificial Intelligence chipsets market is the increased adoption of cloud computing. These chipsets have the strong processing power. There are connected devices with AI capabilities, including warbles, laptops, and cell phones. It is a technology that can improve any device's performance. They include AR and VR technologies that simplify data processing. Additionally, deploying AI chipsets benefits consumer electronics, defense, robotics, and the Internet of Things (IoT).
Recent advancements in developing nations like China, South Korea, Japan, and India, as well as the widespread adoption of AI technology across a variety of industry verticals like media & advertising, finance, retail, healthcare, automotive & transportation, present the Artificial Intelligence chipsets market with abundant growth prospects. Developing an Artificial Intelligence chipset aims to provide high-speed computer processors that can simultaneously support bulk data and applications. For instance, Intel Corporation has created Intel Nervana Neural Network Processors to handle workloads for both inference and training. These chipsets are specially made to provide improved performance for the high-speed artificial intelligence computing demand.
Artificial Intelligence Chipsets Market: COVID-19 Impact
The epidemic has had a negative effect on the Artificial Intelligence chipsets market and will likely continue to do so in the years to come. This is linked to the affected production processes, supply chains, and emerging industries' limited adoption of AI. The lockdown requirements caused several industrial companies to halt their output, negatively impacting the supply chain system globally. While certain sectors of the economy, like the automobile and manufacturing sectors, are more severely impacted than others by the crisis, others, like the medical device and healthcare manufacturing sectors, are benefiting from it. Key companies in AI chipsets are concentrating on releasing cutting-edge AI-based solutions to address these difficulties and satisfy the growing consumer demand.
Rapid Development of Quantum Computing to Support Artificial Intelligence Chipsets Market Expansion
Businesses worldwide utilize quantum computing technology to tackle challenging issues and perform analytical calculations. One of the fastest computers, the Sycamore quantum computer from Google LLC, can complete a work in about 200 seconds. Artificial intelligence, machine learning, computer vision, big data, and AR/VR allow quantum computers. As a result, the industry is anticipated to rise as quantum computing becomes more prevalent. Quantum computing is also employed for fraud detection, risk management, portfolio optimization, and situations where a quick response to data is needed. As a result, it is simpler for one processor to complete complex calculations quickly.
Growing Adoption of AI to Lower Operating Costs, and Improve Consumer Services Will Drive Artificial Intelligence Chipsets Growth
Customers are constantly looking for better products and services, and businesses work to develop a business model that makes both of these demands feasible with little outlay of capital. AI is gaining traction with its agile structure, which provides high satisfaction and client retention. Faster response times, personalized approaches, highly accurate data, and reduced redundancy are all significant features of AI systems that improve the customer experience while interacting with a business. Additionally, AI acts as a knowledge hub, using data from various sources to produce precise predictions about the demands of customers. This enables the business to generate recommendations based on viewers' preferences rather than just what they have already viewed.
Dearth of Trained AI Personnel to Restrict Pace of Artificial Intelligence Chipsets Market Growth
Since AI is a complicated system, businesses need employees with certain skills to create, manage, and successfully integrate AI systems. For instance, people working with AI systems should be familiar with technologies like deep learning, image recognition, and cognitive computing. Integrating AI solutions into existing systems is challenging, requiring considerable data processing to emulate the human brain's function. Even a small inaccuracy can cause the system to malfunction or negatively impact the desired outcome. The development of AI is also being restrained by the lack of professional standards and certifications in AI/ML technology. Additionally, AI service providers encounter difficulties when implementing and maintaining their solutions at their clients' locations. This results from people's ignorance of technology and the limits of AI specialists.
Machine Learning Dominant in Artificial Intelligence Chipsets Market with Increased Data Generation
Machine learning is anticipated to hold the greatest market share during the projected period. This is attributable to the massive data availability, often known as big data, and the growing usage of ML by businesses and government organizations to get insightful data. Computational finance, predictive maintenance in manufacturing, fraud detection, email spam filtering, text processing, network security threat detection, search recommendation, and video analysis are a few frequent uses of machine learning. Businesses that deal with big amounts of data are increasingly adopting ML, using the time that would have previously been spent reading over graphs and spreadsheets to look for clever ways to automate data analysis.
With Increase Digitization in Healthcare Sector, Healthcare Sector is Major End User of Market
In the upcoming years, the healthcare sector will probably pick up steam. The demand for AI-enabled healthcare equipment is rising as routine checkup medical equipment, smart wearable technology, and personal care goods become more consumerized. However, the novel coronavirus outbreak has expanded the use of artificial intelligence throughout the industry. The increased demand for early disease diagnosis and better understanding has been attributed to the growing global geriatric population, changing lifestyles, and rising prevalence of chronic diseases. Healthcare systems are increasingly adopting and integrating Artificial Intelligence, and machine learning (ML) algorithms to precisely forecast diseases in their early stages based on past health records.
North America Retains a Significant Value Share in Artificial Intelligence Chipsets Market
During the anticipated period, North America is anticipated to lead the Artificial Intelligence chipsets market in terms of revenue share. The availability of established IT infrastructure and rising government R&D expenditures will probably drive market expansion in North America. A sizable population distinguishes the North American region with increased purchasing power, ongoing infrastructure developments, and governments' increasing concentration on producing AI applications internally. The omnibus appropriations plan for 2021, which the US Congress approved, included funding for several military AI projects. The bill supports the Department of Defense's artificial intelligence initiatives aimed at increasing the accessibility and efficacy of military operations. In addition, the Joint Artificial Intelligence Center received expanded purchasing power under the 2021 National Defense Authorization Act, receiving USD 137 million in total. The demand for AI chipsets is also increasing in the US and Canada due to the presence of significant important players like NVIDIA Corporation, Intel Corporation, Google LLC, and others. These players are concentrating on releasing cutting-edge AI chipsets to expand their product line.
Asia Pacific's Artificial Intelligence chipsets market is anticipated to develop the fastest during the projection period. The region's developing economies, including South Korea, and India, offer a strong start-up environment and a growing pool of trained labor, both of which are expected to fuel the expansion of Artificial Intelligence chipsets market. One of the first countries to establish a national AI policy was Japan. The approach taken by Japan, which is primarily concerned with making AI beneficial to society and the economy, aims to increase AI R&D capabilities, develop AI systems with industrial applications, and get employees ready for changes to the labor market. Prime Minister Shinzo Abe proposed in June 2019 to train 250,000 people annually in AI skills by 2025.
Global Artificial Intelligence Chipsets Market: Competitive Landscape
In August 2021, IBM launched Telum, a new microprocessor enabling IBM clients to exploit deep learning inference at scale. This chip has a centralized design that allows clients to use the full capacity of the AI processor for AI-specific workloads, making it suited for financial services workloads like loan processing, trade clearing and settlement, fraud detection, anti-money laundering, and risk analysis. In August 2020, Kneron introduced the KL 720 SoC, a sophisticated chipset-based AI. The chipset delivers 1.5 TOPS of performance through its SoC, powered by an Arm Cortex M4 as its primary control unit. The KL720 processors are designed to consume less power, have more computing capability, and provide greater security and privacy than rival chips from Intel, and AMD.
A few of the players in the Artificial Intelligence chipsets market include Koniku Inc (Koniku) (US), Tenstorrent Inc (Tenstorrent)(Canada), SambaNova Systems Inc (SambaNova)(US), Samsung Electronics Co., Ltd. (Samsung) (South Korea), Micron Technology, Inc. (Micron) (US), Microsoft Corporation (Microsoft) (US), Amazon Web Services (an Amazon.com, Inc. subsidiary) (AWS) (US), Advanced Micro Devices, Inc. (AMD) (US), General Vision, Inc. (US), Huawei Technologies Co., Ltd. (Huawei) (China), Graphcore Limited (Graphcore) (UK), MediaTek Inc (MediaTek) (Taiwan), Qualcomm Technologies, Inc. (US), International Business Machines Corporation (IBM) (US), Google Inc. (Google) (US), Fujitsu Limited (Fujitsu)(Japan), Wave Computing Inc (Wave Computing) (US), Mythic (US), Zero ASIC (US), Kalray Corporation (Kalray) (France), XMOS Limited (XMOS) (UK), and GreenWaves Technologies (France), NVIDIA Corporation (NVIDIA) (US), Intel Corporation (Intel) (US), and Xilinx, Inc. (Xilinx) (US).
Regional Classification of the Global Artificial Intelligence Chipsets Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Artificial Intelligence Chipsets Market
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