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Generative AI Chipset Market Revenue | CAGR of 32.02%
21 Oct 2024
Generative AI Chipset Market Revenue and Trends
The global generative AI chipset market revenue reached USD 49.26 billion in 2024 and is predicted to attain around USD 600.10 billion by 2033, growing at a healthy CAGR of 32.02% during forecast period. The demand for generative AI chipsets is increasing due to the need for real-time processing in various industrial applications. The increasing implementation of AI tools in various industries like healthcare, automobile, electronics, and finance and the rising demand for big data analytics and 5G technologies boost the market for the generative AI chipset.
Market Overview
The market for generative AI chipsets is expanding rapidly due to rising demand from various industries, such as finance and healthcare. The adoption of AI technologies is increasing among industries, creating a great need for generative AI chipsets. In addition, developing countries like China and India are using advanced technologies and cloud computing, contributing to the generative AI chipset market expansion.
Artificial Intelligence plays a crucial role in the production of the generative AI chipset, significantly enhancing its design and performance. This not only accelerates the manufacturing process but also leads to improved chip performance and production quality.
The rising incorporation of AI chips in smart cameras, Internet of Things (IoT), smartphones, and wearables drives the market growth. Moreover, many tech companies are adopting customized application-specific integrated circuits to enhance productivity, significantly propelling the market.
Report Highlights of the Generative AI chipset Market
On the basis of chipset type, the GPU segment held the largest share of the market in 2023. This is due to the increasing adoption of GPUs in gaming and entertainment industries for their capability to handle parallel tasks efficiently.
Based on application, the deep learning segment led the market for generative AI chipset in 2023 due to its use in various sectors like finance and healthcare. It is used to process complex tasks like image recognition, predictive analysis, and natural language processing.
In terms of end-use, the consumer electronics segment dominated the generative AI chipset market in 2023, owing to the rising dependency on AI tools for various features like voice assistance, speech and image recognition, and customized recommendations for smart devices like smartwatches and smartphones. On the other hand, the automotive segment is expected to expand at the fastest rate during the forecast period. This is due to the rising integration of AI algorithms in existing technologies.
Generative AI Chipset Market Trends
Increasing demand for generative AI: The rising demand for generative AI tools like ChatGPT drives the market. AI chipsets are heavily used in the healthcare and electronics industry to boost the production process. They are also used in the automotive industry in advanced driver assistant systems and infotainment systems. Moreover, the rising need to handle large data sets using Natural Language Processing and predictive maintenance also boosts the market for generative AI chipset.
Implementation of AI in smart devices: The increasing implementation of generative AI tools in smartphones and wearables contributes to market expansion. Major companies like Samsung and Apple are integrating AI algorithms in their products, providing enhanced security and privacy for data that any unauthorized person cannot access.
Rising competition: Key players are making efforts to hold more share by developing advanced AI chipsets, intensifying completion. For instance, in March 2024, Nvidia announced a deal with Johnson & Johnson to use generative AI in surgery to improve medical imaging, which will also help the pharmaceutical, medtech, and biotech industries.
Regional Insights
North America dominated the generative AI chipset market in 2023. This is primarily due to the presence of a large number of market players like NVIDIA and Intel. The region is known for being an early adopter of advanced technologies, including AI. In addition, rising investments in research and development to explore the area of application of AI contributed to the region’s dominance.
On the other hand, Asia Pacific is expected to witness rapid growth in the market during the forecast period. This is due to the increasing adoption of AI technologies in the electronics and automotive industries to boost production efficiency. Moreover, rising industrialization in countries like India and China contributes to regional market growth.
Generative AI Chipset Market Coverage
Report Attribute
Key Statistics
Market Revenue in 2024
USD 49.26 Billion
Market Revenue by 2033
USD 600.10 Billion
CAGR
32.02% from 2024 to 2033
Quantitative Units
Revenue in USD million/billion, Volume in units
Largest Market
North America
Base Year
2023
Regions Covered
North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
Market News
In June 2024, Advanced Micro Devices (AMD) launched its latest AI M1325X accelerator, which will be available in the fourth quarter of 2024. AMD will also develop advanced AI chip data centers.
In May 2024, MediaTek introduced its 9300+ chipset that is claimed to offer improved clock speed that is designed to support on device generative AI processing with a broader support to LLMS.
In April 2024, Samsung Electronics launched its BESPOKE AI-powered home appliances, which perform well with usual tasks, do more than previously imagined AI tools, and provide consumers with an entertainment platform.
Market Segmentation
By Chipset Type
CPU
GPU
FPGA
ASIC
Others
By Application
Machine Learning
Deep Learning
Reinforcement Learning
Generative Adversarial Networks (Gans)
Natural Language Understanding (NLU)
By End-use
Consumer Electronics
Automotive
Healthcare
Retail
Manufacturing
Banking, Financial Services, And Insurance (BFSI)
Telecommunication
Others (Energy, Government, Etc.)
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