Artificial Intelligence (AI) Chipsets Market
Report ID: SQMIG45N2128
Report ID: SQMIG45N2128
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Report ID:
SQMIG45N2128 |
Region:
Global |
Published Date: August, 2025
Pages:
181
|Tables:
119
|Figures:
70
Global Artificial Intelligence (AI) Chipsets Market size was valued at USD 35.2 Billion in 2024 and is poised to grow from USD 46.57 Billion in 2025 to USD 437.1 Billion by 2033, growing at a CAGR of 32.3% during the forecast period (2026–2033).
The global trend toward smart homes and smart cities is significantly increasing the demand for AI chipsets. AI chipsets, which power a range of devices in smart homes, including smart speakers, thermostats, security systems, and home appliances, enable voice recognition, energy management, and personalized user experiences.
AI chipsets are also used in smart cities for infrastructure management, traffic control, and public safety. AI can process enormous volumes of data and make decisions instantly. The global artificial intelligence (AI) chipsets market growth is largely driven by the integration of AI in household applications and urban planning, which is being driven by the need for energy efficiency, enhanced security, and improved living standards.
How are AI Chipsets Enhancing Edge Computing Capabilities?
AI chipset integration is revolutionizing computing by providing devices with the ability to perform complex tasks like image recognition, natural language processing, predictive analytics, and real-time decisions, without relying only on cloud-based systems. The AI chipsets include core architectures like GPUs, TPUs, NPUs, FPGAs, and custom ASICs and are designed for workloads requiring parallel processing and machine learning.
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The global artificial intelligence (AI) chipsets market is segmented into chipset, workload domain, computing technology, vertical, and region. By chipset, the market is divided into CPU, GPU, FPGA, and ASIC. Depending on workload domain, it is bifurcated into training and inference. According to computing technology, the market is classified into cloud AI computing and edge AI computing. As per vertical, it is categorized into consumer electronics, marketing, healthcare, manufacturing, automotive, retail & e-commerce, and BFSI. Regionally, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
What Makes GPUs the Go-To Choice for AI Workloads?
As per the 2024 artificial intelligence (AI) chipsets market analysis, the GPU segment captured over 30.9% of revenue and is largely due to GPUs' unique processing ability that is conducive to the computationally intensive aspect of AI, like deep learning and neural networks. Due to its ability to process a large amount of data rapidly, and its growth in application in several sectors, like consumer electronics, healthcare, and automotive, a GPU represents one of the most desirable segments of the artificial intelligence chipsets market.
The ASIC segment is expected to have the highest artificial intelligence (AI) chipsets market share during the forecast period. This is due to the increasing demand for ASICs designed to specifically handle specific AI workloads. When compared to general-purpose GPUs and CPUs, ASICs offer superior performance, power efficiency, and affordability, making them a better option for large-scale AI deployments. The growing usage of ASICs in cloud data centers has further fueled this market's growth.
How are Inference Workloads Powering Real-Time Decision Making?
As per the 2024 artificial intelligence (AI) chipsets market forecast, the inference segment had the largest market share. This is due to the growing demand for AI-powered applications in a variety of industries, such as healthcare, finance, and automotive, which primarily rely on inference workloads to interpret and make decisions based on learned models. Inference workloads, a crucial component of AI deployment, require high-performance chipsets that can efficiently process complex algorithms and large datasets in real time.
The training category is expected to grow at a substantial CAGR from 2025 to 2032. This is due to the increasing demand for high-performance chipsets that can efficiently handle demanding machine learning (ML) and deep learning (DL) workloads. Training, the process of developing and refining AI models, is a critical use case for AI chipsets and requires massive amounts of memory, processing power, and data processing. Together with the explosion in the development of new AI models brought about by the growing application of AI in critical industries, there is a growing demand for training-optimized chipsets. Additionally, strategic mergers and acquisitions of top AI solution providers have created promising growth prospects for the artificial intelligence (AI) chipsets industry.
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How is Government Support Driving AI Chipset Innovation in North America?
As per the artificial intelligence (AI) chipsets market regional analysis, the North American market nearly brought in 43.8% of revenues and dominated the industry in 2024. The market has grown in the region, given its highly developed IT infrastructure inclusive of data centers and cloud computing capabilities. The region continues to grow as undiscovered areas of the manufacturing sector, and the automotive sector is working with software service providers to build unique applications of AI software to reduce production facility losses and operational downtime. An example of this collaboration is Eigen Innovations Inc.'s Intel-powered OneView AI platform. Eigen Innovations Inc.'s product identifies defective products early on and reduces losses of manufacturing facilities.
Artificial Intelligence (AI) Chipsets in the U.S.
The United States dominated the artificial intelligence (AI) chipsets sector in 2024. This is due to the fact that prominent AI chipset vendors, such as NVIDIA, AMD, Intel, and Google, have their headquarters in the country. The economy's thriving ecosystem of technology companies, academic institutions, and venture capital firms has laid a strong foundation for the development and adoption of AI chipsets. Furthermore, the widespread use of AI-powered applications in industries like healthcare, finance, and automotive has increased demand for high-performance AI chipsets.
Artificial Intelligence (AI) Chipsets in Canada
Government-sponsored smart city initiatives and funding for AI research are driving growth in Canada's AI chipset market. An AI-powered traffic control system that uses NVIDIA's Jetson platforms to cut down on traffic was unveiled in Toronto in February 2024. The need for inference chipsets in the transportation and healthcare industries is being bolstered by the government's ongoing funding under the Pan-Canadian AI Strategy 2.0, which includes CAD 443 million through 2025.
How is Europe Balancing AI Chipset Innovation with Regulatory Oversight?
Europe held a sizable share of the artificial intelligence (AI) chipsets industry in 2024. The highly advanced automotive and industrial sectors in the region, particularly in areas like autonomous vehicles, smart manufacturing, and predictive maintenance, have increased demand for AI chipsets. Europe's commitment to AI adoption is further evidenced by initiatives such as the European Union's AI Strategy, which aims to promote AI development and deployment across the region. Additionally, innovative applications of AI in the broadcasting and entertainment sectors have opened new avenues for expansion in this field. For instance, Intel's 5th Gen and 4th Gen Xeon processors, paired with servers driven by Intel AI accelerators, were used to broadcast the 2024 Summer Olympics in 8K over-the-top.
Artificial Intelligence (AI) Chipsets in UK
The UK held a sizable share of the European artificial intelligence (AI) chipsets market. The UK's top-notch research institutes and universities have facilitated regular collaboration between academia and industry, which has accelerated the development of AI chipsets. Furthermore, a steady supply of next-generation IPUs has been ensured by the economy's presence of multinational semiconductor manufacturers like Graphcore. Furthermore, the UK's strong emphasis on privacy and data protection has led to the development of AI chipsets that prioritize data security and compliance.
Artificial Intelligence (AI) Chipsets in France
Growing levels of automation in industry and healthcare are driving the French AI chipsets market. The French Ministry of Health implemented AI diagnostic tools in five Parisian hospitals in June 2024 using Intel's Gaudi 2 chips. Chipset adoption is encouraged by the government's AI investment plan, France 2030, which allots euro 1.5 billion for AI research and development through 2025. This is especially true for real-time medical inference and predictive maintenance.
Artificial Intelligence (AI) Chipsets in Germany
The German AI chipsets market is expanding because of the country's emphasis on AI in industrial automation and automobiles. BMW began incorporating NVIDIA DRIVE chips for in-car artificial intelligence capabilities into its next-generation electric cars in September 2024. Furthermore, through 2025, the demand for edge and inference chipsets in smart manufacturing and mobility solutions is being driven by Germany's High-Tech Strategy 2025, which has allocated over Euro 3 billion for AI.
What Makes Asia-Pacific a Hotspot for Edge AI and High-Performance Chipsets?
Asia Pacific is anticipated to have the fastest CAGR during the forecast period. This is a result of the rapid technological advancements and digital transformation occurring in countries such as China, Japan, South Korea, and India. The region's growing demand for AI-powered applications, like industrial automation, driverless cars, and smart cities, has fueled the adoption of high-performance AI chipsets. Software companies in this field are also collaborating with renowned AI solution providers to enhance their AI capabilities.
Artificial Intelligence (AI) Chipsets in India
The Indian artificial intelligence chipset market accounted for a sizeable share of the regional market in 2024. Growing investments in AI research and development, along with government initiatives like the Design Linked Incentive (DLI) Scheme, have accelerated the production of semiconductor chipsets. Artificial intelligence is finding new applications in the economy thanks to technological advancements. For instance, Calsoft, a technology solutions provider, uses the NVIDIA Jetson edge AI modules and NVIDIA A100 Tensor Core GPUs to develop its AI products.
Artificial Intelligence (AI) Chipsets in China
The AI chipsets market is dominated by China because of their widespread application in driverless cars, smart cities, and surveillance. Baidu's new Apollo Go robo-taxi service, which uses Huawei Ascend AI chips, was introduced in Beijing in April 2025. Large-scale inference chipset deployment in AI-enabled urban and transportation ecosystems is still being driven by China's New Infrastructure Plan, which allots more than USD 1.4 trillion through 2025.
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Artificial Intelligence (AI) Chipsets Market Drivers
Growing AI Utilization in Various Industries
Growth in IoT and Edge AI Devices
Artificial Intelligence (AI) Chipsets Market Restraints
Exorbitant Production and Development Expenses
Interruptions in the Supply Chain and Semiconductor Shortages
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In the competitive AI chipsets market, companies are concentrating on internal chip development, partnerships, and vertical integration. Nvidia and AMD are investing in GPUs with an AI focus, while Google, Amazon, and Apple are developing their own AI chips to gain full-stack control. Intel is diversifying its interests by purchasing AI companies. Advanced chip production is accelerated through collaborations between foundries and AI companies such as Tenstorrent and TSMC.
Top Player’s Company Profile
Recent Developments in Artificial Intelligence (AI) Chipsets Market
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the rapid rise in AI applications across many sectors is having a significant impact on the artificial intelligence (AI) chipsets market outlook. Improvements made in energy efficiency, the continuing increase in edge AI demand, and the tech giants' push to create even more unique chips is changing the competition. Development costs are high, and the supply chain continues to face disruptions, so challenges remain. Incumbents are focused on vertical integration, but new entrants like Graphcore and Cerebras are pushing performance boundaries. Global market expansion is likely as AI grows in data management, smart devices, autonomous systems, and cloud computing, but it will be slow. In the coming years, government support, collaborative engagement on R&D, and investment strategies will be necessary to foster innovation and improve supply chain resiliency.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 35.2 Billion |
| Market size value in 2033 | USD 437.1 Billion |
| Growth Rate | 32.3% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Artificial Intelligence (AI) Chipsets Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Artificial Intelligence (AI) Chipsets Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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