A Snapshot of the AI Chips Market Through 2025

Heavy inflow of investments in AI startups, rise in demand for smart cities & smart homes, and the emergence of quantum computing would propel the growth of the global artificial intelligence chip market

Graphics Processing Unit (GPU) Chip Segment to Accrue the Highest Revenue Through 2025 

The GPU chip segment contributed one-third share of the total market revenue in 2017. This segment is expected to maintain its lead position by 2025 due to the increasing use of GPUs in non-graphic applications such as programming languages and tools, general purpose computing, and others coupled with its remarkable capability of parallel processing. However, the other chip type segment would register the fastest CAGR of 55.3% from 2018 to 2025 due to rapid development of chips such as neuromorphic processing units (NPU) and hybrid chips with the extensive scope of applications in various sectors.

Machine Learning Will Remain Dominant

The machine learning segment accounted for more than half of the total market revenue in 2017, owing to its considerable applications in various sectors such as healthcare, legal systems, engineering, and finance. However, the speech recognition segment would register the fastest CAGR of 55.6% from 2018 to 2025, owing to its extensive applications in areas such as device control, voice transcription, car Bluetooth systems, and others coupled with high adoption in radiology and other healthcare sectors.

SoC Technology 

The system-on-chip (SoC) segment contributed nearly three-fifths of the total market revenue in 2017 and is expected to remain dominant throughout the forecast period. This is due to the associated advantages such as improved flexibility, high performance, enhanced power-efficiency, and low cost of devices. However, the other technologies segment, which comprises 3D integration, package in package (PiP), and through-silicon via (TSV), would register the fastest CAGR of 56.2% during the forecast period. This is attributed to advantages such as improved connectivity, low power consumption, and high efficiency in AI applications.

Edge Processing

The edge processing type segment contributed nearly three-fifths of the total market revenue in 2017 and would maintain its lead by 2025. Moreover, this segment is expected to register the highest CAGR of 47.7% from 2018 to 2025, owing to rapid technological advancements and increased adoption of augmented reality, virtual reality, and machine learning in various industries. In addition, several benefits such as low data management & connectivity costs, minimal latency rate, enhanced mobility among others supplement the market growth.

BFSI 

BFSI segment contributed nearly one-fourth share of the total market revenue in 2017 and is expected to remain dominant through 2025. This is attributed to the increasing scope of applications of machine learning systems to track illegal payment activities as well as use of speech recognition technology for telephonic customer service interactions. However, other industry verticals segment, which comprises agriculture, law, educational institutions, and others, contributed the highest CAGR of 54.2% from 2018 to 2025, owing to the rise in demand for virtual mentoring, interconnectedness of classrooms, and user modeling, legal research sector for contract analysis, case prediction, e-discovery, compliance, and document automation in educational sector as well as for tracking crop conditions, monitoring weather conditions, and predicting diseases in the agriculture sector.

Asia-Pacific to Grow the Fastest by 2025 

Asia-Pacific is projected to register the fastest CAGR of 50% from 2018 to 2025, owing to the high adoption of virtual personal assistants, social media, online video, and smartphones in the region along with the implementation of AI technologies in finance & healthcare sectors. However, North America contributed nearly two-fifths of the total market revenue in 2017 due to a rise in R&D of autonomous vehicles coupled with technological advancements in cybersecurity, healthcare, and security and access control. Furthermore, increase in penetration of head-up display screens in smart wearables and luxury cars and surge in venture capital investments have supplemented the market growth. K

Key Market Players

The key market players include Advanced Micro Devices, Inc., Intel Corporation, Google, Inc., Baidu, Inc., NVIDIA Corporation, Qualcomm Incorporated, Graphcore, UC-Davis, Adapteva, and Mythic, Inc.

Start-Ups to Look Out For

Gyrfalcon Technology Inc. (GTI), the world’s leading developer of high-performance, low-power and low-cost Artificial Intelligence (AI) accelerators was founded in 2017 by veteran Silicon Valley entrepreneurs and Artificial Intelligence scientists. GTI was chosen as Samsung’s global AI accelerator chip vendor and began shipping first generation chips in Q1 2018. As part of a strategic partnership agreement, GTI chips will enable LG Electronics’ AI products in 2019. When the company initially launched, its goal was to increase performance of AI applications with unique and dedicated processors. The company has launched three products all in keeping with its mission and designed for applications in edge devices to cloud data centers: Lightspeeur 2801S, Lightspeeur 2802M, Lightspeeur 2803S.

Sources: Allied Market Research