The AI chipsets market is increasingly gaining traction, with robust developments in the field of AI and machine learning. AI is an advanced technology which is used to train machines and provide them with the ability to think and work like humans. It allows a machine to make its own decisions and use its own reasoning to get tasks done.   

Machine learning is one of the most important elements of AI which provides machines with the ability to learn outside of the original configuration. It includes deep learning, a type of algorithm that trains the machine to mimic the functions of the human brain through layers of computation. These layers are known as neural networks which are similar to the neural structure found in the human brain.

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The global AI chipsets market is set to record substantial gains by 2026, mainly driven by the increasing industrial automation. Following are some of the major factors driving future trends in the industry.

Increasing use of AI CPUs in smartphones

The different types of AI chipsets include CPU, GPU, ASIC, and FPGA. Among these, AI CPU’s accounted for a market share of more than 35% in terms of revenue during 2019 and they are expected to witness a notable demand in the near future. This demand will be largely fueled by their growing implementation in smartphones and other portable smart gadgets.

AI CPUs, which are similar to 3D graphics chips and GPUs, give processors the time to focus on other tasks and functions. This in turn leads to reduced battery usage by different functions at the same time. They also help ensure that the data is safe and secure, since a limited amount of it has to be sent to the cloud for processing.

Strong demand for network security AI chips

On the basis of the technology, the market is segmented into robotic process automation (RPA), natural language processing (NLP), network security, and computer vision. The network security technology segment captured over 5% of the global AI chipsets industry in 2019 and it is likely to grow substantially over the next few years, with its growing implementation in data centers.

Meanwhile, AI chipsets will continue to experience a strong demand in wearables such as smartwatches and smart rings. Additionally, virtual assistants such as Amazon Alexa are becoming increasingly popular among people. They are highly efficient in helping users carry out many of their day to day activities. These trends are likely to further boost the need for reliable and efficient network security solutions.

Emerging applications in consumer electronics

Today, AI chips are extensively used in consumer electronics, IT & telecom, media & advertising, automotive, healthcare, retail, and other end-use verticals. The consumer electronics sector held over 15% revenue share of the global AI chipsets market in 2019 and will continue to dominate the industry trends in the near future. These trends will be largely driven by the increasing adoption of virtual assistants and smart wearables.

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Geographically, the AI chipsets market in the Middle East and Africa had recorded a robust 30% CAGR in 2019 and it is poised to witness notable growth in the forthcoming years. The regional technology adoption can be attributed to the demand for smart technologies and ongoing developments in the autonomous vehicles space.

The next few years are set to witness an increasing adoption of cloud-based services in the education sector. In addition, the demand for AI interfacing hardware in data centers will positively influence the AI chipsets industry outlook.

Table of Contents (ToC) of the report:

Chapter 1.   Methodology and Scope

1.1.  Methodology

1.1.1. Definition and forecast parameters

1.1.1.1.     Definitions

1.1.1.2.     Assumptions, methodology and forecast parameters

1.2.  Data Sources

1.2.1. Primary

1.2.2. Secondary

Chapter 2.   Executive Summary

2.1.  AI chipsets market 360⁰ synopsis, 2016 - 2026

2.1.1. Business trends

2.1.2. Regional trends

2.1.3. Product trends

2.1.4. Technology trends

2.1.5. Processing type trends

2.1.6. Industry vertical trends

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