Blog: Top Trends in Artificial Intelligence Chip Market 2019
Availability of massive amount of data, demand for superior customer service, efficient operations and better sales revenue are some of the key factors driving the growth of Artificial intelligence market. With the advancement in computing and storage technology, computing power has increased multi-fold during the last decade. This computing power has created new opportunities for managing and computing the big sets of data, and when coupled with artificial intelligence technology, it can deliver useful insights to the businesses.
The global artificial intelligence chip market was valued at US$ 5,658.1 Mn in 2018 and is expected to reach US$ 83,252.7 Mn by 2027 with a CAGR growth rate of 35.0% in the forecast period from 2019 to 2027.
Major artificial intelligence applications for which AI chips are being used include Machine Learning (ML), Natural Language Processing (NLP), Expert Systems, Automated Speech Recognition, AI Planning, and Computer Vision. Machine Learning is a branch of artificial intelligence that enables machines to develop the ability of self-learning and adaption through experience without being explicitly programmed. It is a method of data analysis that automates analytical model building. Machine Learning is one of the most use cases application of artificial intelligence chips.
The key companies operating in the field of artificial intelligence chip market that are profiled in the report include Advanced Micro Devices, Inc., Alphabet Inc. (Google), Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Micron Technology, Inc., NVIDIA Corporation, Qualcomm Incorporated, Samsung Electronics Co., Ltd, and Xilinx, Inc. Several other start-ups are emerging in the market such as Graphcore, Cambricon, Thinkforce, Barefoot Networks, Unisound, Horizon Robotics, WestWell Labs, and Brain Corp. among many others.
The global market for artificial intelligence chips is anticipated to exhibit very high growth in the near future. Some of the major driving factors contributing to the market growth include increasing investments in AI chip start-ups, and availability of massive amount of data due to the proliferation of digital services across the globe. Real-time consumer behavior insights, increased operational efficiency, and improved sales revenue are some of the factors responsible for rising adoption of AI chips across major industry verticals.
Also, growing spending on enhanced IT security is expected to drive the growth of AI Chip market. However, there are few factors which are expected to restrain the market growth such as data privacy & security concerns and lack of infrastructure and technology know-how in third world countries. During the forecast period, rising adoption of cloud-based computing across industries and the adoption of artificial intelligence chips in edge devices will present significant opportunities for market players operating in the AI chip market.
Market initiatives by the players propelling the growth of Artificial Intelligence Chip market
In the global artificial intelligence chip market, new market initiative is a strategy adopted by various companies to expand their footprint across the world and meet the growing demand of customers. The market players present in the artificial intelligence chip market are mainly focusing towards product enhancements by implementing advanced technologies. By signing partnership, contracts, joint ventures, and funding, companies are expanding their footprint in the artificial intelligence chip market. Most of the artificial intelligence chip market initiatives were observed in Asia Pacific, North America, and Europe regions, which have high density of AI implementations.
Market initiative was observed as the most adopted strategy in the global artificial intelligence chip market. Few of the recent market initiatives are listed below:
2019: AMD entered into a partnership with ScaleMP enable AMD server OEMs to create systems with 4, 8, and up to 128 processor sockets, up to 8,192 CPUs and 256 terabytes of shared memory.
2019: IBM invested $2 Billion in New York Research Hub for AI Hardware to boost growth from emerging technologies. The Research hub is anticipated to focus on computer-chip research, development, prototyping, testing, and simulation.
2019: Intel unveiled its plan of working with Facebook to finish a new artificial intelligence chip in the second half of 2019. The new chip will help with what researchers call inference, which is the process of taking an artificial intelligence algorithm and putting it to use, for example by tagging friends in photos automatically.
Source: The Insight Partners