Artificial Intelligence (AI) chipsets market is likely to witness exponential growth in the coming years owing to new technologies as well as evolving machine learning tools. Artificial Intelligence can be defined as a system that can allow a machine work and make its own decisions, much like a human, using its own thoughts as well as reasoning to get a particular task done.

In the broadest sense a person who is hidden behind a screen operating on a mechanical robot is basically artificial intelligence. AI involves machine learning, which gives the system the ability to learn outside of its own original programming. It also involves something called deep learning, which is a type of machine learning algorithm that tries to mimic the brain of human through layers of computation. These layers are further called neural networks which are based on the neural networks inside human heads.

AI is a very wide concept which is used to define machines which have the capability to think like humans or have some form of artificial brain with similarities with human brain. AI chips are all about handling the certain types of programming tasks that deep learning, machine learning, as well as neural networks actually depend on, basically on the phone, faster than the GPU or CPU could manage.

Artificial Intelligence (AI) chipsets market is bifurcated in terms of product, technology, processing type, industry verticals, and regional landscape.

With respect to product, the market is categorized ASIC, CPU, GPU, and FPGA. Among these, the market share for CPU was over 35% in 2019 due to the rising integration of Artificial Intelligence processors in smart phones. Similar to 3D graphics and GPUs, artificial intelligence chips give the CPU time to focus on other tasks and functions, which reduces the amount battery drawn at the same time. This further means that the data is more safe and secure, since less of it has to be sent to the cloud for processing.

Based on technology, the market is classified into network security, NLP, computer vision, RPA, and others. Among these, network security segment held a market share of 5% in 2019 due to its increasing procurement in data centers.

With respect to industry verticals, the market is segmented into consumer electronics, media & advertising, automotive, IT & Telecom, BFSI, healthcare, retail, and others. The consumer electronics segment held a market share of over 15% in 2019 owing to the growing adoption of smart wearable and virtual assistant devices.

Wearables such as smartwatches and smart rings, and virtual assistants like Amazon’s Alexa are becoming more and more popular owing to their efficiency in helping people carry out their day to day activities. This popularity is likely to ensure a significant rise in adoption of these systems, bringing growth to the market landscape.

From a regional frame of reference, the MEA AI chipsets industry recorded a growth rate of nearly 30% in 2019 due to the rapid uptake of mobile devices and autonomous vehicles in the region.