Artificial Intelligence (AI) Chipset Market is estimated to grow considerably through 2032, owing to increasing initiatives and investments made by various central governments to build smart cities. For instance, Dubai administration recently unveiled a seven-year plan to transform all municipal services digitally. The plan covers aspects including transportation, urban planning, and communication networks. As per reports, the DubaiNow application is now using artificial intelligence to benefit citizens by digitizing services and making them available to the public.
Besides, the increasing use of robots and industrial automation is also anticipated to fuel the demand for AI chipsets through 2032. SMEs and large enterprises have been focusing on industrial automation for better equipment maintenance, reducing manual labor, and removing the need for assembly and inventories.
Overall, the AI chipset industry is segmented in terms of product, technology, processing, industry vertical, and region.
Based on product, the ASIC segment held over 10% market share in 2022 and is expected to grow considerably owing to the rising need for high bandwidth, long battery life, and compact size components in mobile phone applications. Besides, the increasing implementation of ASIC in access devices, smart door locks, and wearable devices will also positively favor segment expansion.
By technology, the AI chipset industry is anticipated to amass remunerative gains from the NLP technology segment by 2032 end. The segmental valuation can be credited to its rising adoption in smart devices and increasing integration with cloud devices. It is also used for speech recognition, part of speech tagging, word sense disambiguation, named entity recognition, co-reference resolution, sentiment analysis, and natural language generation.
Considering the processing, the edge AI chip segment is anticipated to register over 30% gains during the estimated timeframe. Edge AI chips process huge amounts of data by reducing the risk of interception for personal & enterprise data. In addition, the rising adoption of these edge chips in sensors, robots, and IoT devices will also drive segment growth.
Based on industry verticals, the BFSI segment is estimated to grow considerably due to the shift toward digital payment methods and wallets. According to credible reports, mobile payment transactions reached USD 1.7 billion in 2021, depicting a solid 27% increase annually. Given their high complexity, these applications require regular monitoring and upgrades, thus increasing the demand for AI services.
Regionally, the Europe artificial intelligence chipset market is estimated to grow considerably through 2032 due to hefty investments by conglomerates in the European automotive sector. Besides, increasing funding in developing electric vehicles that use AI chipset, will positively influence the overall business outlook over the ensuing years. The ADAS system deployed in the vehicles leverages AI systems for lane change assistance, driverless operation, and autopilot parking and driving.