Global Artificial Intelligence Chip Market Expected to Reach USD 173.5 Billion by 2033 - IMARC Group

Global Artificial Intelligence Chip Market Statistics, Outlook and Regional Analysis 2025-2033

The global artificial intelligence chip market size was valued at USD 23.7 Billion in 2024, and it is expected to reach USD 173.5 Billion by 2033, exhibiting a growth rate (CAGR) of 24.8% from 2025 to 2033.

The global artificial intelligence (AI) chip market is experiencing robust growth because of hyperscalers that are rapidly adopting AI-powered servers. Moreover, with people installing AI technologies such as machine learning (ML), robotics, natural language processing (NLP), and computer vision in applications of every kind to enable increased personalized experience, the market is experiencing robust growth. Additionally, companies are investing in industries to acquire competitive advantages using AI chips, further fueling the market growth. For example, the funding of AI and cloud companies globally is increasing and is estimated to hit USD 79.2 billion by 2024, a 27% surge from 2023. This trajectory reiterates the broad importance of AI chips in innovation across various industries, emphasizing their critical role in meeting increased demand for intelligent systems and aiding in market expansion.

Concurrently, the demand for AI chips in the efficient processing of autonomous vehicles is surging. In confluence with this, the increase in AI-enabled devices such as smartphones and Internet of Things (IoT) devices required high performance as they consume minimal power by using chips, thus boosting the market demand. Furthermore, government initiatives and investments are acting as another significant growth-inducing factor since every country recognizes the importance of AI in economic development and national security. For instance, Amazon has invested an additional $4 billion in AI startup Anthropic, bringing its total investment to $8 billion, and is continuously innovating and releasing new AI chipsets to fuel the market growth. Besides this, the emergence of generative AI applications and Artificial Intelligence of Things (AIoT) is driving the advancement of AI chips that are capable of executing complex workloads with efficiency, aiding in market expansion. These factors are changing enhancing the ongoing technological development globally, further driving the market demand.

Global Artificial Intelligence Chip Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share on account of the integration of voice commands in various products and rising integration in consumer electronics.

North America Artificial Intelligence Chip Market Trends:

The demand for artificial intelligence (AI) chips in North America is significantly driven by strong investments in AI research and development (R&D), especially in the technology and automotive industries. Additionally, the established tech ecosystem of the region is driving innovation and the need for AI chipsets. For instance, in 2023, NVIDIA led the data center graphics processing unit GPU) segment with 92 % in the generative AI chipset market, demonstrating its leadership in this industry. Furthermore, the early adoption of AI in medical fields, banks, and retail businesses enhances decision-making, and customer experiences, increasing their efficiency. This rising emphasis on edge computing and AI-driven automation, driving the demand for AI processors, thereby providing an impetus to the market.

Asia-Pacific Artificial Intelligence Chip Market Trends:

The market demand in the Asia Pacific is fueled due to the significant investments in AI-based technologies by emerging economies, rapid industrial digitization, and widespread use of AI in consumer electronics. Besides this, continuous advancements in e-commerce, smart city projects, and AI-driven healthcare are increasing the adoption of AI chipsets across various industries, thus impelling the market growth.

Europe Artificial Intelligence Chip Market Trends:

In Europe, the market demand is driven by advancements in government initiatives promoting AI adoption, autonomous systems, and the emphasis on sustainability. Moreover, AI chips are vital for optimizing renewable energy solutions, improving manufacturing processes, and enabling smart infrastructure activities, that align with the digital transformation goals of the region, thereby supporting the market expansion.

Latin America Artificial Intelligence Chip Market Trends:

The market demand in Latin America is primarily driven by the increased deployment of AI in several sectors such as agriculture, logistics, and banking. In addition, the countries are using AI chips to enhance crop management, increase supply chain efficiency, and facilitate secure financial transactions supported by government-backed AI incentives, hence aiding the market growth.

Middle East and Africa Artificial Intelligence Chip Market Trends:

In the Middle East and Africa, the demand is propelled by the integration of AI into oil and gas optimization, urban development, and security systems. Apart from this, governments and businesses are increasingly utilizing AI chipsets to enable smart city initiatives, strengthen cybersecurity, and enhance the operational efficiency of resource management, thereby boosting the market expansion.

Top Companies Leading in the Artificial Intelligence Chip Industry

Some of the leading artificial intelligence chip market companies include Advanced Micro Devices Inc., Huawei Technologies Co. Ltd., Intel Corporation, LG Electronics Inc. (LG Corporation), Mediatek Inc., Micron Technology Inc., Mythic Inc., Nvidia Corporation, NXP Semiconductors N.V., Qualcomm Technologies Inc, SK hynix Inc., Toshiba Corporation, among many others.

• In November 2024, Intel secured funding up to $7.86 billion from the U.S. CHIPS and Science Act to support its semiconductor manufacturing projects across several states.

Global Artificial Intelligence Chip Market Segmentation Coverage

• On the basis of the chip type, the market has been categorized into GPU, ASIC, FPGA, CPU, and others, wherein GPU represents the leading segment due to its capacity to execute parallel processing for computationally intensive AI tasks such as deep learning, computer vision, and data analytics. Its high scalability makes it a preferred choice for training and inference in applications, in industries like healthcare and research, driving the market forward.
• Based on the technology, the market is classified into system-on-chip (SoC), system-in-package (SIP), multi-chip module, and others, amongst which system-on-chip (SoC) dominates the market through the integration of processing, memory, and connectivity functions within a single chip, to achieve an optimal power consumption, area, and performance. They are suitable for edge AI applications such as mobile devices, wearables, and IoT, where energy efficiency, tiny form factor, and real-time processing are crucial, resulting in the widespread adoption of AI-powered technologies.
• On the basis of the processing type, the market has been bifurcated into edge and cloud. Among these, the cloud accounts for the majority of the market share as it allows enterprises to access strong AI processing without the requirement for on-premises hardware, resulting in scalability, flexibility, and cost savings. These chips allow organizations to run complex AI models remotely, making them accessible to smaller businesses, and supporting the market growth.
• Based on the application, the market is segregated into natural language processing (NLP), robotics, computer vision, network security, and others. NLP-optimized AI chips enhance tasks like language translation, sentiment analysis, and speech recognition. These chips improve processing speed, and efficiency, reducing the latency, and further offering voice assistants and chatbots, driving the demand across retail and customer service sectors.
• On the basis of industry vertical, the market is divided into media and advertising, BFSI, IT and telecom, retail, healthcare, automotive and transportation, and others. The BFSI industry uses AI for fraud detection, risk assessment, trading, and customer service. Moreover, AI chips improve speed, accuracy, and real-time decision-making, improving operational efficiency and data security, and fueling the market demand.

Browse IMARC Related Reports on Artificial Intelligence Chip Market:

• United States Artificial Intelligence Chip Market Report