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The global AI chip market size is projected to grow from USD 123.16 billion in 2024 to USD 311.58 billion by 2029, growing at a CAGR of 20.4% during the forecast period from 2024 to 2029.
The AI chip market is driven by the increasing adoption of AI servers by hyperscalers and the growing use of Generative AI technologies and applications, such as GenAI and AIoT, across various industries, including BFSI, healthcare, retail & e-commerce, and media & entertainment.
AI chips help achieve high-speed parallel processing in AI servers, offering high performance and efficiently handling AI workloads in the cloud data center ecosystem. Moreover, the surging adoption of edge AI computing and the rising focus on real-time data processing, coupled with robust government-led investments in AI infrastructure development, especially in economies across the Asia Pacific region, further contribute to the AI chip industry growth.
There is a spike in demand for AI chips with the rising deployment of AI servers in diversified AI-powered applications across several industries, including BFSI, healthcare, retail & e-commerce, media & entertainment, and automotive. Data center owners and cloud service providers are upgrading their infrastructure to enable AI applications.
According to MarketsandMarkets analysis, AI server penetration represented 8.8% of all servers in 2023 and is anticipated to reach 30% by 2029. The rising inclination toward using chatbots, Artificial Intelligence of Things (AIoT), predictive analytics, and natural language processing drives the need for AI servers to support these applications. These applications require powerful hardware platforms to perform complex computations and process large data volumes.
AI servers have advanced computational capabilities and are designed to handle large datasets. They can also process data in real time and play a crucial role in training AI models. Owing to the growing demand for faster processing speeds and greater energy efficiency, AI servers are primarily used by cloud service providers, enterprises, academic institutions, and commercial end users.
AI Chip MaUS$ 4,950