The generative artificial intelligence (AI) chip market is experiencing explosive growth and is expected to reach US$86.24 billion by 2028, with an average annual compound growth rate of 27.9%. This growth is driven by multiple factors, including surging demand for computing power, booming deep learning technology, continued investment in AI research, and growing consumer interest in AI-powered devices. This article will take an in-depth look at this market trend, analyzing its key drivers, market players, and future directions.
According to the latest report from Business Research Corporation, the generative artificial intelligence (AI) chip market is experiencing unprecedented growth. It is expected that the market size will reach US$86.24 billion by 2028, with an average annual growth rate of 27.9%. This growing trend reflects surging demand for computing power, the boom in deep learning, rising investments in AI research, and growing consumer interest in AI-powered devices.
Picture source note: The picture is generated by AI, and the picture authorization service provider Midjourney
The report pointed out that the size of the generative artificial intelligence chip market was US$25.19 billion in 2023 and is expected to increase to US$32.3 billion in 2024, with an annual growth rate of 27.8%. This growth is mainly due to the explosive growth of big data, the development of graphics processing units (GPUs), the rapid development of cloud computing, and support for mixed-precision computing.
The rapid growth of the market is also inseparable from a number of key trends. These trends include the integration of edge computing, integration with field-programmable gate array (FPGA) and application-specific integrated circuit (ASIC) technologies, advanced cooling solutions, cross-platform compatibility, and advanced interconnect technologies.
The growing popularity of cloud computing solutions is further driving the growth of the generative artificial intelligence chips market. By providing scalable resources, cost-efficiency, and flexible data access, these solutions are helping enterprises reduce infrastructure costs and increase operational agility. Generative AI chips improve data processing efficiency by accelerating complex AI model processing, thereby supporting more advanced and flexible cloud services and applications.
In terms of market participants, the well-known semiconductor company Qualcomm launched its latest flagship chip-Snapdragon 8 Gen3 in October 2023. The chip is designed to boost the generative AI capabilities of top smartphones, enabling real-time speech translation, automatic content creation, and improved photo editing to reduce reliance on cloud services.
The global generative AI chips market is segmented on the basis of type, application, and end-user. By type, it mainly includes central processing unit (CPU), graphics processing unit (GPU), field programmable gate array (FPGA), application specific integrated circuit (ASIC), etc.; by application, it covers information cognition, traffic prediction and classification , resource management and network adoption, etc.; divided by end users, involving automotive, banking, financial services and insurance (BFSI), consumer electronics, medical, manufacturing, retail, communications and other fields.
Highlight:
Market size: It is expected that the generative AI chip market size will reach US$86.24 billion by 2028, with an average annual growth rate of 27.9%.
Key Drivers: The increasing demand for computing power, the rapid development of deep learning, and the popularity of cloud computing are the major factors responsible for the market growth.
Leading companies: Qualcomm launches a new generation of chips to enhance generative AI capabilities on smartphones and promote market innovation.
All in all, the generative AI chip market has broad prospects, and its rapid growth will continue to affect various industries. In the future, with the continuous advancement of technology and the expansion of application scenarios, the market will continue to maintain strong growth momentum and bring new development opportunities to the artificial intelligence industry.