According to the latest report from the Business Research Company, the generative artificial intelligence (AI) chip market is experiencing unprecedented growth. It is expected that by 2028, the market size will reach $86.24 billion, with an average annual growth rate of 27.9%. This growth trend reflects a surge in demand for computing power, the booming development of deep learning, rising investments in AI research, and increasing consumer attention towards AI-driven devices.
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The report indicates that in 2023, the generative AI chip market size was $25.19 billion, and it is expected to grow to $32.3 billion in 2024, with an annual growth rate of 27.8%. This growth is primarily driven by the explosive growth of big data, the development of graphics processing units (GPUs), the rapid advancement of cloud computing, and support for mixed-precision computing.
The rapid growth of the market is also supported by several key trends. These trends include the integration of edge computing, the combination with field-programmable gate arrays (FPGAs) and application-specific integrated circuit (ASIC) technologies, advanced cooling solutions, cross-platform compatibility, and advanced interconnect technologies.
The increasing popularity of cloud computing solutions further drives the growth of the generative AI chip market. By providing scalable resources, cost-effectiveness, and flexible data access, these solutions are helping businesses reduce infrastructure costs and improve operational flexibility. Generative AI chips enhance data processing efficiency by accelerating the handling of complex AI models, thereby supporting more advanced and flexible cloud services and applications.
In terms of market participants, renowned semiconductor company Qualcomm launched its latest flagship chip, the Snapdragon 8 Gen 3, in October 2023. This chip is designed to enhance generative AI capabilities in top-tier smartphones, enabling real-time voice translation, automatic content creation, and improved photo editing features, thus reducing reliance on cloud services.
The global generative AI chip market is segmented by type, application, and end user. By type, it mainly includes central processing units (CPUs), graphics processing units (GPUs), field-programmable gate arrays (FPGAs), and application-specific integrated circuits (ASICs); by application, it covers information cognition, traffic prediction and classification, resource management, and network adoption; by end user, it involves various sectors including automotive, banking, financial services and insurance (BFSI), consumer electronics, healthcare, manufacturing, retail, and telecommunications.
Key Highlights:
🌟 Market Size: The generative AI chip market is expected to reach $86.24 billion by 2028, with an average annual growth rate of 27.9%.
💻 Key Drivers: Increased demand for computing power, rapid development of deep learning, and the popularity of cloud computing are the main factors driving market growth.
📈 Leading Companies: Qualcomm launches next-generation chips to enhance generative AI capabilities in smartphones, driving market innovation.