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What Is The Expected Cagr For The Artificial Intelligence Chip Market Through 2025?
The market size of artificial intelligence chips has witnessed a rapid expansion in the past few years. The market is predicted to increase from $29.65 billion in 2024 to $40.21 billion in 2025, with a compound annual growth rate (CAGR) of 35.6%. Factors such as the surge in data production, growth in the healthcare sector, investment in AI research, an increase in the retail and e-commerce sectors, and economic growth have contributed to the growth during the historic period.

There is an anticipated exponential increase in the size of the artificial intelligence chip market in the coming years. The market is predicted to reach $157.98 billion by 2029, with a compound annual growth rate (CAGR) of 40.8%. This predicted growth during the forecast period can be linked to the escalating demand for applications that require substantial data, improvements in machine learning algorithms, expansion in the automotive industry, an increase in financial services, and surging urbanization. Key trends expected during this forecast period include the personalization of AI hardware, acceleration of edge AI, integration of quantum computing, neuromorphic computing, and the development of energy-efficient AI chips.

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What Are The Driving Factors Impacting The Artificial Intelligence Chip Market?
The anticipated growth of the artificial intelligence chips market is likely to be fueled by the rising demand for smart homes and smart cities. Smart cities utilise digital or information-communication technology to enhance human life's comfort and efficiency. A technique aimed at achieving sustainable growth through urbanisation involves equipping cities with advanced features, providing a secure and convenient lifestyle for its inhabitants. As reported by Arab News, an English-language newspaper in the Middle East, in March 2022, Saudi Arabia initiated a new smart city project in Jeddah specifically for light industries and auto repair. The launch covered the first two phases, with the second phase comprising a 500,000 square metre labour city. The Smart City initiative spans a total of 5 million square metres. Moreover, the Saudi Vision 2030 strategic framework suggests that the city's distinctiveness lies in its interwoven infrastructure and the integration of digital and smart technology to provide automated services to its consumers. Consequently, the escalating demand for smart homes and cities contributes significantly to the expansion of the artificial intelligence chips market.

Which Players Dominate The Artificial Intelligence Chip Industry Landscape?
Major players in the Artificial Intelligence Chip Global Market Report 2025 include:
. Intel Corporation
. Mediatek Inc
. NVIDIA Corporation
. Qualcomm Technologies Inc.
. Advanced Micro Devices Inc
. Alphabet Inc
. NXP Semiconductors N.V
. Micron Technology Inc
. IBM Corporation
. Apple Inc.

What Are The Future Trends Of The Artificial Intelligence Chip Market?
Leading firms in the artificial intelligence chips market are making notable advancements in novel technology and research within the AI chip domain, including the Atom AI chip catered towards computer vision and AI chatbot applications. For instance, South Korea-based Rebellions Inc., renowned for its generative AI chips, rolled out Atom in February 2023. Atom incorporates a distinct decentralized programming model and technology, equipping customers with ultra-powerful, energy-efficient AI hardware as well as streamlined software integration. This newly launched chip is engineered to consume only around 20% of the energy used by other high-performance chips in the market and is likely to provide a specifically designed AI processor coupled with optimized software.

Global Artificial Intelligence Chip Market Segmentation By Type, Application, And Region
The artificial intelligence chip market covered in this report is segmented –
1) By Chip Type: GPU, ASIC, FPGA, CPU, Other Chip Types
2) By Processing Type: Edge, Cloud
3) By Technology: System-On-Chip (SoC), System-In-Package (SIP), Multi-Chip Module, Other Technologies
4) By Application: Natural Language Processing (NLP), Robotics, Computer Vision, Network Security, Other Applications
5) By Industry: Media and Advertising, BFSI, IT and Telecom, Retail, Healthcare, Automotive and Transportation, Other Industries

Subsegments:
1) By GPU (Graphics Processing Unit): Consumer GPUs, Data Center GPUs, Integrated GPUs
2) By ASIC (Application-Specific Integrated Circuit): Deep Learning ASICs, Neuromorphic ASICs
3) By FPGA (Field-Programmable Gate Array): Standard FPGAs, High-Performance FPGAs
4) By CPU (Central Processing Unit): General-Purpose CPUs, AI-Optimized CPUs
5) By Other Chip Types: DSP (Digital Signal Processor), RISC-V Chips, Hybrid Chips

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Which Region Holds The Largest Market Share In The Artificial Intelligence Chip Market?
The Artificial Intelligence Chip Global Market Report 2025 reveals North America as the frontrunner in the said market as of 2024, with the expectation for considerable growth. The comprehensive report features data from various regions including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

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