Market Trends of AI Chipsets Industry
This section covers the major market trends shaping the AI Chipsets Market according to our research experts:
Consumer Electronics Is Expected to Witness Significant Growth
- Semiconductor chip shortage halted the production of consumer electronics worldwide due to the COVID-19 pandemic. However, the pandemic created a huge demand for consumer electronics, such as laptops, desktops, and gaming consoles, causing chaos for product companies, manufacturers, and end consumers. Equipment manufacturers focused on meeting this demand from the volatile consumer technology market. The chip shortage and high demand scenario are expected to continue until the next 2 to 3 years, driving the demand for AI chips for consumer electronics.
- The market will benefit from the increased use of quantum computing technologies to tackle complicated issues and perform analytical computations. For example, Google LLC's Sycamore quantum computer is the fastest computer, capable of completing work in roughly 200 seconds. Artificial intelligence, machine learning, computer vision, Big Data, AR/VR, and other technologies enable quantum computers. The expanding understanding of quantum computing will boost the demand for AI chipsets, thus boosting the industry's growth.
- AI technologies have been deployed in various industries, including automotive and manufacturing, to streamline processes. The industry may benefit from manufacturers' focus on enhanced AI-based solutions during the pandemic. For example, in May 2020, Nvidia Corporation updated its EGX Edge AI platform by launching new devices, namely, the EGX Jetson Xavier NX and EGX A100.
- The consumer electronics category is likely to occupy a major proportion of the AI chipset market during the forecast period. Various electronic devices, such as tablets and smartphones, are in high demand in the market with high-end specifications. Numerous manufacturers are continuously introducing novel AI chipsets to cater to the rising demand. For instance, in May 2022, MediaTek, a Taiwanese chipmaker, announced the Genio architecture for artificial intelligence of things (AIoT) devices, as well as the Genio 1200 chip. Premium AIoT solutions based on the Genio 1200 chip will be widely accessible in the latter half of 2022, according to MediaTek.
- The AI chipsets market is being driven by the increasing need for high-speed computer processors and increasing demand for better customer services and lower operating costs. The industry is being restrained by a shortage of experienced labor and a lack of standards and protocols.
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Asia-Pacific Is Anticipated to Witness Significant Growth
- The Asia-Pacific market is projected to grow significantly due to emerging economies like South Korea, India, and China. The increased acceptance of AI-based solutions will support the market's healthy expansion in the region. The growing application of AI chipsets in consumer electronics, such as smartphones, tablets, and laptops, involves integrating voice commands, among others, which has resulted in the high adoption of AI chipsets in the region.
- Japan was one of the first nations to adopt a national AI policy. Japan's approach, primarily focused on making AI helpful to both society and the economy, intends to expand AI R&D skills, build AI systems with industrial applications, and prepare workers for labor market transformations. In June 2019, Prime Minister Shinzo Abe unveiled a plan to train 250,000 people in AI skills annually by 2025.
- The integration of voice commands, enhancement of photography experience, gathering and sorting relevant data based on previous searches, and other applications of AI chipsets in consumer electronics, such as smartphones, tablets, and laptops, resulted in the high adoption of AI chipsets.
- The region is home to the world's largest smartphone manufacturers and semiconductor companies. China, Japan, Taiwan, and South Korea account for roughly 80% of smartphone manufacturers worldwide. The greatest population has led to increased smartphone usage, which is likely to drive market growth.
- Several market players in the region are at the forefront of developing and producing AI chips. For instance, in August 2021, Baidu, a Chinese tech giant, started mass-producing second-generation Kunlun AI chips to become a major player in the chip industry. According to Baidu, the new generation of Kunlun AI chips is produced using 7 nm process technology, with computational capability 2-3 times better than the previous generation.
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