Market Trends of Neuromorphic Chip Industry
This section covers the major market trends shaping the Neuromorphic Chip Market according to our research experts:
Consumer Electronics Segment Holds Significant Market Share
- The consumer electronics industry identifies neuromorphic computing as a promising tool for enabling high-performance computing and ultra-low power consumption to achieve these goals. For instance, AI services, such as Alexa and Siri, rely on cloud computing with the internet to parse and respond to spoken commands and questions. Neuromorphic chips have the potential to allow several varieties of sensors and devices to perform intelligently without requiring an internet connection.
- Smartphones are expected to be the trigger for the introduction of neuromorphic computing. Several operations, such as biometrics, are power-hungry and data-intensive. For instance, in speech recognition, audio data is processed in the cloud and then returned to the phone.
- Wearable devices are a fast-growing technology with a considerable impact on personal healthcare for both the economy and society. Due to widespread sensors in pervasive and distributed networks, power consumption, processing speed, and system adaptation are vital in the future of smart wearable devices. Additionally, the field of artificial intelligence further boosts the possibility of smart wearable sensory systems. The emerging high-performance systems and intelligent applications need more complexity and demand sensory units to describe the physical object accurately.
- Moreover, increasing the number of wearable devices may further drive market growth. For instance, according to Cisco Systems, the number of connected wearable devices reached 1,105 million in 2022 compared to 929 million in the previous year.
- The increasing interest in neuromorphic engineering shows that hardware-spiking neural networks are considered a critical future technology with high potential in crucial applications, such as edge computing and wearable devices.
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North America to Hold Major Share over the Forecast Period
- North America is home to some of the major market vendors, such as Intel Corporation and IBM Corporation. The market for neuromorphic chips is growing in the region due to factors such as government initiatives, investment activities, and others.
- One of the significant factors behind the growth of the market in North America is the interest shown by government bodies toward neuromorphic computing.
- For instance, in September 2022, the Department of Energy (DOE) announced USD 15 million in funding for 22 research projects to advance neuromorphic computing. The initiative by DOE supports the development of hardware and software for brain-inspired neuromorphic computing.
- On the other hand, the government of Canada is focusing on artificial intelligence technology, which is also expected to create a scope for growth in neuromorphic computing over the coming years. For instance, in June 2022, the Canadian Ministry of Innovation, Science, and Industry announced the start of the second phase of the Pan-Canadian Artificial Intelligence Strategy. The second phase of the strategy is backed by a USD 443 million investment in Budget 2021.
- Several research projects are attracting collaborations for advancements in neuromorphic technology. For instance, in August 2022, the Pritzker School of Molecular Engineering (PME) at the University of Chicago in the United States developed a flexible, stretchable neuromorphic computing chip that processes information by mimicking the human brain. The device intends to alter the way health data is processed.
- There has been growth in AI-based chips in Canada, which is also driving the neuromorphic chips market. For instance, in May 2021, Canadian startup Tenstorrent announced that it had raised USD 200 million and achieved unicorn status. The company had planned to deliver its AI chip for real-world applications in the first half of 2022.
- The increasing defense expenditure of various countries is also expected to drive the demand for neuromorphic computing in North America.
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