The artificial intelligence (AI) chips market will register a CAGR of about 39% by 2023
IoT technology offers several advantages including the ability to make decisions based on received data without the need for human intervention. This have led to increased adoption of IoT in industries such as automotive, aerospace and defense, healthcare, and consumer electronics. HMI technology is being integrated into devices such as drones, cameras, smartphones, smart TVs, and smart speakers. The deployment of AI chips in these devices will allow power efficient data processing and machine learning computation.
Also, the implementation of automation in homes and enterprises and increasing demand for smart cities are creating a demand for IoT devices. This have resulted in the development of hardware and software for integration of AI technology in IoT devices. This convergence of AI and IoT will be a key trend fueling the growth of artificial intelligence chips market.
Increasing adoption of AI chips in data centers
Data centers comprise of thousands of computers which run on CPUs. The deep neural networks in data centers require huge amount of power for processing large amount of data. To improve uptime and reduce operational costs, the efficiency of data centers must be improved, and power consumption must be reduced. Data center providers are implementing AI technology in their data centers for improved energy efficiency, server optimization, security and infrastructure management. This will create a demand for specialized AI chips for data centers which will boost market growth.
Dearth of technically skilled workers for AI chips development
The R&D costs of AI technology is very high. Therefore, enterprises seek knowledge from experienced AI professionals before integrating AI in their companies. However, the lack of skilled AI experts with required knowledge about AI technology is hampering the growth of the market. The shortage of AI engineers and skilled workforce is restricting the deployment of AI in enterprises. Investments in training programs and skill development must be made to increase the number of skilled AI professionals.
The market appears to be concentrated and with the presence of few companies including Advanced Micro Devices, and Alphabet the competitive environment is less intense. Factors such as the increasing adoption of AI chips in data centers, will provide considerable growth opportunities to artificial intelligence chip manufacturers.
Advanced Micro Devices, Alphabet, Huawei Technologies, Intel, and NVIDIA are some of the major companies covered in this report.