Global Market for AI Chips Will See a Massive CAGR of 31.8% Through 2031

According to a report by Transparency Market Research Inc., via Yahoo! Finance, the global market for AI chipsets will see a massive 31.8% CAGR from 2022 to 2031. Already, the global market for AI chipsets sat at a valuation of around USD 45.5 billion in 2021. If the CAGR does follow through, then this could see the market hit upwards of 717.4 billion USD in valuation.

What is driving this massive growth are demands from smart tools, gadgets, and other items becoming more common in daily life. Because of changes in consumer behavior due to AI-powered services and hardware, it’s expected to see a growth in demand for AI chips.

This will target products such as smartphones, tablets, intelligent speakers such as Amazon’s Alexa, and other products empowering consumer electronics. Currently, leading smartphone companies are working to optimize their devices, and focus them with AI in mind.

The primary focus of which would be lower consumption of power with increases in processing capabilities. There are also demands due to the growing popularity of AI image software. This includes AI image recognition that is currently being used to enhance photos.

Another market trend sees increased demand for AI semiconductor chips. This is also driven by increases in consumer electronics demand. Though this isn’t the only area of demand. Home appliances are fast becoming fresh ground for AI-powered services and hardware.

Currently, industry leaders such as Samsung are pushing to create their chips to meet this demand while also insulating themselves from supply chain issues that are still rocking the global rare earths market. The market is currently expected to lead the demand in North America.

Though the APAC region is expected to be close behind its North American counterparts in regard to demand as well. Because of this, there is a significant shift with major chip makers such as AMD and MediaTek to place a stronger emphasis on integrating neural networks into their AI hardware.

As AI continues to scale in multiple industries, the demand for hardware and chips to meet demand will continue to scale with it. This can be seen in how major players such as IBM, NVIDIA, Intel, and others are shifting resources to meet anticipated demand.

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