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Asia Pacific Artificial Intelligence Chip Market Report
September 16, 2019 | PRNewswireEstimated reading time: 2 minutes
The Asia Pacific AI chip market accounted for $1.03 billion in 2018 and is expected to grow at a CAGR of 40.9% over the forecast period 2019-2027, to account for $22.27 billion in 2027.
The increase in digitalization, presence of the huge amount of data, and significant adoption of advanced technologies by various industries are the key drivers that are propelling the growth of the AI chip market. Moreover, the increase in the integration of cloud-based computing across industries and the proliferation of edge devices are expected to boost the AI Chip market growth in the forecast period.
All the major industries across are globe including BFSI, retail, IT & telecom, automotive & transportation, healthcare, media & entertainment, manufacturing, government, energy & power are embracing and investing in disruptive technologies such as artificial intelligence, IoT, big data, and predictive analytics among others. This adoption is driven by the successful uses cases of AI, which resulted in increased operational efficiency, better sales revenue, and improved customer experiences. This adoption is driven by the successful uses cases of AI, which resulted in increased operational efficiency, better sales revenue, and improved customer experiences.
Artificial intelligence facilitates businesses to prioritize and automate their decision making. It also helps in analyzing big complex structured and unstructured data to provide deeper insights and improve efficiency by accurate planning. With all these applications, artificial intelligence enables businesses to improve operational efficiency, lower operating costs, enhance service quality, and customer experience. Further, the AI Chip market players are focusing on various initiatives to enhance their capabilities and boost its position in the market.
The AI chip market is fragmented in nature due to the presence of several industries, and the competitive dynamics in the market is expected to change during the upcoming years. In addition, various initiatives are undertaken by the governmental bodies to accelerate the AI Chip market further. For instance, the governments of various countries in this region are trying to attract FDI in the technology sector with the increasing need for enhanced technology-related services.
On the basis of type, GPU market led the Asia Pacific AI chip market in 2018 with a maximum market share and is expected to continue its dominance during the forecast period. Presently in artificial intelligence applications, Graphics Processing Units or GPUs are the most widely used hardware.
High parallelism and memory bandwidth of GPUs make them the most viable option for machine and deep learning applications, especially in training. GPUs were initially used to accelerate a large number of multiple and add calculations executed in graphics rendering. With an increase in demand for high performance graphics, the demand for powerful GPUs also grew. With continuous improvements, the GPU is becoming much more powerful than the CPU.
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