AI Chip Revenue Expected to Surpass $53 Billion in 2021
The global market for AI chips is poised for explosive growth, with research company Gartner forecasting revenue to reach an impressive $53.4 billion this year. This trend is expected to continue, reaching a staggering $119.4 billion by 2027. The rise in demand for chips designed to run AI workloads can be attributed to several factors.
According to VP analyst Alan Priestley, advancements in generative AI technology are driving the production and deployment of these chips. The increasing use of AI-based applications in data centers, edge infrastructure, and endpoint devices has created a surge in demand for high-performance GPUs and optimized semiconductors.
The deployment of custom chips is also set to replace current discrete GPUs at many organizations, particularly in workloads involving generative AI. This shift is expected to streamline operations and enhance performance in these sectors.
Gartner’s predictions also highlight the lucrative potential of AI-enabled application processors in the consumer electronics sector. The value of such processors is estimated to reach $1.2 billion in 2023, a significant increase from $558 million in 2022. This surge in demand can be attributed to the need for high-performance computing systems to develop and deploy generative AI services.
Many vendors offering GPU-based systems and networking equipment are already reaping near-term benefits from this growing market. Their long-term opportunities lie in providing efficient and cost-effective ways for companies to deploy these AI applications.
With this remarkable growth in AI chip revenue, major players in the semiconductor industry are expected to adapt and capitalize on the rising demand. The market is becoming increasingly competitive as companies strive to develop cutting-edge AI chips that cater to the evolving needs of various industries.
In conclusion, the AI chip market is set to experience explosive revenue growth in the coming years. The increasing use of AI-based applications across different sectors is driving the demand for high-performance chips. With the deployment of custom chips and the rising popularity of generative AI, organizations are turning to optimized semiconductors to enhance their operations. The consumer electronics sector, in particular, holds immense potential for AI-enabled application processors. As vendors continue to innovate, this thriving market is set to revolutionize various industries, making AI technology more accessible and efficient than ever before.
