Key Trends and Insights into the AI Accelerator Market: Growth Rate and Opportunities to 2034
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What Future CAGR is Anticipated for the AI Accelerator Market Over the 2025–2034 Period?
The market size of AI accelerators has seen a significant boost in recent times. The projection is for it to expand from a valuation of $16.55 billion for the year 2024, reaching up to $20.95 billion by 2025, representing a Compound Annual Growth Rate (CAGR) of 26.6%. The spike in growth over the historical period can be credited to rising demand for deep learning frameworks, increased government funding, higher adoption rates of AI in image and speech recognition technologies, greater application of AI in precision agriculture, and a surge in consumer electronics.
The market size for AI accelerators is predicted to experience significant expansion in the coming years, potentially reaching a value of $53.23 billion by 2029, with a compound annual growth rate (CAGR) of 26.2%. Factors contributing to this projected growth during the forecast period include the escalating deployment of AI servers, a swelling demand for real-time data processing, the expanding use of IoT devices, increased funding for AI research, and a surge in consumer data production. Noteworthy trends anticipated during the forecast period encompass technological progression, machine learning, AI solutions based in the cloud, AI chips, and cybersecurity.
What Combination of Drivers Is Leading to Accelerated Growth in the AI Accelerator Market?
The AI accelerator market is foreseen to surge due to the escalating use of IoT devices. These IoT devices, which encompass physical objects embedded with sensors, software, and features of connectivity, have the ability to collect, process and exchange data via the internet. The escalation in their deployment stems from factors like the rising demand for automation, enhanced connectivity, and an increase in consumer adoption of smart devices. AI accelerators significantly aid IoT devices in processing data locally, thus limiting the necessity for cloud transmission. This leads to quicker decision-making procedures, decreased latency, and less bandwidth use, thereby amplifying efficiency in real-time applications such as smart homes, industrial automation, and healthcare. For instance, as per an Ericsson report in April 2024, global IoT connections which were 15.7 billion in 2023, are anticipated to witness a 16% jump to 38.8 billion connections by 2029. Thus, the escalating use of IoT devices is fueling the growth of the AI accelerator market.
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Who Are the Influential Players Fueling Innovation and Growth in the AI Accelerator Market?
Major companies operating in the AI accelerator market are Samsung Electronics Co. Ltd., Huawei Technologies Co. Ltd., Taiwan Semiconductor Manufacturing Company, Intel Corporation, Cisco Systems Inc., Qualcomm Technologies Inc., Broadcom Inc., NVIDIA Corporation, Advanced Micro Devices Inc. (AMD), Baidu Inc., NXP Semiconductors N.V., Microchip Technology Incorporated, Synopsys Inc., Marvell Technology Inc., Arista Networks Inc., Xilinx Inc., Hailo Ltd., Rebellions.ai, Furiosa AI Inc., Graphcore Limited, BrainChip Holdings Ltd., LeapMind Inc.
What Impact Are Industry Trends Having on the AI Accelerator Market’s Future Prospects?
Prominent corporations in the AI accelerator market are putting their efforts into the development of superior technologies like the 5 nm node process technology. This stride is aimed at boosting overall system performance, bettering power efficiency, and catering to the escalated requirements of AI operations. In layman terms, the 5 nm node process technology is a distinct semiconductor manufacturing process where the transistors measure just about 5 nanometers, leading to enhanced productivity, decreased energy use, and compact chip models. Illustrating this development, IBM, an American tech firm, unveiled the Spyre accelerator chip in August 2024. This revolutionary AI unit, crafted for IBM Z networks, is fortified with 32 cores and 25.6 billion transistors made using 5nm node technology to provide improved performance and maximize power efficiency. The unit is installed on PCIe cards that can be grouped together to spike up processing ability and accommodate large-scale AI inferencing. It also back up intricate utilities like fraud detection and generative AI, crucial for streamlining business operations and code modernization. The innovative architecture of Spyre is primed to manage AI workloads, enabling enterprises to safely and effectively implement AI models on-premises.
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How Are the Key Segments of the AI Accelerator Market Impacting Its Expansion and Revenue Streams?
The AI accelerator market covered in this report is segmented –
1) By Type: Graphics Processing Units (GPUs), Tensor Processing Units (TPUs), Application-Specific Integrated Circuits (ASICs), Central Processing Units (CPUs), Field-Programmable Gate Arrays (FPGAs)
2) By Technology: Cloud-Based AI Accelerators, Edge AI Accelerators
3) By End User: Information Technology And Telecom, Healthcare, Automotive, Finance, Retails, Other End Users
Subsegments:
1) By Graphics Processing Units (GPUs): AI Training GPUs, AI Inference GPUs, Cloud-Based AI GPUs, Edge AI GPUs, High-Performance Computing (HPC) GPUs
2) By Tensor Processing Units (TPUs): Cloud TPUs, Edge TPUs, AI Model Training TPUs, AI Model Inference TPUs, Energy-Efficient TPUs
3) By Application-Specific Integrated Circuits (ASICs): Deep Learning ASICs, Speech And Language Processing ASICs, Computer Vision ASICs, Edge AI ASICs, Low-Power AI ASICs
4) By Central Processing Units (CPUs): AI-Optimized Multi-Core CPUs, Cloud AI CPUs, Edge AI CPUs, Real-Time AI Processing CPUs, High-Performance AI Workstation CPUs
5) By Field-Programmable Gate Arrays (FPGAs): AI Model Customization FPGAs, Low-Latency AI Processing FPGAs, Edge AI FPGAs, Reconfigurable AI Hardware FPGAs, High-Throughput AI Computing FPGAs
What Regions Are Leading the Growth Trajectory of the AI Accelerator Market?
North America was the largest region in the AI accelerator market in 2024. The regions covered in the AI accelerator market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
How Do Experts Define the Scope of the AI Accelerator Market?
AI accelerators refer to specialized hardware or software designed to speed up and optimize artificial intelligence computations. It offers a wide range of uses and benefits for developers, businesses, cloud service providers, and other stakeholders in the AI technology ecosystem.
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