Technology
AI Chips Market to Grow by USD 389.25 Billion (2024-2028), Driven by Rising Adoption in Data Centers, Market Evolution Powered by AI – Technavio
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2 years agoon
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NEW YORK, Nov. 21, 2024 /PRNewswire/ — Report on how AI is driving market transformation – The global artificial intelligence (AI) chips market size is estimated to grow by USD 389.25 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 68.13% during the forecast period. Increasing adoption of ai chips in data centers is driving market growth, with a trend towards convergence of AI and IoT. However, dearth of technically skilled workers for ai chips development poses a challenge.Key market players include Advanced Micro Devices Inc., Alphabet Inc., Baidu Inc., Broadcom Inc., Cerebras, Fujitsu Ltd., Graphcore Ltd., Huawei Technologies Co. Ltd., Intel Corp., International Business Machines Corp., MediaTek Inc., Microchip Technology Inc., NVIDIA Corp., NXP Semiconductors NV, Qualcomm Inc., SambaNova Systems Inc., Samsung Electronics Co. Ltd., SenseTime Group Inc., Taiwan Semiconductor Manufacturing Co. Ltd., and Tesla Inc..
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Artificial Intelligence (Ai) Chips Market Scope
Report Coverage
Details
Base year
2023
Historic period
2018 – 2022
Forecast period
2024-2028
Growth momentum & CAGR
Accelerate at a CAGR of 68.13%
Market growth 2024-2028
USD 389251.3 million
Market structure
Fragmented
YoY growth 2022-2023 (%)
53.8
Regional analysis
North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution
North America at 51%
Key countries
US, China, UK, Germany, and Taiwan
Key companies profiled
Advanced Micro Devices Inc., Alphabet Inc., Baidu Inc., Broadcom Inc., Cerebras, Fujitsu Ltd., Graphcore Ltd., Huawei Technologies Co. Ltd., Intel Corp., International Business Machines Corp., MediaTek Inc., Microchip Technology Inc., NVIDIA Corp., NXP Semiconductors NV, Qualcomm Inc., SambaNova Systems Inc., Samsung Electronics Co. Ltd., SenseTime Group Inc., Taiwan Semiconductor Manufacturing Co. Ltd., and Tesla Inc.
Market Driver
Artificial Intelligence (AI) is revolutionizing industries from healthcare to retail, finance, and automotive. Deep learning and machine learning algorithms require powerful hardware components like AI chips. Advanced Micro and Nvidia lead the market with their Trainium2 chip and A100 chip, respectively. Quantum computing and highbandwidth memory are the next frontiers. Major cloud providers like Microsoft Azure, Amazon Web Services, and Google Cloud offer AI technologies. Edge computing reduces latency for real-time applications. AI chip lines, including CPU, GPU, FPGA, and ASICs, power data processing in centralized cloud servers and edge devices. Emerging trends include generative AI, cognitive computing, and image recognition. Ethical concerns are rising as AI is integrated into everyday life, from wearable devices to smart homes and connected cars. Energy efficiency is crucial as AI data centers grow. Patent filings for AI technologies are surging. ML and DL are key to computer vision, pose detection, and behavioral pattern analysis. AI applications in healthcare, elder care, and IoT devices are transforming industries. Industry 4.0 and smart manufacturing machines benefit from AI and parallel computing. Despite advancements, system failure and malfunctioning remain concerns. Mobile applications, health monitoring, and personalized health treatments are driving demand. ML and DL are essential for big data processing and AI applications. AI chips, GPUs, FPGAs, CPUs, DSPs, and microcontrollers power various applications, from graphic applications to frame buffer and display devices. Theoretical and algorithmic basis are crucial for visual understanding and human-like AI.
The Internet of Things (IoT) market is experiencing significant growth due to the numerous advantages it offers in various industries such as aerospace and defense, automotive, consumer electronics, healthcare, and others. IoT devices, which include cameras, drones, smart speakers, smartphones, smart TVs, and more, are making decisions based on data they receive without human intervention. To enable power-efficient data processing and machine learning computation in these devices, IoT manufacturers are integrating Artificial Intelligence (AI) chips. This integration allows IoT devices to perform complex tasks and learn from data, enhancing their functionality and value to users. The demand for AI chips in IoT devices is expected to continue growing as the market expands.
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Market Challenges
Artificial Intelligence (AI) is revolutionizing industries from healthcare to retail, finance, and automotive. However, the growth of AI technologies relies heavily on the development of efficient AI chips. These hardware components, including CPUs, GPUs, FPGAs, and ASICs, power deep learning and machine learning algorithms. Companies like Advanced Micro Devices and Nvidia are leading the AI chip market with their Trainium2 chip and A100 chip, respectively. However, challenges persist. Energy efficiency is a major concern as AI applications require high computing power, leading to increased energy consumption. Quantum computing and generative AI are pushing the boundaries of AI technologies, requiring even more powerful chips. Ethical concerns also arise as AI is integrated into various industries, from healthcare to manufacturing. Major cloud providers like Microsoft Azure, Amazon Web Services, and Google Cloud are investing in AI data centers, while edge computing gains popularity for real-time applications. Edge devices, such as IoT devices and autonomous vehicles, require specific integrated chips for data processing. As AI applications expand, so do the challenges. System failure and malfunctioning are concerns for mobile applications, while big data requires advanced parallel computing capabilities. Patent filing and theoretical/algorithmic basis are crucial for the development of AI technologies. In conclusion, the AI chip market is evolving rapidly, with companies investing in high-performance chips to meet the demands of various industries. However, challenges such as energy efficiency, ethical concerns, and system failure must be addressed to ensure the continued growth of AI technologies.The AI chips market is witnessing significant expansion due to the potential financial gains that businesses can reap from artificial intelligence. However, the absence of a sufficient workforce with technical expertise in AI is posing a significant challenge to market growth. Companies are keen on integrating AI into their operations but face high research and development costs and the need for information from experienced AI professionals. The scarcity of talent with the necessary knowledge of AI technology is currently impeding the growth of enterprise AI applications.
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Segment Overview
This artificial intelligence (ai) chips market report extensively covers market segmentation by
Product1.1 ASICs1.2 GPUs1.3 CPUs1.4 FPGAsEnd-user2.1 Media and advertising2.2 BFSI2.3 IT and telecommunication2.4 OthersGeography3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa
1.1 ASICs- Artificial Intelligence (AI) chips, specifically Application-Specific Integrated Circuits (ASICs), are becoming increasingly popular in data center applications due to their superior performance and speed. ASICs are customized, non-configurable chips that offer an instruction set and libraries for local data processing, acting as an accelerator for parallel algorithms. Google’s Tensor Processing Unit (TPU) is a prime example, designed for deep neural networks and already in use for Google Search and Google Street View. ASICs provide faster performance than GPUs, FPGAs, and CPUs, making them a preferred choice for data centers. TPUs have an instruction set that allows TensorFlow programs to be modified and new algorithms to be developed, making them a valuable asset for managing data effectively. The use of ASIC-based AI chips is expected to witness significant growth in the forecast period.
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Research Analysis
Artificial Intelligence (AI) Chips Market: The global AI Chips Market is experiencing significant growth due to the increasing adoption of AI technologies in various industries. Deep learning and machine learning algorithms are driving the demand for AI chips, which are specialized hardware components designed to accelerate AI computations. These chips are essential for robotics, quantum computing, and advanced AI applications. The market includes CPU, FPGA, GPU, System on Chip (SoC), and Multichip Module (MCM) solutions. AI chips are finding applications in sectors like healthcare, retail, finance, automotive, autonomous vehicles, IoT devices, and more. High-performance AI chips are crucial for training generative AI models and powering supercomputers. Ethical concerns surrounding AI are also fueling the development of specific integrated circuits. Key technologies include highbandwidth memory and Trainium2 chip. The market is evolving with the shift from cloud to edge computing.
Market Research Overview
Artificial Intelligence (AI) Chips Market: Overview The AI Chips Market is witnessing significant growth due to the increasing demand for advanced AI technologies such as deep learning and machine learning in various industries. AI chips are specialized hardware components designed to accelerate AI algorithms and technologies, including neural networks, quantum computing, and cognitive computing. These chips are essential for powering AI applications in robotics, computer vision, natural language processing, and other fields. The market for AI chips includes various types of hardware components, such as CPUs, GPUs, FPGAs, ASICs, DSPs, and microcontrollers. Companies are investing heavily in the development of AI chip lines, including Nvidia’s A100 chip, Ascend 910B chipset, and H200 chipset, to meet the growing demand for energy-efficient and high-performance AI solutions. AI applications are widespread across industries, including healthcare, retail, finance, automotive, and manufacturing. The use of AI in healthcare for health monitoring, health information access, personalized health, and treatment devices is gaining popularity, especially for the elderly population. In retail, AI is used for customer behavior analysis, inventory management, and personalized marketing. In finance, AI is used for fraud detection, risk assessment, and algorithmic trading. The automotive industry is also adopting AI technologies for autonomous vehicles, advanced driver assistance systems, and connected cars. The use of AI in manufacturing machines, smart homes, and IoT devices is increasing, leading to the growth of AI data centers and edge computing. However, ethical concerns surrounding AI and the potential for system failure or malfunctioning are major challenges for the market. The development of specific integrated chips and multichip modules is a potential solution to address these challenges. The AI Chips Market is expected to continue growing due to the increasing demand for real-time applications, low latency, and big data processing. The market is also being driven by the development of generative AI, large language models, and other advanced AI technologies. The use of AI in mobile applications, gaming consoles, and personal computers is also expected to drive market growth. In conclusion, the AI Chips Market is a rapidly growing market, driven by the increasing demand for advanced AI technologies and applications across various industries. The market is expected to continue growing due to the development of energy-efficient and high-performance AI solutions, the increasing use of AI in various industries, and the growing demand for real-time applications and low latency. However, ethical concerns and the potential for system failure or malfunctioning are major challenges that need to be addressed.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
ProductASICsGPUsCPUsFPGAsEnd-userMedia And AdvertisingBFSIIT And TelecommunicationOthersGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio
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Haloid Poll: Majority of Public Safety and Commercial Radio Administrators Would Consider Starlink Integration With LMR Two-Way Radio Networks, but Disruption Unlikely
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STONY BROOK, N.Y., Oct. 25, 2026 /PRNewswire/ — Following Starlink’s announced entry into the mobile communications space, Haloid’s consulting team polled government and business land mobile radio (LMR) administrators on whether Starlink could replace, or complement, their LMR systems. We found that most radio administrators were receptive to the nascent technology but did not see it as a replacement for their LMR networks.
Sixty-seven percent of radio administrators said they would be willing to integrate Starlink technology if it allowed them to expand coverage or lower infrastructure costs. When asked whether Starlink could completely replace their LMR networks, fewer than 15 percent said yes; the vast majority believed Starlink is not as reliable as the custom networks they have built. Among administrators who already use two-way radio over cellular (also known as push-to-talk over cellular, or PoC), however, nearly 80 percent said that Starlink’s satellite coverage, combined with its newly acquired cellular spectrum, would make it more desirable than the industry’s wireless incumbents because it could eliminate dead spots where cellular does not reach.
In the U.S., hundreds of thousands of radio users rely on traditional cellular carriers for push-to-talk communications, and that number grows each year. While the migration to two-way radio over cellular has affected the LMR industry, it has not replaced it. Many public safety agencies never made the switch, citing the risk that cellular networks could go down during weather events, power outages, or cyberattacks and jeopardize emergency communications.
In fact, during recent cellular outages, Starlink was used to provide emergency communications to affected areas, because its satellite connectivity does not depend on cell towers. But Starlink’s integration with the 800 MHz cellular spectrum — “Starlink 2.0,” as some experts are calling it — exposes it to some of the same vulnerabilities as traditional wireless carriers.
While Starlink’s satellite service might still function if local cell towers go down, a critical portion of an agency’s communications might rely on local towers using the 800 MHz spectrum, leaving the agency vulnerable in a storm or outage.
Expect evolution, not disruption
“Just like cellular didn’t replace LMR, we don’t see Starlink as an existential risk,” said Jeremy Alicandri, President of Haloid Solutions. He expects Starlink to accelerate the industry’s evolution toward shared communications infrastructure, also known as hybrid LMR. “We have public safety customers already using Starlink in their vehicles to extend the coverage of their radios. This trend will continue as Starlink devices become more ubiquitous.”
The stock prices of Verizon, T-Mobile, and AT&T were affected by Starlink’s recent announcement. LMR stocks such as L3Harris, JVCKENWOOD, and BK Technologies, maker of the Bendix King brand, have been unaffected, as Wall Street views Starlink as unlikely to replace LMR technology for the same reasons cellular did not. “But it may be too early to predict the industry’s winners and losers,” Alicandri added. “The cellular incumbents have many advantages, including low-cost devices, existing infrastructure, and their own satellite ambitions.”
About Haloid Solutions Research
Haloid’s Starlink poll drew on respondents to its LMR brand loyalty study, which measures radio administrators’ sentiment toward the ownership and after-sales experience. Haloid’s LMR research is sponsored by investors in the mission-critical communications space.
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Newborn Town and Viggle Launch AI-Powered 3D Interactive Game, Bringing World Models to Social Gaming
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HONG KONG, Oct. 26, 2026 /PRNewswire/ — Recently, Newborn Town’s game-oriented social platform TopTop has launched “Slap Showdown”, an AI-powered 3D interactive mini-game developed in collaboration with Viggle, a company specializing in physics-native world models. The launch brings world model technology into social gaming, offering users a more personalized and engaging interactive experience.
Developed by TopTop and powered by Viggle’s self-developed Joint Space-Time (JST) world model, “Slap Showdown” lets users turn uploaded photos into customized 3D characters and take them straight into the game.
Launched in September, “Slap Showdown” has gained particular traction in Japan, among Spanish-speaking users in North America, and across the Middle East. It is now available in multiple countries and regions worldwide.
From Better Gameplay to a Richer Ecosystem: How World Models Could Redefine Social Gaming on TopTop
In terms of gameplay, “Slap Showdown” combines AI-generated 3D characters with multiplayer interaction. Players can simply upload a photo from their phone and generate a personalized 3D character in around 30 seconds, whether it’s an anime protagonist, a cyberpunk cyborg, or a LEGO minifigure. They can then bring their custom characters into the game and face off against other players in fun, interactive battles.
As players use controls such as press-and-hold, tap, and drag, the 3D characters respond with realistic, physics-based movements. This takes AI-generated characters beyond visual customization, integrating them directly into the gameplay experience.
According to TopTop’s operations team, “Slap Showdown” has attracted a growing base of highly engaged, high-spending-potential players in its first month since launch. The game has recorded a 97% match completion rate, while its game-start rate has also exceeded the platform-wide average.
The depth of user engagement is further illustrated by individual player activity. One player in Japan completed 1,041 matches over 22 days, reaching a daily peak of 151 matches and averaging one match every 9.5 minutes. Another particularly avid player in Eastern Europe completed 735 matches in just 11 days, averaging 66.8 matches per day and peaking at 126 matches in a single day.
For a UGC-driven social gaming platform such as TopTop, mini-games serve as entry points and traffic drivers, while social features underpin retention and monetization. Personalized 3D avatars add another dimension to that experience. Beyond their visual appeal, they give users new ways to express themselves, interact with friends and share memorable moments. In turn, richer gameplay and more meaningful social interactions can help improve retention, attract new users and strengthen engagement across the platform.
“Slap Showdown” marks a successful step in TopTop’s efforts to deepen its application of AI technology, as well as a starting point for using world models to enhance gaming and social experiences. TopTop’s operations team said future game releases could make greater use of AI-powered 3D generation, extending beyond avatars to include customized environments. Existing games could also be revitalized by the introduction of new gameplay features, potentially driving stronger retention and user acquisition.
Beyond enriching gameplay, world model capabilities could also reshape social interaction itself, enabling more immersive, face-to-face experiences in virtual spaces. “We’re constantly exploring how AI can transform gaming and social interaction, while bringing new energy and capabilities to our UGC ecosystem,” TopTop’s operations team said.
Viggle Unveils Physics-Native Model JST-2, Setting Its Sights on Becoming the Infrastructure Layer for Physical AI
The world model technology powering “Slap Showdown” is provided by Viggle.
Founded in 2022, Viggle has focused on developing physics-native world foundation models. Its self-developed JST model can generate 3D characters, motion and environments directly, providing a foundation for gaming and a growing range of AI applications.
Viggle previously attracted widespread attention with Meme Maker, its AI-powered video creation product. The tool enables users to animate static characters and generate videos by applying specified movements, making AI character animation and video creation more accessible. In August 2024, Viggle raised USD 19 million in a Series A funding round led by Silicon Valley venture capital firm Andreessen Horowitz (a16z).
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Viggle is now further expanding its technological boundaries. On 19 October, Viggle launched JST-2 in full, likening its significance for world models to GPT-2’s role in the evolution of language models.
Unlike many world models that infer physical structure indirectly from pixels, JST-2 is built around a physics-native architecture designed to learn the structure and dynamics of the 3D world directly. Its underlying representation consists of units resembling digital “atoms.” Each has a defined position in three-dimensional space, along with physical properties such as material, color and mass, and information describing how it moves and responds to forces. This allows the model to do more than generate convincing images. It can represent and generate 3D characters, motion and scenes with an underlying understanding of their physical properties.
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It is noteworthy that world model technology remains at an early stage, but Viggle is already working toward more advanced capabilities.
Its next-generation model, JST-3, is intended to become a comprehensive world simulator. Such a system could underpin future game and graphics engines, while also serving as a virtual training environment for robotics and other forms of physical AI.
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As a leading global social entertainment company, Newborn Town has continued to deepen the use of AI across key areas in recent years, including product R&D, social recommendation systems, intelligent operations, safety and risk management, and marketing and user acquisition, supporting ongoing business growth.
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SOURCE Newborn Town
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HKICEC Launches First-Ever Global Mobile Exchange Pavilion at Mobile Electronics Show
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HONG KONG, Oct. 26, 2026 /PRNewswire/ — The Hong Kong International Communications Electronic Chamber (HKICEC) made a landmark debut at the Global Sources Mobile Electronics Show, held from October 18-21, 2026, with the inaugural launch of the HKICEC Global Mobile Exchange Pavilion. Spanning 600 square meters, the pavilion brought together nearly 60 industry leaders from mainland China, Hong Kong, India, Japan, the UAE, the US and the UK. As the largest themed pavilion in the mobile electronics sector and a premier highlight of the exhibition, this event marks a new developmental milestone for HKICEC. The pavilion underscores the chamber’s dedication to bridging global markets and serving the communications and electronics industry, injecting vital new momentum into the synergy between Hong Kong’s technology sector and international trade.
The grand opening ceremony on October 18 marked the official launch of the first B2B pavilion in Hong Kong and Asia dedicated exclusively to mobile communications equipment. The milestone event was officiated by a distinguished lineup of devices global business, including Dr. the Hon. Starry Lee Wai King, GBS, JP, Member of the Standing Committee of the National People’s Congress and President of the Legislative Council; Mr. Zhu Xiaodong, Director of the Kowloon Affairs Department of the Liaison Office of the Central People’s Government in the HKSAR; Dr. the Hon. Horace Cheung Kwok Kwan SBS JP, Deputy Secretary for Justice, HKSAR; Mr. Liu Maozhou, Level 1 Bureau Rank Official, the Economic and Financial Department II, Liaison Office of the Central People’s Government in the HKSAR; Mr. Ho Lap Ki, Denny, JP, District Officer (Kwun Tong), Home Affairs Department; Mr James Liu, CEO of Global Sources; and Mr. Jacky Tse, Chairman of HKICEC, alongside HKICEC Management team. Together, they witnessed the official launch of the first B2B pavilion in Hong Kong and Asia dedicated to mobile communications equipment. The ceremony drew over a hundred political and business leaders, industry representatives, international exhibitors, and major media outlets, reflecting the event’s importance and the industry’s green trading development. Following the inauguration, officials toured the pavilion for high-level discussions with global exhibitors, signaling robust institutional backing for the industry and HKICEC’s strategic expansion.
During the four-day exhibition, the pavilion experienced a continuous flow of visitors. Communications and electronics suppliers and global buyers from overseas visited specifically for business matchmaking and negotiations, unlocking numerous commercial opportunities. Notably, the pavilion also featured a retrospective exhibit of 16 classic mobile phones, tracing the industry’s evolution from early ‘brick’ devices to Mainland China’s first official Apple release, the iPhone 3GS. The historical display proved to be a standout attraction, gathering large crowds throughout the event.
Beyond the exhibition floor, the chamber partnered with Global Sources to co-host an international forum on October 19. Under the theme ” From New Devices to New Life: Building a Global Mobile Device Lifecycle Ecosystem”, the event gathered experts from ecoATM, PCS Wireless, Cenwood, Our Hong Kong Foundation, and the Global Mobile Association. They engaged in profound discussions on cutting-edge topics including the global economic landscape, inventory management, ESG development, the circular ecology of new and used devices, and AI technology. Attended by over 200 international representatives, the forum successfully catalyzed cross-border collaboration and established a new standard for sustainability discourse in the global mobile industry.
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