AI chip market to become a $300 billion industry
The AI chip market has experienced impressive growth in recent years, driven by the surging demand for AI-powered technologies across industries.
The global AI renaissance, which started last year, only fuelled the market growth, helping it to reach a staggering value in the following years.
According to data presented by AltIndex.com, the global AI chip market is expected to grow 10 times in the next ten years and become a $300 billion industry.
Market Revenue to Skyrocket by 1,000% by 2033
AI chips are specialized semiconductor devices that perform complex calculations and tasks required for artificial intelligence applications. They are designed to accelerate AI algorithms and processes, enabling higher performance, lower power consumption, and improved cost-effectiveness.
Today, AI chips are used across industries, from healthcare and finance to automotive and manufacturing, and the global demand for these devices is expected to skyrocket in the following years.
According to Statista and Market.us data, the global AI chip market will gross $30 billion in 2024, or $7 billion more than last year. Over the next three years, the market revenue will more than double and hit $67 billion by 2027. Still, that is nothing compared to growth projections in the years after that.
By 2029, the entire market is expected to hit a massive milestone and become a $100 billion industry. Three years later, that $100 billion will grow into $260 billion, or eight times the expected revenue in 2024. Statistics show the global AI chip market will continue surging in 2033, with revenues rising to a whopping $341 billion, or 1,000% more than this year.
VC Funding into AI chip Startups Also Surging
Although Nvidia is the absolute king in the AI chip industry with a massive 80% market share, both large and small businesses are searching for alternatives to diversify their AI chip options. That caused intense competition in the market, with both semiconductor giants and emerging startups heavily investing in AI chip research and development to gain a competitive edge. The surging need for AI chips has also created a huge space for VC investors, who have poured tens of billions of dollars into these startups.
According to Market.us data, the total venture funding into AI chip startups jumped over $20 billion in 2023, or $5 billion more than the year before. The strong investor interest in AI chips` potential and their applications is expected to continue driving funding activity this year, with 2024 bringing over $25 billion of fresh capital to the market. With that impressive figure, the total three-year funding in the AI chip startups would rise to an amazing $60 billion.
