In 2018, the global market for deep learning chips was valued at approximately US$ 2.04 billion, with projections indicating a robust growth rate of 30.0% CAGR from 2019 to 2027, potentially reaching US$ 21.31 billion by 2027.
Several factors are propelling the expansion of the deep learning chip market globally, including increased investments in start-ups focused on deep learning chips, the rising significance of quantum computing, and the demand for real-time insights into consumer behavior, which enhances operational efficiency. Nevertheless, challenges such as inadequate infrastructure and technological expertise in developing nations, along with a shortage of skilled labor, may hinder the market's growth in the future. Despite these challenges, the growing trend of cloud-based computing across various sectors is expected to create significant opportunities for companies involved in the deep learning chip market throughout the forecast period.
Deep learning chips are being widely adopted across diverse applications, from cloud computing solutions to digital assistants and autonomous vehicles. As the use cases for artificial intelligence (AI) continue to expand and the market evolves, advancements in existing chip technologies have become essential. Currently, deep learning chips are predominantly utilized in the data center training market, where NVIDIA holds a leading position. However, the segments focusing on application-specific custom deep learning chips and inference at the edge and in data centers are experiencing rapid growth, prompting numerous new start-ups to enter the market. The innovative technologies and solutions these start-ups are developing are expected to heighten competition within the deep learning chip sector. The funding landscape appears favorable for these emerging companies, largely due to the significant interest from global industries in AI and its transformative potential for business operations. A selection of notable start-ups is highlighted in the table below, showcasing the technologies they are developing. The next generation of chips is anticipated to deliver superior performance per watt compared to traditional CPUs and GPUs from established players like Intel and NVIDIA.
The deep learning chip market is categorized based on chip type, technology, industry vertical, and geographical region. The GPU segment currently leads the market based on chip type and is projected to maintain its dominance throughout the forecast period. In terms of technology, the market is divided into system-on-chip, system-in-package, multi-chip module, and others, with System-on-Chip technology currently at the forefront and expected to continue leading during the forecast period. Furthermore, the market is segmented by industry verticals, including media & advertising, banking, financial services and insurance (BFSI), information technology & telecommunications, retail, healthcare, automotive & transportation, and others. The BFSI sector is anticipated to capture the largest market share in 2018 and is expected to sustain its leading position until 2027.
The overall size of the deep learning chip market has been determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the deep learning chip market. This research also provides an overview and forecast for the global deep learning chip market based on the various segments across five key regions: North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. Additionally, primary interviews were conducted with industry participants and experts to validate the data and analysis. Participants typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the deep learning chip market. Key players in the deep learning chip market include Advanced Micro Devices, Inc., Amazon Web Services, Inc., Huawei Technologies Co., Ltd., Baidu, Inc., Google, Inc., Intel Corporation, NVIDIA Corporation, Qualcomm Technologies, Inc., Samsung Electronics Co. Ltd., and Xilinx Inc., among others.