Global AI chip revenue to reach $53 billion in 2023
Semiconductors intended for running artificial intelligence (AI) workloads will generate a $53.4 billion revenue opportunity for the semiconductor industry in 2023, a 20.9% increase from 2022, says Gartner.
AI semiconductor sales are expected to continue to expand by double digits during the forecast period, increasing 25.6% to USD 67.1 billion in 2024. By 2027, AI chip revenue is expected to be more than double the size of the market in 2023, reaching USD 119.4 billion.
“The developments in generative AI and the increasing use of a wide range AI-based applications in data centers, edge infrastructure and endpoint devices require the deployment of high performance graphics processing units (GPUs) and optimized semiconductor devices. This is driving the production and deployment of AI chips,” said Alan Priestley, VP Analyst at Gartner i a press release.
As the usage of AI-based workloads in the workplace grows, many more sectors and IT organisations will adopt systems with AI chips. Gartner experts predict that the value of AI-enabled application processors used in devices in the consumer electronics industry will reach USD 1.2 billion by the end of 2023, up from USD 558 million in 2022.
The need for efficient and optimised designs to support cost effective execution of AI-based workloads will result in an increase in deployments of custom-designed AI chips.
“For many organizations, large scale deployments of custom AI chips will replace the current predominant chip architecture – discrete GPUs – for a wide range of AI-based workloads, especially those based on generative AI techniques,” says Priestley.