Asia Pacific Artificial Intelligence (AI) Chipsets Market value was USD 4 billion in 2019 and is expected to grow at a CAGR of over 40%.
 

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The Asia Pacific AI chipsets market growth is attributed to increasing demand for high-performance AI accelerators in cloud and hyper-scale datacenters in the region. These accelerators are extensively incorporated into data centers for processing Bigdata through AI inferencing and advanced data analytics. The emergence of 5G technology and increasing internet penetration are leading to data center establishments across the region. For instance, in September 2020, NTT Ltd. announced to invest USD 2 billion over the next four years for the development of datacenter infrastructures in the region. Such investments will add an opportunity for market growth.

The Application-Specific Integrated Circuit (ASIC) segment held a market share of 10% in 2019 and is projected to grow at a CAGR of 50% over the forecast timeline. Growth is majorly attributed to the rising demand for ASIC chipsets in cloud computing applications. ASICs are energy-efficient and perform massive data processing at a much higher frequency than other architectures. These factors positively influence market players toward the development of AI-based ASIC chipsets and cater to the high competitiveness among other players. For instance, in November 2019, Intel Corporation launched ‘Nervana Neural Network Processors’, an ASIC-based AI chipset for artificial intelligence and cloud computing applications.

The Natural Language Processing (NLP) technology segment is rapidly growing at a CAGR of over 40% and is expected to contribute significantly to the market over the forecast period. Growth is attributed to the rising implementation of speech recognition technology in various applications such as voice-controlled remote systems, automotive infotainment systems, and smart speakers, among others. In August 2019, Huawei Technologies Co., Ltd. launched ‘MindSpore’, a Natural Language Processing (NLP) based AI-computing framework for edge and cloud applications. The New AI-framework has 20% fewer lines of core-code for Natural Language Processing (NLP) compared to leading frameworks in the market, enhancing developer efficiency by 50%. Such innovations will significantly contribute to the Asia Pacific AI chipsets market.

The media and advertising application segment is projected to grow from USD 1 billion in 2019 to USD 8.5 billion in 2026. Increasing adoption of AI technology to optimize advertising spend and targeting will contribute to the growing demand for AI chipsets to help companies to analyze consumer behavior patterns and scale-up advertising data in real-time. Major online advertisement market players in the APAC region, such as Google, Baidu, Facebook, and Alibaba, are extensively incorporating AI technology into their systems to enhance their market revenue. In February 2019, Facebook announced to develop an AI chipset to address faster computing capabilities in digital assistants. The new chipset will be developed on the ASIC-architecture to support the artificial intelligence algorithm.

South Korea accounted for over 15% market share in 2019 and will grow at a CAGR of around 45% from 2020 to 2026 in the Asia Pacific AI chipsets market. The growth is attributed to supportive government initiatives for the development of the AI industry in the region. in May 2018, the Ministry of Science and ICT, South Korea announced a USD 2 billion investment in AI R&D activities and expansion of AI-related infrastructure as a part of the country’s efforts to transform the manufacturing sector.

Key players in the market are Samsung Electronics, Horizon Robotics, MediaTec, Inc., Huawei Services (Hong Kong) Co., Limited., and ThinkForce, among others. These players extensively focus on product innovations to provide technologically advanced products and gain an advantage over their competitors. For instance, in October 2019, Horizon Robotics launched ‘Sunrise 2’, an AI accelerator chipset that finds applications in edge AI and IoT devices.