Europe AI Chipsets Market size surpassed USD 1.5 billion in 2019 and is projected to witness over 33% CAGR from 2020 to 2026.
The industry growth is owing to increase in development of autonomous technology in vehicles. Rising government efforts toward road safety have positively influenced the regional automotive OEMs to focus more on autonomous system technologies. This will drive the demand for AI chipsets in automotive safety systems, which aid to deliver high reliability and performance solutions. Continuous development by major players toward autonomous safety systems will drive the market growth. For example, in October 2019, Arm announced to sign a partnership agreement with Toyota and GM to accelerate its development of driverless car chips and common computing systems for self-driving vehicles.
Europe Market, By Technology
The network security segment held over 6% Europe AI chipsets market share in 2019 and is anticipated to register a growth rate of 30% through 2026. The market growth is driven by increasing penetration of cloud computing and big data technologies in various sectors such as IT & telecom, education, banking, among others. To overcome the challenges such as inefficient maintenance, operation, unassured connection quality, and troubleshooting, the companies are adopting intelligent IP network with AI inference. This will drive the market for AI chipsets and aid to achieve intelligent connectivity and secured data sharing in organization.
Europe Market, By Industry Vertical
The BFSI application segment is set to observe around 27% growth rate during the forecast period. The rising demand for digital banking and mobile wallets for financial transactions has propelled the demand for AI in BFSI application. AI technology aids to manage large sets of data efficiently and helps to reduce the risk of fraud transactions. This has positively influenced the regional banks to incorporate AI technology in their operations. According to Microsoft research report 2019, around 72% of the insurance firms, banks, and financial institutions in the UK are using AI.
Europe Market, By Country
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France AI chipsets market accounted around 12% revenue share in 2019 and is estimated to exhibit a CAGR of 29% between 2020 and 2026 on account of rising integration of AI technology into the regional healthcare sector. Several initiatives by the government and local authorities, such as “AI for Humanity”, to advance the healthcare sector have further boosted the opportunities for AI chipset manufacturers.
Competitive Industry Landscape
Key players in the market are Intel Corporation, Google, IBM, Qualcomm Technologies, and Xilinx, among others. These players are continuously focusing on establishing new strategies, such as collaboration and partnership, to accelerate their marker position among other players. For instance, in November 2019, Microsoft announced its collaboration with Graphcore specialized for AI chip designing. This AI chipset from Graphcore will be implemented in Azure cloud service to enhance the company’s cloud AI performance.