Global AI Accelerator Growth Analysis 2025, Forecast To 2034
26 Mar, 2025
How Has the AI Accelerator Market Evolved Historically and What is its Current Size?
The ai accelerator market has seen considerable growth due to a variety of factors.
• In recent times, there has been a rapid expansion in the size of the AI accelerator market. The market, currently valued at $16.55 billion in 2024, is forecasted to reach $20.95 billion in 2025, indicating a Compound Annual Growth Rate (CAGR) of 26.6%.
This substantial growth during the historical phase is due to factors such as the escalating demand for deep learning models, increased government funding, greater implementation of AI in image and speech recognition technologies, the upsurge in AI acceptance for precision agriculture, and the expansion of the consumer electronics sector.
What Does Future Hold for The AI Accelerator Market Size?
The ai accelerator market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipated skyrocketing expansion is prompt for the AI accelerator market in the upcoming years, with a predicted escalation to $53.23 billion by 2029, demonstrating a compound annual growth rate (CAGR) of 26.2%.
This upsurge during the forecast period can be credited to factors such as the escalating deployment of AI servers, heightened demand for real-time data processing, increasing utilization of IoT devices, boosted investments in AI research, and soar in consumer data production. Noteworthy trends for the forecast period embody technological progression, machine learning, cloud-based AI solutions, AI chips, and cybersecurity.
What Are The Primary Growth Drivers In The AI Accelerator Market?
The projected expansion of the AI accelerator market is anticipated to be spurred by the rising integration of IoT devices. IoT technology involves tangible devices outfitted with software, sensors, and connectivity capabilities allowing them to gather, share, and analyze data via the internet. Factors propelling the deployment of IoT devices include an increasing preference for automation, enhanced connectivity, and consumer uptake of smart devices. AI accelerators empower these IoT devices to process data on-site, diminishing the requirement for cloud transmission. This leads to quicker decision-making, smaller latency, and decreased bandwidth use, improving efficiency in real-time applications like smart homes, industrial automation, and healthcare. For instance, in April 2024, Ericsson, a telecommunications firm based in Sweden, published a report stating that worldwide IoT connections hit 15.7 billion in 2023, with an anticipated growth of 16% to 38.8 billion connections by 2029. Thus, the soaring uptake of IoT devices is steering the expansion of the AI accelerator market.
What Is The Segmentation Of The Global AI Accelerator Market?
The AI accelerator market covered in this report is segmented –
1) By Type: Graphics Processing Units (GPUs), Tensor Processing Units (TPUs), Application-Specific Integrated Circuits (ASICs), Central Processing Units (CPUs), Field-Programmable Gate Arrays (FPGAs)
2) By Technology: Cloud-Based AI Accelerators, Edge AI Accelerators
3) By End User: Information Technology And Telecom, Healthcare, Automotive, Finance, Retails, Other End Users
Subsegments:
1) By Graphics Processing Units (GPUs): AI Training GPUs, AI Inference GPUs, Cloud-Based AI GPUs, Edge AI GPUs, High-Performance Computing (HPC) GPUs
2) By Tensor Processing Units (TPUs): Cloud TPUs, Edge TPUs, AI Model Training TPUs, AI Model Inference TPUs, Energy-Efficient TPUs
3) By Application-Specific Integrated Circuits (ASICs): Deep Learning ASICs, Speech And Language Processing ASICs, Computer Vision ASICs, Edge AI ASICs, Low-Power AI ASICs
4) By Central Processing Units (CPUs): AI-Optimized Multi-Core CPUs, Cloud AI CPUs, Edge AI CPUs, Real-Time AI Processing CPUs, High-Performance AI Workstation CPUs
5) By Field-Programmable Gate Arrays (FPGAs): AI Model Customization FPGAs, Low-Latency AI Processing FPGAs, Edge AI FPGAs, Reconfigurable AI Hardware FPGAs, High-Throughput AI Computing FPGAs
What Emerging Trends Are Shaping The AI Accelerator Market Landscape?
Major companies operating in the AI accelerator market are focusing on developing advanced technologies such as 5 nm node process technology to enhance performance, improve energy efficiency, and support the increasing demands of AI workloads. 5 nm node process technology refers to a semiconductor manufacturing process where the transistors are only 5 nanometers in size, allowing for improved performance, reduced power consumption, and more compact chip designs. For instance, in August 2024, IBM, a US-based technology company, launched the Spyre accelerator chip, an advanced AI processing unit designed for IBM Z systems. It is equipped with 32 cores and 25.6 billion transistors, utilizing 5nm node process technology to deliver both high performance and energy efficiency. This is mounted on PCIe cards that can be clustered together to boost processing power and facilitates large-scale AI inferencing and supports complex applications, such as fraud detection and generative AI for automating business processes and modernizing code. Its architecture is optimized to handle AI workloads, allowing businesses to deploy AI models securely and efficiently on-premises.
Who Are the Key Players In The AI Accelerator Market?
Major companies operating in the AI accelerator market are:
• Samsung Electronics Co. Ltd.
• Huawei Technologies Co. Ltd.
• Taiwan Semiconductor Manufacturing Company
• Intel Corporation
• Cisco Systems Inc.
• Qualcomm Technologies Inc.
• Broadcom Inc.
• NVIDIA Corporation
• Advanced Micro Devices Inc. (AMD)
• Baidu Inc.
• NXP Semiconductors N.V.
• Microchip Technology Incorporated
• Synopsys Inc.
• Marvell Technology Inc.
• Arista Networks Inc.
• Xilinx Inc.
• Hailo Ltd.
• Rebellions.ai
• Furiosa AI Inc.
• Graphcore Limited
• BrainChip Holdings Ltd.
• LeapMind Inc.
What Are The Regional Insights Into The AI Accelerator Market?
North America was the largest region in the AI accelerator market in 2024. The regions covered in the AI accelerator market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.