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AUSTIN, Texas–(BUSINESS WIRE)–The Futurum Group’s research arm, Futurum Intelligence, today released its AI chipset market analysts and study, providing a 5-year market forecast and segment sizing. Focused on the industry’s $400B global data center market, the study analyzed the server segment where AI processing takes place, estimating this segment will be one of the fastest growing and the use of AI applications one of the largest.
Global data center investments have seen new growth drivers in the AI inferencing chip market which is set to grow significantly this year as generative AI models mature and chipmakers focus on inferencing support.
The significant study encompasses eighteen different chips vendors and determines their respective market share positions across the four primary product categories, GPUs, CPUs, XPUs (dedicated accelerators used in AI apps like Intel Gaudi, IBM Telum, Groq LPU, etc.) and Custom Cloud Accelerators such as Google TPU, AWS Trainium & Inferentia, Microsoft Maia.
The semiconductor sector in the market accounts for ~30% of the S&P Index’s weight and its market cap reaches over $5T. The sector’s current YTD return in the market exceeds 66% while the S&P returned 16% YTD. Similar to its strong market performance, the study finds Nvidia has held 92% of the market share for GPUs in early 2024. The GPU market accounted for 74% of chipsets used in AI applications within data centers and is forecasted to grow by 30% CAGR over the next 5 years, reaching $102B by 2028, from $28B in 2023.
According to the study’s findings, Hyperscale Cloud Providers such as Google, AWS, Oracle, Microsoft and others drove 43% of the purchase decisions going into 2024 and are forecasted to be the leading buyers of AI processors and accelerators, growing to 50% by 2028. The market’s cloud segment indicated a 58% market share held by Google and a 21% market share by AWS, forecasted to grow by 35% CAGR up to $6B in 2028.
Processors and accelerators for AI excluded in the study were data center processing not available for public use. e.g. AI chipsets designed for and used by Meta, Tesla, Apple, etc.
“We are witnessing the most profound technological revolution with the advent of AI and its supporting semiconductors solutions,” said Daniel Newman, CEO of The Futurum Group. “As AI innovation evolves, companies like NVIDIA, AMD and Arm are seeing significant revenue growth, but the market’s competitive landscape is expected to intensify with new entrants and startups poised to capture market shares and drive continued innovation. For that reason, I am very proud to continue and bring insightful and actionable intelligence to the market in a most substantive and timely manner,” he added.
Here are key highlights from the study:
The complete study includes detailed revenue and growth by product type through 2028, deployment type by year, 11 use cases sized by year and 17 vertical markets sized by year.
To download the full survey report, please visit its dedicated page here
Methodology
This report used primary and secondary sources of information to develop it. It focuses solely on market vendors offering AI processors and accelerators used in data centers for AI applications.
Data has been gathered and evaluated from annual filings/10K reports, investor presentations, industry publications, and other publicly available sources. A comprehensive assessment of major and secondary vendors was conducted to derive base-year revenue estimates. The forecasting model is constructed based on the historical growth of vendors providing AI processors and accelerators, macroeconomic factors, significant underlying trends in technology and mid-market companies, and small and midsize businesses (SMBs), which drive market growth. This includes chipsets that were announced in 2023 and come online (deployed) in 2024.
All revenues stated are from the technology vendor (“factory”) and do not include channel/reseller markup (“retail”). We attempt to make our units clear in all figures and tables. Numbers in the tables may not add precisely to 100% due to rounding.
About Futurum Intelligence
At Futurum Intelligence, the research arm of The Futurum Group company, analysts, researchers, and advisors help business leaders worldwide anticipate tectonic shifts in their industries and leverage disruptive innovation.
Unlike traditional analysts, The Futurum Group works not only in analysis and research but also takes that insight and knowledge even further, engaging all the way through the go-to-market process. Futurum Research provides in-depth research and insights on global technology markets using advisory services, custom research reports, strategic consulting engagements, digital events, go-to-market planning, and message testing. It also creates, distributes, and amplifies rich media content that all stakeholders read, watch, and listen to.
See more details on The Futurum Group at futurumgroup.com
Contacts
Nati Katz
nkatz@futurumgroup.com
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