Semiconductors used to perform artificial intelligence (AI) workloads will generate $53.4 billion in revenue for the semiconductor industry in 2023, up 20.9% from 2022, according to a new forecast from Gartner. AI semiconductor revenue will continue to grow at double-digit rates during the forecast period, increasing 25.6% to $67.1 billion in 2024. By 2027, AI chip revenue is expected to more than double the 2023 market size to $119.4 billion. As the use of AI-based workloads matures in the enterprise, more industries and IT organizations will deploy systems that include AI chips. In the consumer electronics market, Gartner analysts estimate that the value of AI-enabled application processors will reach $1.2 billion by the end of 2023, up from $558 million in 2022. The need for efficient and optimized designs to support cost-effective execution of AI-based workloads will drive the increase in deployment of custom-designed AI chips. Generative AI is also driving demand for the development and deployment of high-performance computing systems, with many vendors offering high-performance GPU-based systems and network equipment and seeing significant near-term benefits. In the long term, Gartner expects the use of custom-designed AI chips to increase as hyperscalers look for efficient and cost-effective ways to deploy these applications. |
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