The global artificial intelligence (AI) chip market is projected to grow dramatically over the next decade and beyond, with its total value expected to reach approximately USD 1.10 trillion by 2035 — up from about USD 121.7 billion in 2026. This represents a robust compound annual growth rate (CAGR) of around 27.9 % between 2026 and 2035, driven by expanding adoption of AI technologies across industries and a transition toward high‑performance and energy‑efficient hardware platforms.
AI chips are specialised processors designed to handle machine learning, deep learning and real‑time decision tasks far more efficiently than general‑purpose CPUs. Key factors propelling market growth include rising use of autonomous systems, AI‑powered edge devices, data centres, cloud services and smart sensors in sectors such as automotive, healthcare, finance and industrial automation. The increasing demand for edge AI processing — where data is processed locally on devices to reduce latency and enhance privacy — is also a major trend shaping the chip landscape.
Regionally, North America accounted for the largest share of the AI chip market in 2025, supported by strong research infrastructure, presence of key semiconductor companies and large‐scale data centre deployments. Other markets such as Europe and Asia‑Pacific are also expected to grow rapidly as local industries adopt AI technologies and governments invest in semiconductor capabilities. In terms of chip segmentation, CPUs and traditionally high‑performance processors currently lead the market, while specialised architectures like ASICs and AI accelerators are gaining traction for efficiency and task‑specific performance.
Beyond sheer size, the market’s expansion reflects broader technological shifts. AI chips are becoming central to next‑generation systems — from autonomous vehicles that require real‑time sensor processing to AI‑enhanced healthcare diagnostics that demand high throughput with low power draw. As more industries embrace AI workflows, demand for both high‑performance and energy‑efficient AI hardware is expected to continue growing strongly, making the AI chip sector one of the fastest‑expanding segments of the global semiconductor industry.
