AI Chip Market Poised to Soar: Gartner Predicts Revenue to Reach $53 Billion in 2023, Double by 2027

Gartner forecasts that worldwide AI chips revenue will reach $53.4 billion in 2023, an increase of 20.9% from 2022. The growth is driven by the developments in generative AI and the increasing use of a wide range of AI-based applications, such as natural language processing, computer vision, speech recognition and machine learning.

The AI semiconductor industry is on the brink of a remarkable surge, as outlined by Gartner's latest forecast. Predicting an impressive revenue increase of 20.9%, the industry is set to reach a staggering $53.4 billion in 2023. This upward trajectory shows no signs of slowing down, with anticipated growth rates of 25.6% in 2024, culminating in an AI chips revenue forecast of $67.1 billion. However, the real eye-opener lies in Gartner's projection for 2027, where the AI chips market is poised to more than double, reaching an astonishing $119.4 billion. 

This meteoric rise is attributed to the expanding landscape of AI-based applications in data centers, edge devices, and more, necessitating the deployment of high-performance graphics processing units (GPUs) and tailored semiconductor devices. Notably, custom-designed AI chips are expected to become a staple, replacing prevalent architectures and accommodating the growing demand for optimized AI workloads. The consumer electronics sector is also embracing this transformation, with the value of AI-enabled application processors predicted to surpass $1.2 billion by the close of 2023. The future shines brightly for AI chips, as generative AI techniques and hyperscalers' interests drive innovation and efficiency in deploying AI applications. Gartner's insights underscore the imminent revolution in the semiconductor industry, ushering in an era of unprecedented growth and potential.

Gartner clients can read more in “Forecast: AI Semiconductors, Worldwide, 2021-2027, 2Q23 Update.”