Global Neuromorphic Chip Market - Segmented By Application (Image Recognition, Signal Processing, Data Processing), End-Users (Aerospace And Defense, Industrial Automation, Healthcare) And Geography - Growth, Trends, And Forecasts (2018 - 2023)
The global neuromorphic chip market was estimated at USD 1.426 billion in 2017. This market is expected to reach USD 6.03 billion by the end of 2023, recording a CAGR of 27.16% during the forecast period (2018 - 2023). Data analytics, internet of things, and smart sensors, are considered the parent markets for the neuromorphic chip market, as these chips are embedded into hardware used for image recognition, data mining, etc. Yet, the growth of this market is not majorly impacted by the dynamics of its respective parent markets. The global neuromorphic chip market is experiencing high growth, due to the increasing demand for artificial intelligence (AI).
Consumer preference toward small-sized products has led to the demand for miniaturization of ICs, which has been driving the growth of the global neuromorphic chip market. With the advent of smart technologies, smart sensors are being used in many end-user industries, like automotive, electronics, and medical, thus lucratively increasing the demand for smarter technologies.
Development of AI expected to Drive the Market Growth
With ‘Internet of Things’ and intelligent hardware systems developing at a rapid pace, intelligent devices are highly in demand in today's society, making consumer lives easier by adopting to those choices. The main potential application being brain computer interfaces, its other applications include intelligent hardware systems and robotics. The high demand for image recognition and data processing has resulted in the use of artificial intelligence and neural network-inspired chips (Neuromorphic chip) for faster processing than the existing traditional algorithms and GPUs. The industry, however, is running into an I/O bottleneck with the current systems for many intelligent-like applications. So for these apps, the industry hopes to develop a new class of neuromorphic systems and chips.
Aerospace & Defense expected to Witness Faster Growth Rates by End User
The neuromorphic chip market for the aerospace & defense industry is small, as compared to other applications, such as automotive and consumer electronics. Neuromorphic chips are embedded into smart sensors for faster computation and data processing. However, it is growing, with smart sensors being implemented for improving mission performance and reliability. Smart sensors are used in engine valves and hydraulic systems. These sensors are suited for harsh environmental conditions in military and defense applications, such as sensing and monitoring of nuclear radiation. Smart sensors at remote locations can alert soldiers about harmful chemical explosives in the battlefield.
North America expected to Hold Major Share over the Forecast Period
North America is currently the second-largest market for neuromorphic chips, and held a market share of 20.55% in 2016. Latest technological breakthroughs have assisted the advancement of new X-ray tubes that can make the overall process more efficient and can significantly improve accuracy in various applications. There have been a series of new product launches, mergers, and acquisitions in North America to take the advantage of this opportunity. The major driver behind the investments has been the continuous evolution and application of new technologies to unlock enormous volumes that were previously considered non-commercial. With these series of investments, automotive, industrial, healthcare, and consumer electronics applications in North America are set to boom over the forecast period.