AI Revenue Soaring in 2024, According to Gartner

The latest estimate from market researchers suggests that the chip market in 2024 is set to reach an impressive US$624 billion. Within this booming industry, artificial intelligence (AI) is making significant strides, with its share of the chip market expected to reach 11.4 percent and showing rapid growth.

Gartner, a leading research and advisory company, anticipates that the value of AI accelerators in servers alone will hit US$21 billion by 2024. Furthermore, revenue from AI chips in computing electronics is projected to reach $33.4 billion, constituting 47 percent of the total AI semiconductors revenue. The automotive electronics sector is also expected to contribute substantially, with AI chips revenue reaching US$7.1 billion, while consumer electronics are forecasted to generate US$1.8 billion in revenue by 2024.

"The demand for high-performance AI chips in data centers is being driven by generative AI technologies," noted Alan Priestley, an analyst at Gartner. By 2024, the value of AI accelerators used in servers is expected to reach US$21 billion, a figure that is projected to grow to US$33 billion by 2028. This trend underscores the increasing reliance on AI technologies across various sectors.

Looking ahead, Gartner predicts that AI-powered personal computers (PCs) will represent 22 percent of total PC shipments by 2024. By the end of 2026, it is expected that all enterprise PC purchases will be AI PCs. These advanced systems are equipped with neural processing units (NPUs) that enable them to operate more efficiently, quietly, and with lower temperatures. The ability to handle AI tasks continuously in the background opens up new possibilities for integrating AI into everyday tasks and workflows.

As the chip market continues to evolve, companies like Nvidia are experiencing remarkable growth, with sales quadrupling year-on-year. However, challenges such as a disappointing first quarter in 2024 have led analysts to revise their forecasts for the global chip market growth. Despite these setbacks, the influence of AI is expected to be a key driver of growth in the chip market in 2024, according to industry experts.