Nvidia Leads AI Processor Market on Path to $100bn by 2026

As the demand for artificial intelligence (AI) continues to surge, Nvidia is positioned as a key player in the market, with a trajectory of quadrupling sales year-on-year. The analysis firm projects a significant growth in the market for processors and accelerators for AI applications in datacenters, estimating a value of US$56.3 billion by 2024, marking a substantial 49.3 percent increase from the previous year's market worth of US$37.7 billion.

Futurum Group's analysis further indicates that the market is on track to experience a compound annual growth rate of 29.7 percent over the next five years. This growth trajectory is expected to propel the market size to US$98.4 billion in 2026 and US$138.3 billion in 2028, according to the market analyst's forecasts.

When examining the AI datacenter processor market, Futurum categorizes it into four segments: CPUs, GPUs, dedicated accelerators known as XPUs, and proprietary cloud accelerators offered by major tech giants like Google, AWS, and Microsoft. In 2023, GPUs dominated the market with a share of 73.5 percent, followed by CPUs at 20.5 percent, while XPUs and cloud proprietary accelerators each held 3 percent of the market.

Geographically, North America emerged as the dominant region in the AI processors and accelerators market in 2023, capturing 55 percent of the market share. EMEA and APAC also represented significant markets, with LATAM showing potential for substantial growth as a developing region.

Looking at the use cases for AI processors and accelerators, Visual & Audio Analytics emerged as the leading application in 2023. Futurum predicts that by 2028, the top three use cases will include Visual & Audio Analytics, Simulation & Modeling, and Text Generation, Analysis, & Summary, showcasing the diverse applications of AI technology.