According to a recent market research report by IDTechEx, the global AI chips market for edge devices is projected to reach US$22 billion by 2034. The consumer electronics industry vertical is expected to dominate this market, accounting for over 45% of the revenue by that time.
AI technology has already made significant strides in devices such as smartphones, tablets, smart speakers, personal computers, and televisions. In the coming years, there will be a greater emphasis on incorporating AI chips into edge devices within homes to enable a local Internet of Things. This will greatly impact how people interact with their immediate surroundings and reshape the structure of homes.
The market for mobile chipsets is currently dominated by Qualcomm and MediaTek, with Apple and Google designing their own chipsets for their devices. Notably, Samsung and Oppo are emerging as key players in the market consolidation. Samsung has been using their Exynos chipsets in previous generations of their Galaxy smartphones, but recent reports suggest that they may be discontinuing this line. The latest Galaxy S23 smartphone already incorporates a Qualcomm Snapdragon 8 Gen 2 for Galaxy chipset, signaling a shift in their chipset strategy. The future of Exynos and proprietary Samsung mobile chipsets remains uncertain.
In China, Oppo, the leading smartphone maker, has decided to shut down its semiconductor division and cease development of its own chips. This decision is largely due to tighter profit margins in smartphone production and US restrictions on the use of chips that utilize US-origin IP. Oppo is likely to rely on Qualcomm and/or MediaTek chipsets for their future smartphones.
Traditionally, Qualcomm has dominated the flagship smartphone market, while MediaTek has focused on the low- to mid-range segment. However, MediaTek’s recent entry into the flagship space with their Dimensity 9000, Dimensity 9200, and Dimensity 9200+ chipsets may disrupt the status quo in the coming years.
With smartphone saturation becoming a reality in many markets, the focus is shifting towards premiumization. In 2022, approximately 20% of global smartphone sales were accounted for by the top ten bestselling models, most of which were Apple smartphones. These models incorporate AI coprocessing capabilities, while other models lack dedicated AI acceleration components. As the smartphone market evolves, premium smartphones are expected to drive sales, even as the overall volume decreases.
In conclusion, the future of AI chips in consumer electronics looks promising. The market is projected to grow significantly in the coming years, with consumer electronics taking the lead. Key players in the industry are making strategic moves to secure their positions and tap into the potential of AI technology. As consumer demand for advanced features and capabilities continues to rise, AI chips will play a crucial role in powering the next generation of smart devices.