Market Challenges And Opportunities

Global Neuromorphic Chip Market- Drivers

Increasing demand for artificial intelligence systems

Increasing demand for artificial intelligence systems is expected to drive growth of the global neuromorphic chip market during the forecast period. Numerous companies and researchers are incorporating neuromorphic chips in artificial intelligence systems to enhance processes including speech recognition, machine learning, image recognition, data mining, automated reasoning, etc. Rising use of neuromorphic chips in artificial intelligence has received excellent response from various end users worldwide. This is typically due to extraordinary developments it has brought in mobile phone speech recognition, robots automating operations, driverless cars, and others. Moreover, its capabilities of solving problems by employing a complex pattern-matching process similar to a human brain is another factor expected to drive growth in the global neuromorphic chip market during the forecast period.

Integration of smart machines

Integration of smart machines is expected to propel the global neuromorphic chip market growth over the forecast period. Smart machines are based on cognitive computing and artificial intelligence and have emerged as major trends across the globe. Smart machine manufacturers are integrating neuromorphic chips into their systems, in order to enhance overall performance. Furthermore, the ability of these systems to learn from their surroundings and interactions and respond suitably without the need for pre-programming is encouraging the adoption of these smart machines in lieu of conventional machines.

Global Neuromorphic Chip Market- Opportunities

Conjunction of next-generation strategies

Conjunction of next-generation strategies can present lucrative growth opportunities. Neuromorphic chips represent significant opportunities in terms of being implemented along with other advanced technologies such as artificial intelligence, big data, and others in the coming years. Integration of neuromorphic chips improves the pattern recognition quality in artificial intelligence systems; whereas, in big data, neuromorphic chips advance the data mining and forecasting processes. Manufacturers engaged in the development of these technologies can enter into partnerships and collaboration with manufacturers of artificial intelligence systems to strengthen and establish position in the market.

Integration in portable consumer devices

Integration in portable consumer devices to pose significant business opportunities. Neuromorphic chips have vast opportunities in the smartphone and smartwatch market in the near future. Pattern recognition issues are prime areas for manufacturers to focus on improving in smartphones. Integration of neuromorphic chips into mobile devices will improve the device’s audio and visual processing skills. Moreover, prominent manufacturers of these chips such as IBM Corp., Qualcomm Inc., and others are working towards developing their own neuromorphic technology, which will be suited for applications in mobile phones.

Global Neuromorphic Chip Market- Restraints

Challenges associated with the development of complex algorithms

Challenges associated with the development of complex algorithms are expected to hinder the global neuromorphic chip market growth over the forecast period. Neuromorphic chips are required for the development of complex algorithms, which can be time-consuming. Neuromorphic chips require algorithms that are not too long as it may result in increase in memory consumption, and may be prone to errors. Furthermore, the development of algorithms that can accelerate the working of a neural network may also require skilled professionals, which in turn, adds to cost production. Thus, these factors are expected to hinder the market growth over the forecast period. For instance, Hewlett Packard Labs(HP), technology company, developed a conversion algorithm to reduce computational errors and maximize computing accuracy of its neuromorphic technology.

Slow commercialization and high cost of neuromorphic chips

Slow commercialization and high cost of neuromorphic chips is expected to restrain growth of the global neuromorphic chip market during the forecast period. The slow rate of commercialization as well as high cost of neuromorphic chips is a major restraining factor for growth of the market. Furthermore, high cost and limited choice among several manufacturers offering neuromorphic chips are constraining OEMs in various industries from integrating these chips in their products.

Global Neuromorphic Chip Market- Segmentation:

Global Neuromorphic Chip Market report is segmented into application, vertical, and region.

The Signal Recognition held dominant position in the market and accounted for 45.2% share in the global neuromorphic chip market in 2022. Rising demand for acoustics signal and processing of audio it is expected to drive nueuromorphic chip market by 2030

Based on vertical, the market is segmented into aerospace and defense, automotive, consumer electronics, Healthcare, Industrial and others. Consumer Electronics accounted for the largest share of 4% in the global neuromophic chip market and is expected to be valued US$ 3,000.6 million by 2030. This is owing to increased demand for artificial intelligence and machine learning in consumer electronics devices.