Neuromorphic Chip Market Size, Share, Growth & Industry Analysis, By Application (Automotive, Aerospace & Defense, Healthcare, Consumer Electronics, Others), By Offerings (Hardware, Software), and Regional Analysis, 2024-2031

Neuromorphic Chip Market Size

The global Neuromorphic Chip Market size was valued at USD 189.8 million in 2023 and is projected to grow from USD 318.4 million in 2024 to USD 18,140.2 million by 2031, exhibiting a CAGR of 78.16% during the forecast period. The market is growing rapidly due to the increasing integration of these chips in various sectors such as healthcare, automotive, and industrial automation.

The growing emphasis on enhancing AI capabilities and improving energy efficiency is supporting this surging demand. Innovations in neuromorphic hardware and software are expanding their application scope, making them crucial for advanced, real-time data processing solutions. In the scope of work, the report includes solutions offered by companies such as Intel Corporation, SK Hynix Inc., IBM Corporation, Samsung, GrAI Matter Labs, Nepes, General Vision Inc., BrainChip, Inc., Vicarious, SynSense, and others.

The neuromorphic chip market is experiencing robust growth, driven by advancements in AI and the increasing demand for low-power, high-efficiency computing solutions. These chips, specifically designed to mimic the human brain's neural architecture, are becoming essential for applications that require real-time data processing and adaptive learning, such as smart wearables, autonomous vehicles, and edge computing. Enhanced R&D efforts are driving continuous innovations, resulting in the creation of more sophisticated and energy-efficient chips.

• For instance, in June 2023, BrainChip Holdings Ltd and Lorser Industries Inc. declared their partnership to integrate BrainChip's Akida technology into neuromorphic computing solutions for software-defined radio (SDR) devices.

Strategic alliances and technological advancements are propelling the growth of the market by addressing the rising demand for advanced computational solutions.

A neuromorphic chip is a specialized microprocessor designed to replicate the neural architecture and functions of the human brain. By utilizing artificial neurons and synapses, these chips process information in a parallel and distributed manner, which facilitates efficient and low-power computations. Neuromorphic chips are particularly adept at tasks requiring real-time data processing, adaptive learning, and pattern recognition.

They are particularly well-suited for use in artificial intelligence, robotics, and sensory systems. By mimicking the brain’s neural networks, neuromorphic chips offer enhanced capabilities for complex computations, positioning them as a pivotal technology in the progression of AI and intelligent system applications.

Analyst’s Review

Although neuromorphic chips are still in the early stages of development, there is a notable surge in patent filing activity in this field by key semiconductor companies, R&D centers, and universities. Competitive rivalry is expected to increase in the near future.

• For instance, in March 2024, a research team at KAIST used neuromorphic computing technology to create the first artificial intelligence (AI) semiconductor capable of computing a large language model (LLM) with extremely low power consumption.

By developing integrated circuits that mimic the human nervous system, this technology aims to enhance the capability of chips to perform increasingly complex tasks that require flexibility and reasoning, all while consuming less energy.

Additionally, in April 2024, chip maker Intel announced the construction of the world’s largest neuromorphic system, named "Hala Point," to facilitate more sustainable AI. Implemented at Sandia National Laboratories, this massive neuromorphic system utilizes Intel’s “Loihi 2” CPU, supports research into future brain-inspired AI, and addresses the efficiency and sustainability challenges associated with current AI systems.

The increasing engagement of key players in innovation and advancements in neuromorphic chip technology is expected to boost market growth in the coming years. This progress is expected to foster the development of more efficient and powerful AI solutions.

Neuromorphic Chip Market Growth Factors

The rising demand for advanced biometric and in-speech recognition features in smartphones is highlighting the pressing eed for neuromorphic chips, thereby propelling the neuromorphic chip market growth. These chips are used to process audio data efficiently by initially sending it to the cloud and subsequently returning the processed data to the device. As Artificial Intelligence (AI) applications require more computing power, the low-energy consumption associated with neuromorphic computing presents a promising solution.

By enabling complex AI tasks to run directly on smartphones without significantly draining the battery, neuromorphic chips are facilitating the transition of numerous applications, currently dependent on cloud processing, to function locally on the device. This shift is enhancing the performance and responsiveness of AI-driven features while improving user privacy by reducing dependence on cloud services, thereby contributing to market growth.

The high development costs asscoaited with neuromorphic chips are hindering market growth. These costs encompass extensive research, complex manufacturing processes, and the need for advanced materials, which pose significant challenges for smaller companies seeking to enter the market. To mitigate this challenge, key players are investing heavily in collaborative research initiatives and forming partnerships with academic institutions to share resources and reduce expenses.

Additionally, they are leveraging government grants and funding programs to support their development efforts and foster innovation in neuromorphic technology. These strategies help distribute the financial burden and create a more competitive and innovative market environment.

Neuromorphic Chip Market Trends

The integration of advanced functions such as image identification and natural language processing in wearable devices, supported by neuromorphic technologies such as IBM’s TrueNorth, is propelling market growth. These technologies are enhancing the capabilities of wearables to accurately monitor vital signs, identify abnormalities, and promptly respond to emergencies.

This capability ensures that medical personnel are notified promptly when necessary. By addressing critical needs in power consumption, processing speed, and system adaptation, neuromorphic chips are enhancing the ability of smart wearables to perform complex tasks efficiently. This trend is augmenting market growth by meeting the increasing demand for sophisticated, responsive, and energy-efficient healthcare solutions.

The rise in research and development (R&D) is reshaping the landscape of the neuromorphic chip market. Increased investment in R&D is leading to advancements in neuromorphic technology, thereby enhancing its capabilities and efficiency. Furthermore, innovations are facilitating the development of more powerful and energy-efficient chips, which are critical for applications in AI, smart wearables, and edge computing.

This surge in R&D is propelling market expansion by fostering continuous improvement and technological breakthroughs in neuromorphic computing.

Segmentation Analysis

The global market is segmented based on application, offerings, and geography.

By Application

Based on application, the neuromorphic chip market is categorized into automotive, aerospace & defense, healthcare, consumer electronics, and others. The consumer electronics segment garnered the highest revenue of USD 76.1 million in 2023. 

Consumer electronics encompasses a wide range of devices such as smartphones, smartwatches, and home automation systems, all of which are increasingly requiring advanced computational capabilities and improved energy efficiency. AI services such as Alexa and Siri rely on cloud computing to process and respond to voice commands.

However, neuromorphic chips are allowing sensors and devices to perform intelligent functions locally, without the need for internet connectivity. Smartphones are becoming the primary platform for introducing neuromorphic computing, particularly for power-intensive and data-heavy operations such as biometrics and speech recognition. By processing these tasks directly on the device, neuromorphic chips are enhancing efficiency and performance, thereby bolstering the growth of the consumer electronics segment.

By Offerings

Based on offerings, the market is categorized into hardware and software. The hardware segment captured the largest neuromorphic chip market share of 62.45% in 2023. Hardware includes essential components such as processors, memory units, and integrated circuits, all of which are essential for the implemention of neuromorphic computing.

As the demand for advanced, energy-efficient hardware solutions increases, manufacturers are investing heavily in the development of neuromorphic processors that mimic the brain's neural architecture. These processors offer significant improvements in speed, efficiency, and power consumption compared to traditional hardware.

The integration of neuromorphic chips into a wide range of devices, spanning from consumer electronics to industrial applications, is leading to enhanced performance and the introduction of new capabilities. Continuous innovation and the widespread adoption of neuromorphic technology is boosting the expansion of the segment.

Neuromorphic Chip Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America neuromorphic chip market share stood around 40.12% in 2023 in the global market, with a valuation of USD 76.1 million. North America is home to major market vendors such as Intel Corporation and IBM Corporation, which are contributing to this notable regional market growth. This expansion is further bolstered by supportive government initiatives and increased investment activities.

• For instance, in September 2023, the US National Science Foundation announced a total of 24 research and education initiatives, with a combined funding of USD 45.6 million to accelerate advancements in semiconductor technologies and manufacturing. This funding is supported by the CHIPS and Science Act of 2022.

The NSF Future of Semiconductors (FuSe) program supports these initiatives through a public-private partnership, collaborating with Samsung, Ericsson, IBM, and Intel.

Additionally, the Canadian government is focusing on advancements in artificial intelligence technology, which is creating growth opportunities for neuromorphic computing.

• In June 2023, Canada introduced the Artificial Intelligence and Data Act (AIDA) to address risks associated with AI, build trust in the AI industry, and protect Canadians. AIDA aims to establish Canada as a leader in responsible and trusted AI.

Furthermore, increasing defense expenditures in North America are expected to boost the demand for neuromorphic computing.

Asia-Pacific is anticipated to witness significant growth at a CAGR of 73.38% over the forecast period. The region is emerging as a major market for neuromorphic chips, fueled by rapid technological advancements and strong government support. Countries such as China, Japan, and South Korea are investing heavily in research and development to remain at the forefront of semiconductor innovation.

Governments are launching national initiatives to boost AI and semiconductor technologies, while technology companies are collaborating with academic institutions to develop next-generation neuromorphic chips for various applications, including robotics and automation. Additionally, strategic plans to support the development of AI-driven smart cities are propelling the demand for neuromorphic computing, thereby aiding regional market growth.

• For instance, in April 2024, South Korean President Yoon Suk Yeol announced the investment of USD 6.94 billion in artificial intelligence by 2027 to maintain its leading global position in cutting-edge semiconductor technology. This investment includes a separate fund of USD 1.03 billion to support AI semiconductor firms.

This initiative aims to maintain a competitive edge of South Korea with countries such as the United States, China, and Japan, which are providing substantial policy support to strengthen their semiconductor supply chains. These substantial investments and policy support are directly boosting the growth of the Asia-Pacific market.

Competitive Landscape

The global neuromorphic chip market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Companies are implementing impactful strategic initiatives, such as expanding services, investing in research and development (R&D), establishing new service delivery centers, and optimizing their service delivery processes, which are likely to create new opportunities for market growth.

List of Key Companies in Neuromorphic Chip Market

• Intel Corporation
• SK Hynix Inc.
• IBM Corporation
• Samsung
• GrAI Matter Labs
• Nepes
• General Vision Inc.
• BrainChip, Inc.
• Vicarious
• SynSense

Key Industry Development

• October 2023 (Product Launch): IBM introduced a brain-inspired chip named NorthPole, which outperforms existing AI microchips by being over 20 times faster and approximately 25 times more energy efficient. This new chip, as detailed in an IBM study, shows potential for applications in autonomous vehicles and robotics.

The global neuromorphic chip market is segmented as:

By Application

• Automotive
• Aerospace & Defense
• Healthcare
• Consumer Electronics
• Others

By Offerings

• Hardware
• Software

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America