Generative AI market to reach US$1.5 trillion by 2030 with Taiwan holds hardware advantage; software and services to see promising future, says DIGITIMES Research

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Sep 03, 2024, 08:00 ET

TAIPEI, Sept. 3, 2024 /PRNewswire/ -- The global generative AI market is experiencing rapid growth. According to the latest "Generative AI Special Report" from DIGITIMES, the market size is expected to expand quickly, reaching USD 40 billion by 2024 and growing to USD 1.5 trillion by 2030, with a compound annual growth rate (CAGR) of 83% from 2022 to 2030.

Generative AI is being applied across an increasingly broad range of areas, from text and images to music and more. Analyst Zouhao Shen notes that as AI transitions from the cloud to the edge, hardware limitations and model development become major challenges. It is anticipated that the development of edge AI chips will increasingly focus on enhancing domain specificity and strengthening software-hardware integration to meet the low-power, high-efficiency demands of various edge applications. Analyst Evan Chen further explains that as edge AI moves towards real-world applications, it will face four key challenges: miniaturization, adaptation, scalability, and cost-effectiveness. Beyond developing diverse hardware, integrating development platforms and deepening vertical applications will also be critical for establishing a foothold in the edge AI landscape.

In terms of industrial development the rapid rise of generative AI is set to drive Taiwan's ICT industry chain's export value, including upstream sectors such as chip design, chip/memory manufacturing, and packaging; midstream sectors like PCBs, passive components, and power components; and downstream sectors such as server manufacturing. Generative AI is expected to generate substantial orders for Taiwan's ICT industry.

Analyst Wing Hwang believes that the generative AI market is currently in its early stages, with the global market size primarily driven by AI computing hardware. However, over the next five years, the share of AI-related software and services is expected to increase significantly, with projections indicating that by 2030, software and services will account for 32% and 55% of the overall generative AI market, respectively. The growth of generative AI software and services will be a crucial factor in driving the market's expansion. Taiwan, leveraging its ICT industry chain advantage, is poised to seize early opportunities in the generative AI hardware market. Looking ahead, software and services will be the key areas for future growth, and early investment in these sectors could enable Taiwanese companies to gain a competitive edge.

To gain a comprehensive understanding and stay at the forefront of the generative AI revolution, acquire the latest generative AI research report from DIGITIMES Research. This report offers in-depth analysis and valuable insights essential for navigating the future of this transformative market.

SOURCE DIGITIMES ASIA