Edge AI Hardware Global Market Report 2024

The edge ai hardware market size has grown rapidly in recent years. It will grow from $6.64 billion in 2023 to $7.9 billion in 2024 at a compound annual growth rate (CAGR) of 19.0%. The growth observed during the historic period in the field of edge AI hardware can be attributed to several factors. These include efforts in market education and awareness about the capabilities of edge AI, the proliferation of Internet of Things (IoT) devices, advancements in AI algorithms enhancing performance, a growing demand for low latency in processing data, and increasing concerns about privacy and data security. These factors collectively contributed to the adoption and expansion of edge AI hardware solutions.

The edge ai hardware market size is expected to see exponential growth in the next few years. It will grow to $16.58 billion in 2028 at a compound annual growth rate (CAGR) of 20.4%. The anticipated growth in the forecast period for edge AI hardware can be attributed to various factors. These include ongoing advancements in hardware architecture, the development of energy-efficient edge devices, achieving a balance between edge and cloud computing, addressing privacy and data security requirements, and the emergence of industry-specific solutions. Major trends expected in the forecast period encompass the optimization of AI models for edge computing, the adoption of hardware acceleration solutions, the synergy between edge and cloud computing, the rise of decentralized AI applications, and an increased adoption of federated learning approaches.

The expansion of IoT applications is anticipated to significantly elevate the demand for edge AI hardware in the foreseeable future. IoT applications represent a collection of services and software that amalgamate data from multiple IoT devices. As these applications pool data from various points within the factory floor and converge it at the network's edge, the surge in IoT applications is projected to stimulate growth in the edge AI hardware market. For instance, a report released by Dataport, a Germany-based public-service provider, noted that in 2021, over 10 billion IoT devices were in operation. Predictions suggest an upsurge to more than 25.4 billion active IoT devices by 2030. By 2025, IoT devices are expected to connect to the internet approximately 152,200 times per minute. Hence, the rise in IoT applications is a driving force behind the expansion of the edge AI hardware market.

The widespread adoption of 5G connectivity is poised to drive the advancement of the edge AI hardware market in the coming years. 5G connectivity denotes the fifth generation of mobile networks, offering swifter data speeds, reduced latency, and heightened capacity for wireless communication. Edge AI hardware augments 5G connectivity by facilitating real-time processing at the network edge, thereby curtailing latency and optimizing data traffic for more efficient and responsive applications. For instance, as of April 2023, data sourced from 5G Americas, a US-based industry trade organization, indicates a 76% upsurge in global 5G wireless connections from the end of 2021 to the end of 2022, reaching a total of 1.05 billion connections. Projections foresee this number reaching 5.9 billion by the end of 2027. Consequently, the uptake of 5G connectivity is steering the growth of the edge AI hardware market.

Technological advancements stand out as the pivotal trend garnering attention within the edge AI hardware market. Major companies operating in this sphere are vigorously developing sophisticated technologies to fortify their market positioning. For instance, in May 2022, Habana Labs, an Israel-based entity under Intel, introduced second-generation AI processors tailored for both training and inferencing tasks. The hallmark of these processors is their capacity to bridge market gaps by furnishing customers with high-performance and high-efficiency deep learning compute solutions, suitable for both training workloads and inference deployments in data centers. This innovation not only lowers the barriers to AI adoption for businesses of varying sizes but also distinguishes itself amidst competitive technological offerings.

Major players within the edge AI hardware market are actively engaged in the development of advanced platforms that amalgamate both hardware and software capabilities, exemplified by NVIDIA IGX Orin, which aims to establish novel functional safety benchmarks for AI and computing systems. NVIDIA IGX Orin represents a cutting-edge, high-precision edge AI computing platform that integrates sophisticated security and safety attributes. For instance, in September 2022, NVIDIA, a prominent US-based software company, unveiled its IGX Edge AI Computing Platform, specifically designed to meet the demands of high-precision edge AI across sectors such as manufacturing, logistics, and healthcare. This platform fosters improved collaboration between humans and machines while ensuring an additional layer of safety within real-world environments. It incorporates the potent NVIDIA IGX Orin tailored for autonomous industrial machinery and medical apparatus. Offering flexibility and adaptability, the platform can be easily programmed and configured to suit diverse requirements, ensuring adherence to edge AI protocols. In the healthcare sector, the IGX platform supports NVIDIA Clara Holoscan for real-time AI computation in medical equipment.

In June 2022, Qualcomm, a distinguished US-based semiconductor company, acquired Cellwize for an undisclosed sum. This acquisition merges Cellwize's cutting-edge cloud-native, multi-vendor RAN (Radio Access Network) automation and management platform with Qualcomm Technologies' top-tier 5G RAN offerings. This integration is poised to deliver leading-edge RAN automation and management software solutions, further expediting the evolution of the connected intelligent edge through the deployment of both private and public 5G networks. This strategic collaboration aims to minimize network deployment timelines and streamline network administration. Cellwize, a US-based telecommunications service provider, specializes in enabling future-oriented networks.

Major companies operating in the edge ai hardware market report are Apple Inc., MediaTek Inc., Qualcomm Technologies Inc., Huawei Technologies Co. Ltd., Samsung Electronics Co. Ltd., Intel Corporation, NVIDIA Corporation, International Business Machines Corporation, Google LLC, Microsoft Corporation, Advanced Micro Devices Inc., Imagination Technologies Limited, General Vision Inc., Adapteva Inc., Arm Limited, ADLINK Technology Inc., Alphabet Inc., Amazon.com Inc., Baidu Inc., Rapp Motorenwerke company, Continental AG, Denso Corporation, Renesas Electronics Corporation, Infineon Technologies AG, KALRAY Corporation, Robert Bosch GmbH, Rockchip Electronics Co. Ltd., NXP Semiconductors N.V., ON Semiconductor Corporation, Oracle Corporation, STMicroelectronics N.V..

North America was the largest region in the edge AI hardware market in 2023. Asia-Pacific is expected to be the fastest-growing region in the edge AI hardware market during the forecast period. The regions covered in the edge ai hardware market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the edge ai hardware market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary devices utilizing edge AI hardware include smartphones, cameras, robots, wearables, smart speakers, and others. Smartphones are handheld electronic devices connected to cellular networks, equipped with components such as processors, memory, sensors, and more. These devices find applications across a wide range of industries and end-users, including consumer electronics, smart home systems, automotive, government, aerospace and defense, healthcare, industrial sectors, construction, and various other domains.

The edge AI hardware market research report is one of a series of new reports that provides edge AI hardware market statistics, including edge AI hardware industry global market size, regional shares, competitors with an edge AI hardware market share, detailed edge AI hardware market segments, market trends, and opportunities, and any further data you may need to thrive in the edge AI hardware industry. This edge AI hardware market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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