What is the Historic and Current Scenario of the Edge AI Hardware Market?
The edge ai hardware market has seen considerable growth due to a variety of factors.
• In recent times, there has been a significant increase in the market size of edge AI hardware. The market is projected to expand from $7.74 billion in 2024 to $9.12 billion in 2025, reflecting a compound annual growth rate (CAGR) of 17.9%. The remarkable growth in the past period can be linked to improved market education and awareness, the proliferation of IoT devices, progress in AI algorithms, as well as an increased demand for low latency, privacy, and data security.
What Is The Expected Growth In The Edge AI Hardware Market Size Evolve over the Forecast Period?
The Edge AI Hardware market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, a substantial increase is projected in the size of the edge AI hardware market. The market value is estimated to accelerate to $20.53 billion by 2029, with an impressive compounded annual growth rate (CAGR) of 22.5%.
The anticipated growth during this period can be credited to several factors, including improvements in hardware architecture, efficient edge devices, a balance between edge and cloud, and the need for data security and privacy, along with industry-specific solutions. Key trends for this period comprise AI model optimization for edge, hardware acceleration solutions, synergy between edge and cloud, decentralized AI applications, and the adoption of federated learning.
What Main Forces Are Fueling Expansion In The Edge AI Hardware Market?
The increasing usage of IoT applications is predicted to propel the edge AI hardware market in the future. IoT applications, comprising numerous service and program combinations that extract data from an array of IoT devices, can collect information across a factory and accumulate it at the edge of the network. Consequently, an escalation in IoT applications could potentially stimulate the edge AI hardware market's growth. Illustratively, a report from Ericsson, a Swedish telecommunications firm, in November 2022 revealed that broadband IoT (4G/5G), the primary connection for most cellular IoT devices, hit 1.3 billion connections in 2022. It is projected that about 60% of cellular IoT connections will be broadband IoT connections by the end of 2028, with 4G forming the majority of these connections. North East Asia is currently dominating in terms of cellular IoT connections, and it's speculated to exceed 2 billion connections in 2023. Hence, the expanding usage of IoT applications is fueling the surge of the edge AI hardware market.
What Are The Primary Segments In The Global Edge AI Hardware Market?
The edge AI hardware market covered in this report is segmented –
1) By Component: Processor, Memory, Sensor, Other Components
2) By Device Type: Smartphones, Cameras, Robots, Wearables, Smart Speaker, Other Device Types
3) By End User: Consumer Electronics, Smart Home, Automotive, Government, Aerospace And Defense, Healthcare, Industrial, Construction, Other End Users
Subsegments:
1) By Processor: CPU (Central Processing Unit), GPU (Graphics Processing Unit), FPGA (Field-Programmable Gate Array), ASIC (Application-Specific Integrated Circuit), DSP (Digital Signal Processor)
2) By Memory: RAM (Random Access Memory), Flash Memory, SSD (Solid State Drive), EEPROM (Electrically Erasable Programmable Read-Only Memory)
3) By Sensor: Camera, LiDAR (Light Detection And Ranging), Microphones, Temperature Sensors, Pressure Sensors, Proximity Sensors
4) By Other Components: Power Management ICs, Connectivity Modules, Circuit Boards, Cooling Systems
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Which Key Trends Are Driving Changes In The Edge AI Hardware Market?
The edge AI hardware market is increasingly influenced by the growing popularity of technologically advanced products. Major players in this sector are focusing on the development of cutting-edge technologies to consolidate their market positions. For example, in May 2022, Intel's Habana Labs, an AI processor manufacturer based in Israel, introduced their second-generation AI processors specifically designed for training and inferencing. These processors uniquely fill a market need by providing high-performance and high-efficiency deep learning computational options suitable for training and inference tasks in data centers. Moreover, they also lower the barriers to AI adoption for businesses of all sizes, distinguishing themselves from their competitors.
Who Are the Key Players In The Edge AI Hardware Market?
Major companies operating in the edge AI hardware market include:
• 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
• Adapteva Inc.
• Arm Limited
• ADLINK Technology Inc.
• Alphabet Inc.
• Amazon.com Inc.
• Baidu Inc.
• 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.
What Is The Most Dominant Region In The Edge AI Hardware Market?
North America was the largest region in the edge AI hardware market in 2024. 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
