Edge AI Hardware Market Set to Record Exponential Growth by 2030

Allied Market Research, titled, “Edge AI Hardware Market By Component, Device Type, Process, and End User: Global Opportunity Analysis and Industry Forecast, 2021–2030”, the global edge AI hardware market size was valued at $6.88 billion in 2020, and is projected to reach $38.87 billion by 2030, registering a CAGR of 18.8%. Asia-Pacific is expected to be the leading contributor toward the edge AI hardware market during the forecast period, followed by LAMEA and Europe.  

Edge AI hardware is a device that can make decisions & process data independently without any external connection. These edge AI hardware does not have any issue of bandwidth and latency of real-time data, which influence application execution. Real time operations are very crucial in robots and self-driving cars among other applications.

Global edge AI hardware market growth is anticipated to be driven by factors such as emergence of AI coprocessors for edge computing and rise in IoT applications by various end user industries such as automotive and consumer electronics. In addition, increase in real-time low latency on edge devices, boosts the overall market growth. However, power consumption & size constraint acts as a major restraint for the global edge AI hardware industry. On the contrary, rise in demand and adoption of artificial intelligence products & services is expected to create lucrative opportunities for the market.

Moreover, developing nations tend to witness high penetration of edge AI hardware products, especially in the automotive sector, which is anticipated to augment the market growth. Factors such as growing driverless vehicles accelerate the market growth.

The global edge AI hardware market is segmented on the basis of component, device type, process, end user, and region. By component, the market is classified into processor, memory, sensor, and others. Depending on device type, it is categorized into smartphones, cameras, robots, wearables, smart speaker, and others. The process covered in the study include training and inference. On the basis of end user, it is classified into consumer electronics, smart home, automotive, government, aerospace & defense, healthcare, industrial, construction, and others.

Region wise, the edge AI hardware market trend is analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). The edge AI hardware market size has been analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America contributed the maximum revenue in 2020.

However, in between 2020 and 2030, the edge AI hardware market in Asia-Pacific is expected to grow at a faster rate as compared to other regions. This is attributed to an increase in demand from emerging economic countries such as India, China, Japan, Taiwan, and South Korea.

Key Findings of the Study

• The consumer electronics sector is projected to be the major application, followed by industrial.
• Asia-Pacific and North America collectively accounted for more than 61% of the edge AI hardware market share in 2020.
• India is anticipated to witness the highest growth rate during the forecast period.
• U.S. was the major shareholder in the North America edge AI hardware market, accounting for approximately 55% share in 2020.
• Depending on the component, the processor segment generated the highest revenue in 2020. Also, the processor segment is expected to witness the highest growth rate shortly.
• Region-wise, the edge AI hardware market was dominated by North America. However, Asia-Pacific is expected to witness significant growth in the coming years.

The key players profiled in the report include Apple Inc., Google LLC (Alphabet Inc.), Huawei Technologies Co., Ltd., Intel Corporation, International Business Machines Corporation (IBM), MediaTek Inc., Microsoft Corporation, NVIDIA Corporation, Qualcomm Technologies, Inc., and Samsung Electronics Co., Ltd. (Samsung). These players have adopted various strategies, such as acquisition and product launch,h to strengthen their foothold in the industry.