Edge AI Processor Market

Edge AI Processor Market Outlook (2022 to 2032)

The Edge Artificial Intelligence (AI) Processor Market size is estimated to surpass US$ 9.5 billion by 2032. The market size by 2022 was held at US$ 2.9 billion and is likely to exhibit CAGR of 12.6% during the forecast period (2022 to 2032).

Edge AI processor is designed for processing data in real time. It can be used in devices that automate or regulate autonomous driving, security, other multimodal function in smart devices.

This capability is due to the potential of these processors to process data and also find inference in real time. Recently, edge AI processor demand has increased due to rising adoption of AI products and services.

Edge AI processor is undergoing a transformative moment. In consumer devices, it is expected to be a significant revenue-generating type and is projected to expand at a CAGR of over 12.4% from 2022 to 2032.

Boom in the edge AI processor industry is due to its multitude of benefits. First, less data is transferred to and from the cloud. However, more data is processed at the edge. This leads to decreased latency and low energy usage.

Secondly, edge computing is expected to lower power consumption, especially for electronics and telecommunication segment. With other businesses joining the automation trend, edge AI processors have a high growth opportunity. It is interesting to note the different industry segments that will join the league of edge AI processors.

People are using more smart devices to control their homes and cities, and this factor is expected to have a positive effect in the next ten years. Urban areas are being constructed by using innovative technologies such as machine learning, big data, and blockchain. Smart cities all around the world are embracing these technologies more frequently since they are becoming very common in a variety of industries.

How Will Sales of Edge AI Processors Between 2017 and 2021 Outpace the Demand from 2022 to 2032?

As per Persistence Market Research (PMR), the edge AI processor market is estimated to hit a valuation of US$ 9.5 billion from 2022 to 2032. The projected CAGR by the end of 2032 will be 12.6%.

In the historical year, from 2017 to 2021, CAGR of the market was estimated to be 15.8%. The market crossed a valuation of US$ 2.9 billion by 2022.

Demand for edge AI processors is surging due to rapid deployment of industry 4.0 across diverse sectors such as healthcare, automotive, and manufacturing among others. With automation penetrating across these sectors, smart devices are anticipated to propel the sales in the market ahead of 2022.

Another prominent factor for this rapid transformation is rising adoption of IoT devices. Need for real- time decision making and privacy concerns due to big data utilization would also aid demand.

Edge AI allows processing of data directly on internet of things devices, reducing latency and improving security. With 75 billion internet of things-based devices expected by 2025, demand for edge AI is set to increase.

Autonomous vehicles need real-time decision-making; which cloud-based AI cannot provide due to latency. Edge AI processes data on the device, enabling real-time decision-making, and driving adoption in various industries.

Edge AI provides enhanced security and privacy compared to cloud-based AI, reducing the risk of data breaches. This feature will drive adoption in sensitive data industries, further leading to ballooning of edge AI processors market.

Top Edge AI Processor Market Trends Listed by Persistence Market Research (PMR)

• Edge AI processor allows all processor-intensive AI computations to be performed locally on the devices.
• The edge AI processor chips are providing benefits such as increased speed in computations and data privacy.
• The edge AI chips can be utilized for various applications as it computes using a predefined algorithm which helps it to compute the data on the device itself.
• Few of the applications for Edge AI chips include integration in smartphones and IoT devices.
• These chips can be used in robots that can ultimately be utilized in manufacturing for increased productivity within the factories.
• Edge AI processors can also be used within the automobile industry for improving the advanced driver assistance system.
• IoT connected devices is another significant segment propelling industry expansion.
• By 2030, it is projected that the number of IoT-connected devices would be 29.4 billion devices.
• The rise in the demand for IoT devices for better connectivity will increase the demand for edge AI processors.

Which Region is Projected to Offer Significant Opportunities for Edge AI Processor Providers?

Persistence Market Research (PMR) opines, North America had an estimated market size of US$ 1 billion in 2021, and it reached US$ 1.19 billion valuation in 2022.

For the forecast year from 2022 to 2032, it is projected that North America is set to be valued at US$ 3.9 billion. The historical CAGR between 2017 and 2021 was around 35%. The predicted CAGR till 2032 is expected to be 41.4%.

Edge AI processors are being widely used in IoT-connected devices. Its recent adoption for better connectivity among the IoT devices is projected to improve the edge AI processor sales. Number of IoT-connected devices was around 2.3 billion in 2018 and are projected to expand to about 5.4 billion devices by 2025.

Rising demand for IoT connected devices in the region is projected to expand the market for edge AI processors as they are widely being adopted in IoT devices. They can eliminate the need for a cloud facility and allow for quick decisions within milliseconds.

Country-wise Insights:

Why is Edge AI Processors Demand Expanding in the United States of America?

The United States of America edge AI processor market is expected to expand up to US$ 3.1 billion with an absolute dollar growth of US$ 2.0 billion till 2032.

The United States of America market has surged at a CAGR of 14.2% from 2017 to 2021. It is expected to broaden at a CAGR of 11.4% from 2022 to 2032.

The United States of America is the world’s prominent consumer of consumer devices such as smartphones leading to 296 million smartphone users in the United States of America in 2020. It is projected to expand by up to 347.6 million users by 2032.

Since edge AI processors are widely being implemented in smartphones for improving the functions such as voice assistants and to provide user-specific personalization, the market for edge AI processors in the United States of America is projected to expand during the assessment period.

Why the United Kingdom would become a Key Hotspot for Edge AI Processors Providers?

The edge AI processor market in the United Kingdom is expected to elevate up to US$ 478.0 million by 2032. It is anticipated to create an absolute dollar growth of US$ 320.7 million in the next ten years.

The United Kingdom market has grown at a CAGR of 14.5% from 2017 to 2021. It is expected to escalate at a CAGR of 11.8% by the end of 2032.

The United Kingdom has a significant market for the consumer devices industry. The smartphone segment in the country is a significant one with about 88% of the population possessing a smartphone.

This number grew to 92% in 2022 and it is projected that around 62 million adults in the United Kingdom will be owning a smartphone by 2032.

With the rise in popularity of consumer devices such as smartphones in the country, the market for edge AI processors is projected to expand during the assessment period.

Would China become a Significant Edge AI Processor Manufacturing Hub?

The edge AI processor market in China is expected to be worth US$ 813.3 million by 2032. It is estimated to create an absolute dollar growth of US$ 587.4 million till 2032.

The edge AI processor market in China witnessed growth at a CAGR of 17.4% from 2017 to 2021. It is likely to expand at a CAGR of 13.7% from 2022 to 2032.

China, being the world’s predominant manufacturer of consumer devices such as smartphones, has produced around 142 million smartphones in October 2022.

It is also a significant producer of passenger cars in the world. It manufactured around 2.1 million cars in the year 2021. With increasing edge AI processor adoption, the automotive industry is empowering cars with quick decision making.

As China is a leading manufacturer of automotive and smartphones, it will need lightning speed processors such as edge AI processors, paving way for China to become a significant manufacturer of the edge AI processors of the world.

Category-wise Insights:

Which Type of Edge AI Processor would Gain Traction by 2032?

Edge AI processors in the form of CPU are projected to witness significant growth. The segment exhibited growth at a CAGR of 15.4 % from 2017 to 2021. It is expected to fuel at a CAGR of 12.5% from 2022 to 2032.

Versatility, low power consumption, and advancements in AI software and algorithms are primary drivers of growth. CPUs can perform a wide range of tasks and are commonly used in a variety of devices, including smartphones, laptops, and servers. This makes the CPU ideal for computing applications without requiring specialized hardware.

Another factor contributing to growth is their low power consumption, making them ideal for use in smart devices and are cost-effective. Persistence Market Research (PMR) mentions AI as a true determinant of CPU-based edge AI processor market expansion.

As AI becomes more complex and sophisticated, it requires powerful processors to run efficiently. CPUs can run these complex algorithms and can be scaled up to handle more demanding AI workloads.

Which Type of Device Uses Edge AI Processor the Most Worldwide?

Consumer devices are projected to witness prominent growth. The category showcased steady growth at a CAGR of 15.0% from 2017 to 2021. It is expected to bolster at a CAGR of 12.4% from 2022 to 2032.

There were around 1.4 billion smartphones sold in 2021. It is projected to reach 1.5 billion by the end of 2028. Rising demand for better smartphones by millennials is projected to expand the segment during the assessment period.

Rising demand for consumer devices such as smartphones is due to rapid advancement in technologies, as well as affordable price of smartphones. Along with making smartphones accessible, there is also increasing investment from governments to improve the telecom infrastructure. Rising 5G technologies is expanding the market for smartphones across the world.

With rising 5G networks, smartphone manufacturers are further integrating edge AI processors within their smartphones. They are aiming to provide consumers with voice assistant features.

Competitive Landscape:

Leading players in the market are currently investing heavily in the development of new types of edge AI processors. They are collaborating in research for new technologies and algorithms to improve the functionality of chips and their processing power.

For instance,

• In November 2022, Rohm Semiconductors announced that it has developed an on-device learning AI chip for edge computing in IoT devices. It can detect failures in electronic devices in real-time with ultra-low power consumption.
• In November 2020, Hyundai Motor Group and Nvidia Corporation announced a partnership to employ Nvidia’s Nvidia DRIVE infotainment system and AI system for all future Hyundai, Kia, and Genesis models.
• In January 2020, Apple Inc. acquired Xnor.ai, a USA-based startup. It enables AI to operate on devices such as smartphones and cameras. This acquisition is projected to enhance AI-enabled image recognition tools to the upcoming smartphones by Apple.

Scope of the Report

Edge AI Processor Market Outlook by Category

By Type:

• Central Processing Unit (CPU)
• Graphics Processing Unit (GPU)
• Application Specific Integrated Circuit (ASIC)

By Device Type:

• Consumer Devices
• Enterprise Devices

By End-use Industry:

• Automotive and Transportation
• Healthcare
• Consumer Electronics
• Retail and E-commerce
• Manufacturing

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa

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