Edge AI Processor Market by Type (Central Processing Unit (CPU), Graphics Processing Unit (GPU), and Application Specific Integrated Circuit (ASIC)), Device Type (Consumer Devices and Enterprise Devices), End-use (Automotive & Transportation, Healthcare, Consumer Electronics, Retail & Ecommerce, Manufacturing, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2022-2030

Global Edge AI Processor Market Analysis

The global Edge AI processor market size is predicted to garner a revenue of $9,566.30 million in the 2022–2030 timeframe, growing from $2,483.70 million in 2021, at a healthy CAGR of 16.0%.  

Market Synopsis

The Edge AI processor market is predicted to grow at an exponential rate in coming years as machine learning methods take use of data created by the system and process that on the device. Real-time automatic decision-making is possible due to the minimal latency. Edge AI provides real-time activities such as huge data processing, training, and forecasting to applications that need to evaluate information in real time. Between detecting a probable collision and making steering or braking changes, autonomous vehicles (AVs) have a small period of time. An IoT device sends a vast amount of data to a cloud that performs machine learning (ML) algorithms and returns the findings to the device, causing a delay in response. Data sharing is reduced with on-device AI, allowing for faster replies. All such factors drive the global edge AI processor market.

However, pre-trained machine learning models for edge AI are currently in use for inference. Users are given to pre-trained models that automatically fine-tune data produced by them. Training a model takes a lot of computer power, and edge AI is more vulnerable to uncertainty since it has limited access to training data, which may lead to hinder the global edge AI processor market, in the forecast period.

Growing electronics industry to fuel the growth of the market owing to artificial intelligence (AI) becoming more widely employed, with AI playing a vital role in recent advancements in educational, medical, sales, communications, infrastructure, electronic goods, and a variety of other industries. Moreover, spoken assistants such as Google Home, Siri, and Alexa allow users to control their home appliances with a single voice command. Voice assistant equipment will be integrated into consumer items such as speakers and headphones, resulting in a positive market projection. Furthermore, numerous consumer companies are driving the sector with product updates and new product releases in order to improve the sector's performance. Such developments and innovations in the industries are further expected create enormous opportunities for the global industry, in the coming years.

According to the regional analysis of the market, Asia-Pacific edge AI processor market is anticipated to grow at a CAGR of 16.8%, by generating a revenue of $3,089.00 million in 2030. Because of increased consumer expenditure and demand for consumer gadgets, this is the case. Smartphones, smart wearable, and other electronic devices are in high demand particularly in China, India, and South Korea, fueling the growth of Asia-Pacific edge AI processor market, during the analysis period.

Edge AI Processor Overview

Edge AI is a hybrid of artificial intelligence and edge computing. Edge computing refers to the set of techniques for collecting, interpreting, and data processing at the network's edge. This means that the computer computational power and data storage are both positioned near the data collection. What does it mean to have been at the edge of a network? It may be a phone, an Internet of things, a self-driving car, or even a cell tower, depending on the application. Artificial intelligence is when a machine imitates human cognition, such as language comprehension and problem solving. Advanced analytics (often based on machine learning) combined with automation is what artificial intelligence is. Locally, AI algorithms are processed, either on the device itself or on a server nearby. AI processor are specialized chips that combine artificial intelligence (AI) and machine learning to make mobile devices smart enough to mimic the human brain. Deep learning AI workloads are optimized with AI chips. Rising demand and adoption of artificial intelligence products and services are creating lucrative growth opportunities in the edge AI processor market.

COVID-19 Impact on Edge AI Processor Market

COVID-19's impact on businesses is redefining business models. The new coronavirus has an impact on every organization. Organizations are attempting to restructure their supply chains in order to create a safe working environment. Organizations all over the world are implementing appropriate measures to limit pandemic risks, such as remote working capabilities, remote asset maintenance & monitoring, plant automation, and tele-health. The transition from computers to the cloud to the edge has proven to be quite beneficial to the healthcare industry. Many hospitals and pharmaceutical companies have begun to embrace edge AI. Despite the fact that the technology is not new, research indicates that there will be numerous ways for the healthcare sector to incorporate edge IoT and Edge AI into their daily operations in the coming years. The healthcare sector is projected to have a significant beneficial influence, as companies realize the value of edge AI in combatting the virus's effects. As a result, financing and research to keep organizations safe and secure across the value chain have expanded.

Moreover, every business has been harmed as the world braces for the ongoing damage of the COVID-19 outbreak. Organizations all across the world are implementing remote working capabilities, remote asset maintenance & monitoring, plant automation, and telemedicine to lessen pandemic risks. Companies are beginning to see the value of edge AI hardware in combatting COVID-19, which has had a significant positive impact on the healthcare industry.

Increasing Use of On-device AI Processor for Image Analysis is one of the Major Factors of the Growth of the Market

AI mobile processor power computational imaging applications in drones, wearable electronics, robots, and self-driving cars. The use of AI-based vision processing units (VPU) can assist drones in making better decisions and reducing the risk of accidents, which will contribute to the growing demand for industrial and personal drones. Computational imaging and visual awareness applications improve mobile devices by replacing complex optics with simpler lens assemblies and multiple apertures; combining images captured by heterogeneous sensors such as infrared (IR) and depth sensors RGB (red, green, and blue), and extracting contextual metadata from still images and video streams. These factors enable the use of VPUs in mobile handsets, tablets, wearable devices, and personal robots for a wide range of new application areas and use cases (previously limited to desktops and workstations). VPU-enabled surveillance cameras enable real-time data processing in cameras rather than the cloud, lowering the risk of data hacking and enabling faster processing.

Furthermore, data generated by the device is gathered and analyzed by algorithms at the AI's edge. This system has high throughput and enables real-time ability for self. Edge AI enables real-time data production, learning, and inference, which is advantageous for real-time data analysis, which may further be projected to drive the global market, during the forecast period.

To know more about global edge AI processor market trends, get in touch with our analysts here.

Shortage of Skilled Professionals can Hinder the Growth of the Market

Although the fields of AI and machine learning are progressing, there is still a significant lack of diversity in the industry in terms of education, gender, ethnicity, experience, and other relevant parameters. Moreover, the worldwide edge AI sector is constrained by power consumption and size constraints. High cost of the technologies and low adoption rate of edge AI technologies in the developing regions can hinder the growth of the market.

Growing Electronics Industry to Fuel the Growth of the Market

Artificial intelligence (AI) is becoming more widely used; recent improvements in education, healthcare, marketing, telecommunications, transportation, consumer electronics, and a variety of other fields all have AI as a key. The value that AI solutions bring to customers can be used to gauge their success in the consumer electronic (CE) market. For example, an automatic recommendation of the greatest music playlist depending on the consumer's current mood can help businesses add value to their offers and boost their chances of keeping customers. Using this type of notion in specific goods can help a CE company stay ahead of the pack and capture a sizable market share. Intel and Udacity launched their new Intel® Edge AI for IoT Developers Nanodegree program in April 2020, which would train developers in deep learning and computer vision.

Furthermore, role of edge AI in the healthcare industry will accelerate the global market. The ability to automate processes is one of AI's distinctive selling points in general. AI algorithms may collect data from a variety of sensors and analyze it to choose the best course of action. This is taken to the next level with edge AI. It provides autonomous monitoring of hospital rooms and patients using computer vision and data from other sensors. Additionally, consider the case of fall detection. Many wearables now include the capacity to detect if a person falls suddenly by utilizing specific technology. These gadgets' edge AI can be trained to detect falls in real time and even notify caretakers. All such factors in edge AI processor business and its wide variety of applications might bring new opportunities in the market.

To know more about global edge AI processor market opportunities, get in touch with our analysts here.

Global Edge AI Processor Market, by Type

Based on type, the market has been divided into central processing unit (CPU), graphics processing unit (GPU), and application specific integrated circuit (ASIC). Central processing unit sub-segment accounted for the highest revenue share in 2021 in the forecast period.   

Global Edge AI Processor Market Share, By Type, 2021

Source: Research Dive Analysis

In 2021, the global central processing unit sub-segment was worth more than $1,215.3 million. Increased IoT adoption is expected to connect billions of new devices, necessitating greater computing efficiencies and speed. Integrations of field programmable gate array  (FPGAs) and CPUs for high performance supercomputing or computing applications are also expected to fuel the PC processor market in the near future. Edge computing can help with data security and privacy issues, in addition to reducing latency and allowing for more immediate analytics. Businesses can decrease the burden of having all data in a central location by dispersing computer resources to remote facilities. It also means that less data is sent over the internet. Businesses can also meet compliance and privacy concerns in some regulated industries by not transferring sensitive data across borders. Another important benefit for businesses is that edge computing can save money by reducing bandwidth usage. An organization can ensure that it only pays to transmit and store its necessary, important data by processing data at the edge, while discarding its low-value data.

Global Edge AI Processor Market, by Device Type

Based on device type, the analysis has been divided into consumer devices and enterprise devices. Out of these, consumer devices sub-segment is predicted to be the most dominant and enterprise devices is anticipated to show the fastest growth during the forecast period.

Global Edge AI Processor Market Share, By Device Type, 2021

Source: Research Dive Analysis

The consumer devices edge AI processor is anticipated have dominant share during the forecast period and generate a revenue of $7,009.8 million by 2030, growing from $1,844.4 million in 2021, with a CAGR of 15.8%. Surveillance cameras, smart speakers, wearable, gaming consoles, AR-VR headsets, drones, and home automation robots, all use edge AI. The demand for the consumer devices edge AI processor will grow rapidly owing to the growing importance of home automation and consumer devices among device manufacturers as 5G networks and edge AI hardware advance, expanding the market for AI-enabled devices. The rise of IoT and the use of smart technologies by consumer devices and automobiles, among many other industries, are propelling the edge AI processor business ahead. Edge AI processor with the on analytics will broaden the scope of the edge AI processor business. AMD, Lattice, NVIDIA, Google, Xilinx, and Intel are a few edge computer platform vendors for cognitive AI application design. Machine learning, computer vision, character recognition, AI chip accelerators, neural networks, natural language processing, and other emerging technologies open up totally new horizons of possibilities. Businesses are rapidly adopting a decentralized computer architecture, and they are coming up with new ways to employ this technology to enhance productivity.

Global Edge AI Processor Market, by End-use

Based on end-use, the market is further sub-segmented into automotive & transportation, healthcare, consumer electronics, retail & ecommerce, manufacturing, and others. Among these, consumer electronics sub-segment is predicted to be the most dominant sub-segment and healthcare sub-segment is anticipated to have the fastest growth during the forecast period.

Global Edge AI Processor Market Share, By End-use, 2021

Source: Research Dive Analysis

The consumer electronics edge AI processor sub-segment is anticipated have dominant share during the forecast period and generate a revenue of $2,414.9 million by 2030, growing from $660.2 million in 2021, with a CAGR of 15.4%. Consumer electronics holds a major share of the edge AI processor market in terms of volume. This is because consumer spending and demand for consumer electronics are increasing. Smartphones, smart wearables, and other devices are becoming increasingly popular. Furthermore, the development of new use cases for edge AI could lead to rapid growth in the consumer electronics sub-segment of the edge AI processor market. Additionally, importance of video surveillance systems as a result of increased security concerns across sectors such as retail, enterprises, and banks & financial institutes is driving the commercial video surveillance market, which will ultimately drive the sub-segment growth. The business sector has experienced a surge in demand for security solutions as a result of security breaches such as inventory loss, robbery, unlawful access, and other criminal activities. The rapid growth of small businesses, as well as retail outlets and malls has increased the demand for surveillance systems and ultimately consumer electronics edge AI processor.

Global Edge AI Processor Market, Regional Insights:

The edge AI processor market was inspected across North America, Europe, Asia-Pacific, and LAMEA.

Global Edge AI Processor Market Size & Forecast, By Region, 2021-2030 (USD Million)

Source: Research Dive Analysis

The Market for Edge AI processor in North America to Hold Maximum Revenue

The North America edge AI processor market in 2021 was $974.90 million and anticipated to generate $3,688.80 million in 2030, with CAGR 15.8%. Because of the widespread adoption of industrial automation and robotics in the manufacturing sector, the North American edge AI processor market is gaining traction. Several regional manufacturing industries are focusing on integrating industrial robots and robotic arms into plant facilities in order to increase production while decreasing reliance on labor. Edge AI processors are required for robotic process automation, speech recognition, and computer vision applications in this automated machinery. According to the World Robotics 2019 report, North America accounted for 55,212 industrial robot installations in 2018, representing a 20% year-on-year increase. Moreover, North America accounted for the biggest share in 2019 due to the significant presence of US-based tech giants such as NVIDIA, Google, Microsoft, Intel Corporation, Xilinx, and Qualcomm Technologies in the region. Governments in the North American region are putting more emphasis on creating AI applications in-house and continue to invest in AI-related technologies. According to the National AI R&D Strategic Plan, the US government raised core AI R&D funding by USD 25 billion in December 2019. The purpose of this strategic effort is to make high-quality cyber infrastructure more accessible. In the field of edge AI computing, the majority of the tech behemoths are based in the United States. Furthermore, several start-ups, such as Cerebras Systems, a company based in the United States, are concentrating on building software. A significant increase in industrial robot adoption in North America will create new growth opportunities in the edge AI processor market.

Competitive Scenario in the Global Edge AI Processor Market

Product launches and mergers & acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading Edge AI processor market players are Intel Corporation, Advanced Micro Devices, Inc., Alphabet Inc.; Intel Corporation, Qualcomm Technologies, Inc., Apple Inc, Mythic Ltd., Arm Limited, Samsung Electronics Co., Ltd., NVIDIA Corporation, and HiSilicon (Shanghai) Technologies CO LIMITED.