Global Edge AI Hardware Market Outlook to 2030

Global Edge AI Hardware Market Overview 

• The Global Edge AI Hardware Market was valued at USD 23.1 billion in 2023. This market is primarily driven by the increasing demand for real-time data processing and the rising adoption of IoT devices across various industries. Edge AI hardware enables devices to perform advanced analytics on-site, reducing latency and enhancing data security by minimizing cloud dependency.  

• The major players in the global Edge AI Hardware Market include NVIDIA Corporation, Intel Corporation, Qualcomm Incorporated, Xilinx, Inc., and Huawei Technologies Co., Ltd. These companies lead the development of advanced AI hardware solutions, focusing on optimizing power efficiency and computational performance for edge devices.  

• In 2023, NVIDIA launched its Jetson Orin Nano platform, a powerful AI computer designed for edge applications in robotics and autonomous machines, offering up to 40 trillion operations per second (TOPS) of AI performance. Similarly, Qualcomm introduced its 7th Generation AI Engine, enhancing the capabilities of edge devices in smart homes and industrial settings.  

• North America dominated the global Edge AI Hardware Market in 2023 due to its robust technological infrastructure, early adoption of advanced AI technologies, and significant investments in R&D by major market players. The region’s focus on digital transformation across various industries, such as automotive, healthcare, and retail, further solidifies its leading position.  

Global Edge AI Hardware Market Segmentation 

The Global Edge AI Hardware Market is segmented by component, device type, end-use industry, deployment mode, and region. 

By Region: The global Edge AI Hardware Market is segmented into North America, Europe, Asia-Pacific (APAC), Latin America, and the Middle East & Africa (MEA). In 2023, North America held the dominance due to the region’s technological advancements, strong presence of leading AI hardware manufacturers, and substantial investment in research and development. 

By Component: The market is segmented into processors, memory, and sensors. In 2023, the processors segment held the highest market share ,driven by the increasing demand for powerful and energy-efficient processors that can handle complex AI algorithms on edge devices. Companies like NVIDIA and Intel have been pivotal in developing advanced processors that cater to this need, enhancing performance and enabling real-time data processing capabilities on edge devices. 

By Device Type: The market is segmented into smartphones, cameras, robots, and wearables. In 2023, Smartphones dominated the market. This dominance is due to the widespread adoption of AI-enabled smartphones with advanced features like facial recognition, augmented reality, and intelligent voice assistants.  

Global Edge AI Hardware Market Competitive Landscape 

• Qualcomm Incorporated: In 2023, Qualcomm Technologies, Inc. announced its premium mobile platform, the Snapdragon® 8 Gen 3, which delivers industry-leading AI, high-performance cameras, advanced gaming, and studio-quality audio, backed by fast connectivity. This platform is designed to power the experiences of the future, including edge AI applications. 

• Huawei Technologies Co., Ltd.: In 2024, huawei announced a USD 1.5 billion investment to expand its research and development efforts in edge AI hardware.?This investment will be used to develop advanced processors, including CPUs, GPUs, and ASICs, specifically designed for edge computing applications. 

Global Edge AI Hardware Market Analysis 

Global Edge AI Hardware Market Growth Drivers 

• Increased Investment in Smart Infrastructure: Governments and private sectors are significantly investing in smart infrastructure initiatives. In 2022, the U.S. government allocated $65 billion towards broadband expansion, which is expected to enhance connectivity for edge AI applications. This investment supports the deployment of edge AI hardware by improving network capabilities 

• Rising Demand for Low-Power Edge Devices: In 2024, it is projected that devices operating under 1W will see substantial growth, driven by the need for battery-operated devices in sectors like IoT and wearables. This trend towards energy-efficient technologies is driving the adoption of edge AI hardware that consumes less power. 

• Expansion of 5G Networks: In 2023, the global number of 5G connections reached approximately 1.8 billion, marking a 65% year-on-year increase from 1.1 billion in 2022. This surge in subscriptions reflects a growing consumer and enterprise demand for 5G services, which is expected to further drive the adoption of edge AI technologies.? 

Global Edge AI Hardware Market Challenges 

• High Development Costs: The development of advanced edge AI hardware involves significant research and development costs. High initial investments and the complexity of designing efficient AI processors can be a barrier for smaller companies and new entrants in the market. This restraint affects the overall growth and adoption rate of edge AI hardware solutions. 

• Data Security and Privacy Concerns: As edge AI hardware processes data locally on devices, ensuring data security and privacy becomes a critical concern. The potential for data breaches and unauthorized access can deter companies from fully adopting edge AI solutions, especially in sensitive sectors like healthcare and finance where data protection is paramount. 

Global Edge AI Hardware Market Government Regulation 

• U.S. National AI Initiative Act: In 2023, the National Science Foundation (NSF) announced a dedicated funding of $140 million to establish seven new National AI Research Institutes. These institutes are designed to promote responsible innovation and bolster the U.S. AI research infrastructure, which is crucial for advancing edge AI technologies across various sectors. 

• China's New Generation Artificial Intelligence Development Plan: In 2017, the Chinese government had committed to increasing the scale of its AI core industry to over 400 billion RMB (approximately $62 billion) by 2025. This investment is expected to drive advancements in edge AI technologies, with a focus on applications that enhance urban infrastructure and industrial processes.? 

Global Edge AI Hardware Market Future Market Outlook 

The Global Edge AI Hardware Market is expected to grow substantially over the coming years, driven by advancements in AI technology, the increasing demand for real-time data processing, and the growing adoption of IoT devices. As industries continue to digitize and integrate AI into their operations, the need for efficient edge AI hardware solutions is expected to rise. 

Future Market Trends 

• Integration with AI and Machine Learning: By 2028, edge AI hardware solutions are expected to increasingly integrate AI and machine learning capabilities to enhance functionalities such as predictive analytics, real-time decision-making, and autonomous operations. The growing focus on AI-driven innovation across industries will drive the adoption of edge AI hardware. 

• Increased Focus on Edge Computing in Healthcare: There is a growing trend towards incorporating edge computing solutions in healthcare to enhance data privacy and enable real-time patient monitoring. Edge AI hardware will play a crucial role in facilitating remote diagnostics, personalized medicine, and other advanced healthcare