According to a report by P&S Intelligence, the edge AI hardware market generated a value of 1,058 million units in 2022, and it will generate a value of 4,704 million, growing at a 20.50% CAGR, by 2030.
The growth of the industry is due to the improvement of edge computing devices and services along with the development of real-time low latency. By including AI in such devices, a higher functionality, faster, more accurate, and easier processing of data is made possible.
Moreover, the edge AI hardware industry is witnessing growth opportunities due to the rising privacy & security concerns and the increasing expenditures on research and development to develop advanced devices.
Additionally, the industry will grow, due to the rapidly increasing acceptance of IoT, 5G technologies, and AI across industrial verticals, for instance, BFSI, government, retail, consumer goods, and hospitality. Also, the mounting implementation of hardware increases the need for edge AI software in the industry.
In 2022, the APAC industry generated the largest edge AI hardware market revenue share. The growth in the region is because of the increasing number of Internet of things-integrated devices, the advent of 5G, and the mounting penetration of smartphones in South Korea, China, Japan, and India.
Another key reason driving the requirement for vision processing unit integration to accelerate artificial intelligence activities is wearable technology. The APAC region has huge potential for end-use industries, such as telecommunications, automotive, and manufacturing which generate a higher requirement for such devices.
In 2022, China contributed the largest revenue share in the APAC industry, at over 34%. This is credited to the existence of several industry players in the nation and the increasing electronics, semiconductor, and automotive industries that are heavily investing in AI technology.
Based on power consumption, the 1–3 W category accounted for a significant share of the industry of edge AI hardware. This is credited to the fact that most edge artificial intelligence devices consume 1–3 W power.
Furthermore, smartphones are the main devices that consume 1–3 W of electricity. As the requirement for smartphones is growing, the need for 1–3 W-based artificial intelligence devices will increase significantly in the years to come.
Numerous players in the industry have been implementing different measures of development to gain a competitive edge and enhance their competitiveness, for instance, partnerships, product launches, mergers & acquisitions, and funding.
It is because of the growing requirement for smart homes and smart cities, the development of edge computing devices and services, and the enhancement of real-time low latency, the global edge AI hardware industry will continue to grow in the years to come.
