Global Edge AI Processor Market - 2024-2031

Overview

Global Edge AI Processor Market reached US$ 2.2 billion in 2023 and is expected to reach US$ 8.3 billion by 2031, growing with a CAGR of 18.6% during the forecast period 2024-2031.

Energy efficiency is critical in edge computing environments, especially for battery-powered devices and IoT sensors. Edge AI processor manufacturers increasingly focus on developing energy-efficient architectures and low-power consumption designs to prolong battery life and reduce operational costs. Energy-efficient edge AI processors enable longer device runtime and support sustainable deployment of edge computing solutions.

For instance, on January 12, 2024, e-con Systems and Ambarella, Inc., a leading-edge AI semiconductor company, announced a partnership unveiling their collaborative venture: the e-con Robotics Computing Platform (eRCP). It is engineered around Ambarella's top-tier CV72S edge AI system on chip (SoC), this innovative platform caters specifically to the needs of the robotics sector. In the rapidly evolving landscape of robotics, both rapid prototyping and superior performance stand as essential pillars. Ambarella's user-friendly Cooper Developer Platform delivers vision capabilities and AI performance per watt.

North America is experiencing a demand for edge computing devices across various industries, driven by the need for enhanced privacy and security. Organizations are deploying edge AI processors to enable edge computing capabilities, supporting use cases including smart cities, industrial IoT, and healthcare. These factors fuel innovation in AI technologies, driving the development of advanced edge AI processor architectures, algorithms, and applications tailored for North American markets.

Dynamics

Shifting Consumers to Edge Computing

Edge computing environments often require AI processors with high computational power and efficiency to process data in real time and meet performance demands. Consequently, there is a continuous push for advancements in AI processor technology to deliver higher performance and efficiency, stimulating market competition and innovation, and driving the global edge AI processor market.

Integrating AI processors into edge devices and systems opens up new opportunities for collaboration and partnerships within the market ecosystem. AI processor manufacturers collaborate with IoT device manufacturers, software developers, and system integrators to deliver integrated solutions that address the specific requirements of edge computing applications, thereby expanding their market presence and revenue potential.

For instance, on January 11, 2024, Quanta Computer Inc., renowned for its innovative technology solutions, and Ambarella, Inc., a leading-edge AI semiconductor firm, announced an expansion of their strategic alliance during CES. This enhanced collaboration now encompasses the development of products utilizing Ambarella's CV3-AD, CV7, and new N1 series AI systems-on-chip (SoCs), representing a notable leap in capabilities for cutting-edge AI applications. These advancements cater to the escalating market need for a wide spectrum of neural networks and large language models, ranging from millions to billions of parameters.

Increasing IoT Products Demand

IoT devices create a demand for edge computing capabilities to process data generated by these devices. This increased demand for edge AI processors expands the opportunities, driving market growth. IoT devices generate wide amounts of data that often require real-time processing and intelligent decision-making at the edge to extract insights and enable timely actions, thereby driving market demand and adoption.

Edge AI processors optimize the performance of IoT devices by offloading AI inference from centralized servers to the edge and conserving bandwidth. This optimization enhances the effectiveness of IoT deployments, making edge AI processors indispensable components in the IoT ecosystem and driving market growth. The diverse nature of IoT applications requires AI processors that can be customized and integrated into various IoT devices and systems.

Companies are developing flexible edge AI processor solutions that meet the requirements of IoT devices, driving the global edge AI processor market. For instance, on September 20, 2022, NVIDIA launched the groundbreaking NVIDIA IGX platform tailored for high-precision edge AI, revolutionizing security and safety in critical sectors like manufacturing, logistics, and healthcare.

These industries relied on expensive, custom-built solutions for specific tasks, but the IGX platform offers easy programmability to adapt to diverse requirements. It is serving as a cornerstone for secure autonomous systems, IGX enhances collaboration between humans and machines. In manufacturing and logistics, IGX ensures an added layer of safety in tightly regulated physical environments like factories and warehouses.

High Development Costs

The significant upfront investment required for research and development in edge AI processor technology can act as a barrier to entry for new market players. High development costs deter smaller companies from entering the market, limiting competition and reducing market diversity. Manufacturers are reluctant to adopt edge AI processors in price-sensitive. This can hinder the adoption of edge AI products.

The time-to-market can be greatly extended by the testing procedures involved in developing advanced edge AI processor solutions. Delays in the commercial availability of edge AI processors due to extended development timelines harm market growth. To recover the significant development costs, edge AI processor suppliers must charge a premium for their products, which reduces their ability to compete in markets where prices are crucial. In addition to limiting market acceptability, higher product prices can turn off potential buyers and slow down the growth and adoption of the market as a whole.

Segment Analysis

The global edge AI processor market is segmented based on type, device type, end-user, and region.

Growing Demand and Adoption in Consumer Devices

The consumer devices segment holds the largest share of the global edge AI processor. The adoption of smartphones is leading to a demand for edge AI processors in these consumer devices. The growing popularity of smart home devices fuels the demand for edge AI processors. These devices leverage edge AI for tasks enabling intelligent automation in the home environment.

Wearable devices incorporate edge AI processors to enable features like activity tracking, health monitoring, gesture recognition, and real-time notifications. The increasing adoption of wearable technology across consumer demographics contributes to the growth of edge AI processor demand in this segment. Entertainment platforms integrate edge AI processors to deliver interactive content recommendations and real-time content processing. Manufacturers are developing new products enhancing user boosts the adoption of edge AI in consumer devices.

For instance, on September 21, 2023, Lenovo launched its edge artificial intelligence (AI) services and solutions. With the introduction of "Lenovo TruScale for Edge and AI," Lenovo extends the proven cost advantages of its TruScale model to the widest and most inclusive edge portfolio available. This offering enables customers to leverage the company's cutting-edge services and solutions through a convenient pay-as-you-go model, facilitating SWT deployment of edge computing and the acquisition of AI-driven insights directly at the point of data generation.

Geographical Penetration

Growing Adoption of Advanced Technologies and Investment in North America

North America dominates the global edge AI processor market. Companies have a track record of innovation and market in edge computing and AI, positioning them as dominant in the global market. North America's significant investment in AI, fuels development efforts in edge AI processor technology. Major players are innovating edge AI solutions, contributing to the region's market dominance.

For instance, on January 10, 2024, Ambarella, Inc., a pioneering edge AI semiconductor company, introduced the cutting-edge Cooper Developer Platform. Cooper revolutionizes the integration of software, hardware, advanced AI models, and services, offering comprehensive support across Ambarella's entire AI systems-on-chip (SoCs) lineup. This platform streamlines the development process for customers through its flexible, modular, and prepackaged suite of hardware and software tools. It includes Cooper Metal, encompassing AI SoCs and board-level hardware solutions, and Cooper Foundry, a multi-layer software stack featuring Cooper Core, Cooper Foundation, Cooper Vision, and Cooper UX.

COVID-19 Impact Analysis

The COVID disrupted supply chains, production, and distribution of semiconductor component edge AI processors. International trade restrictions led to supply chain disruptions, affecting the availability of edge AI processors in the market. The COVID shifted demand patterns as consumers adapted to online learning, telemedicine, and e-commerce. The COVID accelerated digital transformation initiatives across industries, leading to increased investments in edge computing and AI technologies.

The pandemic boosted the use of remote monitoring and telehealth to support virtual healthcare delivery. Real-time medical data analysis at the edge was made possible in large part by edge AI processors, enabling uses in healthcare settings such as predictive analytics, diagnostic imaging, and remote patient monitoring and impacting the global edge processor market positively.

Russia and Ukraine War Impact Analysis

The conflict led to supply chain disruptions, and semiconductors essential for edge AI processor manufacturing. Ukraine is a raw materials exporter used in semiconductor production, and any disruptions to its supply chain could affect global semiconductor manufacturing, causing delays in production and affecting the availability of edge AI processors in the market. Uncertainties surrounding the Russia-Ukraine war created instability in global markets.

The conflict-affected markets in the regions are Eastern Europe and neighboring countries. Companies operating in these regions have faced challenges related to supply chain disruptions, increased costs, and political instability, impacting their ability to compete in the global edge AI processor market. Additionally, shifts in regional geopolitical dynamics could have influenced market dynamics and trade relationships, potentially reshaping market structures and competitive landscapes.

By Type

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

By Device Type

• Consumer Devices
• Enterprise Devices

By End-User

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

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacic
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacic
• Middle East and Africa

Key Developments

• On January 8, 2024, Intel announced the era of AI-powered computing with the introduction of its new lineup of processors for mobile, desktop, and edge devices at CES 2024. The highlight of Intel's announcement is the unveiling of the Intel Core 14th Gen processor family, alongside the introduction of Intel Core Ultra-powered systems. This initiative underscores Intel's dedication to addressing a wide range of user requirements and propelling advancements in computing standards.
• On February 27, 2024, Intel launched its AI PC processors and platforms at MWC 2024, including a preview of the new Xeon processors and edge platform. Among the highlights is the Granite Rapids-D Xeon processor, boasting integrated AI acceleration and the latest P-core generation, set to hit the market in 2025.
• On June 15, 2023, STMicroelectronics introduced an advanced line of 64-bit microprocessors tailored for edge computing, offering upgraded performance, and specialized functionalities crucial for real-time processing of data-heavy machine learning algorithms prevalent in industrial sectors. It is leading the pack in the STM32MP25 microprocessor, equipped with a dedicated neural processing unit engineered to bolster edge AI endeavors.

Competitive Landscape

The major global players in the edge AI processor market include Apple, Inc., Samsung Electronics Co., Ltd., Mythic, Qualcomm Technologies, Inc., Huawei Technologies Co., Ltd., Intel Corporation, Google LLC, NVIDIA Corporation, Arm Limited, and Advanced Micro Devices, Inc.

Why Purchase the Report?

• To visualize the global edge AI processor market segmentation based on type, device type, end-user, and region, as well as understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous edge AI processor market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of critical products of all the major players.

The global edge AI processor market report would provide approximately 62 tables, 53 figures, and 213 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies