Edge AI Accelerators Market Size, Share & Trend Analysis Report By Processor (CPU, GPU, ASIC, FPGA), By Device (Smartphones, IoT Devices, Robots, Cameras), By End Use (Healthcare, Automotive, Retail, Manufacturing), By Region, And Segment Forecasts, 2024 - 2030

Edge AI Accelerators Market Size & Trends

The global edge AI accelerators market size was estimated at USD 5,942.4 million in 2023 and is projected to grow at a CAGR of 30.7% from 2024 to 2030.The market is experiencing significant growth due to the increasing demand for real-time data processing. As more devices connect to the internet, the need for instant analysis becomes critical across various industries. Traditional cloud computing methods face challenges like latency, bandwidth limitations, and data privacy concerns, pushing organizations to seek localized solutions. Edge AI accelerators facilitate rapid decision-making by processing data directly on devices, minimizing the need to send information to centralized servers. This capability enhances operational efficiency and responsiveness in applications ranging from autonomous vehicles to smart factories.

Advancements in AI algorithms and hardware technologies continue to improve the performance and affordability of these accelerators. As a result, more companies are using edge AI solutions to stay ahead of the competition. Furthermore, the growth of the Internet of Things (IoT) significantly contributes to the expansion of the edge AI accelerators market. The proliferation of IoT devices generates massive amounts of data that require immediate processing for effective insights and actions. Edge AI accelerators enable these devices to perform complex computations locally, reducing reliance on cloud infrastructure. This shift helps manage data more securely and efficiently, addressing privacy concerns associated with transmitting sensitive information over the internet. As industries embrace digital transformation, integrating AI capabilities into IoT devices becomes essential for achieving smart operations. The combination of IoT and edge AI accelerators opens up new opportunities for automation, predictive maintenance, and enhanced user experiences. Consequently, businesses are investing in edge AI technologies to capitalize on the potential of their IoT ecosystems fully.

Market trends such as the increasing focus on energy efficiency also drive the growth of edge AI accelerators. Companies are seeking solutions that reduce energy consumption while delivering high performance, particularly in resource-constrained environments. Edge AI accelerators typically consume less power compared to traditional cloud-based processing, making them attractive for various applications. The shift toward sustainable practices encourages organizations to adopt technologies that align with their environmental goals. Moreover, industries are under pressure to comply with regulations aimed at minimizing carbon footprints. Edge AI solutions can significantly contribute to achieving these sustainability objectives while maintaining operational efficiency. As awareness of environmental issues grows, the demand for energy-efficient edge AI accelerators is expected to rise.

Processor Insights

The Central Processing Units (CPU) segment led the market and accounted for 32.0% of the global revenue in 2023. CPUs dominate the edge AI accelerators market due to their versatility and ability to handle a wide range of tasks. They are integrated into most devices, making them readily available for various applications without the need for additional components. The familiar architecture of CPUs allows developers to utilize existing software and frameworks, simplifying deployment in edge environments. Moreover, CPUs are capable of executing complex instructions efficiently, which is essential for many edge AI applications that require significant processing power. As organizations increasingly seek to incorporate AI capabilities into their existing infrastructures, the CPU's established presence and adaptability make it a preferred choice.

The Graphics Processing Units (GPUs) segment is predicted to foresee significant growth in the forecast period due to their exceptional parallel processing capabilities, which are well-suited for AI workloads. Their ability to handle large volumes of data and perform multiple computations simultaneously accelerates tasks such as machine learning training and inference. The increasing adoption of deep learning applications is driving demand for GPUs, as they excel in processing complex algorithms efficiently. Moreover, advancements in GPU architecture are making them more energy-efficient, which is crucial for edge devices with power constraints. As industries recognize the value of real-time AI insights, the integration of GPUs into edge AI solutions is becoming more prevalent, enhancing overall performance.

Device Insights

The smartphones segment accounted for the largest market revenue share in 2023. Smartphones lead the market because of their extensive adoption and the incorporation of sophisticated AI capabilities. They are equipped with powerful CPUs and GPUs, enabling efficient processing of AI tasks directly on the device. The convenience of having AI capabilities readily available enhances the overall smartphone experience, driving demand. Moreover, the continuous innovation in smartphone technology, such as improved camera systems and voice recognition, relies heavily on edge AI processing. Manufacturers are increasingly adding edge AI accelerators to improve functionality and user experience, strengthening smartphones' leading position in the market.

The IoT devices segment is predicted to foresee significant growth in the forecast period due to their increasing prevalence in various industries, including healthcare, agriculture, and smart cities. The ability to process data locally allows these devices to make real-time decisions, improving operational efficiency and responsiveness. As IoT deployments expand, the demand for intelligent processing at the edge becomes critical to handle the vast amounts of data generated. However, advancements in edge AI technologies are enabling more powerful and efficient IoT devices, making them more appealing to businesses. The trend toward automation and smart solutions further drives the integration of edge AI accelerators into IoT devices, enhancing their capabilities and applications.

End Use Insights

The automotive segment accounted for the largest market revenue share in 2023 due to its high demand for real-time processing in applications such as autonomous driving and advanced driver-assistance systems (ADAS). Vehicles require immediate data analysis from multiple sensors, such as cameras and radar, to ensure safety and performance without relying on cloud connectivity. Edge AI accelerators in cars enable faster decision-making and reduce latency, which is essential for critical driving functions. Automakers also focus on improving in-car experiences, integrating AI for navigation, voice recognition, and personalization. The shift towards electric and smart vehicles further drives the need for advanced-edge AI solutions.

The manufacturing is projected to grow significantly over the forecast period due to the increasing push for automation and smart factories. Edge AI enables real-time data processing, which is essential for optimizing production processes and enhancing efficiency. As manufacturers adopt predictive maintenance strategies, edge AI accelerators facilitate quick analysis of equipment data, minimizing downtime and reducing operational costs. Furthermore, the integration of AI technologies allows for improved quality control and supply chain management, leading to better overall performance. The ongoing digital transformation in manufacturing is driving the adoption of edge AI solutions, making it a key area for market expansion.

Regional Insights

North America dominated the market and accounted for 39.5% share in 2023.In North America, the market is driven by significant technological advancements and a strong presence of key players in the semiconductor and AI industries. The region benefits from substantial investments in research and development, leading to innovations in AI applications across various sectors, including automotive and healthcare. The widespread adoption of smart devices and IoT technologies further fuels demand for edge AI solutions, enabling real-time data processing and analytics.

U.S. Edge AI Accelerators Market Trends

The edge AI accelerators market in the U.S. is expected to grow significantly over the forecast period.The U.S. holds a dominant position in the edge AI accelerators market, fueled by its robust technology ecosystem and a high concentration of key industry players. The region is home to leading semiconductor manufacturers and tech companies that are at the forefront of AI innovation, driving advancements in edge computing solutions. A focus on research and development encourages innovation, speeding up the use of edge AI in areas like healthcare, automotive, and smart cities.

Europe Edge AI Accelerators Market Trends

Europe is witnessing steady growth in the market, primarily fueled by initiatives aimed at digital transformation and Industry 4.0. The region's focus on sustainability and energy efficiency drives the integration of edge AI solutions into manufacturing and smart city projects. Governments are supporting innovation through funding and policies that promote AI research and development, which enhances the competitive sector. Moreover, European automotive manufacturers are increasingly adopting edge AI technologies to develop advanced driver-assistance systems and autonomous vehicles.

Asia Pacific Edge AI Accelerator Trends

Asia Pacific is anticipated to register the fastest CAGR over the forecast period. The Asia Pacific region is rapidly emerging as a significant player in the market, driven by a surge in manufacturing and technology adoption. Countries such as China, Japan, and South Korea are investing heavily in AI research, particularly in sectors such as automotive, electronics, and telecommunications. The region's growing IoT ecosystem is creating vast opportunities for edge AI applications, facilitating improved operational efficiency and real-time data analysis. Moreover, the rising demand for smart devices and consumer electronics is propelling market growth as manufacturers seek to incorporate advanced AI capabilities.

Key Edge AI Accelerator Company Insights

Prominent firms have used product launches and developments, followed by expansions, mergers and acquisitions, contracts, agreements, partnerships, and collaborations as their primary business strategy to increase their market share. The companies have used various techniques to enhance market penetration and boost their position in the competitive industry. For instance, in February 2024, Rapidus Corporation has collaborated with Tenstorrent Holdings Inc., a U.S.-based next-generation computing company, to develop an edge-AI accelerator using advanced 2-nm logic technology for edge inference applications such as generative AI. This collaboration is part of an initiative by the Leading-edge Semiconductor Technology Center (LSTC) and NEDO to enhance post-5G communication systems and advance semiconductor manufacturing.

Recent Developments

• In July 2024, EdgeCortix Inc., an edge AI company in Japan, introduced the SAKURA-II edge AI accelerator optimized for energy-efficient processing of generative AI tasks. This next-generation accelerator delivers 60 trillion operations per second at just 8 W. It features advanced capabilities such as sparse computation and high DRAM capacity, making it a powerful solution for industries such as manufacturing, security, and telecommunications.

• In June 2024, ADLINK Technology Inc. is showcasing innovative edge AI solutions at COMPUTEX 2024, collaborating with NVIDIA Corporation to enhance applications in smart manufacturing, healthcare, smart transportation, and AI graphics. Key products include the DLAP-211-Orin Series for optimizing smart parking, MLB-IGX medical box PC for real-time medical navigation, and the NEON-2000-ONO Series AI smart camera to improve manufacturing efficiency, all utilizing NVIDIA's advanced AI and GPU technologies for edge computing.

• In June 2024, Raspberry Pi collaborated with HAILO TECHNOLOGIES LTD to launch the Raspberry Pi AI Kit. This kit combines the Raspberry Pi 5 with a Hailo-8L accelerator for efficient AI processing at the edge. It targets both industrial users and enthusiasts, offering high computing power with low energy consumption.

• In July 2023, Silicom Ltd. launched its first Edge AI product line in collaboration with HAILO TECHNOLOGIES LTD, an Israeli AI technology company. Hailo’s AI accelerators are integrated into Silicom’s Edge platforms to enhance performance for various AI use cases at an attractive price. This partnership aims to unlock new applications such as behavior analytics, facial recognition, and vehicle analytics.

Edge AI Accelerators Market Report Scope

Global Edge AI Accelerators Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global edge AI accelerators market report based on processor, device, end use and region.

• Processor Outlook (Revenue, USD Million, 2018 - 2030)

  • Central Processing Unit (CPU)

  • Graphics Processing Unit (CPU)

  • Application-Specific Integrated Circuits (ASICs)

  • Field-Programmable Gate Array (FPGA)

• Device Outlook (Revenue, USD Million, 2018 - 2030)

  • Smartphones

  • IoT Devices

  • Robots

  • Cameras

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Healthcare

  • Automotive

  • Retail

  • Manufacturing

  • Security and Surveillance

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • KSA

    • UAE

    • South Africa