Edge AI Hardware Market Expected to Reach $38.87 Billion By 2030

According to a new report published by Allied Market Research, titled, “Edge AI Hardware Market By Component, Device Type, Process, and End User: Global Opportunity Analysis and Industry Forecast, 2021–2030”, the global edge AI hardware market size was valued at $6.88 billion in 2020, and is projected to reach $38.87 billion by 2030, registering a CAGR of 18.8%. Asia-Pacific is expected to be the leading contributor toward the edge AI hardware market during the forecast period, followed by LAMEA and Europe.  

Edge AI hardware is a device that can take decisions & process data independently without any external connection. These edge AI hardware does not have any issue of bandwidth and latency of real-time data, which influence application execution. Real time operations are very crucial in robots and self-driving cars among other applications.

Global edge AI hardware market growth is anticipated to be driven by factors such as emergence of AI coprocessors for edge computing and rise in IoT applications by various end user industries such as automotive and consumer electronics. In addition, increase in real-time low latency on edge devices, boosts the overall market growth. However, power consumption & size constraint acts as a major restraint for the global edge AI hardware industry. On the contrary, rise in demand and adoption of artificial intelligence products & services is expected to create lucrative opportunities for the market.

Moreover, developing nations tend to witness high penetration of edge AI hardware products, especially in the automotive sector, which is anticipated to augment the market growth. Factors such as growing driverless vehicles accelerate the market growth.

The global edge AI hardware market is segmented on the basis of component, device type, process, end user, and region. By component, the market is classified into processor, memory, sensor, and others. Depending on device type, it is categorized into smartphones, cameras, robots, wearables, smart speaker, and others. The process covered in the study include training and inference. On the basis of end user, it is classified into consumer electronics, smart home, automotive, government, aerospace & defense, healthcare, industrial, construction, and others.

Region wise, the edge AI hardware market trend is analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). The edge AI hardware market size have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America contributed maximum revenue in 2020.

However, in between 2020 and 2030, the edge AI hardware market in Asia-Pacific is expected to grow at a faster rate as compared to other regions. This is attributed to increase in demand from emerging economical countries such as India, China, Japan, Taiwan, and South Korea.

COVID-19 Impact Analysis

The outbreak of COVID-19 has significantly affected the electronics and semiconductor sector. Business and manufacturing units across various countries were closed, owing to increase in number of COVID-19 cases, and are expected to remain closed in 2021. Furthermore, partial or complete lockdown has disrupted global supply chain posing challenges for manufactures to reach customers.

The COVID-19 pandemic is impacting the society and overall economy across the globe. The impact of this outbreak is growing day-by-day as well as affecting the overall business globally. The crisis is creating uncertainty in the stock market and is resulting in falling business confidence, massive slowing of supply chain, and increase in panic among the customer segments.

Asian and European countries under lockdowns have suffered major loss of business and revenue, owing to shutdown of manufacturing units. Operations of production and manufacturing industries have been heavily impacted by the outbreak of the COVID-19 disease, which further impacted growth of the edge AI hardware market.

In addition, the COVID-19 pandemic has impacted the electronics sector, as production facilities have stalled, which, in turn, have propelled the demand for electronics and semiconductor products in the industries. Its major impact includes a large manufacturing interruption across Europe and interruption in Chinese part exports, which may hinder the market growth.

Key Findings of the Study

• The consumer electronics sector is projected to be the major application, followed by industrial.
• Asia-Pacific and North America collectively accounted for more than 61% of the edge AI hardware market share in 2020.
• India is anticipated to witness highest growth rate during the forecast period.
• U.S. was the major shareholder in the North America edge AI hardware market, accounting for approximately 55% share in 2020.
• Depending on component, the processor segment generated the highest revenue in 2020. Also, the processor segment is expected to witness the highest growth rate in the near future.
• Region wise, the edge AI hardware market was dominated by North America. However, Asia-Pacific is expected to witness significant growth in the coming years.

The key players profiled in the report include Apple Inc., Google LLC (Alphabet Inc.), Huawei Technologies Co., Ltd., Intel Corporation, International Business Machines Corporation (IBM), MediaTek Inc., Microsoft Corporation, NVIDIA Corporation, Qualcomm Technologies, Inc., and Samsung Electronics Co. Ltd. (Samsung). These players have adopted various strategies such as acquisition and product launch to strengthen their foothold in the industry