The edge AI hardware market volume is set to progress at a CAGR of 20.50% during 2022–2030, to reach 4,704 million units by 2030. This can be ascribed to the increasing demand for smart homes and smart cities. Smart technologies like AI, machine learning, big data, and blockchain are used to build smart cities, which allow people to manage their houses from anywhere in the world. Also, these technologies are becoming more common in a variety of industries. Thus, the need for edge AI hardware is fuelled by this pattern.
Moreover, the introduction of AI co-processors for edge computing and the increase in IoT applications by various end-use sectors, including automotive and consumer electronics, are the two key drivers for the market growth. Additionally, an increase in real-time low latency on edge devices and the rise in the adoption of artificial intelligence products and services spur the demand for AI hardware.
In terms of value, smartphones held the highest revenue proportion of the edge AI hardware market in 2022, owing to the rising demand for such phones. In addition, edge AI gives smartphones improved imaging and photography, power efficiency, and security features.
During the projection period, the wearables category is projected to grow at a CAGR of 20.7% during the forecast period. This can be ascribed to the quick rise in the popularity of smart wearables. Moreover, wearables are becoming smarter and the addition of edge computing and AI in these devices increases their functionality even more.
In order to deliver new capabilities for high-end applications and lower network latency, the introduction of 5G networks is bringing opportunities to introduce high technology-based advancements, where AI, telecommunications, healthcare, automotive, and other sectors are expected to rise exponentially. Moreover, the 5G network makes it possible to create industry-specific networks in a single setting with the help of virtualization and software-defined networking (SDN) concepts and set up data centers with edge modules.
Ultra-low latency (less than 1 millisecond from the source to the processing unit and vice versa) is necessary for critical AI applications including robotics, industrial automation, autonomous vehicles, and healthcare. By deploying edge nodes and putting new hardware in air interfaces, this low latency rate can be attained. Also, there will likely be a greater requirement for intermediary servers or edge networks, as 5G networks spread across various areas and increase the amount of data sent to data centers.
Moreover, the expansion of IoT and other intelligent automation applications is boosted by the evolving 5G networks, which are more widely accessible. For the advancements in intelligent automation, artificial intelligence (AI), the internet of things (IoT), driverless cars, blockchain, virtual reality, and future innovations, 5G's lightning-fast connectivity and low latency are essential. The arrival of 5G represents more than simply a generational shift for the tech sector as a whole.
The most-significant edge AI hardware market players are Qualcomm Technologies Inc., Huawei Technologies Co. Ltd., Alphabet Inc., MediaTek Inc., Intel Corporation, Nvidia Corporation, The International Business Machines Corporation, Google LLC, Microsoft Corporation, and Samsung Electronics Co. Ltd.