Edge AI Hardware Market Share, Size, Trends, Industry Analysis Report
By Device; By Processor (CPU, GPU, ASIC, Others); By Function; By Vertical; By Region; Segment Forecast, 2025 - 2034
- Published Date:Nov-2025
- Pages: 115
- Format: PDF
- Report ID: PM3121
- Base Year: 2024
- Historical Data: 2020-2023
What is the Current Market Size?
The global edge AI hardware market was valued at USD 21.86 billion in 2024 and is expected to grow at a CAGR of 17.3% during the forecast period. Key factors driving the demand includes rise in investments in AI startups, increase in demand for smart homes & smart cities, and rapid emergence of 5G networks across different applications.
Key Insights
- In 2024, the smartphones segment dominated the market due to early adoption of various AI chips and processors, as well as innovative technologies in image recognition, real-time speech, and voice recognition globally.
- The automotive & transportation segment is expected to witness the fastest growth over the forecast period, driven by growing consumer demand for driverless vehicles and autonomous features for safety and convenience.
- In 2024, North America led the global market. This is due to strong technological infrastructure and significant investments in traditional technologies and startup companies.
- Asia Pacific is expected to witness the fastest growth during the forecast period, driven by robust demand for surveillance cameras amid strict government controls on the internet and digital communication.
Industry Dynamics
- In critical applications, the need for low-latency, real-time processing and the use of hardware to accelerate AI data processing locally are boosting market growth.
- Its superior security and privacy features allow companies to protect sensitive data by processing it locally rather than in the cloud.
- Diverse environments require chips that are powerful yet low-power and cost-effective, which creates challenges for adoption.
- Data processing is critical due to rising demand across sectors, creating opportunities for growth.
Market Statistics
- 2024 Market Size: USD 21.86 billion
- 2034 Projected Market Size: USD 107.15 billion
- CAGR (2025-2034): 17.3%
- North America: Largest market in 2024
What Does the Current Market Landscape Look for Edge AI Hardware?
Edge AI hardware are specialized computing devices or chips that enable AI algorithms to run directly on edge devices such as sensors, cameras, robots, and IoT. The extensive rise in the demand for low latency and real-time processing on variety of edge devices, increasing workloads of businesses on cloud, and introduction to various intelligent applications in the market are driving the demand and growth for the global market. In addition, the AI inference without any need of data transfer and its ability to reduce the business operation costs in various critical case-loads, where accuracy is must has also generated huge demand across edge AI devices.
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For instance, in June 2022, Qualcomm Technologies, introduced its comprehensive AI stack portfolio, that improve the company’s new AI-based software offerings. It is an AI solution for both developers & OEMs, supporting large number of intelligent devices with broad AI-based software access & compatibility.
The launch of 5G networks across many countries is bringing the telecommunications and IT together to develop and introduce more advanced features for various high-end premium products and reduce network latency. The proliferation of 5G network allows to establish data centers at edge modules and also implement industry-specific networks. The rapid emergence of 5G networks across different applications is likely to result in increased volume of data transferred to data centers., thereby fueling the demand for edge Ai hardware devices to manage this efficiently.
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Industry Dynamics
What Factors are Driving the Market?
Growing requirement for the low latency and real-time transmission critical-applications across various industries and growing use of these kind of devices to improve the overall processing of artificial intelligence devices through processing the data in the hardware itself, are key factors projected to boost global edge AI hardware market growth over the anticipated period. In edge AI, ML algorithms effectively process the internet generated data to the nearby devices to over-come the issues related to security & high latency.
In addition, the market for edge AI hardware is projected to gain a significant growth in the adoption rate over the coming years owing to the increased security and privacy, as companies want to be more protective and safer towards their sensitive and private data especially form healthcare and consumer sectors. For instance, as per the survey conducted by the “Cloud Security Alliance”, around 200 IT & IT security leaders globally identified that the 73% of respondents registered security & data privacy as their biggest business concern.
Report Segmentation
The market is primarily segmented based on device, function, vertical, and region.
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By Device |
By Processor |
By Function |
By Vertical |
By Region |
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Segment Insights
Which Segment by Device Dominated the Market in 2024?
Smartphones segment dominated the market in 2024. Higher integration of edge AI into variety of new smartphones, as it offers several added benefits and capabilities to smartphones in terms of power efficiency, security, and imaging & photography, driving the segment growth. In addition, early adoption of various AI chips or processors and innovated technologies in the image recognition, real-time speech, and voice recognition coupled with the growing penetration and sales of 5G-based smartphones globally are likely to have positive impact on the market over the coming years. For instance, a report published by Canalys, 5G enabled smartphones is expected to reach around 800 million units by 2023, that accounts for over 51.4% of all smartphone shipments, and passing the 4G smartphones after a launch period of 5 years. Greater China is expected to lead the smartphone shipments with 34% followed by North America at 18.8%. However, the wearables segment is likely to expand at fastest growth rate during the forecast period, owing to the adoption of smart wearables & the growing number of innovative wearable launches by key market players across the globe. With the deployment of edge AI, wearables are becoming significantly smarter, that results in higher adoption and impact positively in the near future.
Why Training Segment held the Largest Share in 2024?
The training segment led the global market for edge AI software in 2024, which is mainly accelerated by its gaining significant importance across wide range of industrial applications including manufacturing, IT, BFSI, ecommerce, healthcare, and retail. The influencing need for application-specific training, as it enables machines to learn from the experience, performing human-like tasks, and easy adjustment to new inputs along with its numerous other advantages including process massive data quickly. Thus, the segment is likely to have significant growth over the coming years.
Which Segments Contributed to the Growth of the Vertical?
The consumer electronics segment dominated the global market in 2024 with a holding of healthy market share, on account of the growing use of artificial intelligence in various consumer electronics applications owing to its innovations like advanced analytics with insights to make better decision-making, autonomous business processes, eliminate the need of manual process, AI-powered immersive, and continuous interfaces.
The automotive & transportation segment is likely to register fastest growth throughout the forecast period, owing to rapid surge in the adoption of new processor cars across several countries like Japan, South Korea, and China coupled with the growing consumer demand for driverless vehicles and autonomous features for their safety and convenience. High prevalence of artificial intelligence technology and several government favorable initiatives, that have mandated to integrate few safety features in the vehicles, in order to reduce the number of accidents on the road, shall drive the segment growth.
Regional Insights
Why North America Dominated the Global Market Share?
North America led the global market in 2024 due to high network latency resulting from network congestion, high dependence on IoTs, the desire for high device processing speed, and growing implementation of edge AI in the US and Canada. The region has strong technological infrastructure and significant investments from traditional technologies and startup companies. In addition, the region's strict regulatory environment for data privacy are encouraging companies to deploy processing to local devices rather than cloud computing providers.Moreover, the early and widespread adoption across major industries, such as manufacturing and autonomous vehicles, accelerate growth in the market.
Which Region is Expected to Witness the Fastest Growth?
Asia Pacific region is projected to emerge at fastest growth rate during the forecast period, which is mainly driven by continuous rise in the in the penetration for smartphones and robust demand for surveillance cameras because of the tightened control on the internet and digital communication by governments in APAC countries. China is the largest market in the region followed by Japan owing to the presence of prominent vendors in electronics, automobile, and semiconductor companies, who are heavily investing in the AI technology, is driving the market growth in the region.
Competitive Insight
Some of the major players operating in the global market include Apple Inc., MediaTek, Qualcomm Technologies, Huawei technologies, Samsung Electronics, NVIDIA, Google Corporation, Microsoft Corporation, Imagination Technologies, Cambricon Technologies, Xilinx Inc., Intel Corporation, Advanced Micro Devices, and IBM Corporation.
Recent Developments
- In May 2022, Intel’s Habana Labs announced the launch of its new second-generation AI deep learning processors for training and inferencing. The newly developed processors come with high performance and high-efficiency deep learning choices across data centers while lowering the entry barriers for new and small size companies.
- In September 2022, OmniML announced about the availability of “Omnimizer”, a platform that simplifies and enhance the ML operations by addressing process gap between ML models & edge hardware. It will allow ML engineers to focus more on the model design and training without any need to be worry about complex details regarding hardware deployment and further eliminates the inefficiencies leading to the slow deployment.
Edge AI Hardware Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 21.86 billion |
| Market size value in 2025 | USD 25.58 billion |
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Revenue forecast in 2034 |
USD 107.15 billion |
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CAGR |
17.3% from 2025 – 2034 |
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Base year |
2024 |
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Historical data |
2020 – 2023 |
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Forecast period |
2025 – 2034 |
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Quantitative units |
Revenue in USD billion and CAGR from 2025 to 2034 |
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Segments covered |
By Device, By Processor, By Vertical, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key companies |
Apple Inc., MediaTek, Qualcomm Technologies, Huawei technologies, Samsung Electronics, NVIDIA, Google Corporation, Microsoft Corporation, Imagination Technologies, Cambricon Technologies, Xilinx Inc., Intel Corporation, Advanced Micro Devices, and IBM Corporation. |
FAQ's
Key companies in edge AI hardware market are Apple Inc., MediaTek, Qualcomm Technologies, Huawei technologies, Samsung Electronics, NVIDIA, Google Corporation, Microsoft Corporation, Imagination Technologies.
The global edge AI hardware market is expected to grow at a CAGR of 17.3% during the forecast period.
The edge AI hardware market report covering key segments are device, function, vertical, and region.
Key driving factors in edge AI hardware market are Increase in demand for smart homes & smart cities.
The global edge AI software market size is expected to reach USD 107.15 billion by 2034.
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