The Global Edge AI Processor Market Anticipated to Generate a Revenue of $9,566.3 Million, Growing at a CAGR of 16.0% from 2022 to 2030Download Sample Reports Overview
The global edge AI processor market is estimated to be valued at $9,566.3 million by 2030, surging from $2,483.7 million in 2021, at a noteworthy CAGR of 16.0%.
Impact Analysis of COVID-19 on the Edge AI Processor Market
The combination of edge computing, 5G, and AI will provide organizations with the opportunities they require to be market responsive and thrive in the face of disruption. A high positive impact has been witnessed in the industrial vertical, as firms have started realizing the potential of edge AI chips in combating the impact of COVID-19. As the world becomes more interconnected, advanced technologies such as AI gain a stronger grip on the industrial spectrum. AI chipsets, in turn, will emerge as solutions for large-scale data processing. The COVID-19 pandemic imposed new health and safety standards, altering how people interact with one another and with their immediate surroundings. The increasing demand for touch-free experiences has accelerated the shift toward AI-powered systems, voice-based control, and other contactless user interfaces – bringing intelligence ever closer to the endpoint.
Furthermore, in the case of Covid-19, AI was primarily utilized to detect whether people were infected with a novel coronavirus by detecting visual indicators of the virus on pictures from computerized tomography (CT) lung scans. To use wearable sensors to monitor variations in body temperature in real time; and to offer an open-source data platform for tracking the disease's spread AI is capable of processing large volumes of unstructured data. All such factors brings new opportunities in the market.
Global Edge AI Processor Market Analysis
Edge has many advantages in addition to operational responsiveness such as energy efficiency. As more data is processed at the edge, less data is moved to and from the cloud, resulting in lower data latency and energy consumption. Over half of organizations, according to the IBV, intend to use edge computing applications for energy efficiency management during the next years. And, over the next coming years, organizations across industries expect edge computing to reduce their annual power consumption by up to 11.5%, with telecommunications and electronics organizations expecting the greatest reduction. AR/VR, cloud gaming, and Industry 4.0 are all examples.
Furthermore, industry is expected to develop in the coming years as 5G technologies become more widely adopted. Network latency would be reduced by deploying high-end apps, which would be a big benefit of the 5G solution. The adoption of 5G solutions across a wide range of applications is expected to increase and accelerate the volume of data carried to data centers, hence raising and accelerating the need for edge networks or intermediary servers. Major nations have invested enormous resources in researching and deploying 5G technologies for their citizens. In August 2020, the US government issued an urgency to speed the development of ultrafast 5G wireless networks. These and many other emerging use cases have one thing in common: they all require edge artificial intelligence (AI).
Major factors that restrict the growth of global edge AI processor market are high cost of the technologies and low adoption rate of edge AI technologies in the developing regions. The global edge AI processor market is hindered by power consumption & size constraints. and lack of training to personnel to interpret the global edge AI processor market.
Growing dedicated AI processors for on-device image analytics will bring new opportunities in the market. For image analysis, AI cell phone processors have been used in drones, sensors, robots, video surveillance, and self-driving cars. Drones equipped with AI-based vision stream processors (committed to offering high) can make better decisions and lower the danger of accidents, increasing demand for robots in both commercial and personal applications. By replacing complicated optics with simplified lens meetings and multiple apertures, attempting to combine images captured by wearable sensors such as color space (red, green, and blue), infra - red (IR), and depth detectors and extracting context specific metadata from still images & video streams, high performance computing imaging, and visual awareness apps improve mobile devices. Mobile devices can now employ VPUs for a variety of new application domains and use cases (which were previously constrained). These factors are further expected to create lucrative opportunities for the global edge AI processor market, in the future.
Global Edge AI Processor Market, Segmentation
The global edge AI processor market is segmented based type, device type, end-use, and region.
The type segment is further classified central processing unit (CPU), graphics processing unit (GPU), and application specific integrated circuit (ASIC). Among these, the application specific integrated circuit is expected to be the fastest growing market share and surpass $1,652.0 million by 2030, with an increase from $395.3 million in 2021.
ASICs or application specific integrated circuits are non-standard integrated circuits that have been built for a specific usage or application. In most cases, an ASIC is designed for a product with a high production run, and the ASIC may contain a considerable portion of the electronics required on a single integrated circuit. As you might expect, the cost of an ASIC design is significant, thus they are usually reserved for high-volume devices. Furthermore, ASICs can be very cost effective for many applications with high volumes, notwithstanding the cost of an ASIC design. It is feasible to adapt the ASIC design to fit the product's particular requirements and employing an ASIC can save time & money. The application of ASIC can be seen most prominently in consumer electronics. It has a long battery life and a high bandwidth, which allows electronic equipment to run more efficiently for a longer period of time. The rising demand for smartphones, smart watches, smart machines, and other connected devices is expected to propel the ASIC market forward. Similarly, it is seeing widespread applications in technologies such as IoT devices, cloud computing, data analytics, and block chain, among others, where fast data transfer speeds are critical.
Based on device type, the analysis has been divided into consumer devices and enterprise devices. Out of these, enterprise devices sub-segment is predicted to be the fastest growing sub-segment. By 2030, the enterprise devices sub-segment of the worldwide edge AI processor market is expected to have a market share of $2,556.5 million, up from $639.3 million in 2021.
Trends of enterprise IoT drive the sub-segment growth. The growth of the enterprise IoT is mostly due to advancements in wireless networking technologies and increased cloud platform acceptance & usage. Furthermore, the introduction of advanced data analytics and data processing will drive market expansion. The smart city program aims to meet the demands of the next generation by improving quality of life, digitalization, and IoT efficiency in order to encourage businesses to use IoT. The industry is expanding as the cost of connected devices falls and IoT adoption rises among small firms. Above mentioned factors are expected to flourish the sub-segment growth during the analysis period.
Based on end-use, the analysis has been divided into automotive & transportation, healthcare, consumer electronics, retail & ecommerce, manufacturing, and others. Out of these, the healthcare sub-segment of the worldwide edge AI processor market is expected to garner a market share of $972.1 million, up from $230.8 million in 2021.
Edge computing and analytics will only grow in importance as they provide new opportunities to increase operational, clinical, and financial value across the care continuum. The edge AI processor market demand will grow due to the growing number of medical devices being introduced into healthcare sector. These include everything from tablets and wearable to health monitors and AI-powered imaging systems. Above mentioned factors are expected to flourish the sub-segment growth during the analysis period.
The edge AI processor market in the Asia-Pacific region is projected to witness rapid growth. This market generated a revenue of $755.3 million in 2021 and is further projected to reach up to $3,089.0 million by 2030.
According to pricewaterhouse Coopers (PwC), a multinational network of professional services firms estimates, the broad field of artificial intelligence will contribute up to USD15.7 trillion to the global economy by 2030. AI is quickly becoming central to the strategies of both public and private-sector organizations across the Asia-Pacific region. Moreover, Intel will release its 3rd Gen Intel Xeon Scalable CPU in April 2021, which will have a balanced architecture with built-in artificial intelligence, crypto acceleration, and advanced security features. Hyundai Motor (South Korea) announced a partnership with NVIDIA, in November 2020, to employ NVIDIA DRIVE infotainment and AI technologies in future Hyundai, Kia, and Genesis cars. Furthermore, Qualcomm announced a partnership with Vivo (China), Tencent Honor of Kings, and Tencent AI Lab, in April 2019, to create and test unique on-device AI gaming experiences using Qualcomm's 4th Generation Artificial Intelligence (AI) Engine. The four parties' AI skills were put to use in this collaborative project, nicknamed "Project Imagination." Organizations in the APAC region have adopted edge artificial intelligence emerging technologies, and they expect their competitiveness to double.
Key Players in the Global Edge AI Processor Market
Some of the leading global edge AI processor market players are
- Intel Corporation
- Advanced Micro Devices, Inc.
- Alphabet Inc.
- Intel Corporation
- Qualcomm Technologies, Inc.
- Apple Inc
- Mythic Ltd.
- Arm Limited
- Samsung Electronics Co., Ltd.
- NVIDIA Corporation
- HiSilicon (Shanghai) Technologies CO LIMITED.