Edge AI Hardware Market Size

Edge Artificial Intelligence (AI) Hardware Market Analysis

The Edge AI Hardware Market was valued at USD 2.62 billion the previous year and is expected to grow at a CAGR of 19.85%, reaching USD 7.52 billion by the next five years. Rapid growth in edge computing products and services and increasing real-time low latency on edge devices are significant factors for the edge AI hardware market growth. Notably, the need for edge computing in IoT and dedicated AI processors for on-device image analytics are promising areas of market advancement in edge AI devices.

• An edge Al device is an advanced system that processes and powers artificial intelligence-based robots and devices. Data processing is possible with this equipment by integrating artificial intelligence into it and improving its performance. The significant opportunities for the edge AI hardware market include the growing demand for IoT-based edge computing solutions, the rising adoption of 5G networks to bring IT and telecom together, and dedicated AI processors for on-device image analytics.
• The demand for edge AI is growing due to Industry 4.0's widespread deployment across all sectors. The burgeoning penetration of artificial intelligence, IoT & 5G technologies across varied industry verticals, including BFSI, government, hospitality, retail, and consumer goods, is speculated to support the growth of the edge AI Hardware industry. The possibility of performing AI inference without transferring data has generated huge demand for the edge AI Hardware market. Businesses can cut operating costs in critical situations when accuracy and latency are crucial due to the increase in edge AI devices.
• A trend in the edge AI hardware market anticipated to have a beneficial effect in the following years is the rise in demand for smart homes and smart cities. People can now control their homes from anywhere in the world using smart devices. Smart cities are being built using cutting-edge technology like AI, machine learning, big data, and blockchain. Because these technologies are becoming more prevalent across a wide range of industries, smart cities worldwide are increasingly adopting them. This pattern fuels the market for edge AI hardware.
• Security concerns related to edge AI devices are a restraining factor hindering the market's growth. The risk occurs at the local level, where edge AI functions primarily. Since it is open source to any online breaching from determined individuals, human error at the local level is prone to data loss. There is also a significant variation in machine types that are compatible with Edge AI programming, while some are incompatible. Unfortunately, it's likely for faults and failures to happen when incompatible machines work together, which restrains the market.
• COVID-19 significantly impacted the edge artificial intelligence (AI) hardware sector as nearly every nation chose to shut down all manufacturing facilities. The government has implemented several stringent measures to stop the virus from spreading, including halting the manufacturing and sale of non-essential commodities and obstructing international trade. However, with the current situation, all the industries are reopened, and Edge AI companies are producing some of the best artificial intelligence solutions, which are expected to drive the market positively in the future.