How Big Is the Edge Ai Hardware Market | Growth Analysis 2031

Q: What is the overall size of edge AI hardware market?

The edge AI hardware market is projected to reach USD 8.96 billion by 2031.

Q: What is the CAGR of the edge AI hardware market?

The edge AI hardware market is expected to grow at a CAGR of 18.1% during the forecast period.

Q: Which industries are the largest adopters of edge AI hardware?

The key adopters include automotive (for ADAS), smart home devices, industrial automation, and healthcare monitoring systems.

Q: What are the main challenges in the edge AI hardware market?

Challenges include high design cost, power constraints, compatibility with evolving AI models, and scalability issues in large edge deployments.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

Yes, we provide customisation as per your requirements. To learn more, feel free to contact us on sales@6wresearch.com

Code: MTA5675

Publication Date: Jul 2025

How big is the edge AI hardware market?

According to 6Wresearch internal database and industry insights, the Global Edge AI Hardware Market was valued at approximately USD 2.78 billion in 2024 and is projected to reach USD 8.96 billion by 2031, growing at a CAGR of 18.1% during the forecast period.

This growth is driven by increasing demand for low-latency AI processing, proliferation of smart edge devices, and advancements in semiconductor design for on-device intelligence. Edge AI hardware adoption is accelerating across industries like automotive, healthcare, and consumer electronics, especially with the expansion of IoT infrastructure and demand for real-time analytics without reliance on cloud connectivity.

Key Growth Factors of the Edge AI Hardware Market

Rising use of AI-powered devices in smart homes, industrial automation, and wearables
Advancements in chip design such as NPUs (neural processing units) and energy-efficient processors
Expansion of 5G and IoT driving real-time, decentralized AI inference
Increased privacy and data security concerns favoring on-device processing
Growing edge deployments in autonomous vehicles and surveillance systems

Edge AI Hardware Market Trends

The market is witnessing a surge in custom SoC (System-on-Chip) development to optimize edge workloads. AI accelerators are being embedded in consumer electronics and industrial systems, enabling real-time inference at low power. Companies are focusing on heterogenous computing models and integrating AI chips into smart sensors. Another trend includes a growing emphasis on low-power edge AI hardware for remote and wearable applications.

Emerging Developments in the Edge AI Hardware Market

Start-ups and tech giants are collaborating to design AI chipsets with enhanced tensor processing. FPGA and ASIC solutions are being tailored for edge-specific inference tasks. The rise of RISC-V architecture is gaining attention for customizable, open-source edge computing. AI model compression and quantization techniques are also evolving to fit limited-memory edge hardware.