Artificial Intelligence (AI) Terminal Market Size - By Component, By Technology, By Deployment Mode, By End Use, Analysis, Share, Growth Forecast, 2025 - 2034

Artificial Intelligence Terminal Market Size

The global artificial intelligence terminal market was valued at USD 22.2 billion in 2024 and is projected to grow at a CAGR of 19.6% between 2025 and 2034. Enhancements in AI chipsets, NPUs or AI Accelerators improve the performance of AI terminals. These innovations result in powerful and energy-efficient AI devices. Furthermore, edge AI reduces dependency on cloud resources since it allows AI terminals to understand and digest information locally, enhancing the response time and security of the systems.
 

For instance, in December 2024, KULR Technology Group, Inc. unveiled its KULR Xero Vibe™ (KXV) solution that integrates AI powered Edge C12 devices and a vibration modulation AI system onboard. This accomplishes the combination of vibration mitigation and edge AI applications. The KXV solution aims to operate using proprietary methods of vibration mitigation to reduce mechanical damage which increases the reliability and durability of AI edge enabled devices.
 

As businesses demand low-latency AI processing, AI terminals facilitate speedier decision making without dependencies on cloud computing. The proliferation of AI-driven IoT devices as well as smart healthcare solutions and AI powered consumer electronics speeds up market growth. Moreover, better IoT AI chips and processors increase the efficiency of computing which makes AI terminals critical.
 

The University of Virginia (UVA) declared in January 2025 that they were going to conduct a clinical trial for a new AI-assisted device designed to treat diabetes for patients suffering from Type 1 diabetes (T1D). This trial is headed by the UVA School of Data Science together with the Center for Diabetes Technology. The research involves a recently FDA approved device called the Bolus Priming System with Reinforcement Learning (BPS_RL).
 

Artificial Intelligence Terminal Market Trends

• The rise of 5G and IoT networks is an important trend in the market because it boosts growth in the artificial intelligence (AI) terminal market by facilitating faster and more efficient edge AI processing. AI Terminals powered with 5G technology can capture real-time data from smart cities, industrial automation, healthcare, and self-driving cars at the edge without needing extensive cloud computing resources.
   
• For example, in 2023 the global 5G services sector is projected to be approximately USD 98.9 billion, expecting to grow to USD 660 billion by 2032, translating to a 31% CAGR from 2024. The speed at which the industry is expected to grow indicates a shift in demand for AI powered technology which will fuse the growth of the AI terminals industry.
   
• The implementation and adoption of IoT devices such as smart sensors and AI-driven robotics increases the production of data that need intelligent edge processing. AI Terminals with machine learning capabilities utilize 5G for improved real-time analysis, intelligent automation, optimized decision making, and sophisticated network management.
   
• As an example, Synaptics and Google collaborated in January 2025 to enhance Edge AI application for Internet of Things (IoT) devices. The partnership seeks to embed Google’s machine learning (ML) core, which is MLIR compliant, into Synaptics Astra hardware and open-source software.
• Additionally, the IoT technologies market has grown significantly with the value of IoT tech estimated to be around USD 900 million in 2023 and a CAGR of more than 8% from 2024 to 2032. Growth in the IoT technology sector will lead to a proliferation of IoT devices which, in turn, will drive the growth of the AI terminal market.
   

Artificial Intelligence Terminal Market Analysis

Based on component, the artificial intelligence terminal market is divided into hardware and software. In 2024, the hardware segment dominated the market generating revenue of USD 15.2 billion and the hardware segment is expected to grow at a CAGR of around 19.9% during the forecast period.
 

• AI terminals, as it stands, processing real-time AI computations relies on high-performance cores, GPUs, FPGAs, and ASICs. For that reason, hardware is the central focus when deploying AI on different platforms. Industries like automotive, healthcare, and manufacturing that use AI for automation and AI-based decision making are increasingly demanding high performance AI inference hardware.
   
• Recently, Korea University and POSTECH researchers demonstrated the feasibility in commercializing analog ECRAM devices using extreme AI hardware performance. The group was also able to design Tiki Taka, the latest high-performance AI neural network training computation algorithm that shifts towards analog based AI learning models. Tiki Taka allows preciseness in further adjusting an AI model’s neural network.
   
• The rapid growth of the market is increasing due to investment from large technology companies in AI chipsets, AI enabled servers, and embedded devices. The enhanced use of AIoT devices, autonomous machines, and AI based surveillance systems increase fintech hardware market share further reinforcing the leadership of the segment.
   

Based on deployment mode, the artificial intelligence terminal market is segmented into on-premises, cloud-based, and hybrid. In 2024, the cloud-based segment dominates the market with 47% of market share and is expected to grow at a CAGR of over 20% from 2025 to 2034.
 

• The advent of cloud computing has allowed companies to utilize processing power on demand, without the need for any hardware investments, which facilitates the implementation of AI models. This implies that cloud computing AI terminals can suitably service enterprises with needs for data collecting, AI inference, and machine learning model training in real time across various fields.
   
• For example, in January 2025, Seagate Technology Global Recon Analytics’ survey revealed that enterprise leaders from 15 different industries and 10 different countries expect the integration of artificial intelligence (AI) tools to produce astounding amounts of data which will result in an increase in demand for cloud data centers.
   

Based on technology, the AI terminal market is segmented into ML and DL, computer vision, robotic process automation, IOT sensors, and others, with the ML and DL category expected to dominate due to their widespread adoption across various AI-driven applications.
 

• The fact that Machine Learning (ML) allows AI systems to process vast amounts of data, recognize patterns, and take actions instantly is extraordinary. This surprise feature alone makes it extremely important for industries like banking, healthcare, and retail. Deep Learning (DL), for instance, works through neural networks to optimize AI systems further by improving visions, voices, language processing (NLP), and even advanced autonomous systems.
   
• As an example, GMR Airports Group implemented an AI-driven digital twin platform in Rajiv Gandhi International Airport (Hyderabad) in December 2024, to improve airport operational and passenger management activities. It serves as the heart of the next generation Airport Predictive Operation Center (APOC) and integrates all airside, landside and terminal activities into one single unit.
   

In 2024, the North America region dominated the artificial intelligence terminal market with around 40% market share and generates around USD 9 billion in revenue.
 

• The development of hardware solutions empowered by artificial intelligence and the edge computing technology is propelling the expansion of the artificial intelligence terminal market. The presence of renowned technology companies and semiconductor suppliers cultivates the development of AI terminals for various industries including healthcare, automotive, retail, and defense.
   
• In August 2024, Caregility was able to launch its first edge-based computer vision AI capability. It permits the AI technology to fully operate on the Telehealth edge device situated in the patient room. This removes the requirement to stream patient audio - visual data to the cloud which is cost efficient and scalable. Data is processed visually on the edge which enhances Caregility's positioning in data protection and privacy.
   

The artificial intelligence terminal market in Germany is expected to experience significant and promising growth from 2025 to 2034.
 

• Adoption of AI edge computing in the manufacturing, automotive, and logistics value chains is increasing due to the industry 4.0 focus. The market is expanding due to government AI and smart infrastructure development supports as well. Germany’s increasing supply side expectations for AI in automation of healthcare, finance, and security further increases market saturation.
   
• For example, since April 2024 the EU and Germany have been allowing the use of health data for research and AI purposes while at the same time relaxing the control over electronic health records. The objective of these policies is to enable an integrated digital health service and product market.
   

The artificial intelligence terminal market in China is expected to experience significant and promising growth from 2025 to 2034.
 

• The expansion of China’s semiconductor industries along with the use of AI-enabled edge computing is enhancing the AI terminal market within China. Also, there are various government initiatives expecting self-reliance with respect to AI hardware manufacturing which are spurring innovation in AI chips and evoking systems. The growth for these terminals is facilitated by Smart city, industrial automation, and self-driving car applications.
   
• One illustration is Global Times, a Chinese media outfit, published in August 2024 how China’s leading tech companies are pouring more money into AI technologies in the face of US sanctions. They revealed that during the first half of the year, Baidu spent 4.2 billion yuan (589.2 million dollars) on AI, while Alibaba and Tencent each spent 23 billion yuan on AI as well.
   

The artificial intelligence terminal market in Saudi Arabia is expected to experience significant and promising growth from 2025 to 2034.
 

• Government policies and plans like Vision 2030 seek to promote AI adoption in healthcare, finance, and smart city sectors. The growth of cloud and edge computing infrastructure enables further AI terminal deployment. Leading industry players are pouring resources into AI integrated hardware to boost automation and real-time analysis.
   
• Considering this, Wa’ed Ventures, the venture capital branch of Saudi Aramco, opened a fund of $100 million to invest in AI startups in October 2024. Wa’ed Ventures is strategically helping propel Saudi Arabia in the race to becoming a powerhouse in AI technology. The fund also participated in the investment round towards a South Korean chip Rebellions Inc. and provided $15 million towards aiXplain and along with Peter Thiel’s firm Tenderd.
   

Artificial Intelligence Terminal Market Share

• Top 7 companies of the artificial intelligence terminal industry are Microsoft, Google (Alphabet Inc.), Intel, IBM, Nvidia, Meta Platforms, and Huawei Technologies holding around 22% of the market in 2024.
   
• Microsoft boosts productivity by incorporating generative AI into Windows devices and enhancing AI-powered edge computing to the management of AMD and Qualcomm. The firm is progressing with Integrating AI to edges, Through the use of custom AI accelerators along with clusters of Windows devices. The company is also widening AI-centric automation in other sectors like healthcare and manufacturing.
   
• The organization Add Google Cloud AI Google is working on increasing in-device AI features and including AI components within edge computing. Furthermore, Google is enhancing experience from AI-driven product integration in Android and Google Assistant, plus on the Pixel devices by using their TPUs to power the AI apps, making it more applicable and accessible to users.
   
• As an example of Google’s effort in integrating innovation into its products are the new AI enabled features found in Ron Intel is providing new solutions for edge AI problems by increasing the performance of their AI-optimized Xeon Gaudi processors to meet the needs of IoT devices. He also focuses on reducing the fuel for AI chips in vehicles and smart cities as well as speeding edge AI in healthcare and providing Intel with active help in those fields.
   

Artificial Intelligence Terminal Market Companies

Major players operating in the artificial intelligence terminal industry are:

• Adobe
• Cisco
• Dell Technologies
• Google (Alphabet inc.)
• Huawei Technologies
• IBM
• Intel
• Meta Platforms
• Microsoft
• Nvidia
   

Large enterprises in the artificial intelligence terminal market take advantage of multiple opportunities, for instance the formation of partnerships or collaboratives, mergers and acquisitions, launching new products and innovating existing ones, as well as investments in additional research and development. This process aids in the overall assimilation of new aspects and technologies. In the same manner, the business combination of manufacturers through mergers or acquisitions facilitates an improved market reach, available resources, and the innovation of the offerings.
 

Cloud dependency is reduced while instant processing is improved within a real-time framework, by combining AI with edge computing in healthcare, smart devices, and the automotive industry. This is feasible due to collaboration with telecoms, semiconductors, and software houses. Companies leverage AI model optimization in regard to cost, efficiency, and power usage. Moreover, privacy concerns are safely extracted and stealthy compliance ensured, which motivates the innovation of competitive AI hardware and software systems in a shifting market.
 

Artificial Intelligence Terminal Industry News

• In February 2025, Neo collaborated with Coin Terminal to foster innovation in the blockchain industry, focusing on the DeFi and AI Agents projects. Neo will apply efforts from Coin Terminal and connect them with the EVM-compatible sidechains, Neo N3, and Neo X. The focus is on increasing on-chain activity and advancing the overarching Neo ecosystem. The partnership nurtures solutions around DeFi, AI Agents, and other narratives.
   
• In February of 2025, Areas signed a contract with Josep Tarradellas Barcelona-El Prat Airport to open SELF an AI powered robotic restaurant. As the company claims, is the first restaurant of this type inside an airport. The one positioned at Terminal 1 beside Gate B24 integrates AI, robotics, and automated systems to offer speedy and effective service to the passengers. The system is equipped with a vision to dynamically control the available service level for F&B preparation and serving for hungry clients and propulsion as fast as possible. In addition, the AI manages the inventory and ordering processes independently, but together with the human employees.
   
• In September 2024, Wipro assisted JFK International Air Terminal (JFKIAT), the manager of Terminal 4, with the formulation of their cloud data strategy on Microsoft Azure Data Platform. Other work done in 2023 encompassed an all-inclusive approach regarding data management across various functions of the terminal through an AI-centric data analytic technique. These processes would enable Improved activities and operational effectiveness for JFKIAT. Wipro has been enabling the translation of revenue and operational optimization strategies into business value across his data operations and digital transformation services.
   
• In August 2024, Ryder System, Inc. and Terminal Industries completed the first phase of a pilot project using Terminal's computer-vision system for the digitization of yard activities. The system that automatically registers and processes trucks and trailers entering and leaving warehouse yards is in full operation. The AI-based computer vision system achieved a 99% success rate in capturing the license plates and DOT numbers of the moving vehicles.
   

The artificial intelligence (AI) terminal market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2034, for the following segments:

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Market, By Component

• Hardware
• Software

Market, By Technology

• ML and DL
• Computer vision
• Robotic process automation
• IOT sensors
• Others

Market, By Deployment Mode

• On-premises
• Cloud-based
• Hybrid

Market, By End Use

• Transportation
• Healthcare
• Retail
• BFSI
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa