Edge Artificial Intelligence Chips Market - By Chip Type, By Deployment, By End Use Industry - Global Forecast, 2025 - 2034

Edge Artificial Intelligence Chips Market Size

The global edge artificial intelligence chips market size was valued at USD 3 billion in 2024 and is estimated to grow at 24.8% CAGR from 2025 to 2034. The growth of the market is attributed to the increasing demand for semiconductors and the increase in the adoption of IoT technologies.
 

The rise in the adoption of semiconductor devices is one of the primary reasons for the growth in the edge artificial intelligence (AI) chips market, as edge computing systems need tailored and efficient processors. The increased use of smart devices like smart cameras, self-driving cars, industrial IoT devices, and wearable gadgets is increasing the need for high-performance power-efficient edge AI chips. These AI chips utilize sophisticated semiconductor manufacturing techniques, such as 7nm, 5nm, and even sub-5nm nodes, to provide real-time AI inference with low power consumption.
 

According to a Statista report, the semiconductor market is expected to generate $702.41 billion in revenue by 2025. There is a strong positive correlation between the growth of semiconductor manufacturers and the demand for edge AI chips. As demand increases, semiconductor manufacturers are focusing on implementing solutions based on artificial intelligence for chip designs.
 

The edge artificial intelligence (AI) chips market expansion is also being driven by an increase in the adoption of IoT technologies, as billions of connected devices need real-time data computing and decision-making. Advanced AI processing on the cloud faces a myriad of issues such as latency, bandwidth limitation, and even data privacy concerns. This makes edge AI chips crucial to the IoT ecosystem. These chips allow for on-device intelligence powering smart cities, industrial automation, healthcare monitoring, and autonomous systems, reducing the need for a centralized cloud.
 

Edge Artificial Intelligence Chips Market Trends

• One of the most important trends influencing the demand for edge artificial intelligence chips is the growing integration of edge AI chips in autonomous systems. Autonomous systems such as self-driving vehicles and drones, industrial robots, and smart monitoring systems are increasingly being incorporated in various sectors, and with it, the requirement for real-time AI computation at the edge is increasing. Edge AI chips allow decisions to be made at a site location without the requirement of cloud-based computation, therefore making these chips essential for operations and processes that require autonomy. To cater to these autonomous systems, organizations are working towards creating specialized AI chips that have increased efficiency and enhanced processing capabilities while using less power and energy.
   
• The key driver of this trend is the increasing use of self-driving vehicles. The automakers and IT companies are using edge AI chips in advanced driver-assistance systems (ADAS) and fully autonomous driving infrastructure systems. These chips enhance the response and safety by processing sensor information in real-time. In real-time robotics and smart manufacturing, edge AI chips increase automation by enabling machines to identify patterns, make decisions autonomously, and optimize workflow without having any latency. These chips in unmanned aerial and ground systems are also used by the military to improve situational awareness and operational effectiveness.
   
• Semiconductor companies are heavily investing in R&D to perfect edge AI frameworks as the pace of this AI technological advancement speeds up. Deep learning at the edge is being supported by new chipsets released by industry leaders such as NVIDIA, Intel, Qualcomm, and other AI accelerator startups. The market growth in the next few years is anticipated to be considerable due to the increasing need for real-time AI computing by integrating edge AI chips in autonomous systems.
   

Edge Artificial Intelligence Chips Market Analysis

Based on deployment, the market classification includes on-device edge AI chips and edge server AI chips. The edge server AI chips segment is anticipated to grow considerably due to the increasing demand for real-time data processing, low-latency AI applications, and enhanced computing capabilities in cloud-edge hybrid environments.
 

• The edge server AI chips segment is anticipated to surpass USD 8.5 billion by 2034. The global edge server AI chips segment is expected to grow rapidly with the increasing adoption of high-performance computing at the network edge. Areas like smart cities, healthcare, and industrial automation require real time low latency AI processing for vast amounts of data. AI has automated the processing and decision-making activities of some edge server AI chips which reduces network load and improves productivity. With the advent of 5G technology, the edge servers are more accessible which allows for the employment of advanced AI systems.
   
• The on-device edge AI chips segment accounted for USD 1.8 billion in 2024. The demand for consumer electronics, self-driving cars, and smart wearable devices has created a market for on-device edge AI chips, and this is anticipated to grow further. With these, AI can now be executed on smartphones, robotics, and IoT devices eliminating the need for the cloud. Significant growth stems from improvements in deep learning capabilities for voice and image processing, energy-efficient computing systems, and small-sized AI accelerators that are power savvy. The implementation of AI-powered facial recognition systems, voice assistants, and predictive maintenance technologies are enhancing the overall growth of this segment.  

Based on chip type, the edge artificial intelligence chips market is bifurcated into ASIC (application-specific integrated circuit) AI chips, GPU (graphics processing unit) AI chips, CPU (central processing unit) AI chips, FPGA (field-programmable gate array) AI chips, and neuromorphic AI chips. ASIC (application-specific integrated circuit) AI chips dominated the market due to their high efficiency, low power consumption, and ability to execute AI workloads with optimized performance for specific applications.
 

• The ASIC (application-specific integrated circuit) AI chips segment dominated the market accounting for 41.72% market share in 2024. The demand is growing in the sector of ASIC AI chips due to their unmatched efficiency, low power usage, and maximum performance for specific AI workloads. These chips are extensively used in edge AI applications, like IoT devices, smart surveillance, and automation in industries, where specific computation needs to be done. The growing requirement for dedicated processors for artificial intelligence speech recognition, computer vision, and natural language processing drives the growth of the segment.
   
• The GPU (graphics processing unit) AI chips segment accounted for 28.76% market share in 2024. The expansion of the GPU AI chips segment is accelerated by the parallel processing capabilities suited for deep learning and high-performance AI applications.  Massively parallel processing units are essential to cutting-edge artificial intelligence applications such as real-time video analysis, autonomous vehicle operations, and device diagnostics in medicine. The increasing use of AI-driven monitoring systems and the development of smart cities have further stimulated the need for GPUs.
   

Based on the end-use industry, the edge artificial intelligence chips market is bifurcated into consumer electronics, automotive & transportation, healthcare & medical devices, retail & e-commerce, manufacturing & industrial automation, telecommunications, and others.
 

• The consumer electronics segment dominated the market accounting for USD 1 billion in 2024. Because of an upsurge in the use of AI-enabled microphones in smartphones, smart home assistants, wearables, and intelligent cameras, the consumer electronics industry is set to witness remarkable growth in the edge AI markets. The implementation of edge AI chips offers real-time processing, which improves the user's interaction with voice detection, facial recognition, and AI customization. Also, this is causing a paradigm shift towards AI in video game consoles, automation systems, and headsets for AR/VR resulting in a surge in demand for consumer electronics edge AI chips.
   
• The automotive & transportation segment accounted for 21.25% of the market share in 2024. Smart technologies and devices are quickly adopting AI automation and integration on in-vehicle, connected, and autonomous vehicles, resulting in strong growth in the automotive and transportation segment. For advanced driver assistance systems (ADASs) with edge AI chips, real-time decision-making is critical, as is the case for vehicle information and predictive maintenance systems. While electric and autonomous vehicles have been developed around the world, fleet management, intelligent traffic monitoring and intelligent transportation infrastructure with AI are other factors that promote the use of edge AI chips in this segment.

• The U.S. market for edge artificial intelligence chips is predicted to reach USD 4.6 billion by 2034. In the U.S., autonomous vehicles, industrial automation, and defence application investments are driving the edge artificial intelligence (AI) chips market. Major U.S. firms such as Intel, NVIDIA, and Qualcomm are developing cutting-edge AI chips for edge computing in security systems, self-driving cars, and smart factories. As a result of the CHIPS Act, there has been increased innovation focus in cyber security, AI, and semiconductor manufacturing which is further expanding the market. Furthermore, AI-powered diagnostics and wearable health devices are some of the new smart healthcare applications raising the need for efficient edge AI processing.   
   
• Edge artificial intelligence chips market in Germany is predicted to grow at a 24.6% CAGR by 2034. The strong foothold of the country in automotive manufacturing led by BMW, Volkswagen, and Mercedes-Benz is boosting the use of edge AI chips in autonomous driving and predictive maintenance. With the increasing focus on energy-efficient AI computing, there is also a rise in the development of AI-powered smart grids and industrial IoT solutions. With the government also providing funding for AI-based cybersecurity for industrial infrastructure, the scope for Edge AI chip implementation in critical industries is expanding.
   
• The edge artificial intelligence chips market in China is anticipated to reach USD 2.2 billion by 2034. China is Leading in the Edge AI Chips AI market expansion owing to the AI-powered surveillance, robotics, and smart city construction. Initiatives from the government, including the Made in China 2025 plan, focuses on nationalistic attempts at self-sufficiency through chip manufacturing, which is increasing the output from domestic semiconductor firms. Moreover, faster AI processing at the edge of the network is being enabled due to the deployment of 5G in the country.
   
• The edge artificial intelligence chips market in India is anticipated to expand with a CAGR of 30% by 2034. In India, the growth in the Edge AI Chips market stems from the proliferation of smart devices and telecommunications, along with AI-enabled governance. The country's artificial intelligence boom is coming from the plethora of startups that are building solutions for agriculture automation, real-time language translation, and fraud detection.
   
• Edge artificial intelligence chips market in Japan is expected to grow at 28.9% CAGR by 2034. With innovation in robotics, smart appliances, and semiconductor technology, Japan's Edge AI Chips market is growing rapidly. Japan’s industrial robot supremacy through companies like Fanuc and Yaskawa is automating the use of AI chips for real time applications. Edge AI is also addressing workforce shortage issues in automated public transportation and elder care. 
   

Edge Artificial Intelligence Chips Market Share

NVIDIA, Qualcomm, Intel, Apple, and MediaTek are the major players in the edge artificial intelligence chips industry, together accounting for about 55% of the market share. These firms are initiating cloud customers and partnering with automotive and industrial automation companies to enhance the adoption rate. Robotics and AI-enabled IoT devices are increasingly using NVIDIA’s Jetson platform and Intel’s AI accelerators alongside Qualcomm’s Snapdragon AI chips.
 

Qualcomm, Intel, and NVIDIA are advancing edge AI performance with AI software ecosystems by enhancing their Qualcomm AI Stack, Intel’s OpenVINO toolkit, and NVIDIA’s CUDA-X AI. These developments are crucial for AI workload optimization. Companies are offering edge AI capabilities through the cloud using AI-as-a-Service (AIaaS) for revenue generation. Real-time processing and analysis of data, along with secure automotive AI, is now a new focus area. Also, integrating reliable AI frameworks, data encryption, and privacy-protecting methods is essential for edge AI compliance and data security, making these issues primary drivers within the technology.
 

Edge Artificial Intelligence Chips Market Companies

Some of the eminent market participants operating in the edge artificial intelligence chips industry include:

• Advanced Micro Devices, Inc.
• Apple
• Arm Limited
• BrainChip, Inc.
• Broadcom Inc.
• HAILO TECHNOLOGIES LTD
• Huawei Cloud Computing Technologies Co., Ltd
• Intel Corporation
• Lattice Semiconductor
• Marvell
• MediaTek Inc
• Mythic
• NVIDIA Corporation
• Qualcomm Technologies
• STMicroelectronics
• Synaptics Incorporated
• Texas Instruments Incorporated
   

AMD is dynamically broadening its Edge AI chip portfolio with the integration of AI acceleration in its Ryzen and EPYC processors for embedded systems, robotics and industrial automation. The XDNA architecture powered Ryzen AI series improves the use of AI inferencing through enhanced on-device processing in real time. AMD is now a strong competitor in adaptive computing for edge applications due to its acquisition of Xilinx and the company’s strengthening of FPGA-based AI solutions. In addition, the company is pursuing partnerships in telecommunications, automotive, and data centers to expand its edges AI solutions and targeting smart security, IoT, and automotive AI for low power edge AI chips powered by IoT, automotive, and smart security.
 

As the leading company in edge AI chips, NVIDIA is expanding its Jetson platform for industrial robotics, AI powered surveillance, and autonomous machines. Efficient deployment of AI models at the edge is made possible by NVIDIA’s AI focused software stacks such as Deepstream SDK, TensorRT, and CUDA-X AI. Alongside partnerships in AI healthcare, and automotive industries, the company is investing into AI computing with high energy efficiency needed for real-time edge-based decision making in critical applications.
 

Edge Artificial Intelligence Chips Industry News

• In October 2024, AMD launched the Ryzen AI PRO 300 Series, an Edge AI chip with up to 55 TOPS of NPU performance. Built on XDNA 2 architecture, it enables on-device AI tasks like Copilot+ features, AI security, and productivity enhancements, making it ideal for commercial AI-powered laptops.
   
• In September 2024, SiMa.ai introduced MLSoC Modalix, a multi-modal edge AI product family supporting CNNs, Transformers, LLMs, and Generative AI. With up to 200 TOPS, it delivers 10X efficiency over competitors. It enables scalable AI applications across industries with superior performance-per-watt and seamless software compatibility.
   
• In June 2024, Kneron launched the KNEO 330 Edge AI server and KL830 AI-embedded PC, enhancing privacy-focused AI computing. The KNEO 330 offers 48 TOPs AI power, supports LLMs, and cuts AI costs by 30-40%. The KL830 chip boosts AI PC adoption, reduces energy use by 30%, and supports Edge AI deployment.
   

The edge artificial intelligence chips market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 – 2034 for the following segments:

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Market, By Chip Type

• ASIC (Application-Specific Integrated Circuit) AI Chips
• GPU (Graphics Processing Unit) AI Chips
• CPU (Central Processing Unit) AI Chips
• FPGA (Field-Programmable Gate Array) AI Chips
• Neuromorphic AI Chips

Market, By Deployment

• On-device edge AI chips
• Edge server AI chips

Market, By End Use Industry

• Consumer electronics
• Automotive & transportation
• Healthcare & medical devices
• Retail & e-commerce
• Manufacturing & industrial automation
• Telecommunications
• Others

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

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