PUBLISHER: The Business Research Company | PRODUCT CODE: 1852418
PUBLISHER: The Business Research Company | PRODUCT CODE: 1852418
An edge artificial intelligence accelerator is specialized hardware designed to execute AI computations directly on edge devices such as smartphones, IoT devices, or autonomous machines, instead of relying on centralized cloud servers. By processing AI tasks locally, it improves performance, reduces latency, and lowers bandwidth usage, enabling real-time decision-making in connected systems.
The key components of edge AI accelerators include central processing units (CPUs), graphics processing units (GPUs), application-specific integrated circuits (ASICs), and field-programmable gate arrays (FPGAs). CPUs are general-purpose processors that manage standard computing tasks and often collaborate with specialized accelerators to handle AI workloads on edge devices. These accelerators are embedded in various devices such as smartphones, IoT gadgets, robots, and cameras. They support both AI training and inference and cater to multiple industries including healthcare, automotive, retail, manufacturing, security and surveillance, among others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.
The edge artificial intelligence accelerator market research report is one of a series of new reports from The Business Research Company that provides edge artificial intelligence accelerator market statistics, including edge artificial intelligence accelerator industry global market size, regional shares, competitors with an edge artificial intelligence accelerator market share, detailed edge artificial intelligence accelerator market segments, market trends and opportunities, and any further data you may need to thrive in the edge artificial intelligence accelerator industry. The edge artificial intelligence accelerator market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The edge artificial intelligence accelerator market size has grown exponentially in recent years. It will grow from $8.28 billion in 2024 to $11.10 billion in 2025 at a compound annual growth rate (CAGR) of 34.0%. The growth during the historic period is driven by the expanding adoption of Internet of Things (IoT) devices, heightened demand for real-time decision-making, growing emphasis on data privacy and security, increased use of artificial intelligence in automotive applications, and the widespread rollout of 5G networks.
The edge artificial intelligence accelerator market size is expected to see exponential growth in the next few years. It will grow to $35.38 billion in 2029 at a compound annual growth rate (CAGR) of 33.6%. The growth anticipated in the forecast period is driven by the expanding ecosystem of edge AI software and hardware platforms, the rising deployment of AI-enabled robotics and autonomous systems, increased adoption of edge AI in agriculture and drones, the expansion of smart city initiatives, and growing government and defense investments in edge AI. Key trends during this period include advancements in low-power AI chips, wider adoption of technology in smart cameras and sensors, innovations in AI model compression techniques, improvements in thermal management for edge chips, and the integration of AI workloads into smart devices.
The rapid growth of internet of things (IoT) devices is expected to drive the expansion of the edge artificial intelligence accelerator market in the coming years. IoT devices include a network of interconnected gadgets such as smartphones, sensors, wearables, smart home products, and security cameras that communicate and share data over the internet without human involvement. The demand for these connected devices is rising due to the need for real-time data, which boosts efficiency, enables remote monitoring, and supports smarter decision-making across various sectors. Edge artificial intelligence accelerators enhance IoT devices by processing data locally, reducing latency and reliance on cloud computing. This leads to faster insights, improved automation, and overall better performance of connected systems. For example, IoT Analytics, a German research firm specializing in IoT market trends, reported in September 2024 that the number of connected IoT devices reached 16.6 billion in 2023, a 15% increase from 14.4 billion in 2022. As a result, the growing proliferation of IoT devices is propelling the edge AI accelerator market forward.
Leading companies in the edge artificial intelligence accelerator market are developing cutting-edge products such as discrete AI accelerators to improve AI processing directly on devices and minimize latency. Discrete AI accelerators are specialized hardware chips designed specifically to speed up AI and machine learning tasks, operating independently from the CPU or GPU. For example, in July 2025, Hailo Technologies Ltd., an AI firm based in Israel, introduced the Hailo-10H, a powerful discrete AI accelerator aimed at bringing generative AI capabilities to edge devices with greater efficiency and low latency. This accelerator allows edge devices to perform complex generative AI tasks, such as image generation, video processing, and natural language interactions, locally, without needing cloud connections. Offering 40 tera operations per second (TOPS) of computing power, it provides excellent energy efficiency, faster response times, enhanced data privacy, and dependable performance for advanced AI applications in consumer electronics, automotive, and industrial markets.
In December 2024, Virtium LLC, an American technology company, acquired Embedded Artists AB for an undisclosed sum. This acquisition allows Virtium to broaden its offerings in edge AI, system-on-module, and connectivity solutions, enhancing its ability to provide more comprehensive and scalable industrial computing services. Embedded Artists AB, based in Sweden, specializes in developing and manufacturing system-on-modules equipped with integrated edge AI accelerators.
Major players in the edge artificial intelligence accelerator market are Apple Inc., Tencent Corporation, Intel Corporation, IBM Corporation, Qualcomm Incorporated, NVIDIA Corporation, Advanced Micro Devices Inc., Infineon Technologies AG, Arm Holdings plc, Synaptics Incorporated, Ambarella Inc., Ceva Inc., EdgeCortix Pte. Ltd., Tenstorrent Inc., Geniatech Inc., Hailo Technologies Ltd., Axelera AI NV, Mythic Inc., Ambiq Micro Inc., and DEEPX Co. Ltd.
North America was the largest region in the edge artificial intelligence accelerator market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in edge artificial intelligence accelerator report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the edge artificial intelligence accelerator market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The edge artificial intelligence accelerator market consists of sales of tensor processing units (TPUs), system-on-chips (SoCs), AI accelerator cards and modules, development boards, and integrated hardware systems. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Edge Artificial Intelligence Accelerator Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on edge artificial intelligence accelerator market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for edge artificial intelligence accelerator ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The edge artificial intelligence accelerator market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.