Edge AI Hardware Market Outlook 

The edge AI hardware market size was valued at USD 26.17 billion in 2025 and is estimated to grow to USD 30.74 billion in 2026, with projections indicating it will reach USD 68.73 billion by 2031, registering a CAGR of 17.46% during the forecast period. This strong edge artificial intelligence hardware market growth reflects the rising adoption of local data processing capabilities that reduce latency, strengthen data privacy, and improve energy efficiency.  

The edge AI hardware industry is gaining traction across consumer electronics, automotive systems, industrial equipment, and healthcare devices. With advancements in processor design and growing demand for real-time analytics, edge AI hardware market share is expanding in both established and emerging economies. Governments are supporting domestic semiconductor manufacturing initiatives, while telecom operators are enabling distributed computing with new network infrastructure. 

Edge Artificial Intelligence Hardware Growth Drivers  

AI-Enabled Personal Computing Expansion 
Personal computers and laptops are increasingly integrating neural processing units that allow AI features to run directly on the device. This enables applications like voice assistants, image generation, and translation without internet access. On-device processing improves speed, privacy, and efficiency. As more devices include AI hardware, demand for edge AI components continues to grow. 

AI Integration in Smartphones 
Smartphone manufacturers are adding specialized AI processors to improve performance and battery efficiency. These processors support features such as voice recognition, camera enhancements, and augmented reality. AI capabilities are becoming standard in modern smartphones. This trend encourages consumers to upgrade devices, supporting market growth. 

Growth of Edge Computing in Telecom Networks 
Telecom providers are deploying computing infrastructure closer to users to reduce delays and improve performance. This supports applications like video analytics, smart cities, and immersive digital experiences. Edge computing reduces dependence on centralized cloud systems. As a result, demand for edge AI hardware in telecom networks is increasing. 

Rising Use of AI Hardware in Automotive Safety 
Modern vehicles use AI hardware for driver assistance features such as lane detection and emergency braking. These systems require fast, real-time processing to improve safety. Edge AI allows vehicles to process data locally without relying on cloud connectivity. Increasing safety standards are driving higher adoption of AI hardware in the automotive industry. 

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/edge-ai-hardware-market?utm_source=globbook  

Edge AI Hardware Market Segmentation 

By Processor 

By Device 

By End-User Industry 

By Deployment Location 

By Geography 

Edge AI Hardware Industry Key Players 

Conclusion  

The edge AI hardware market is expected to maintain strong growth as organizations prioritize real-time processing, improved data security, and reduced network dependency. The ability to process data locally enables faster decision-making and improves operational efficiency across industries. As enterprises adopt AI-enabled devices and systems, edge artificial intelligence hardware market growth will continue across consumer, industrial, and automotive sectors. 

The expansion of telecommunications infrastructure, increased semiconductor investment, and growing adoption of AI-enabled devices are strengthening the edge AI hardware industry outlook. These developments support increased deployment of AI-capable hardware across various environments, from personal devices to industrial systems.