Edge AI Hardware Markets, 2031: Rising AI Demand Spurs Smartphone Refresh Cycles in the Premium Segment

The Edge AI hardware market is fueled by demand for on-device AI, cutting latency, and enhancing data security. Growth is driven by premium smartphones, AI PCs, and auto safety systems.


Dublin, Jan. 21, 2026 (GLOBE NEWSWIRE) -- The "Edge AI Hardware - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

The Edge AI hardware market is anticipated to expand from USD 30.74 billion in 2026 to an estimated USD 68.73 billion by 2031, reflecting a CAGR of 17.46% throughout the forecast period. The market growth is propelled by the increasing need for on-device inference, enhancing data sovereignty, reducing latency, and minimizing energy consumption.

Premium smartphones, AI-enabled PCs, and mandatory automotive safety mechanisms serve as key catalysts for market expansion. Government initiatives such as the CHIPS and Science Act promote domestic production, while the spread of 5G-enabled multi-access edge computing amplifies the addressable workload.

Moderate competition characterizes the industry as semiconductor leaders maintain their ground against application-specific chip providers, optimizing performance per watt. Supply-chain concentration and export controls add regional complexity but simultaneously stimulate domestic alternatives.

Rise of AI-Enabled Personal Computing Transforms Processor Architecture

Dedicated neural processing units in new laptop chips offer 40-50 TOPS of local AI throughput, enhancing offline processing capabilities. A move towards heterogeneous compute is observed, as OEMs integrate similar accelerators, steering semiconductor roadmaps toward inference-optimized designs.

Smartphone AI Capabilities Drive Premium Segment Refresh Cycles

Leading mobile processors enable 45-50 TOPS inference while optimizing battery life through dedicated engines. Innovations like on-device translation and generative imaging fuel premium segment upgrades, prompting faster replacement cycles.

Advanced Node Manufacturing Costs Limit Market Entry

High costs for developing next-generation devices restrict new entrants, fostering consolidation among smaller firms seeking differentiation. Existing supply contracts and design optimizations present incumbent advantages.

Other significant market drivers and restraints include the deployment of 5G infrastructure, the enforcement of automotive safety regulations, and the impact of export control restrictions on global supply dynamics.

Segment Analysis

In 2025, GPU devices commanded 50.12% of the market share, attributed to robust software ecosystems and parallel throughput capabilities. ASICs and NPUs are projected to experience an 18.74% CAGR, driven by demand for low-latency performance.

Smartphones represented 39.25% of the Edge AI hardware market share in 2025. Meanwhile, applications in robotics and drones showcase significant growth potential, driven by autonomous navigation requirements.

Geography Analysis

North America led with 38.92% market revenue in 2025, shaped by USD 52 billion in CHIPS Act incentives and enterprise pilots across various sectors. In Asia-Pacific, investments in indigenous GPU and NPU production stimulate growth, with China and South Korea making substantial commitments.

Europe emphasizes sovereignty and compliance with GDPR, fostering on-premise analytics. While Israel focuses on defense technologies, Latin America and the Middle East are venturing into agricultural and smart-city AI applications, respectively.

Leading Companies in the Edge AI Hardware Market

Key players include NVIDIA Corporation, Intel Corporation, Qualcomm Incorporated, Samsung Electronics Co., Ltd., and others. A detailed analysis is available, offering additional insights and market forecasts.

Acquiring this report provides access to the market estimate sheet in Excel format along with three months of expert support.

A selection of companies mentioned in this report includes, but is not limited to:

  • NVIDIA Corporation
  • Intel Corporation
  • Qualcomm Incorporated
  • Samsung Electronics Co., Ltd.
  • Apple Inc.
  • Advanced Micro Devices, Inc.
  • Huawei Technologies Co., Ltd.
  • Alphabet Inc. (Google LLC)
  • Amazon.com, Inc.
  • Alibaba Group Holding Limited
  • Baidu, Inc.
  • Continental AG
  • DENSO Corporation
  • Robert Bosch GmbH
  • Kalray S.A.
  • MediaTek Inc.
  • Imagination Technologies Limited
  • Hailo Technologies Ltd.
  • SiMa.ai, Inc.
  • BrainChip Holdings Ltd.
  • Syntiant Corp.
  • Mythic, Inc.
  • Gyrfalcon Technology Inc.

For more information about this report visit https://www.researchandmarkets.com/r/tf1cmt

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