Austin, Feb. 5, 2026 (GLOBE NEWSWIRE) — The global Edge AI Hardware Market is poised for significant growth, with its value projected to surge from USD 28.91 billion in 2025 to USD 248.08 billion by 2035. This represents a compound annual growth rate (CAGR) of 23.98% from 2026 to 2035, according to a recent report by SNS Insider. The primary driver behind this exponential growth is the increasing demand for low-latency performance in virtual reality (VR) applications, which has become essential for creating immersive experiences.
Low latency is critical for VR applications, as any delay can disrupt the user’s experience and diminish the sense of presence. Edge AI hardware, which enables data processing locally rather than relying on remote cloud servers, effectively addresses this challenge. This capability allows devices to make immediate decisions, thus ensuring that VR applications remain synchronized with real-time interactions. Manufacturers are now leveraging AI chips, processors, and GPUs to enhance the performance of VR technologies, thus making experiences less laggy and more engaging.
Leading players in the market include technology giants such as NVIDIA Corporation, Google (Alphabet Inc.), Intel Corporation, Huawei Technologies Co., Ltd, and Apple Inc., among others. Their efforts are focused on developing products that can support the burgeoning demand for edge AI solutions across various sectors, including gaming, simulations, and training.
As the Edge AI hardware market expands, the camera segment is currently the most dominant, accounting for 35% of the market share in 2025. This growth is attributed to advancements in AI-powered image recognition and object detection, which enhance situational awareness and enable smarter decision-making at the edge. Following closely, the smartphone segment is expected to be the fastest-growing category throughout the forecast period. The integration of sophisticated AI capabilities in smartphones is making them increasingly intelligent and user-friendly.
The processor segment is similarly witnessing a shift, with CPUs holding a significant revenue share of 54% in 2025. While CPUs are essential for a broad range of applications, the graphics processing unit (GPU) segment is forecasted to grow the fastest due to their superior performance in handling data-intensive tasks through parallel processing.
Regionally, the Asia Pacific market is projected to lead, accounting for approximately 43% of the global market by 2025. The region’s growth is fueled by rapid technological advancements in countries like China, Japan, South Korea, and India. In contrast, the North America region is expected to experience the fastest growth from 2026 to 2035, driven by the presence of top chip manufacturers such as NVIDIA, Intel, and Google.
Despite promising growth prospects, the Edge AI hardware market faces challenges, particularly the significant upfront costs associated with high-performance AI chips and processors. These expenses can deter small and medium enterprises (SMEs) from adopting the technology, as the required infrastructure often comes with prohibitive maintenance and operational costs. This barrier to entry could hinder the uptake of edge AI solutions, especially among budget-conscious segments of the market.
Recent developments in the industry further illustrate the rapid evolution of Edge AI technologies. For instance, in November 2024, NVIDIA reinforced its position in supercomputing with the launch of the Weka AI RAG Reference Platform, designed to tackle challenges in RAG inferencing utilizing GPUs and advanced software frameworks. In a separate initiative, Samsung introduced its AI-powered Interactive Display (WAFX-P model) at Bett 2025, integrating advanced features like generative AI to transform classroom learning experiences.
The Edge AI hardware market is not only at the forefront of technological innovation but also integral to various sectors, including healthcare, automotive, and manufacturing. As organizations seek to leverage AI-driven solutions, the demand for effective edge computing capabilities will continue to rise. The ongoing advancements in AI technology signify a robust future for the Edge AI hardware market, with significant implications for numerous industries reliant on real-time data processing and decision-making.
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