Omdia predicts market expansion of AI edge processors to $60 billion in 2028
Omdia, a research and consulting company, recently published its AI processors for the edge forecast report that explores the AI processors market expansion and trends, with a particular focus on edge computing. According to the report, the market for AI edge processors is expected to double, reaching $60 billion in 2028, up from $31 billion in 2022. The report identifies PCs as the primary catalyst for this growth over the next four years.
In addition to PCs, the report highlights the penetration of AI processors into various devices, such as smartphones, tablets, smart speakers, robots, and UAVs. This reflects a wider trend of AI integration into both consumer and industrial devices. The substantial rise in the AI edge processor market offers many opportunities for semiconductor manufacturers, technology companies, and startups. This market surge is driving the development of more efficient and specialized AI processors to accommodate the increasing needs of edge computing.
The smartphone industry is witnessing a saturation point in the early adoption of AI technologies, with AI acceleration now present in over two-thirds of devices. The shift towards PCs indicates a larger market movement, where AI capabilities have become a key differentiator in product offerings.
Alexander Harrowell, the principal analyst for advanced computing at Omdia, discusses the slow adoption of in-CPU acceleration, which involves embedding AI processing capabilities directly into the CPU. This suggests that despite initial anticipation for AI acceleration to become a standard feature within CPUs, the industry has instead moved towards adopting separate, specialized AI processors.
Last year, Omdia estimated that worldwide investment in edge computing infrastructure would reach approximately $7 billion by 2032. Additionally, their tracker predicted that the annual revenue from Infrastructure-as-a-Service and Software-as-a-Service in the Multi-Access Edge Computing sector to exceed $20 billion by the close of 2032.
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