Edge to dethrone cloud for AI chipsets in 2025 with US$12bn revenues – VanillaPlus

The artificial intelligence (AI) edge chipset market is expected to outperform the cloud AI chipset market for the first time in 2025 ABI Research, This is being driven by the increasing focus on low latency, data protection and the availability of inexpensive and extremely energy efficient AI chipsets.

According to global technology market consultancy ABI ResearchThe Edge AI chipset market will generate sales of $ 12.2 billion in five years, outperforming the Cloud AI chipset market, which will reach $ 11.9 billion in 2025. Will reach $ 10.1 billion.

The cloud is currently the center of AI. Most AI training and inference workloads take place in public and private clouds. Traditionally, centralizing these workloads in the cloud offers the benefits of flexibility and scalability. However, the industry has seen a change in the AI ​​paradigm. Due to the need for data protection, cyber security and low latency, more and more AI training and inference workloads for gateways, devices and sensors are emerging. Recent advances in key areas, including connectivity to cloud computing, the new AI learning architecture, and powerful computer chipsets, have played a key role in this shift.

"When companies search for AI solutions in the areas of image and object recognition, autonomous material handling, predictive maintenance and human-machine interface for end devices, they have concerns about data protection, energy efficiency, low latency and strong computer performance on the device," explains Lian Jye Su, Principal Analyst at ABI Research. “Edge AI will be the answer. By integrating an AI chipset designed for high-speed inference and quantized collaborative or collaborative learning models, Edge AI enables the automation and expansion of tasks at the device and sensor level in various sectors. So much so that it will grow and outperform the cloud AI chipset market in 2025. "

This is a great opportunity for chipset providers with a variety of product offerings to capitalize and shine, rather than relying on a specific niche. Intel is a prime example. In 2019, the chipset conglomerate saw strong growth at Mobileye, its ADAS chipset subsidiary, and overtook NVIDIA as the leading AI provider. Intel is expected to continue to place high demands on its Cloud AI chipset and will see strong demand for its Mobileye, Movidius and FPGA product solutions.

In the consumer market, COVID-19 has disrupted the demand for many smart devices, especially smartphones, smart homes and wearables, which has affected the use of AI accelerators for these devices. At the same time, implementation in industrial manufacturing, retail, and other industries has been postponed or suspended.

"Nevertheless, ABI Research expects the market to recover in 2022. It is important to note that the impact on the chipset supply chain has been relatively small as manufacturing factories in Singapore and Taiwan continued to operate during the outbreak," said Su. Providers of key connectivity technologies such as 5G, Wi-Fi 6 and autonomous solutions such as autonomous vehicles see minimal impact on their product roadmaps. They continue their trials and deployments and forecast a rapid increase in demand for Edge AI chipsets after 2022. “By cataloging many other emerging technologies, Edge AI will pave the way for a variety of new consumer and business opportunities. “Su closes.

These results come from ABI Research Artificial intelligence and machine learning Market data report. This report is part of the company Artificial intelligence and machine learning Research service that includes research, data and insights from analysts. Market data Spreadsheets consist of detailed data, market share analyzes and highly segmented, service-specific forecasts in order to obtain detailed insights into the opportunities.

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