Edge AI Chip Market to Hit US$27.1B by 2032 | 17.4% CAGR Fueled by IoT, Autonomous Vehicles & Industrial AI

According to DataM Intelligence, theGlobal edge AI chip market reached US$ 7.5 billion in 2024 and is expected to reach US$ 27.1 billion by 2032, growing with a CAGR of 17.4% from 2025 to 2032. Growth is driven by surging demand for on-device AI processing in IoT, autonomous vehicles, consumer electronics, and industrial automation; need for low-latency, energy-efficient, and privacy-enhanced computing; advancements in specialized chips like NPUs and ASICs; and supportive government policies promoting smart manufacturing and connected devices.

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North America Key Industry Developments
✅ February 2025: NXP Semiconductors acquired U.S.-based edge AI chipmaker Kinara for $307 million to integrate energy-efficient NPUs into industrial and automotive processors.
✅ Ongoing: Strong investments in AI accelerators for automotive ADAS, aerospace predictive maintenance, and industrial IoT applications.

Asia-Pacific Key Industry Developments
✅ March 2025: Qualcomm acquired Edge Impulse to bolster its IoT AI developer platform.
✅ July 2025: SAC Group partnered with Axelera AI to expand edge AI applications; Blaize secured major deals for chip deployment.
✅ September 2025: Grinn partnered with MediaTek to advance AI-powered edge solutions.

Key Mergers and Acquisitions (Recent)
✅ February 2025: NXP Semiconductors acquired Kinara to enhance edge AI processing in IoT and automotive.
✅ March 2025: Qualcomm acquired Edge Impulse for strengthened IoT AI capabilities.

✅ Ongoing: Strategic acquisitions and partnerships focusing on AI accelerators, NPUs, and on-device intelligence.
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Market Segmentation Analysis
By Chip Type: CPU, GPU, NPU, ASIC, Others.
By Function: Inference (dominant), Training.
By End-User: Consumer electronics leads with 22.4% market share in 2024, followed by Automotive, Healthcare, Retail & e-commerce, Manufacturing, Telecommunications, Others.

Regional Insights
Asia-Pacific leads with 33.5% market share due to robust semiconductor manufacturing, rapid IoT adoption, and government support in China, Japan, and South Korea. North America is the fastest-growing region, driven by advanced infrastructure, demand from automotive and aerospace sectors, and strong R&D ecosystem.
Growth Drivers
Surge in IoT devices requiring real-time, on-device AI processing
Demand for low-latency and privacy-focused computing in smart devices
Growth in autonomous vehicles and ADAS applications
Advancements in energy-efficient AI accelerators and NPUs
Rising adoption in industrial automation and consumer electronics

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Key Players
The market includes leading companies such as NVIDIA Corporation, Intel Corporation, Advanced Micro Devices, Inc., Hailo Technologies Ltd., STMicroelectronics, Texas Instruments Incorporated, Mythic, Qualcomm Technologies, Inc., Samsung, and MediaTek.

Key Highlights (Top 5 Key Players)
1. NVIDIA Corporation - Dominating high-performance edge AI solutions for automotive and enterprise.
2. Qualcomm Technologies, Inc. - Strengthening IoT and edge AI through acquisitions like Edge Impulse.
3. Intel Corporation - Advancing energy-efficient AI accelerators for diverse applications.
4. Samsung - Integrating on-device intelligence in consumer electronics and automotive.
5. MediaTek - Expanding partnerships for AI-powered edge solutions in smart devices.

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