Europe Edge AI Processor Market

Europe Edge AI Processor Market Size (2022-2027):

The Europe Edge AI Processor Market is expected to grow at a CAGR of 14.9% during the forecast period 2022-2027.

Edge AI, commonly referred to as "on-device AI," is a distributed computing paradigm that permits the local execution of AI algorithms on a device while utilizing the data generated by that device. Microprocessors known as edge AI processors were created specifically to speed up embedded AI applications on edge devices. 

Market Drivers:

Increasing demand for Artificial Intelligence processing on edge rather than cloud is the main factor driving the growth of the edge AI processor market in Europe. Edge AI possesses several benefits. It delivers major advancements in response times and data security. It also enables the execution of AI close to the data source, where operations like data production and decision-making can take place in milliseconds. Hence, Edge AI is the best solution for applications where almost rapid reactions are critical. Increasing demand for security and safety in European organizations accelerates the edge AI processor market growth. The disadvantages of processing AI on the cloud will further drive the edge AI processing market toward growth. The edge AI application also helps save costs and improve user experience. In terms of cost savings, Edge AI eliminates cloud processing fees and lowers the amount the consumers might spend on bandwidth.

Furthermore, edge AI significantly decreases latency issues, enabling users to interact in real-time with tools like wearable payment processing and smart speakers that monitor activity and sleep patterns. The increasing demand for edge computing in IoT devices, robotics, automated cars, and robotic healthcare equipment in Europe further accelerates the edge AI processor market’s growth. As various European industries, including government, agriculture, consumer electronics, real estate, automotive, transportation, communication, healthcare, manufacturing, etc., make their systems smarter and more efficient by adopting Edge AI processing, they may witness their businesses diversify unimaginably. Furthermore, the demand for edge AI processors has increased across various industries due to the need for reliable connectivity and enhanced performance. These factors are boosting the growth of the Edge AI processor market in Europe. 

Processing AI at the edge of the local network eliminates the need for the device to be linked to the internet or centralized servers like the cloud. Most AI operations are currently performed in the cloud due to the intensive processing capacity needed to run deep learning models. However, executing AI in the cloud has drawbacks, such as the need for an internet connection and the risk of performance issues due to bandwidth and latency restrictions. Additionally, several privacy concerns arise with submitting private information to a centralized forum through cloud computing. Edge AI solves this issue by processing data at local networks, assuring AI-driven companies that rely on data integrity. Hence, the disadvantages of processing AI on the cloud will further drive the edge AI processing market toward growth.

Market Restraints: 

Lack of skilled labor to process the AI on the edge and low rate of adoption of edge AI technology, especially in the underdeveloped nations of Europe, are the main factors that may hamper the growth of the Edge AI processor market in Europe. Moreover, the high cost associated with installing the edge AI processor may restrain the growth of the edge AI processor to a certain extent. 

EUROPE EDGE AI PROCESSOR MARKET REPORT COVERAGE:

Market Segmentation:

Europe Edge AI Processor Market - By Type:

• Central Processing Unit (CPU)
• Graphics Processing Unit (GPU)
• Application Specific Integrated Circuit (ASIC)

The Europe edge AI processor market is segmented based on type into central processing units, graphics processing units, and application-specific integrated circuits. The application-specific integrated circuit is expected to dominate the Europe edge AI processor market during the forecast period. ASICs are custom logic generated using a manufacturer's circuit libraries that provide the benefits of low power consumption, speed, and a tiny footprint.

Europe Edge AI Processor Market - By Device Type:

• Enterprise Devices
• Consumer Devices

Based on device type, the Europe edge AI processor market is segmented into enterprise and consumer devices. The consumer devices segment is expected to dominate the Europe edge AI processor market during the forecast period. The rising adoption of smart homes in various countries in Europe is driving the consumer devices segment growth.

Europe Edge AI Processor Market - By End-Use:

• Consumer Electronics
• Automotive & Transportation
• Communication
• Healthcare
• Manufacturing
• Others

Based on end use, the Europe edge AI processor market is segmented into consumer electronics, automotive & transportation, communication, healthcare, manufacturing, and others. The consumer electronics segment is expected to dominate the Europe edge AI processor market during the forecast period. This is because most consumers demanding consumer electronics such as smartphones, smart security cameras, smart wearables, and accessories are boosting the consumer electronics segment growth. 

Europe Edge AI Processor Market - By Country:

• UK
• Russia
• Germany
• Italy
• France
• Spain
• Sweden 
• Denmark
• Poland
• Switzerland
• Netherlands
• Rest of Europe

Germany is expected to dominate the Europe edge AI processor market during the forecast period. The demand for IoT devices in Germany has rapidly increased for the past three years as companies seek to run the business smoothly, broaden their product offering, and enhance customer experiences. The increasing demand for IoT and smart devices in Germany is boosting the Edge AI processor market growth in the country. 

COVID-19 Impact on the Europe Edge AI Processor Market:

The COVID-19 pandemic has positively impacted the growth of the Europe edge AI processor market during the pandemic phase. Furthermore, the demand for automation has increased during the pandemic due to various companies adopting work-from-home structures with monitoring and maintenance and applying automation with the help of AI in various processes to make work easy from home and reduce the pandemic risks. 

Market Key Players:

1. Intel Corporation
2. Samsung Electronics Co., Ltd.
3. Apple Inc
4. Alphabet Inc.
5. NVIDIA Corporation
6. Qualcomm Technologies, Inc.
7. HiSilicon (Shanghai) Technologies CO LIMITED.
8. Mythic Ltd.
9. Arm Limited
10. Advanced Micro Devices, Inc.

Market Key Developments:

• In May 2022, Intel launched Intel’s Habana Gaudi2 AI processor for data centre workload training and 12th Gen Intel Core HX processors, which are ideal for hybrid work. Additionally, Intel provides information about its data centre GPU (codenamed Arctic Sound-M, ATS-M), 4th Gen Intel Xeon Scalable processor (codenamed Sapphire Rapids), and roadmap for infrastructure processing units (IPUs).
• In September 2022, NVIDIA launched the IGX Edge AI Computing Platform for high-precision edge AI to deliver superior security and proactive safety to sensitive industries, including manufacturing, shipping, and healthcare. IGX enhances human-machine collaboration by serving as a platform for safe, secure autonomous systems. The NVIDIA IGX platform is a strong combination of hardware and software that includes NVIDIA IGX Orin, the most powerful, compact, and energy-efficient AI supercomputer for autonomous industrial equipment and medical devices.
• In June 2022, Qualcomm launched the Unified AI Stack For Cloud To Edge Intelligence. Qualcomm Technologies created this stack to enable OEMs and Developers to build, improve, and deploy AI applications on Qualcomm Technologies' products while taking full advantage of the speed and effectiveness of the Qualcomm AI Engine.