Market Trends of Edge AI Hardware Industry
Robots Device Segment is Expected to Hold Significant Market Share
- Artificial intelligence (AI) and edge computing are rapidly reshaping the landscape of robotics, ushering in an era of smarter and more autonomous machines. Edge computing efficiently processes vast data volumes, tackling traditional challenges in robotics, such as latency and bandwidth issues. Concurrently, AI equips robots to learn from their experiences and make informed decisions, leading to machines that are both intelligent and adaptable. This article explores the profound influence of these technologies on the future of robotics and automation.
- Edge-AI enables robots to make real-time decisions by processing environmental data on-site, allowing for swift adaptation to their surroundings. This edge processing, powered by AI, utilizes both machine learning and inference algorithms. Such responsiveness is vital in sectors like autonomous vehicles and manufacturing, where timely reactions to environmental changes are crucial.
- Moreover, edge AI boosts the accuracy of robotic decisions. By deploying AI algorithms on edge devices, robots enhance their decision-making precision. This heightened accuracy is paramount in industries like healthcare, where the stakes are high.
- Additionally, Edge-AI fortifies robotics with enhanced privacy and security. By storing data on edge devices, the risk of sensitive information being intercepted en route to centralized data centers or the cloud diminishes. This protection is essential for sectors like healthcare and finance, which handle personal data. With data processed on the edge, the transfer of sensitive information is significantly reduced. The cloud then acts as both a repository for this processed data and a control center for connected devices. This shift has led to a surge in demand for edge AI hardware, bridging the gap between software and robotics.
- In April 2024, Qualcomm launched its Edge AI RB3 Gen 2 Chip tailored for IoT and robotics, accompanied by a "Micro-Power" Wi-Fi SoC. These development kits aim to expedite the company's AI-accelerating chip's deployment, targeting not just robotics and IoT but also embedded applications and boasting a potential power draw reduction of up to 88%. Such investments, heavily leaning on Edge AI, are driving the robotics segment's growth in the market.
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Asia Pacific to Register Major Growth
- The Asia Pacific region stands out as a dominant player in the consumer electronics market. Major countries, including India, China, and Korea, are ramping up local production through government initiatives and the presence of key industry players. This push is set to amplify the demand for consumer electronics. The market's expansion is further fueled by the direct integration of AI algorithms into edge devices, encompassing smartphones, IoT devices, and embedded systems. Additionally, with rising investments in the region, the appetite for these market technologies is poised for substantial growth.
- According to the China Academy of Information and Communications Technology (CAICT), China's mobile phone shipments in 2023 reached 289 million units, marking a 6.5% increase from the previous year. Shipments of 5G phones hit 240 million units, an 11.9% annual rise, making up 82.8% of the country's total mobile phone shipments. CAICT data also highlighted the introduction of 406 new domestic-brand phone models, a 5.5% increase from the prior year. December 2023 saw mobile phone shipments touch approximately 28.28 million units, reflecting a 1.5% year-on-year growth. These significant developments are poised to positively influence the market's growth.
- Moreover, according to Invest India, the electronics market in India is currently valued at USD 155 billion, with domestic production constituting 65% of this value. The accelerated adoption of electronic products is being driven by technological transitions, notably the rollout of 5G networks and the Internet of Things (IoT). Initiatives like 'Digital India' and 'Smart City' projects have heightened the demand for IoT in the electronics devices market, signaling the dawn of a new era for electronic products. Over the past six years, India has not only emerged as the world's second-largest mobile manufacturer but has also seen its domestic production of electronics more than double.
- The Asia Pacific region, historically a manufacturing powerhouse, is increasingly embracing the Internet of Things (IoT). Telenor IoT reports that in APAC, the synergy between established IoT frontrunners like South Korea, Japan, Australia, and China and emerging players such as India, Pakistan, Bangladesh, Indonesia, and Thailand is propelling the number of IoT devices from a recent tally of 14.5 billion to a projected 38.9 billion by 2030. With this anticipated surge in IoT, there's a parallel expectation for a significant uptick in demand for Edge AI hardware.
- Furthermore, the growing adoption of robots across multiple industries in the region is also expected to drive market opportunities. According to IFR, in 2023, Asia emerged as the dominant force in industrial robot adoption, representing 70% of all new installations. Notably, China stands out, contributing a significant 51% to the global tally, boasting 1,755,132 operational robots across its factories.
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