AI Edge Processor Market Predicted To Hit 1.5 Billion Units in 2023

The annual number of AI edge processor shipments (versus sales) is expected to reach 1.5 billion units in the year 2023, according to research publisher IDC.

This would equal a 64.9 percent compound annual growth rate (CAGR) since 2018, which saw about 340 million units shipped.

According to a release announcing the report, edge processors "optimized" for AI are the future: While only 5.1 percent of "edge systems running AI" used or included optimized processors, IDC is predicting this percentage to rise to 40 percent by 2023.

"The success of AI resides in systems deployed to the edge, where instant decisions made by neural networks can actually create value, unfettered by latency and connectivity issues that can challenge cloud-based solutions," commented IDC Michael J. Palma, research director, in a prepared statement.

"But the promise of AI at the edge depends on the development of highly efficient compute processing elements, optimized for AI workloads, that support the power-constrained nature of most edge systems," he continued. "Currently, discrete accelerators offer the greatest performance but add to BOM [bill of materials] costs. Eventual success will likely rest on the integration of AI-optimized processing elements within host processors."

The forecast includes processors for everything from PCs to tablets to phones to gateways to IoT devices. It cites driver-assistance systems, smart home appliances, video surveillance, industrial automation and robotics/drones as key markets.

About the Author

Becky Nagel is the former editorial director and director of Web for 1105 Media's Converge 360 group, and she now serves as vice president of AI for company, specializing in developing media, events and training for companies around AI and generative AI technology. She's the author of "ChatGPT Prompt 101 Guide for Business Users" and other popular AI resources with a real-world business perspective. She regularly speaks, writes and develops content around AI, generative AI and other business tech. Find her on X/Twitter @beckynagel.