Analysis: Edge AI chips Aren’t Coming to Smart Home Devices in the Near Future

Smart Home AI is moving to the cloud—not the edge. Our latest market study finds just 5% of the $7B Smart Home AI market will use edge AI chips by value.

Edge AI is a buzzword in the industry, with many interpretations of the word ‘edge’ and market verticals implied. We recently concluded market study of one such edge market, Smart Home. In our analysis, we found that the Smart Home market is actually increasing its reliance on cloud-based processing rather than edge-based processing. We have concluded that of the total $7 billion market driven by AI for Smart Home devices, barely 5% will be driven by edge AI chips. The rest will be consumed by datacenter/ cloud chips, primarily GPUs. Ease of upgradability, ability to rapidly add new features, and monetization opportunities are some of the factors driving the AI processing to the datacenter.