Edge AIoT Chipset Revenue to More Than Triple by 2031 as Rising Cloud Costs Accelerate Local AI Adoption
New ABI Research findings show gateways and on-premises edge servers will lead growth as organizations seek lower OPEX,
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NEW YORK, Sept. 15, 2026 (GLOBE NEWSWIRE) — The global edge AIoT chipset market reached US$32.7 billion in 2025 and is expected to more than triple by 2031, according to global technology intelligence firm ABI Research. The firm finds that edge gateways and on-premises edge servers will be the leading growth engines, as enterprises increasingly adopt cost-effective retrofit strategies to bring AI closer to operations without fully replacing legacy infrastructure.
“Edge AIoT adoption is no longer just about adding intelligence to devices; it is about aligning AI investment with operational realities,” says Will Wong, Principal Analyst at ABI Research. “Enterprises are moving toward architectures that reduce cloud dependence, improve resilience, and create the low-latency foundation needed for physical AI, but vendor success will depend on how well they address deployment friction and human-centric bottlenecks.”
ABI Research says the main driver behind this market expansion is OPEX optimization, as edge AIoT lowers cloud storage, data ingress, and networking costs at a time when memory supply constraints are pushing cloud-related expenses higher. Additional tailwinds include edge MLOps for fleet-wide scalability, data sovereignty and privacy requirements such as the EU AI Act, GDPR, and HIPAA, and growing demand for real-time, embedded intelligence in autonomous and safety-critical environments.
The research also highlights that migration patterns will shape hardware demand. In brownfield environments, retrofit approaches that preserve legacy sensors while adding gateways or on-premises compute are the most feasible path, favoring vendors such as Siemens, STMicroelectronics, Silicon Labs, and BrainChip that help reduce deployment complexity. In contrast, greenfield deployments and sectors with routine redesign cycles, including automotive, smart home, and robotics, are creating stronger opportunities for TinyML and AI-embedded endpoint hardware.
“Market players that connect technical capability with ease of deployment, lifecycle management, and customer-specific operational needs will be best positioned to capture long-term value,” Wong says. “In a fragmented and increasingly competitive ecosystem, simplifying adoption for both IT and nontechnical teams can become a meaningful differentiator and, in some cases, support price premium opportunities.”
These findings are from ABI Research’s The Edge AIoT Hardware Playbook: Navigating the Shift from Basic IoT to Embedded Intelligence report, part of the company’s IoT Hardware research service, which includes research, data, and ABI Insights.
About ABI Research
ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.
ABI Research是一家全球性的技术情报公司，拥有得天独厚的优势，充当终端市场公司和技术解决方案提供商之间的桥梁，通过提供独家研究和专业性指导，推动成功的技术实施和提供经证明可吸引和留住客户的战略，无缝连接这两大主体。
For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.
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