If comparing for the _same_ functionality, power consumption will typically reduce unless it is dominated ny other components. Both positive and negative examples below to explain:
* An audio amplifier: Power consumption is ultimately dictated by the energy conversion to sound and the conversion efficiency of the speaker. The system will consume at least that much irrespective of the technology developments. In practice however, the efficiency of the amplifier also comes into play. The static power drawn by an efficient amplifier would be much less than the above basics for creating sound, and so going to higher technology nodes would make much less percentage difference.
* Computations in a digital circuit: Power consumption in these is sometimes dominated by communication (interconnect; bus) like between processor and memory. If the bus is internal to the chip, advancing to a new technology node would typically result in power reduction.
* If the power is dominated by computations alone, there would surely be power reduction, again assuming the functionality is held constant. Circuits have static leakage power too, which happens irrespective of the computations, however, it is still usually lesser than dynamic power by design.
Typically however, more and more functionality is frequently added like in this case of computer vision added to the sensors, which results in an overall increased power consumption to an extent that the customers will accept (e.g., battery life asked for).
Back to this specific case of computer vision on the "edge":
Having the same functionality achieved by having computer vision on the sensor itself vs. the cloud, can result in orders of magnitude savings in power. There is a lot of power associated with transferring the data back and forth. Even if computations are handled by a processor on the same board as the sensor, significant power is spent as compared to when the communication lines are avoided.
Related: https://news.ycombinator.com/item?id=23202839