Global Edge AI Market

Overview

Global Edge AI Market reached US$ 16.8 Billion in 2023 and is expected to reach US$ 73.8 Billion by 2031, growing with a CAGR of 20.6% during the forecast period 2024-2031.

The processing power at the edge is increased by improvements in edge technology for computing, such as specialized processors and hardware accelerators. Complex AI models are developed and operated effectively on edge devices because of this enhanced processing power, which makes difficult data analysis and real-time inference jobs simpler to finish.

By moving computer power closer to the data source, edge computing dramatically lowers delay and transmission times for data. For AI applications that need to make decisions in real-time, such as augmented reality, industrial automation and autonomous vehicles, this latency reduction is important. Edge computing improves system performance and customer satisfaction by reducing latency, which allows for faster AI inference and response times.

The growing initiatives by the major key players to promote Edge AI globally by launching new products help to boost global edge AI market growth over the forecast period. For instance, on July 06, 2023, Silicom completed a partnership with Hailo to launch the Edge AI Product Line. The integration of Hailo's AI accelerators into Silicom's current Edge platforms addresses performance challenges for Edge AI applications. Consequently, Silicom's products will deliver visual processing and AI inference at the edge with an exceptionally appealing price/performance ratio.

North American organizations and governments are strategically investing in edge AI infrastructure, R&D and research to be competitive in the global market. The edge AI industry is growing and innovating because of initiatives including business investments, government funding and public-private partnerships. According to the study conducted by 5G Americas Omdia, North America leads with 176 million 5G connections as of Quarter 3 of 2023 which represents an additional 22 million new connections in the last quarter.

Dynamics

The Increasing Adoption of the Internet of Things (IoT)

At the border of the network, sensors, cameras and other connected devices offer enormous volumes of data for IoT devices. Without depending on centralized cloud servers, edge AI enables real-time processing and analysis of this data directly on the edge, enabling quick insights and actions. Low latency is required for real-time response for numerous Internet of Things uses, including linked cars, smart homes and industrial automation. To meet this need, Edge artificial intelligence analyses data locally, which lowers latency and ensures rapid decision-making without the delays imposed on by sending data to distant data centers.

IoT usage has risen significantly over the last 10 years. IHS anticipates that there will be nearly three times as many IoT devices used by 2022 from 15.41 billion in 2015 to 42.62 billion. Forecasts indicate that this increase will pick up even more velocity, with 75.44 billion IoT devices anticipated by 2025. A key element propelling the Internet of Things' growth is the ever-expanding range of connectivity options. IoT improvement has been energized by the rising accessibility of 5G organizations and broadband velocities, which enable devices to associate at rates that were up to this point unfathomable and productive.

Rising Demand for Autonomous Vehicles and Robotics

Real-time processing of enormous quantities of information from a few sensors, similar to cameras, lidar, radar and ultrasonic sensors, is essential for robots and independent vehicles. Through handling information locally at the organization's edge, edge-simulated intelligence empowers these frameworks to settle on choices rapidly and with less dependence on incorporated cloud foundations. Edge AI improves safety and dependability by empowering robotics and self-driving cars to make important choices quickly. The systems can react rapidly to shifting environmental conditions and any risks by processing data immediately at the edge, which lowers the possibility of accidents and boosts overall performance.

Some of the major key players follow merger and acquisition strategies which further help to boost market growth. For instance, on June 19, 2020, the Autonomous Vehicles Alliance and ADLINK, a trendsetter in edge computing with an overall vision to interface individuals and positively influence business and society, are cooperating to utilize edge man-made intelligence to empower independent driving for everybody. Using Autoware's open-source self-driving innovation, the participation will zero in on mutually fabricating astute transportation and traffic signal arrangements.

Data Privacy and Security Concerns

Concerns regarding data security and privacy damage customers' and businesses' faith in Edge AI systems to collect, analyze and retain their data. The lack of confidence prevents stakeholders from sharing sensitive data or deploying AI apps at the edge, which impedes the uptake and funding of Edge AI solutions. Organizations that collect, process and safeguard personal data have to abide by strict restrictions. Adherence to these regulations impedes business expansion by raising the costs and complexity of Edge AI implementations.

As edge computing grows and there is a growing number of connected gadgets in the world, edge AI systems are vulnerable to data breaches, cyberattacks and unauthorized access. The consequences reduce consumer trust in Edge AI technology and impede its expansion. It is necessary to integrate strong security measures, like encryption, access restrictions, authentication systems and secure communication protocols, in Edge AI settings to ensure data privacy and security. However, businesses find it difficult to implement and maintain these security controls across dispersed edge settings, which hinders the uptake of Edge AI solutions.

Segment Analysis

The global edge AI market is segmented based on component, technology, end-user and region.

Growing Adoption of Edge AI Software

Based on the components, the Edge AI market is segmented into Hardware, Software, Edge Cloud Infrastructure and Services. Software components in the market accounted largest market share due to the growing industrial adoption globally. Edge AI software solutions offer flexibility and adaptability to a wide range of edge computing devices and hardware platforms. The software solutions can be easily integrated into existing edge infrastructure, enabling organizations to leverage their investments in edge devices while adding AI capabilities. Edge AI software solutions can scale to meet the growing demands of diverse applications and use cases across industries. Organizations can deploy Edge AI software across multiple edge devices and locations, allowing for distributed processing and analysis of data without the need for significant hardware upgrades.

Globally, major key players launched innovative edge AI software which helps to boost segment growth over the forecast period. For instance, on February 26, 2024, Intel announced a new edge platform for scaling AI applications. The platform's edge infrastructure incorporates the OpenVINO AI inference runtime for edge AI, along with secure, policy-based automation of IT and OT management tasks. Over the past five years, Intel's OpenVINO has undergone evolution to assist developers in optimizing applications for low latency and low power consumption, facilitating deployment on existing hardware at the edge. The enables standard hardware that is already deployed to efficiently run AI applications without the need for costly upgrades or extensive modifications.

Geographical Penetration

North America is Dominating the Edge AI Market

North America is a pioneer in Edge AI technology development and adoption. Innovation and investment in Edge AI have been fueled by the region's strong ecosystem of technology startups, research centers and venture capitalists. Many significant technological companies that have led the way in creating and implementing Edge AI solutions are based in North America, including Google, Microsoft, Amazon, IBM and Intel. The businesses could dedicate substantial R&D resources to Edge AI research, development and commercialization.

Major key players in the region launched new innovative products which helped to boost regional market growth over the forecast period. For instance, on March 15, 2023, Texas Instruments launched a new family of six Arm Cortex-based vision processors that allow designers to add more vision and artificial intelligence (AI) processing at a lower cost and with better energy efficiency in various applications such as video doorbells, machine vision and autonomous mobile robots.

Competitive Landscape.

The major global players in the market include ADLINK Technology Inc., Alphabet Inc., Amazon.com, Inc., Gorilla Technology Group, Intel Corporation, International Business Machines Corporation, Microsoft Corporation, Nutanix, Inc. Synaptics Incorporated and Viso.ai.

COVID-19 Impact Analysis

Production and delivery of AI edge hardware components were impacted by the pandemic's interruption of global supply chains. Delays in the development and deployment of AI edge devices resulted from the availability of essential parts hampered by manufacturing slowdowns, movement restrictions and border closures. The epidemic pushed up the industry's adoption of digitalization and remote labor. To facilitate remote collaboration, improve cybersecurity for scattered networks and offer edge computing capabilities for distant operations, there's a greater need for AI edge solutions.

Due to the increase in digital activities and detached work, edge computing solutions were becoming increasingly vital to process data closer to the source and reduce latency. AI edge technologies are essential for providing edge computing capabilities, which increases approval in a variety of industries, including retail, logistics and manufacturing. The pandemic hampered research and development efforts in the AI edge sector, which led to several initiatives being shelved or delayed due to restricted access and collaboration in facilities. Research on AI-driven solutions for contact tracing, disease prediction at the edge and pandemic monitoring, however, has increased significantly.

Russia-Ukraine War Impact Analysis

The conflict disrupts the supply chains of AI edge technology components or manufacturing facilities located in the affected regions (Russia or Ukraine), it could lead to delays or shortages in product availability. It could impact companies reliant on these supply chains for their AI edge solutions. Geopolitical tensions create uncertainty in global markets, leading to hesitancy among businesses to invest in AI edge technologies due to concerns about geopolitical stability, trade disruptions or economic sanctions.

Companies increase their investment strategies in AI edge technologies, potentially diverting resources away from regions directly affected by the conflict to more stable areas. It could lead to shifts in research and development, manufacturing or investment in AI-edge startups and companies. Geopolitical tensions and conflicts prompt governments to enact new regulations or export controls on AI edge technologies, particularly if they are deemed sensitive or have dual-use applications. The regulatory changes could impact the global flow of AI edge technology and influence market dynamics.

By Component

• Hardware
• Software
• Edge Cloud Infrastructure
• Services

By Technology

• Machine Learning (Deep Learning, Machine Learning Models)
• Computer Vision
• Natural Language Processing
• Predictive Analytics

By End-User

• Consumer Electronics
• Manufacturing
• Automotive
• Government
• Healthcare
• Energy
• Healthcare
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On February 01, 2024, Advantech launched a ruggedized edge AI system for heavy industry applications. The MIC-715-OX ruggedized edge AI system is purpose-built to address these exact challenges. Encased in ruggedized housing, it effectively mitigates vibrations and mechanical shocks. With an IP67 rating, it ensures resistance against water and dust ingress. Its fanless design ensures optimal cooling in any weather condition, eliminating the need to draw outside contaminated air into the enclosure.
• On October 10, 2023, Macrometa launched PhotonIQ, AI Services at the Edge. PhotonIQ utilizes both Macrometa's unparalleled Global Data Network (GDN), which provides data and computational capabilities to two billion individuals and 10 billion devices globally and the most recent advancements in Artificial Intelligence and Machine Learning.
• On January 10, 2024, Ambarella, Inc. launched the leading-edge Cooper Developer Platform. Cooper provides a seamless integration of software, hardware, advanced finely-tuned AI models and services, offering comprehensive support for Ambarella's complete range of AI systems-on-chip (SoCs).

Why Purchase the Report?

• To visualize the global edge AI market segmentation based on component, technology, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of edge AI market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global edge AI market report would provide approximately 62 tables, 59 figures and 201 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies