Edge AI Market Size By Component (Hardware [GPU, ASIC, CPU, FPGA], Software, Services), By Application (Video Surveillance, Remote Monitoring, Predictive Maintenance) By End-use, & Forecast, 2023 – 2032

Edge AI Market Size

Edge AI Market size exceeded USD 5 billion in 2022 and is projected to grow at a CAGR of 24.8% from 2023 to 2032, attributed to the rising adoption of cloud computing globally.
 

Cloud computing & Edge AI are closely intertwined and dependent on each other in various ways. Edge AI involves the deploying of AI applications & services at the network edge, where data is produced, while cloud computing involves the delivering of computing resources via the internet. Edge AI offers benefits such as reduced latency and improved real-time processing, enabling organizations to make faster & more accurate decisions in critical areas including industrial automation, autonomous vehicles, and smart cities.

The surging cloud computing adoption has fueled the expansion of Edge AI by providing organizations with the necessary computing power and storage to deploy AI applications at the network edge. The need for real-time insights will continue to grow as organizations generate more data, propelling the market expansion.
 

Edge AI Market Trends

The Edge AI market will grow significantly during the forecast period, due to the increasing adoption of 5G technology. 5G is the latest wireless communication technology that provides faster & more reliable connectivity compared to previous generations of wireless technology. With their high bandwidths and low latency, 5G networks allow data transmission & processing at the edge of the network, enabling the deployment of edge AI in various applications. Moreover, 5G technology offers improved security features, such as encrypted data transmission, which are vital for Edge AI applications that require secure data processing. These features allow organizations to deploy Edge AI in sensitive areas such as manufacturing, healthcare, government, transport, BFSI, and defense.
 

The Edge AI market growth is credited to increasing concerns related to privacy and security. A significant challenge facing the market is the absence of standardized security protocols for Edge AI devices, which increases their vulnerability to cyber-attacks. With limited computing resources, edge devices may not have the necessary security measures, such as firewalls or antivirus software, to safeguard against threats. This may put sensitive data at risk, thus raising compliance issues. To overcome these challenges, standardized security protocols, privacy regulations, and ethical frameworks are necessary to ensure that data is processed securely and transparently.
 

Edge AI Market Analysis

The Edge AI software market held over 52.51% revenue share in 2022. The rising smart devices, such as smartphones, wearables, and IoT devices, have resulted in a surge of data generated at the edge of the network. This has increased the demand for edge AI software capable of processing and analyzing data in real-time. Additionally, the introduction of cloud-to-edge architectures has simplified the deployment of edge AI software. These architectures distribute processing power and storage resources between the cloud & edge devices, allowing organizations to leverage the benefits of both centralized and distributed processing.
 

On the other hand, the increasing adoption of AI and machine learning in various industries, such as healthcare, manufacturing, and retail, is driving the Edge AI software market growth. Industries are inclined toward using Edge AI solutions to enable real-time data processing, enhance decision-making, and reduce latency, which can provide a competitive advantage to the business.
 

The service segment is expected to expand at a CAGR of 26.8% between 2023 and 2032. One of the main factors responsible for this growth is the complexity of deploying & managing edge AI solutions, which requires a workforce with specialized technical knowledge and expertise. Many organizations may lack the necessary in-house expertise, leading to a greater demand for service providers who can offer training, education, and support for edge AI deployment. System integration & testing is another crucial service offered by service providers in the market. Service providers can help organizations integrate edge AI solutions with their existing systems, ensuring that the solutions are secure and meet compliance requirements.
 

The edge AI market share from healthcare segment will witness over 28.9% CAGR through 2032, led by the rapid adoption of technology to improve patient care and outcomes. The ability to collect, process, and analyse data in real-time, edge AI offers healthcare providers a solution that can facilitate more accurate diagnoses and personalized treatment plans. Furthermore, edge AI has the potential to minimize healthcare costs by reducing the need for expensive hardware and streamlining data processing and analysis, making it an appealing option for healthcare providers seeking to optimize their operations and enhance efficiency.
 

Video surveillance segment in Edge AI market accounted for USD 2 billion revenue in 2022. Edge AI plays a crucial role in video surveillance by facilitating real-time analysis and processing of video data directly on the device where cameras are located. This eliminates the need to transfer data to a centralized server for analysis and enables faster and more precise detection of security threats such as unauthorized access or suspicious behavior. Additionally, security operations become more efficient and effective.
 

The growth of the market in video surveillance is attributed to the escalating demand for advanced video analytics capabilities that enhance security operations. Moreover, the use of high-resolution cameras and the requirement for real-time processing of vast amounts of data are also contributing to the market expansion.
 

The Asia Pacific Edge AI market size is estimated to register 27.8% CAGR during the forecast timeline, on account of rapid adoption of IoT and AI devices. Additionally, significant investments in the development of 5G infrastructure for providing faster & more reliable connectivity are facilitating the deployment of edge AI solutions. The region houses a huge number of tech companies and startups that are developing & deploying Edge AI solutions. 
 

Edge AI Market Share

Some prominent players in the Edge AI market include:

• Dell
• Anagog Ltd
• Google (Alphabet Inc.)
• IBM Corporation
• Gorilla technology Ltd
• Imagimob AB
• Amazon Web Service (AWS)
• Huawei Technologies Co., Ltd.

These companies are focused on enhancing edge AI services around the globe. In January 2023, Dell launched over 13 new servers designed to support AI, security, and sustainability. The latest server models significantly boost AI inferencing performance by up to 2.9 times compared to the previous counterparts.
 

This market research report on edge AI includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2018 to 2032, for the following segments:

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Market, By Component

• Hardware
  • Graphics Processing Unit (GPU)
  • Application Specific Integrated Circuit (ASIC),
  • Central Processing Unit (CPU)
  • Field-Programmable Gate Array (FPGA)
• Software
• Service
  • Training & Consulting
  • Support & Maintenance
  • System Integration and Testing

Market, By End-use

• Manufacturing
• Healthcare
• BSFI
• Government
• Retail & e-commerce
• Telecommunication
• Transport & logistics
• Others

Market, By Application

• Video Surveillance
• Remote Monitoring
• Predictive Maintenance
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • South Africa
  • UAE
  • Saudi Arabia