Edge AI Market Analysis

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.