USD 15.60 billion
Edge Artificial Intelligence (AI) Market Size, Share, Growth Analysis, By Component(Hardware, Network), By Application(Video Surveillance, Access Management), By End Use Industry(Automotive, Manufacturing) - Industry Forecast 2024-2031
Report ID:
SQMIG45A2309 |
Region:
Global |
Published Date: April, 2024
Pages:
197
|
Tables:
95 |
Figures:
74
Edge Artificial Intelligence (AI) Market Insights
Edge Artificial Intelligence (AI) Market size was valued at USD 15.60 billion in 2022, USD 20.55 billion in 2023 and is projected to grow USD 185.95 billion by 2031, growing at a CAGR of 31.7% in the forecast period (2024-2031).
The term "edge AI" describes the application of artificial intelligence algorithms on edge devices—such as embedded systems, smartphones, and Internet of Things devices—that are situated in close proximity to data sources. Edge AI handles data locally as opposed to standard cloud-based AI, which eliminates the requirement for continuous data transfer to and from a centralized server. Numerous benefits come with this method, such as less latency, less bandwidth used, increased privacy, and better operational efficiency. Within the larger AI and IoT industries, the Edge AI industry is a growing component. The market is expanding quickly, which is explained by the rising demand for artificial intelligence (AI) applications that are decentralized, low-latency processing, and energy-efficient computes.
The market for Edge AI is expected to increase significantly in the near future due to a number of important considerations and opportunities. The expanding number of IoT devices, developments in AI and machine learning, and the growing demand for real-time data processing and analysis are the main factors propelling this rise. Large volumes of data have been produced by the explosion in connected devices, which calls for effective local processing to reduce latency and bandwidth consumption. This requirement is especially important for applications where making decisions in real time is crucial, such infrastructure for smart cities, healthcare monitoring, and autonomous cars. Another important factor is the use of 5G technology, which improves connectivity and data transmission rates, increasing the viability and efficiency of Edge AI systems.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Hardware
Fastest Growth
Network
Growth Rate
31.7% CAGR
Global Edge Artificial Intelligence (AI) Market ($ Bn)
Country Share by North America (%)
Global Edge Artificial Intelligence (AI) Market By Component ($ Bn)
Global Edge Artificial Intelligence (AI) Market By Component (%)
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Edge Artificial Intelligence (AI) Market Segmental Analysis
The global edge artificial intelligence (AI) market is segmented based on component, application, end use industry, and regional type. In terms of component, the market is segmented into hardware, network, edge cloud infrastructure, software and support services. Based on application, the market is grouped into video surveillance, access management, autonomous vehicles, energy management and others. In terms of end use industry, the market is segmented into automotive, manufacturing, healthcare, energy & utility, consumer goods, IT & telecom and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Central & South America and Middle East & Africa.
Edge Artificial Intelligence (AI) Market Analysis by Component
As per categorization by component, the market is classified as hardware, network, edge cloud infrastructure, software and support services. Among these, hardware earned the largest share and continues to dominate the market. To run edge AI applications, hardware elements such as processors, accelerators, and sensors are required. Processing power, customization for artificial intelligence (AI) workloads, reduced latency for real-time processing, energy efficiency and adaptability across applications, and steady technological developments are some of the elements that contribute to this supremacy. The demand for sophisticated and specialized hardware components is still high, supporting the dominance of the hardware market as edge AI applications spread throughout industries.
The Global Edge AI Market is expected to grow rapidly due to the significance of network, edge cloud infrastructure, software, and support services in facilitating effective edge computing ecosystems. Strong network infrastructure and edge computing platforms are in higher demand as enterprises implement AI-driven applications at the edge more frequently in order to manage data processing closer to the source. Further propelling growth in these sectors is the need for complete software and support services due to the complexity of implementing and administering edge AI solutions, which organizations are seeking to integrate and manage their edge AI installations seamlessly.
Edge Artificial Intelligence (AI) Market Analysis by Application
Edge AI is used by video surveillance apps to provide improved security and real-time video analysis. Edge AI is used by access management to provide secure authentication and access control systems. For on-board processing and decision-making in navigation and collision avoidance, autonomous cars depend on Edge AI. Edge AI is utilised in energy management to optimise energy consumption and facilitate smart grid management. Furthermore, Edge AI finds use in a number of industries, including manufacturing, retail, healthcare, and agriculture. By breaking the market down into segments according to applications, industry-specific strategies and focused solutions may be implemented to satisfy the unique needs of each segment.
Owing to their potential to revolutionize a wide range of industries, edge AI applications such as energy management, autonomous vehicles, and access control are expected to rise at a quick pace in the global edge market. Access management solutions are becoming more and more popular in industries like healthcare and finance as they use edge AI to improve security and expedite authentication procedures. For real-time decision-making, autonomous cars rely on edge AI, which offers substantial development potential in the transportation sector. Energy management systems are being adopted by utilities and manufacturing as they use edge AI to optimize resource utilization and minimize costs. These case studies show emerging markets with great room for growth and innovation in the edge AI space.
Global Edge Artificial Intelligence (AI) Market By Component (%), 2022 (%)
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Edge Artificial Intelligence (AI) Market Regional Insights
Due in large part to the region's businesses, particularly those in the United States, placing a high priority on implementing cutting-edge technologies like artificial intelligence (AI), deep learning, and machine learning, North America accounted for the largest share of the market. The national implementation of artificial intelligence technology is the primary emphasis of the U.S. government. Due to the increasing demand for these solutions in the manufacturing, automotive, energy & utility, and other sectors in the United Kingdom, Germany, France, and Italy, Europe is anticipated to represent a significant portion of the market. Players in the market are allocating significant resources to research and development in order to concentrate on the creation of these solutions.
The growing use of innovative technologies in the Middle East and Africa is driving the industry. Industry 4.0, for example, is a major area of concentration for the Ministry of Industry and Advanced Technology (MoIT) in the United Arab Emirates. This initiative helps manufacturers implement newly released 4IR (VR, AR, ML, IoT, and Al) technology. The market in Asia Pacific is anticipated to expand at the fastest rate (CAGR). Leading companies in the area are extending their reach throughout developing countries by providing cutting-edge technology solutions. Companies in Japan are creating cutting-edge Al solutions for the manufacturing and automotive industries. Due to the funding and investments acquired by the region for the implementation of these technologies, Latin America is becoming more and more popular in the market.
Global Edge Artificial Intelligence (AI) Market By Geography, 2024-2031
- Largest
- Fastest
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Edge Artificial Intelligence (AI) Market Dynamics
Edge Artificial Intelligence (AI) Market Drivers
Growing Need for Robotics and Autonomous Cars
- For self-driving cars to operate effectively, real-time data communication to the cloud is required. Advanced machine learning and artificial intelligence technologies help these autonomous driving systems make decisions, which satisfies this need. Connecting to the edge, autonomous cars increase productivity, lower accident rates, boost security, and ease traffic congestion.
High Requirement for Processing Data in Real Time
- The growing demand for real-time data processing, which is essential in industries like industrial automation, healthcare, and autonomous cars, is the main driver of the Edge AI market. This necessity stems from the imperative need for quick decision-making and action-taking, which cannot withstand the delay associated with cloud-based data processing. Edge AI dramatically lowers latency by enabling data processing at the data source, improving operational responsiveness and efficiency.
Edge Artificial Intelligence (AI) Market Restraints
Security Vulnerabilities and Vulnerable Malware Infiltration to Obstruct
- Due to the cybersensitivity of the data they secure and store, Edge Al apps are vulnerable to security risks. It is one of the newer developments, and all industries overlook the lack of experience and understanding in this area. Furthermore, edge computing necessitates standardised units and is very dependent on hardware. The prototype requires a lot of effort to build and takes a while to implement in production. Additionally, there is a significant expense for training, personnel, and R&D.
Challenges of Edge AI in Computing Constraints, Data Privacy, and Security
- A principal obstacle is the restricted computational capacity of edge devices in contrast to cloud servers, which limits the intricacy and scope of AI models that can be implemented. The processing of data locally on dispersed edge devices raises serious concerns about data privacy and security, requiring strong security measures to safeguard sensitive data.
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Edge Artificial Intelligence (AI) Market Competitive Landscape
The competitive landscape in the Edge AI industry is defined by the existence of major competitors fighting for market supremacy. To strengthen their positions in the market, these businesses engage in a range of strategic interactions, such as collaborations, acquisitions, regional expansion, and product development. Among the top companies in the Edge AI industry are Qualcomm, NVIDIA, IBM, Microsoft, Intel, and Google.
Edge Artificial Intelligence (AI) Market Top Player’s Company Profiles
- Siemens AG (Germany)
- Advanced Micro Devices, Inc. (AMD) (US)
- Advanced Micro Devices, Inc. (AMD) (US)
- Huawei Technologies Co., Ltd. (China)
- NVIDIA Corporation (US)
- Amazon Web Services (AWS) (US)
- Baidu, Inc. (China)
- Cisco Systems, Inc. (US)
- Minima Global Ltd. (UK)
- Accenture PLC (Ireland)
- MediaTek Inc. (Taiwan)
- Dell Technologies Inc. (US)
- SAP SE (Germany)
- Xilinx, Inc. (US)
- Fujitsu Limited (Japan)
Edge Artificial Intelligence (AI) Market Recent Developments
- In March 2023, Minima Global Ltd. of Europe teamed up with Inferrix Limited, a software company based in the UK. Through this partnership, Minima's blockchain technology will be combined with Inferrix's AI and IoT edge capabilities. The goal of this strategic alliance is to develop unique Internet of Things technologies that ensure seamless, safe sensor interactions while preserving vital data integrity.
- In September 2022, The NVidia IGX platform was unveiled by American software company NVidia Corporation. With this version, edge AI capabilities in the robotics and healthcare areas are amplified. The platform consists of an edge AI device designed for robotic systems and a computing system optimized for AI applications. This initiative's main goal is to combine real-time computer vision driven by deep learning technology with imaging sensors to bring robotics into healthcare settings.
- In January 2024, Leading tech corporations increased their spending in edge computing projects, which led to a spike in the global edge AI market. New edge AI processors and platforms were launched by companies like as Intel, NVIDIA, and Qualcomm with the goal of improving edge device processing power and efficiency. The surge in innovations can be attributed to the increasing acknowledgement of the importance of edge AI in facilitating autonomous functions and real-time decision-making in many industries. This has led to increased market competitiveness and growth.
Edge Artificial Intelligence (AI) Key Market Trends
- Increased digital dependence in Edge Artificial Intelligence (AI) in industry 4.0: With the integration of cutting-edge technologies like artificial intelligence (AI), the Internet of things (IoT), cloud computing, and automation to build "smart factories" and facilitate data-driven decision-making, Industry 4.0 marks a paradigm shift in manufacturing and industrial processes. By processing data closer to its source, usually within edge devices or at the edge of the network, edge AI plays a critical role in Industry 4.0 by lowering latency, improving real-time insights, and enabling autonomous operations.
- AI Market Revolutionizing Real-Time Analytics, Convergence, and Security: Currently, the Edge AI market is seeing a number of noteworthy trends that are having a big influence on its expansion and advancement. The increasing need for real-time analytics and decision-making capabilities across a variety of businesses is one such development. The adoption of Edge AI solutions, which offer quick response times and lower latency, is being fueled by this increase in demand. The confluence of cloud services and edge computing is another significant trend that offers improved scalability and resource utilization.
Edge Artificial Intelligence (AI) Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, global Edge AI market is driven by the growing need for real-time data processing, which is critical for sectors like industrial automation, healthcare, and autonomous vehicles. By enabling data processing at the source, Edge AI significantly reduces latency and improves operational responsiveness, facilitating quick decision-making and action-taking—both of which are necessary for efficient operation. Due to edge AI apps are still in their infancy and are dependent on hardware and lack industry experience, they present serious security risks. Additionally, issues like low processing power and privacy concerns prevent Edge AI apps from being widely used, which calls for strong security protocols and large expenditures on R&D and training.
Major firms including Qualcomm, NVIDIA, IBM, Microsoft, Intel, and Google use strategic activities like partnerships, acquisitions, and product development to fortify their market positions and compete for dominance in the intensely competitive Edge AI industry. With edge AI playing a critical role in processing data closer to its source, reducing latency, and enabling autonomous operations, Industry 4.0's integration of advanced technologies like AI, IoT, and automation is reshaping manufacturing processes and bringing about a significant shift in industry practices.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 15.60 billion |
| Market size value in 2031 | USD 185.95 billion |
| Growth Rate | 31.7% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Edge Artificial Intelligence (AI) Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Edge Artificial Intelligence (AI) Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Edge Artificial Intelligence (AI) Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Edge Artificial Intelligence (AI) Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Edge Artificial Intelligence (AI) Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Edge Artificial Intelligence (AI) Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Edge Artificial Intelligence (AI) Market Report Snapshots
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