Global Edge AI Market Size, Share, Opportunities, And Trends By Component (Services, Solutions), By Data Sources (Mobile Data, Sensor Data, Biometric Data, Speech, Video And Image Recognition), By Application (Video Surveillance, Access Management, Autonomous Vehicles, Energy Management, Others), And By Geography - Forecasts From 2024 To 2029

The global edge AI market is expected to grow at a CAGR of 25.90%, reaching a market size of US$76.066 billion in 2029 from US$32.569 billion in 2024.

Edge computing and artificial intelligence (AI) technology are combined to create edge AI. With the help of this solution, several AI algorithms with edge computing capabilities can operate locally on devices for vital applications. This solution enables local devices to process data in real time without internet access. Company sectors such as automotive, manufacturing, healthcare, energy and utility, consumer goods, IT, and telecom are making use of these gadgets. Edge AI enables fast data processing, leading to real-time information processing on the Internet of Things (IoT) gadgets. Instead of being stored in the cloud, edge AI stores the data required to apply AI locally on the device or a nearby server.

Multi-Access Edge Computing architecture provides networking, storage, and processing capabilities at the edge of the network, near end users and end devices. Virtual devices, as opposed to actual edge computers, are utilized in MEC Edge AI use cases to process camera video streams over a 5G connection. For instance, in February 2023, Dublin City University in Europe and Cellnex Ireland, a European provider of wireless telecom infrastructure, worked together to develop a 5G-enabled smart campus. Cellnex installed a range of telecommunication infrastructure on the campuses as part of this partnership to enable Mobile Edge Computing (MEC) capabilities and guarantee 5G coverage throughout the main campus.

What are the edge AI market growth drivers?

• Increasing demand for edge AI in the healthcare industry is anticipated to propel the market growth

The healthcare industry is seeing a sharp rise in AI applications because these technologies yield accurate results. Applications include electroceuticals, robotics-assisted surgery, image analysis, and virtual diagnostics.

These instruments enable doctors to consult with patients remotely and assist healthcare organizations in analyzing health data. Additionally, edge-based cybersecurity is employed to protect private medical information.

The major market players are attempting to organize and create new technological advancements. Furthermore, the healthcare sector will benefit from the high performance and acceleration provided by the integration of this technology. For instance, Nvidia extended the use of its Edge Artificial Intelligence technology for robotics and healthcare in September 2022. The Nvidia IGX Platform aims to accelerate performance and extract real-time insights for use in both industrial and medical use cases.

• Rising demand for autonomous vehicles is anticipated to drive market growth

The decision-making processes of these automated systems are based on advanced machine learning and artificial intelligence techniques. The connection to the edge enhances productivity, reduces accident rates, increases safety, and mitigates traffic congestion for self-driving cars.

Additionally, such robotics applications are becoming popular owing to lessened latency and the need for bandwidth. Smart ports, AI-based robotic systems, or smart factories use high-tech robots like those found in WeRide and Lenovo Vehicle Computing. These two companies allied in March 2024 to create level 4 autonomous vehicle technology for commercial purposes. This partnership is to develop an advanced intelligent driving system based on Lenovo’s recently announced AD1 autonomous driving domain controller. This controller is powered by the NVIDIA DRIVE Thor platform that features next-gen Blackwell architecture optimized for transformer tasks and generative AI. The system is additionally trained using NVIDIA’s next-generation data center AI solutions.

• High adoption of hardware devices is increasing the market share

The hardware market is expanding as a result of the growing use of 5G networks and the increased need for edge computing solutions based on the IoT to link telecom and IT. IoT devices heavily utilize dedicated AI processors for on-device image analytics. For example, in May 2022, the independent Intel company Habana Labs in Israel released its second-generation deep-learning processors. Habana Labs focuses on developing disruptive solutions for data center and cloud efficiency. These new processors aim to provide customers with efficient and high-performing options for deep-learning computing in the data center for inference deployments and training workloads.

Major challenges hindering the global edge AI market.

• Increased cases of security flaws are anticipated to impede market growth

Applications for edge devices are vulnerable to security risks because the data they secure and store is sensitive information. This is one of the newer developments, and all sectors lack experience and understanding in this area.

Furthermore, edge computing necessitates standardized units and is highly dependent on hardware. The prototype requires a lot of time to build and implement in production. It’s also quite an expensive process to train, requiring many resources and R&D efforts. Many other factors complicate applying this technology, such as processors, memory requirements, and power usage, hindering market growth.

What are the key geographical trends shaping the edge AI market?

• North America is witnessing exponential growth during the forecast period

The rapid expansion of North American markets can be attributed to companies in the region adopting sophisticated technologies like AI and machine learning.

Moreover, AI technology is getting national attention from the U.S. government as its main goal. For example, in March 2024, the AI solutions provider Innodisk demonstrated its expertise in integrating edge AI at NVIDIA GTC in the United States. With a focus on delivering customizable AI solutions available to various industries, Innodisk actively shares its research and real-world edge AI implementations globally. The company highlights useful applications across industries by showcasing how its camera modules seamlessly integrate with NVIDIA's specialized AI visual technology.

Recent developments in the edge AI market

• In July 2024, a leading provider of IT infrastructure and services, NTT DATA, unveiled its new Edge AI platform, which pushes AI processing to the edge to speed up IT/OT convergence. With the help of this special, fully managed solution, advanced Industry 4.0 technologies can be driven across industries with real-time decision-making, improved operational efficiencies, and secure AI application deployment. It does this by processing data when and where it is generated and unifying diverse IoT devices, systems, and data.
• In June 2024, Advantech presented a cutting-edge Edge AI server solution for generative AI that leverages aiDAPTIV+, a patented technology from Phison. Utilizing an AMD EPYC 7003 series processor, the AIR-520 Edge AI Server combines NVIDIA RTX GPU cards, SQ ai100 AI SSDs, an Edge AI SDK, and NVIDIA AI Enterprise to offer a solution that is ready for immediate deployment.
• In June 2024, STMicroelectronics made the ST Edge AI Suite available, which combines information, software, and tools to make developing edge-AI applications easier and faster. This integrated set of software tools facilitates the creation and implementation of embedded AI applications.

Global Edge AI Market Scope:

Report Metric	Details
Global Edge AI Market Size in 2024	US$32.569 billion
Global Edge AI Market Size in 2029	US$76.066 billion
Growth Rate	CAGR of 25.90%
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segmentation	Component Data Sources Application Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in Global Edge AI Market	Microsoft Corporation Alphabet Inc. Amazon IBM Corporation Apple
Customization Scope	Free report customization with purchase

 

The global Edge AI market is analyzed into the following segments:

• By Component
  • Services
  • Solutions
•  By Data Sources
  • Mobile Data
  • Sensor Data
  • Biometric Data
  • Speech, Video, and Image Recognition
•  By Application
  • Video Surveillance
  • Access Management
  • Autonomous Vehicles
  • Energy Management
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. CXO Perspective

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. GLOBAL EDGE AI MARKET BY COMPONENT

5.1. Introduction

5.2. Services

5.3. Solutions

6. GLOBAL EDGE AI MARKET BY DATA SOURCES

6.1. Introduction

6.2. Mobile Data

6.3. Sensor Data

6.4. Biometric Data

6.5. Speech, Video, and Image Recognition

7. GLOBAL EDGE AI MARKET BY APPLICATION

7.1. Introduction

7.2. Video Surveillance

7.3. Access Management

7.4. Autonomous Vehicles

7.5. Energy Management

7.6. Others

8. GLOBAL EDGE AI MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Component

8.2.2. By Deployment

8.2.3. By Application

8.2.4. By Country

8.2.4.1. USA

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Component

8.3.2. By Deployment

8.3.3. By Application

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Component

8.4.2. By Deployment

8.4.3. By Application

8.4.4. By Country

8.4.4.1. UK

8.4.4.2. Germany

8.4.4.3. France

8.4.4.4. Spain

8.4.4.5. Others

8.5. Middle East and Africa

8.5.1. By Component

8.5.2. By Deployment

8.5.3. By Application

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. Israel

8.5.4.3. Others

8.6. Asia Pacific

8.6.1. By Component

8.6.2. By Deployment

8.6.3. By Application

8.6.4. By Country

8.6.4.1. Japan

8.6.4.2. China

8.6.4.3. India

8.6.4.4. South Korea

8.6.4.5. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Microsoft Corporation

10.2. Alphabet Inc.

10.3. Amazon

10.4. IBM Corporation

10.5. Apple

10.6. Intel

10.7. Anagog Ltd.

10.8. Nutanix

10.9. Octonion SA.

10.10. Synaptics Incorporated

Microsoft Corporation

Alphabet Inc.

Amazon

IBM Corporation

Apple

Intel

Anagog Ltd.

Nutanix

Octonion SA.

Synaptics Incorporated