Edge AI Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Edge Cloud Infrastructure, Services), By End-use Industry, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global edge AI market size was valued at USD 14,787.5 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 21.0% from 2023 to 2030. The growing use of edge AI applications such as smart AI vision, smart energy, AI healthcare, smart factory, and intelligent transportation systems is attributed to the market growth. For instance, in March 2022, Synaptics, a U.S.-based hardware company, released the Katana Edge AI Kit to speed up the development of sensor fusion applications and AI vision for the IoT. This kit integrates motion, vision, sound detection software, and hardware with wireless and wired connectivity to simplify the design and development of edge AI for the IoT.

Edge AI enables real-time data processing on IoT devices by ensuring high-performance data computation. The data required to apply AI in edge devices is stored on the device or a nearby server instead of in the cloud in the case of edge AI, which reduces computation latency and returns processed data quickly.

For instance, in March 2023, Minima Global Ltd, a Europe-based blockchain platform developer, collaborated with Inferrix Limited, a software company in the U.K., by combining Minima's blockchain technology with Inferrix's IoT edge and AI offerings. This partnership aims to develop unique IoT solutions by ensuring efficient and secure communication between all sensors and protecting mission-critical data.

Multi-Access Edge Computing architecture offers storage, computation, and networking capabilities at the network's edge, close to end-users and end devices. In MEC Edge AI use cases, virtual devices are used rather than physical edge computers to process camera video streams over a 5G connection.

For instance, in February 2023, Cellnex Ireland, an operator of wireless telecom infrastructure in Europe, and Dublin City University in Europe collaborated to create a 5G-enabled smart campus. Through this partnership, Cellnex installs a variety of telecommunication infrastructure to ensure 5G coverage across the main campus and to enable Mobile Edge Computing (MEC) capabilities on the campuses.

The use of artificial intelligence applications, including virtual diagnostics, robotics-assisted surgery, image analysis, and electroceuticals in the healthcare sector, is rapidly increasing because of the accurate output results provided by such solutions. Moreover, edge-based cybersecurity is used to protect sensitive health data.

For instance, in September 2022, Nvidia Corporation, a U.S.-based software company, released the Nvidia IGX platform to expand edge AI tech for robotics and healthcare. This platform includes an AI-optimized computing system and device for edge AI in robotics. This initiative aimed to bring robotics to healthcare by combining imaging sensors with real-time, deep-learning computer vision.

Component Insights

The hardware segment dominates the market, with a revenue share of 53.6% in 2022. The increasing adoption of 5G networks and the rising demand for IoT-based edge computing solutions to connect IT and telecom are responsible for the growth of the hardware segment. IoT devices make extensive use of dedicated AI processors for on-device image analytics.

For instance, in May 2022, Habana Labs, an independent Intel company in Israel focusing on developing disruptive solutions for data center and cloud efficiency, announced the launch of its second-generation deep-learning processors. These new processors are intended to provide customers with high-efficiency, high-performance deep-learning computing options for inference deployments and training workloads in the data center.

The software segment is expected to rise significantly, with a CAGR of 23.7% during the forecast period. The 5G network enables the establishment of data centers at the edge and deploying industry-specific networks in a single framework using software-defined networking principles.

Moreover, the proliferation of 5G networks in various applications is expected to increase the volume of data transferred to data centers, raising the need for intermediary servers or edge networks. Edge AI software offers users data in real-time because it does not require other systems or internet connections to connect to others, which leads to the growth of the software sector.

End-use Industry Insights

The IT & telecom segment held the largest revenue share of 21.4% in 2022. The proliferation of connected IoT devices and the transition of telecom networks to 5G created new opportunities and challenges for telecom operators, which propels the IT & Telecom sector. For instance, in March 2023, HFCL limited, a telecom company in India, partnered with Microsoft Corporation, a U.S.-based technology company, to develop private 5G solutions for businesses in industries, including retail and warehouse, manufacturing, mining, etc.

HFCL is implementing an Industry 4.0 solution in its factory, using Azure public multi-access edge compute (MEC). Operators are bringing their AI and ML capabilities much closer to the components in their IoT networks to develop next-generation telecom solutions that maximize network performance, security, and reliability.

Consumer electronics is predicted to grow significantly during the forecast period because of the proliferation of smart wearables, smart speakers, and other digital devices. The consumer electronics industry has made AI chipsets widely available and affordable. Moreover, data processing on edge AI chips also improves consumer device privacy and security. The Consumer Electronics category is projected to evolve significantly with new inventions and ideas.

Regional Insights

North America dominated the market, with a revenue share of 39.9% in 2022. The region is expected to continue witnessing growth with the advent of superior 5G network technology. The growth is driven by a significant focus on adopting advanced technologies such as AI, deep learning, and machine learning by the region's enterprises.

For instance, in September 2021, Synaptics Incorporated, a U.S.-based hardware company, partnered with Edge Impulse, a machine-learning development platform for edge devices in California, to integrate Synaptics' Katana edge AI and the edge software development platform. This collaboration is intended to enable developers to create production-ready models and accelerate low-power edge AI deployment.

Market revenue in Asia Pacific is anticipated to grow significantly throughout the forecast period. Many Asian countries, including China, India, and Japan, are using the benefits of information-intensive AI and ML technologies in various industries.

For instance, in October 2021, Blaize, a semiconductor manufacturer in the U.S., partnered with NEXTY Electronics, a supplier of electronic components and equipment in Japan, to market AI edge computing products of Blaize in Japan’s industrial and automotive markets. This collaboration is intended to focus on innovation, analyzing customer needs across different industries, and driving the adoption of edge AI applications empowered by Blaize's low latency, low-power AI offering.

Key Companies & Market Share Insights

The market is characterized by strong competition, with a few major worldwide competitors owning a significant market share. The major focus is on developing new products and collaboration among the key players.For instance, in May 2021, STMicroelectronics, a European semiconductor manufacturing company, acquired Cartesiam, a software company in France. Through this acquisition, STMicroelectronics strengthened its technology portfolio and reinforced its AI strategy with the help of Cartesiam. Some prominent players in the global edge AI 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

• Viso.ai

Edge AI Market Report Scope

Global Edge AI Market Report Segmentation

This report forecasts revenue growth on global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global edge AI market report based on component, end-use industry, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Software

  • Edge Cloud Infrastructure

  • Services

• End-use Industry Outlook (Revenue, USD Million, 2018 - 2030)

  • Consumer Electronics

  • Smart Cities

  • Manufacturing

  • Automotive

  • Government

  • Healthcare

  • IT & Telecom

  • Energy

  • Retail

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa