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In-Depth Analysis of the Embedded AI Market: Growth Opportunities, Key Trends, and Forecast 2025-2034
Embedded AI Market
The surge in industrial automation is projected to catalyze the expansion of the embedded AI market in the future. Industrial automation leverages sophisticated technologies, control systems, and machinery to simplify industrial processes and procedures. Embedded AI features prominently in industrial automation, boosting productivity, efficiency, and decision-making in manufacturing and production operations. It is utilized in machine vision, quality control, predictive maintenance, and robotics automation. For example, the International Federation of Robotics, a non-profit organization based in Germany, reported in September 2024 that in 2023, the number of units in operation in factories globally was 4,281,585, representing a 10% jump from the prior year. Consequently, the rise in industrial automation is fuelling the growth of the embedded AI market.
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What is the projected compound annual growth rate (CAGR) of the embedded ai market from 2025 to 2034, and what factors influence it?
The size of the embedded AI market has seen a swift expansion in the past few years. The market, which is slated to expand from $14.28 billion in 2024 to $15.81 billion in 2025, will experience a compound annual growth rate (CAGR) of 10.7%. Factors like the miniaturization of hardware components, a surge in demand for smart devices, broader connectivity and IoT advancements, improvements in edge computing, and the emergence of wearable devices have contributed to the growth during the historical period.
There is a prediction of speedy expansion for the embedded AI market in the upcoming years, with its size projected to reach $26.66 billion in 2029, having a compound annual growth rate (CAGR) of 14.0%. Factors contributing to this growth within the forecast period include increased energy efficiency in embedded systems, the growth of industrial automation, rising demand for edge AI in the healthcare sector, the widespread implementation of 5g networks, and improved security in embedded AI. The foreseeable future also anticipates trends such as the incorporation of AI into consumer electronics, the creation of AI-specialized processors, evolutions in semiconductor technology, ai-tailored microcontrollers, the application of edge AI in robots and drones, and the use of edge AI in environmentally conscious and sustainable computing.
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What new trends are reshaping the embedded ai market and its opportunities?
The introduction of technologically advanced products is a rising trend recognized in the embedded AI market. Major firms in this field are prioritizing the creation of these innovative technologies to maintain their dominance. For example, American software system company Cognex Corporation launched the Advantage 182 vision system in May 2023, an embedded AI-based product. This cutting-edge tool is fashioned to mechanize intricate classification, location, and inspection activities within the life sciences field. The Advantage 182 boasts superior machine vision, barcode interpretation, and edge learning technology designed to automate everything from simple presence/absence detection and track-and-trace applications to highly accurate alignment and complex color inspections. In addition, it encompasses features such as test tube identification and classification, blood phase measurements in centrifuge applications, and pathology sample identification.
What are the major segments of the embedded ai market and their role in driving growth?
The embedded ai market covered in this report is segmented -
1) By Offering: Hardware, Software, Services
2) By Data Type: Sensor Data, Image And Video Data, Numeric Data, Categorial Data, Other Data Types
3) By Application: Smart Phone, Wearable Device, Vehicle Electronics, Smart Home, Security Monitoring, Drone, Robot, Other Applications
4) By Vertical: Banking, Financial Services And Insurance (BFSI), Information Technology (IT) And Information Technology Enabled Services (ITES), Retail And Ecommerce, Manufacturing, Healthcare And Life Sciences, Media And Entertainment, Telecom, Automotive, Other Verticals
Subsegments:
1) By Hardware: Processors, Sensors, Edge Devices, Boards
2) By Software: AI Frameworks And Platforms, Development Tools, Middleware, Security Software
3) By Services: Consulting Services, Integration Services, Maintenance And Support, Training And Education
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Which regions are key players in the growth of the embedded ai market?
North America was the largest region in the embedded AI market in 2024. The regions covered in the embedded ai market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Who are the key firms paving the way for growth in the embedded ai market?
Major companies operating in the embedded ai market include Google LLC, Microsoft Corporation, Amazon Web Services Inc., Siemens, Intel Corporation, International Business Machines Corporation (IBM), Qualcomm Technologies Inc., Oracle Corporation, SAP SE, HPE (Hewlett Packard Enterprise), Nvidia Corporation, Salesforce, Advanced Micro Devices Inc, MediaTek Inc., Adobe Inc, STMicroelectronics NV, NXP Semiconductors NV, Renesas Electronics Corporation, Synopsys Inc., Xilinx Inc., Arm Limited., HiSilicon, Lattice Semiconductor, SenseTime, C3.ai, Appier, NeuroPace, AU-Zone Technologies, LUIS Technology, VectorBlox Computing Inc.
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What Is Covered In The Embedded AI Global Market Report?
• Market Size Forecast: Examine the embedded ai market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the embedded ai market for a structured understanding.
• Key Players Overview: Analyze major players in the embedded ai market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the embedded ai market.
• Segment Contributions: Evaluate how different segments drive overall growth in the embedded ai market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the embedded ai market.
• Industry Challenges: Identify potential risks and obstacles affecting the embedded ai market.
• Competitive Landscape: Review strategic developments in the embedded ai market, including expansions, agreements, and new product launches.
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