Press release
Rise In Industrial Automation To Drive Market Growth: Key Factor Driving The Growth In The Embedded AI Market
Embedded AI
What Is the Expected Embedded AI Market Size During the Forecast Period?
The expansion of the embedded AI market has been significant in the last couple of years. The market, which is projected to rise from $14.28 billion in 2024 to $15.81 billion in 2025, is expected to exhibit a compounded annual growth rate (CAGR) of 10.7%. This consistent growth throughout the past can be linked to factors such as the shrinking size of hardware components, escalating demand for intelligent devices, enhanced connectivity and IoT, advancements in edge computing, and the increasing popularity of wearable devices.
The market size of embedded AI is anticipated to experience rapid expansion in the coming years, escalating to a worth of $26.66 billion by 2029 with a compound annual growth rate (CAGR) of 14.0%. This escalation during the forecast period can be credited to factors such as improved energy efficiency in embedded systems, widening of industrial automation, surging demand for edge AI in the healthcare sector, the proliferation of 5g networks, and heightened security protocols in embedded AI. Significant trends projected during this period include the inclusion of AI in consumer electronics, the innovation of AI-specific processors, advancements in semiconductor technology, development of AI-enhanced microcontrollers, applications of edge AI in robotics and drones, as well as the use of edge AI in support of sustainable and green computing.
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What Are the High-Growth Segments in the Embedded AI Market?
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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What Key Drivers Are Expected to Influence Future Embedded AI Market Growth?
The growth of the embedded AI market is anticipated to be driven by the rise in industrial automation. This entails employing state-of-the-art technologies, control systems, and machines to automate processes and operations in industries. Embedded AI is extensively deployed within industrial automation to augment productivity, efficiency, and decision-making during manufacturing and production. Its applications include machine vision, quality control, predictive maintenance, and automatic robotics. For example, the International Federation of Robotics, a Germany-based non-profit organization, pointed out in September 2024, that in 2023, the number of units in operation globally in factories had touched 4,281,585, marking a 10% growth compared to the preceding year. This surge in industrial automation is thus spurring the expansion of the embedded AI market.
Which Companies Hold the Largest Share Across Different Embedded AI Market Segments?
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.
What Trends Are Driving Growth in The Embedded AI Market?
One of the primary trends escalating in the embedded AI market is the innovation of technological products. Major industry players are centering their efforts on creating groundbreaking technology products to maintain their market standing. For example, Cognex Corporation, a system software firm based in the US, unveiled the Advantage 182 vision system in May 2023. This embedded AI-integrated vision system stands as a novel product, formulated to automate intricate location, categorization, and inspection processes in the life sciences sector. The Advantage 182 is packed with advanced machine vision, barcode reading and edge learning technology for automating operations, ranging from straightforward presence/absence detection and tracing applications to complex alignment tasks and color inspections. In addition, this system also incorporates application-specific features that provide operations like test tube detection and classification, tracking of centrifuged blood stages and identification of pathology samples.
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What Are the Emerging Geographies for The Embedded AI Market Growth?
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
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Embedded AI Market?
2. What is the CAGR expected in the Embedded AI Market?
3. What Are the Key Innovations Transforming the Embedded AI Industry?
4. Which Region Is Leading the Embedded AI Market?
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