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Artificial Intelligence (AI) Edge Computing Market Report 2025-2034: Industry Overview, Trends, And Forecast Analysis
Artificial Intelligence (AI) Edge Computing Market Growth
What Is the Current Artificial Intelligence (AI) Edge Computing Market Size and Its Estimated Growth Rate?
While the size of the artificial intelligence (AI) edge computing market has seen tremendous growth over the past few years, predictions indicate this expansion will continue, increasing from $20.29 billion in 2024 to $24.54 billion in 2025. This represents a compound annual growth rate (CAGR) of 20.9%. The noteworthy growth registered in the previous periods can be credited to a number of factors such as the explosion of IoT devices, ongoing advancements in edge computing technology, a mounting demand for on-the-spot data processing, the proliferation of AI and machine learning applications, as well as increasing worries surrounding data privacy and security.
In the coming years, the market size of artificial intelligence (AI) edge computing is predicted to grow significantly, reaching $53.18 billion in 2029 with a compound annual growth rate (CAGR) of 21.3%. This growth during the predicted period is a result of factors such as the proliferation of 5G networks, the application of edge AI in self-driving cars, the rise of Industry 4.0 initiatives, and the integration of AI into edge devices, along with the rapid deployment of edge computing infrastructure. Trending aspects during this forecast period encompass consolidation in the edge AI market, the emergence of edge AI as a service (AIAAS), the shift toward decentralized AI frameworks, the increase of hybrid edge-cloud computing models, and an intensified emphasis on edge AI sustainability and energy efficiency.
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How Are Emerging Segments Shaping the Artificial Intelligence (AI) Edge Computing Market Landscape?
The artificial intelligence (AI) edge computing market covered in this report is segmented -
1) By Component: Hardware, Software, Services
2) By Application: Industrial Internet Of Things (IIoT), Remote Monitoring, Content Delivery, Video Analytics, Augmented Reality (AR) And Virtual Reality (VR), Other Applications
3) By Organization Size: Large Enterprises, Small And Medium Sized Enterprises
4) By Industry Vertical: Automotive, Healthcare, Chemicals, Oil And Gas, Manufacturing And robotics, Public Infrastructure, Transportation And Logistics, Other Industry Verticals
Subsegments:
1) By Hardware: Edge Servers, Edge Gateways, Iot Devices, Networking Equipment
2) By Software: AI Software Platforms, Data Management Software, Edge Analytics Software
3) By Services: Consulting Services, Integration Services, Support And Maintenance Services
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Which Growth Factors Are Influencing Artificial Intelligence (AI) Edge Computing Market Expansion?
The growth potential of the AI edge computing market is being propelled significantly by accelerating adoption of artificial intelligence automation in industrial machinery. Leveraging AI technology for automation allows for tasks that traditionally called for human input to be automated. Enabling real-time data processing and decision-making at the very boundary of the network where the machinery is in operation, AI edge computing provides critical support to artificial intelligence automation. For example, a May 2022 report by the US-based technology company, International Business Machines Corporation (IBM), highlighted a marked growth in global AI adoption rates, reaching 35% - a four point increase from the previous year's figures. The report predicted that 13% more companies will be using AI in 2022 compared to 2021. Further data revealed that 35% of organizations have integrated AI in their operations; 42% are contemplating adopting AI; and a considerable 66% of companies are currently utilizing or strictly considering to employ AI to accomplish sustainability objectives. This increased implementation of artificial intelligence automation in industrial machinery forms the key driver for the AI edge computing market.
Who Are the Dominant Players Across Different Artificial Intelligence (AI) Edge Computing Market Segments?
Major companies operating in the artificial intelligence (AI) edge computing market are Apple Inc., Google LLC, Samsung Electronics Co. Ltd., Microsoft Corporation, Dell Technologies Inc., Huawei Technologies Co. Ltd., Siemens AG, General Electric Company (GE), Intel Corporation, accenture* PLC, IBM Corporation, Cisco Systems Inc., Oracle Corporation, Honeywell International Inc., SAP SE, Fujitsu Limited, Hewlett Packard Enterprise (HPE), NVIDIA Corporation, NEC Corporation, Advanced Micro Devices Inc. (AMD), MediaTek Inc., Baidu Inc., Xilinx Inc., RIGADO LLC, Amazon Web Services (AWS)
What Are the Latest Developing Trends in the Artificial Intelligence (AI) Edge Computing Market?
Key players in the AI edge computing market, including the creation of advanced products such as NVIDIA Jetson AGX Orin for AI applications at the edge, are pushing the industry's boundaries. The US software firm Nvidia introduced the NVIDIA Jetson AGX Orin, specifically constructed for embedded systems and devices for edge computing, in March 2022. This high-performing system-on-module (SoM) is created to serve edge AI applications. It incorporates the newest Orin system-on-chip (SoC) which is founded on NVIDIA's Ampere architecture and consists of several GPU cores, CPU cores, and distinct accelerators for AI inference and computer vision activities. With its compact and energy-efficient design, NVIDIA Jetson AGX Orin offers superior AI capabilities making it an ideal fit for a vast array of edge AI applications across sectors such as robotics, autonomous vehicles, and medical care.
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Which Geographic Regions Are Expected to Dominate the Artificial Intelligence (AI) Edge Computing Market in the Coming Years?
North America was the largest region in the artificial intelligence (AI) edge computing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) edge computing 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 Artificial Intelligence (AI) Edge Computing Market?
2. What is the CAGR expected in the Artificial Intelligence (AI) Edge Computing Market?
3. What Are the Key Innovations Transforming the Artificial Intelligence (AI) Edge Computing Industry?
4. Which Region Is Leading the Artificial Intelligence (AI) Edge Computing Market?
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