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Product Innovations Transforming The Embedded AI Market Industry Trends Gaining Momentum in the Global Embedded AI Market
Embedded AI Market Size
Embedded AI Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The size of the embedded AI market has been expanding quickly in the past few years. The market is projected to increase from $14.28 billion in 2024 to $15.81 billion in 2025, with a compound annual growth rate (CAGR) of 10.7%. The escalation seen in the historical period can be tied to factors such as the downsizing of hardware components, the rising need for smart devices, the expansion of connectivity and iot, advancements in edge computing, and the surge of wearable devices.
Embedded AI Market Size Forecast: What's the Projected Valuation by 2029?
The market size for embedded AI is projected to experience significant expansion in the upcoming years, reaching $26.66 billion in 2029 with a compound annual growth rate (CAGR) of 14.0%. The pronounced growth expected during the forecast period can be accredited to multiple factors including improved energy efficiency in embedded systems, widespread industrial automation, a surge in demand for edge AI in the healare sector, the progression of 5G networks, and heightened security measures in the embedded AI domain. Core trends that are expected to thrive during the forecast period include the integration of AI into consumer electronics, the evolution of AI-optimized processors, advancements in semiconductor technology, the rise of AI-optimized microcontrollers, the application of edge AI in robotics and drones, and the use of edge AI to drive sustainable and eco-friendly computing.
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What Are the Drivers Transforming the Embedded AI Market?
The surge in industrial automation is predicted to spur the expansion of the embedded AI market. This type of automation employs cutting-edge technologies, control systems, and machinery to automate industrial processes and tasks. Within industrial automation, embedded AI plays a significant role in boosting productivity, improving efficiency, and making better decisions during manufacturing and production processes. It is utilized for tasks like 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 the number of operational units in factories globally was 4,281,585 in 2023, demonstrating a 10% growth from the year before. Consequently, the rise in industrial automation is fueling the expansion of the embedded AI market.
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What Long-Term Trends Will Define the Future of the Embedded AI Market?
The creation of innovative technology products is an emerging trend that is rapidly becoming prominent in the embedded AI market. To maintain their market position, all the major companies in this industry are making strides in developing new, technologically advanced products. In light of these developments, in May 2023, Cognex Corporation, a system software company headquartered in the US, debuted their Advantage 182 vision system, a vision system rooted in embedded AI. This state-of-the-art product has been created to automate intricate situations like location, classification, and inspection in the life sciences field. The Advantage 182 incorporates superior machine vision technology, barcode reading capabilities and edge learning to automate various tasks ranging from basic presence/absence detection to track-and-trace applications, precise alignment, and complicated color inspections. Moreover, it contains unique application features such as test tube detection and classification, the ability to measure different phases of centrifuged blood, and recognition of pathology samples.
Which Segments in the Embedded AI Market Offer the Most Profit Potential?
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, Healare 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 Firms Dominate the Embedded AI Market by Market Share and Revenue in 2025?
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.
Which Regions Offer the Highest Growth Potential in 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
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