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Future of the Artificial Intelligence (AI) Edge Computing Market: Trends, Innovations, and Key Forecasts Through 2034
Artificial Intelligence (AI) Edge Computing Market
Artificial Intelligence (AI) Edge Computing Market Size Growth Forecast: What to Expect by 2025?
In recent times, the market size for edge computing in artificial intelligence (AI) has witnessed an explosive growth. The market, which is projected to be worth $20.29 billion in 2024, is expected to escalate to $24.54 billion in 2025, showcasing a compound annual growth rate (CAGR) of 20.9%. The tremendous growth experienced in the historical period is attributable to factors such as the surge in IoT device usage, progress in edge computing technology, increased need for processing data in real-time, expansion of AI and machine learning applications, and growing apprehensions about data privacy and security.
How Will the Artificial Intelligence (AI) Edge Computing Market Size Evolve and Grow by 2029?
The market size of artificial intelligence (AI) edge computing is predicted to experience rapid growth in the forthcoming years, reaching a staggering $53.18 billion by 2029, with a compound annual growth rate (CAGR) of 21.3%. This significant growth during the forecast period can be associated with the advancement of 5G networks, the adoption of edge AI in self-driving cars, the emergence of Industry 4.0 initiatives, the integration of AI into edge devices, and the fast-paced deployment of edge computing infrastructure. During the forecast period, noteworthy trends include the consolidation of the edge AI market, the emergence of edge AI as a service (AIAAS), a shift towards decentralized AI architectures, an increase in hybrid edge-cloud computing models, and a heightened focus on energy efficiency and sustainability in edge AI.
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What Drivers Are Propelling the Growth of Artificial Intelligence (AI) Edge Computing Market Forward?
The growth of the AI edge computing market is projected to be influenced by the expanded usage of artificial intelligence automation in industrial machinery. Artificial intelligence automation is the application of AI technologies to automate tasks and processes which typically need human engagement. By facilitating real-time data processing and decision-making right on the edge of the network where the machinery is operational, AI edge computing is beneficial for artificial intelligence automation. For instance, a report by the US-based International Business Machines Corporation (IBM) in May 2022 revealed that global adoption of AI showed a marked increase and stood at 35%, a four-point rise from the previous year. Projections for 2022 indicate that 13% more firms will have adopted AI than in 2021. 35% of organizations acknowledged implementing AI in their businesses, 42% are contemplating its adoption, and two-thirds of companies (66%) are either currently implementing or planning to employ AI to achieve their sustainability targets. Thus, the growing use of artificial intelligence automation in industrial machinery propels the AI-edge computing market.
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Which Emerging Trends Are Transforming the Artificial Intelligence (AI) Edge Computing Market in 2025?
Prominent players in the AI edge computing market, such as NVIDIA, are pioneering advanced products like the NVIDIA Jetson AGX Orin tailored specifically for edge AI utilization. The NVIDIA Jetson AGX Orin, which is a robust system-on-module (SoM), have been developed specifically for edge AI applications. In the context, in March 2022, NVIDIA, an American software corporation, introduced the NVIDIA Jetson AGX Orin, particularly engineered for embedded systems and edge computing gadgets. The Jetson AGX Orin comes with the latest Orin system-on-chip (SoC) that operates on NVIDIA's Ampere architecture and encompasses several GPU cores, CPU cores, and dedicated accelerators for AI interpretation and computer vision tasks. The NVIDIA Jetson AGX Orin has been crafted to offer superior AI functionality in a compact and energy-conserving design, making it appropriate for an extensive array of edge AI uses in sectors like robotics, autonomous vehicles, and healthcare.
What Are the Key Segments in the Artificial Intelligence (AI) Edge Computing Market?
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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Who Are the Key Players Shaping the Artificial Intelligence (AI) Edge Computing Market's Competitive Landscape?
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 Geographic Markets Are Powering Growth in the Artificial Intelligence (AI) Edge Computing Market?
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.
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