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Edge Artificial Intelligence Market Landscape to 2034: Key Forces Shaping the Next Decade of Growth
Edge Artificial Intelligence
How Large Will the Edge Artificial Intelligence Market Size By 2025?
In recent times, the edge artificial intelligence market has seen substantial expansion. Its value is set to increase from $24.48 billion in 2024 to $30.45 billion in 2025, with a compound annual growth rate (CAGR) of 24.4%. The historical growth in this sector can be credited to the emergence of IoT devices, a heightened demand for edge computing, a rapid surge in edge-based applications, development of smart cities, as well as an increased demand for real-time processing.
How Big Is the Edge Artificial Intelligence Market Size Expected to Grow by 2029?
The market size of edge artificial intelligence is predicted to see substantial expansion in the upcoming years, reaching a value of $77.93 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 26.5%. Factors contributing to this growth during the forecast period include increased application of edge AI in healthcare and retail sectors, governmental support for edge computing, development of the edge AI ecosystem, and growing intricacy of AI tasks. Emerging trends in the forecast period incorporate advancements in technology, product innovations, improvements in edge AI security, integration of chiplet, and the adoption of federated learning techniques.
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Which Key Market Drivers Powering Edge Artificial Intelligence Market Expansion and Growth?
The edge artificial intelligence market is experiencing growth due to the advancement of 5G networks. 5G, the latest version of mobile network technology, is characterized by its improved speed, and reliability for communication on mobile devices, alongside enabling new applications and services. Because of its remarkable speed, less latency, and the capacity to handle an increasing number of connected devices, more and more industries such as IoT, healthcare, and autonomous vehicles are adopting 5G technology. The advancement of 5G networks significantly boosts the competencies and advantages of Edge Artificial Intelligence (Edge AI), supporting quicker and more dependable communication between edge devices and the cloud. For instance, in February 2023, as reported by T-Mobile International AG, a mobile telecommunications company based in Germany, there were over 1 billion active 5G subscriptions in the year 2023, with an expected 5 billion people subscribing to 5G by the end of 2028. Therefore, the continued growth of 5G networks is fueling the edge artificial intelligence market.
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Which Fast-Growing Trends Are Poised to Disrupt the Edge Artificial Intelligence Market?
Prominent entities in the edge artificial intelligence domain are concentrating on innovation in technologies like AI Services at the Edge to maintain their market standing. AI Services at the Edge implies facilitating AI functions directly on edge devices, at the source of data creation, instead of relying on centralized cloud-based systems. To illustrate, Macrometa, an IT firm in the US, rolled out PhotonIQ, a range of edge services, in October 2023. It's purposely built to enhance speed, efficiency and security in digital experiences across eCommerce, gaming, financial services, etc. With real-time AI services, companies can enjoy multiple advantages such as improved website performance and Lighthouse scores, better user search and personalization experiences, and superior security and reliability during high traffic. PhotonIQ augments dynamic data and application performance by utilizing AI at the edge and smoothly collaborates with CDNs like Akamai for swift enterprise implementation within a 60-day period.
What Are the Emerging Segments in the Edge Artificial Intelligence Market?
The edge artificial intelligencemarket covered in this report is segmented -
1) By Component: Hardware, Software, Services
2) By Deployment Mode: On-Premise, Cloud-Based
3) By Data Sources: Mobile Data, Sensor Data, Biometric Data, Speech, Video And Image Recognition
4) By Application: Video Surveillance, Access Management, Autonomous Vehicles
5) By End-Use Industry: IT And Telecom, Automotive
Subsegments:
1) By Hardware: Edge Devices, Edge Servers, Specialized AI Chips
2) By Software: AI Algorithms, Edge AI Platforms, Application Software
3) By Services: Consulting Services, System Integration, Support And Maintenance Services
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Who Are the Global Leaders in the Edge Artificial Intelligence Market?
Major companies operating in the edge artificial intelligence market report are Alphabet Inc., Google, Microsoft Corporation, Amazon Web Services, International Business Machines Corporation, NVIDIA Corporation, Baidu, Inc., Intel Corporation, Renesas Electronics Corporation, Nutanix, Inc., Synaptics Incorporated, ADTRAN, Inc., Cloudera, Inc., TIBCO Software Inc., DataRobot, Inc., Bragi GmbH, Tact.ai Technologies, Inc., Gorilla Technology Group, Azion Technologies, Veea Inc., FogHorn Systems, Inc., ClearBlade, Inc., Octonion SA, Anagog Ltd., Dori AI, Adapdix, SWIM.AI Inc., Avassa, Imagimob AB, XNOR.AI
Which are the Top Profitable Regional Markets for the Edge Artificial Intelligence Industry?
North America was the largest region in the edge artificial intelligence market in 2024. The regions covered in the edge artificial intelligence market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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