Edge AI Market Size By Component (Hardware [Graphics Processing Unit (GPU), Application Specific Integrated Circuit (ASIC), Central Processing Unit (CPU), Field-Programmable Gate Array (FPGA)], Software, Services [Training and Education, Support & Maintenance, System Integration and Testing]), By End-use (IT & Telecom, BFSI, Retail & E-commerce, Government, Transport & Logistics, Manufacturing, Healthcare), By Application (Video Surveillance, Remote Monitoring, Predictive Maintenance), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032

Industry Statistics

Edge AI Market size valued at USD 5 billion in 2022 and is anticipated to expand at around 20% CAGR during 2023 to 2032.
 

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The demand for edge AI is growing due to Industry 4.0's widespread deployment across all sectors. The burgeoning penetration of IoT & 5G technologies across varied industry verticals, including BFSI, government, hospitality, retail, and consumer goods, is speculated to support the growth of the edge AI industry. Additionally, edge AI facilitates real-time processing, enhances quick decision-making capabilities, and helps enterprises reduce the need for maintenance & support services, which is set to foster business outlook.
 

Superior decision-making to augment edge AI hardware market growth

The hardware segment captured approximately 20% of the edge AI market share in 2022 and is predicted to grow substantially up to 2032, owing to the ability of edge AI hardware to support quick & effective decision-making. It also facilitates real-time data processing with improved connectivity & power range. Moreover, edge AI hardware finds usage in mobile phones, wearables, smart speakers, PCs/tablets, autonomous vehicles, drones, robotics, and security cameras, among other applications, which is foreseen to propel segment development.
 

High maintenance cost to restrict the market growth

The AI system has a high cost of installation as well as repair and maintenance because of its complexity. Powerful sensors, CPUs, and processors that are included in the edge AI gear dramatically raise maintenance expenses. Another major factor limiting the growth of the edge AI market is the cost of maintaining edge AI components which depends on the hardware, the amount of maintenance, and the age of the device. However, with advancements in technology, the industry is projected to witness a rise in the availability of more cost-efficient solutions.
 

Increasing adoption of 3D graphics in gaming to bolster GPU segment revenues

The hardware segment is categorized into central processing unit (CPU), graphics processing unit (GPU), field programmable gate array (FPGA), and application specific integrated circuit (ASIC). 3D graphics offers several advantages in gaming applications, including enhanced computing experience, low latency, and decreased power consumption. Thus, backed by the rising demand for 3D graphics, the graphics processing unit (GPU) hardware segment is expected to depict more than 20% of the growth rate between 2023 and 2032.
 

Soaring automation across the manufacturing sector to push market expansion

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According to the report, the manufacturing end-use segment held above 15% of the edge AI market share in 2022. Edge AI integration in manufacturing enables designers and engineers to use workstation-grade computational and visualization tools. The introduction of cutting-edge automation and digitalization technologies has drastically impacted the sector. Similarly, the implementation of pro-manufacturing policies and increasing attention to economic diversification in emerging countries are slated to spur edge AI deployment in the manufacturing sphere.
 

Evolution of smart cities to impel product utilization for video surveillance

The video surveillance application segment is set to progress at nearly 20% growth through 2032. The segment growth is attributed to the rapid development of smart cities and the spike in demand for real-time monitoring systems and other disruptive technologies. Ground transportation security would benefit from the widespread use of transit surveillance systems, which is also poised to boost market share.
 

Booming remote working trend to favor the Europe market

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As per the report, the Europe edge AI market captured 25% of the revenue share in 2022. The rising number of employees working remotely is estimated to fuel the demand for innovative solutions to offer workplace flexibility. Furthermore, in June 2022, the European Union supported several research projects with a €64 million (~USD 63.8 million) grant to help establish a robust domestic IoT and edge ecosystem, which is foreseen to further foster regional market outlook.
 

Impact of COVID-19 on the market trends

The COVID-19 pandemic accelerated digital transformation and the adoption of AI across varied industries while broadening AI’s scope of application, which promoted product uptake. In addition, organizations employed automation using AI to support remote working, improve user and customer experiences, and cut expenses. Subsequently, the growing prominence of AI across the globe is likely to positively influence the demand for edge AI solutions.
 

Collaborative product development to define the competitive scenario

Some of the major key players operating in the edge AI market include Anagog Ltd., Amazon Web Services (AWS), Dell, Google (Alphabet Inc.), Gorilla Technology Group, Huawei Technologies Co., Ltd., IBM Corporation, Imagimob AB, Intel Corporation, Microsoft Corporation, MediaTek Inc, Nvidia, Synaptics Incorporated, Qualcomm Technologies Inc., and Xilinx, among other firms. These participants are working on offering advanced solutions through collaboration, thereby enhancing the product landscape.
 

This market research report on edge AI includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2018 to 2032, for the following segments:

Market, By Component

• Hardware
  • Graphics Processing Unit (GPU)
  • Application Specific Integrated Circuit (ASIC),
  • Central Processing Unit (CPU)
  • Field-Programmable Gate Array (FPGA)
• Software
• Service
  • Training & Consulting
  • Support & Maintenance
  • System Integration and Testing

Market, By End-use

• Manufacturing
• Healthcare
• BSFI
• Government
• Retail & e-commerce
• Telecommunication
• Transport & logistics
• Others

Market, By Application

• Video Surveillance
• Remote Monitoring
• Predictive Maintenance
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia