Edge AI market projecting strong growth; can 5G and IT help?

The edge AI market, fueled by strong demand, is expected to grow to almost $40 billion in value over the next decade.

By Future Market Insights September 30, 2023
Image courtesy: Brett Sayles

Edge AI market insights

  • The edge AI market is projected to grow at a CAGR of 20.8%, reaching $39.61 billion by 2032, up from $5.9 billion in 2022.
  • The integration of 5G technology and the proliferation of smart edge AI devices are key drivers for market expansion. These devices find applications in areas like autonomous driving and telesurgery.

Throughout the projected period, it is expected the edge AI market will grow at a compound annual growth rate (CAGR) of 20.8%. By 2032, the market is expected to be worth $39.61 billion, up from $5.9 billion in 2022, according to FMI.

Organizations utilize edge AI software to access data and respond in real time, which is projected to boost the growth of the edge AI market. With its higher-performing tasks, such as real-time data processing, efficiency, and accuracy, it reduces work time, which is anticipated to enhance the adoption of edge AI. Also expected to drive down prices and surge the market throughout the projection period are growing IoT and edge AI software devices.

5G networking innovation boosts the market for edge AI

  • The growing use of 5G technology in the IT industry is expected to strengthen the existing technology network and expand the market potential for edge AI.

  • During the projected period, the development of edge AI devices such as self-driving cars, drones, IoT gateways, and telesurgery equipment is driving market expansion.

  • In addition, the market trends are probably going to get stronger as smart edge AI devices become more widely used. These smart gadgets are utilized for a variety of tasks, such as autonomous driving, smart farming, smart metering, and robot-assisted surgery.

Segmentation analysis of edge AI market

The market is segmented based on application into groups like video surveillance, remote monitoring, and predictive maintenance, among others. During the predicted period, video surveillance, which has a bigger market share, dominated these. A share of 30.0% is anticipated for video surveillance throughout the forecasted period. Global high-tech expansion and escalating security issues encourage the use of video surveillance over the predicted period.

The hardware, software and services segments of the market are separated based on component types. With a maximum share of 45% throughout the course of the projected period, the hardware component is dominating the market in these categories. During the projection period, demand for edge AI hardware components is expected to rise due to the need for security and the storage of big data files. Additionally, the storage of internal memory, the execution of programs, and communication throughout the anticipated period are increasing demand for hardware components.

Competitive landscape of edge AI market

Due to the presence of so many major competitors in the area, the market is fragmented. These firms are developing a number of cutting-edge technologies to create high-tech products for a range of markets that are anticipated to generate demand from customers. The major market firms now play important roles by spending a lot of money on creating superior AI goods and gadgets. In order to gain the majority of the market through mergers, acquisitions, partnerships, and product launches, these competitors are implementing a number of marketing strategies.

Future Market Insights is a CFE Media and Technology content partner.