Artificial Intelligence (AI) in Edge Computing Market Report, By Component (Hardware, Software, Services), By Technology (Machine Learning (ML), Deep Learning, Natural Language Processing (NLP), Others), By Deployment (Cloud, On-Premises), By Application (Autonomous Vehicles, Industrial Automation, Healthcare, Smart Cities, Consumer Electronics, Others), and Regions 2024-2032

Market Overview:

"The artificial intelligence (AI) in edge computing market size reached US$ 11.2 billion in 2023. Looking forward, Reports and Insights expects the market to reach US$ 63.2 billion by 2032, exhibiting a growth rate (CAGR) of 21.2% during 2024-2032."

Artificial Intelligence (AI) in Edge Computing Market Trends and Drivers:

The Artificial Intelligence (AI) integration into Edge Computing is experiencing notable expansion, propelled by several significant trends and factors. Edge AI facilitates data processing and analysis in close proximity to the data source, reducing latency and bandwidth consumption. This is especially critical for applications that demand real-time decision-making, such as autonomous vehicles and industrial IoT. The increasing number of connected devices and the rapid growth of data produced at the edge are also contributing to this trend. Additionally, advancements in AI algorithms and edge computing hardware are enhancing the feasibility of deploying AI models on edge devices, enabling more intelligent and responsive edge applications.

Artificial Intelligence (AI) in Edge Computing Restraining Factors:

Several factors restrain the integration of Artificial Intelligence (AI) into edge computing. The limited computational resources available at the edge restrict the complexity and scale of AI models that can be deployed. The need for real-time processing and low latency is in conflict with the resource-intensive nature of many AI algorithms. Additionally, ensuring data privacy and security at the edge is challenging due to the distributed nature of edge networks. Finally, the diversity of edge devices and environments complicates the standardization of AI models and frameworks, hindering interoperability and scalability.

Artificial Intelligence (AI) in Edge Computing Market Opportunities:

The integration of Artificial Intelligence (AI) into Edge Computing stands to transform numerous industries by enabling real-time data processing and analysis at the network's edge, closer to where data originates. This convergence presents opportunities for more efficient and quicker decision-making, reduced latency, enhanced security, and improved user experiences. AI algorithms running on edge devices can process data locally, reducing the reliance on continuous cloud connectivity. This capability is especially advantageous for applications requiring immediate responses, such as autonomous vehicles, industrial automation, and healthcare. As the AI in Edge Computing market advances, it promises innovative solutions, cost efficiencies, and new business models across various sectors.

Artificial Intelligence (AI) in Edge Computing Market Segmentation:

By Component

• Hardware
• Software
• Services

The component segment is further categorized into hardware, software, and services. Among these, the hardware segment currently holds the largest share of revenue and is expected to maintain this dominant position in the forecast period. The hardware segment's leading position stems from its essential role in facilitating edge computing solutions. With the increasing erudition of edge devices, there is a growing demand for advanced hardware components like processors, sensors, and storage devices. These components are essential for processing and analyzing data at the edge, ensuring fast and efficient decision-making. Furthermore, the expanding use of IoT devices and the necessity for real-time data processing are driving the demand for robust hardware solutions. Consequently, the hardware segment is expected to offer significant growth opportunities for hardware manufacturers and suppliers in the AI in edge computing market.

By Technology

• Autonomous Vehicles
• Industrial Automation
• Healthcare
• Smart Cities
• Consumer Electronics
• Others

The application segment is further categorised into autonomous vehicles, industrial automation, healthcare, smart cities, consumer electronic, and others. Among these, the industrial automation stands out as a dominant force. In this sector, AI plays a pivotal role in optimizing manufacturing processes, enabling predictive maintenance, and enhancing overall operational efficiency. The versatility and proven effectiveness of AI in industrial automation have led to its widespread adoption across industries, making it a dominant segment in the AI in Edge Computing market.

By Region

North America

• United States
• Canada

Europe

• Germany
• United Kingdom
• France
• Italy
• Spain
• Russia
• Poland
• Benelux
• Nordic
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• South Korea
• ASEAN
• Australia & New Zealand
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Argentina

Middle East & Africa

• Saudi Arabia
• South Africa
• United Arab Emirates
• Israel
• Rest of MEA

North America stands out as a dominant region in the AI in Edge Computing market. This is attributed to several factors, including the presence of top-tier tech firms leading the way in AI and edge computing advancements, a well-established network of research institutions and universities driving technological progress, and a solid infrastructure that facilitates the implementation of edge computing solutions. Moreover, North America benefits from a mature market where AI is widely adopted, especially in key industries such as healthcare, automotive, and manufacturing. The region's proactive approach to adopting emerging technologies and its conducive atmosphere for fostering innovation position North America as a leader in the AI in Edge Computing market.

Leading AI in Edge Computing Providers & Competitive Landscape:

The AI in edge computing market is characterized by intense competition among numerous major players, all striving to secure their market positions through strategic actions. These firms concentrate on innovating products, advancing technology, and broadening their product ranges to gain a competitive advantage. They consistently invest in research and development to improve their products and meet customers' changing requirements for efficiency, performance, and sustainability.

These companies include:

• International Business Machines Corporation (IBM)
• Microsoft Corporation
• Intel Corporation
• NVIDIA Corporation
• Alphabet Inc. (Google)
• Cisco Systems, Inc.
• Dell Technologies Inc.
• Hewlett Packard Enterprise Company (HPE)
• Amazon Web Services, Inc. (AWS)
• Huawei Technologies Co., Ltd.
• ARM Holdings plc
• Oracle Corporation
• SAP SE
• Accenture plc
• Fujitsu Limited

AI in Edge Computing Market Research Scope