Edge AI Software Market Size, Share & Trends Analysis Report By Offering, By Data Type (Audio Data, Mobile Data, Sensor Data, Biometric Data, Speech Recognition), By Vertical, By Region, And Segment Forecasts, 2024 - 2030

Edge AI Software Market Size & Trends

The global edge AI software market size was valued at USD 1.56 billion in 2023 and is expected to grow at a CAGR of 28.8% from 2024 to 2030. Numerous factors, such as the proliferation of Internet of Things (IoT) devices, increasing demand for real-time decision-making, advancements in AI and ML, and 5G network expansion, are primarily contributing to the growth of the market. Furthermore, processing data locally on edge devices helps organizations comply with stringent data privacy regulations and avoid the security risks associated with transmitting sensitive data to centralized cloud servers. This is particularly essential in the healthcare, finance, and government sectors. Thus, there is high growth in the edge artificial intelligence (AI) software market.

Edge AI systems are designed to be energy-efficient, which is essential for various battery-powered devices such as drones, sensors, and wearables. This enables the scalable deployment of Edge AI solutions across various sectors. Moreover, by performing AI processing at the edge, companies can significantly reduce the costs associated with data transmission to the cloud. This also decreases latency, making Edge AI suitable for applications requiring quick response times, such as robotics and smart manufacturing. Furthermore, the rise of autonomous vehicles, drones, and robots requires real-time AI processing at the edge for various tasks such as object recognition, navigation, and decision-making without relying on cloud-based systems.

Industry 4.0 and smart manufacturing initiatives are driving demand for Edge AI software to monitor and optimize production lines, predict equipment failures, and ensure quality control in real time. Ongoing developments in AI and machine learning algorithms allow complex models to be run efficiently on edge devices with limited computing resources. This improvement expands the scope of Edge AI applications across various industries. These drivers collectively contribute to the accelerated adoption and growth of the Edge AI software market across multiple industries and regions.

Offering Insights

The solutions segment led the market in 2023, accounting for over 76.0% share of the global revenue. Edge AI solutions enable real-time data analysis and decision-making at the source, reducing latency and enhancing real-time responses, which is crucial for various applications such as autonomous vehicles and industrial automation. Moreover, Edge AI solutions help keep sensitive data local, minimizing exposure to potential breaches and ensuring better compliance with data privacy regulations. Furthermore, Edge AI solutions are scalable and can be integrated into various devices and systems, such as IoT sensors and mobile devices, providing flexibility to adapt to different use cases and industries. These factors collectively drive the adoption and growth of Edge AI software solutions.

The services segment is anticipated to exhibit the highest CAGR over the forecast period. Customization and support, training and skill development, and security and compliance are primary drive the growth of the segment. Moreover, Edge AI services ensure that Edge AI solutions remain current with the latest advancements in technology and best practices, helping organizations stay competitive. Edge AI services ensure seamless operation and interoperability with existing systems. Thus, driving the growth of the segment.

Data Type Insights

The video and image recognition segment accounted for the largest revenue share in 2023. Growing concerns about security and surveillance drive the need for real-time video and image analysis for applications such as facial recognition, anomaly detection, and threat assessment. Moreover, improvements in AI algorithms and machine learning models enhance the accuracy and efficiency of video and image recognition, making these technologies more effective and widely adopted. Furthermore, the proliferation of smart cameras, smartphones, and other IoT devices equipped with image and video sensors fuels the demand for Edge AI solutions that can process and analyze visual data locally.

The audio data segment is anticipated to exhibit the highest CAGR over the forecast period. The rising use of voice-activated assistants and smart speakers in consumer electronics drives demand for Edge AI solutions that process audio data locally for real-time voice recognition and command execution. Moreover, processing audio data locally on edge devices helps address privacy concerns by keeping sensitive voice interactions and recordings secure and compliant with data protection regulations. Furthermore, Edge AI enables low-latency processing of audio data, which is crucial for applications such as real-time transcription, voice-controlled applications, and interactive voice response systems.

Vertical Insights

The IT & telecommunications segment accounted for the largest market revenue share in 2023. Numerous factors, such as the expansion of 5G networks, the increasing need for real-time data processing, and enhanced network security, drive the demand for the Edge AI software market in the IT and telecommunications segment. Moreover, Edge AI supports dynamic network management, traffic optimization, and predictive maintenance, helping telecommunications companies improve operational efficiency and reduce costs. Furthermore, ongoing advancements in AI algorithms and edge computing infrastructure boost the capabilities of edge AI solutions, enabling advanced and efficient network management and services.

The healthcare & life sciences segment is anticipated to exhibit the highest CAGR over the forecast period. Edge AI supports advanced imaging and diagnostic tools, providing real-time analysis of medical images and assisting in early disease detection and accurate diagnosis. Moreover, the rise of telemedicine and remote healthcare services drives demand for edge AI solutions that can process and analyze data locally, ensuring high-quality video consultations and accurate remote diagnostics. Edge AI solutions also help maintain patient data privacy and comply with regulatory requirements by processing sensitive health information locally, reducing the risk of data breaches.

Regional Insights

North America edge AI software market dominated the global industry with a revenue share of over 30.0% in 2023. The increasing adoption of IoT and smart devices is driving the need for real-time, on-device processing in the region. Edge AI software enables these devices to process data locally, reducing the need for constant cloud communication. Moreover, ongoing developments in AI and machine learning algorithms in the region allow complex models to be run efficiently on edge devices with limited computing resources. This improvement expands the scope of Edge AI applications across various industries.

U.S. Edge AI Software Market Trends

The edge AI software market in the U.S. is anticipated to exhibit a significant CAGR over the forecast period. The rollout of 5G networks across the U.S. is a major enabler for Edge AI. The higher speeds, lower latency, and increased capacity of 5G enhance the ability of edge devices to handle real-time AI workloads, especially in various applications, such as smart cities and autonomous systems. The U.S. is a global hub for autonomous systems development, including self-driving cars, drones, and robotics. These systems rely heavily on Edge AI for local data processing to ensure safety and real-time operational efficiency.

Europe Edge AI Software Market Trends

The edge AI software market in Europe is expected to witness significant growth over the forecast period. The European Union's emphasis on data privacy and security through regulations such as the General Data Protection Regulation (GDPR) is driving the adoption of Edge AI, which processes data locally and ensures better compliance with stringent data privacy laws. Moreover, Europe's commitment to green technology and sustainable development is encouraging the use of Edge AI in areas such as smart grids, energy management, and environmental monitoring, where real-time processing is essential.

Asia Pacific Edge AI Software Market Trends

The edge AI software market in Asia Pacific is anticipated to register the highest CAGR over the forecast period. Various countries in the APAC region, such as India, China, and Singapore, are developing smart city projects. Edge AI is crucial for managing real-time data generated by city infrastructure, such as traffic systems, energy grids, and surveillance systems, to optimize efficiency and sustainability.

Key Edge AI Software Company Insights

Key edge AI software companies include Amazon Web Services, Edge Impulse Inc., and Google. Companies active in the market are focusing aggressively on expanding their customer base and gaining a competitive edge over their rivals. Hence, they pursue various strategic initiatives, including partnerships, mergers & acquisitions, collaborations, and new product/ technology development. For instance, in June 2024, Advantech Co., Ltd., an IoT intelligent systems provider, launched AIR-520 Edge AI server solution for generative AI applications, including Phison's patented aiDAPTIV+ technology. The solution facilitates the fine-tuning of large language models (LLMs) using 1-4 GPU cards and SQ ai100 AI SSDs. It allows businesses to train LLMs in a cost-effective manner while ensuring the security of sensitive data at the edge.

Recent Developments

• In July 2024, NTT DATA Inc., a consulting and information technology service company, launched Edge AI, which delivers a comprehensive managed service platform designed to expedite Information Technology (IT)/Operational Technology (OT) convergence by migrating AI processing to the edge. This platform encompasses everything needed for Edge AI deployment, including systems, tools, and necessary capabilities. It effectively handles data identification, gathering, integration, computing capacity, smooth connectivity, and the management of AI models.

• In June 2024, STMicroelectronics, a semiconductor manufacturer, launched ST Edge AI Suite, integrating tools, software, and expertise to streamline and expedite the development of edge-AI applications. The ST Edge AI Suite stands as a unified set of software tools aimed at simplifying the creation and launch of embedded AI applications. This complete package aids in the entire process, from data collection to the actual implementation of machine learning algorithms on devices, making the development workflow more efficient for various user types.

• In February 2024, Intel Corporation, launched a new Edge Platform, a scalable, open-source software platform that allows companies to easily create, deploy, manage, secure, and operate edge and AI applications with the ease of cloud technology.

Edge AI Software Market Report Scope

Global Edge AI Software Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global edge AI software market report based on the offering, data type, vertical, and region:

• Offering Outlook (Revenue, USD Million, 2017 - 2030)

  • Solutions

  • Services

• Data Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Audio Data

  • Mobile Data

  • Sensor Data

  • Biometric Data

  • Speech Recognition

  • Video and Image Recognition

  • Others

• Vertical Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • Government & Public Sector

  • Healthcare & Life Sciences

  • IT & Telecommunications

  • Energy & Utilities

  • Manufacturing

  • Automotive

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • MEA

    • UAE

    • South Africa

    • KSA