Market Overview
The Global Edge AI Software Market is expected to reach a value of
USD 1.6 billion by the end of 2024, and it is further anticipated to reach a market value of
USD 18.8 billion by 2033 at a
CAGR of 31.6%.
Edge AI allows real-time data processing on IoT devices, creating efficient computation. Data for AI applications is stored locally or on nearby servers, reducing reaction time compared to cloud-based processing. Multi-Access Edge Computing provides storage, computation, & networking near end-users. In MEC Edge AI scenarios, virtual devices process camera video streams over 5G, without physical edge computers.
As per SEO Sandwitch, the Edge AI Software Market is witnessing rapid adoption, with 74% of enterprises planning to increase investments in edge AI technologies by 2025. In 2023, 45% of edge computing workloads leveraged AI for improved efficiency, and 68% of IoT projects now integrate AI at the edge for advanced real-time analytics.
In Europe, 63% of enterprises use edge AI to optimize IoT operations, while 56% of healthcare providers have adopted edge AI for real-time patient monitoring. By 2024, edge AI is expected to power 75% of digital infrastructure in smart cities, underlining its transformative potential.
Moreover, AI-enabled surveillance cameras account for 61% of applications in the security sector, and 42% of hospitality businesses implemented edge AI for customer personalization in 2023. With 72% of enterprises citing real-time data processing as the key driver and a 29% reduction in data breaches in industrial IoT networks, edge AI is set to revolutionize industries.
In November 2024, Duos Edge AI, a subsidiary of Duos Technologies Group, announced the early deployment of three new Edge Data Centers (EDCs) across Texas. This strategic move aims to enhance connectivity in underserved regions, particularly benefiting schools and public institutions by providing low-latency, high-speed internet access. The accelerated deployment was facilitated through a financing partnership, underscoring Duos Edge AI's commitment to supporting regional development and bridging the digital divide.
Key Takeaways
- The Global Edge AI Software Market is expected to grow by 17.2 billion, at a CAGR of 31.6% during the forecasted period.
- By Offering, the solutions segment is expected to lead in 2024 & is anticipated to dominate throughout the forecasted period.
- By Data Type, audio data is expected to have a lead throughout the forecasted period.
- By End User, the BFSI sector is expected to be the dominant driver of the growth of the market in forecasted years.
- North America is expected to hold a 41.1% share of revenue in the Global Edge AI Software Market in 2024.
- Some of the use cases of Edge AI Software include autonomous vehicles, smart surveillance systems, and more.
Use Cases:
- Smart Surveillance Systems: Edge AI software enables real-time object detection and tracking in surveillance cameras, allowing for immediate threat identification and response without depending on constant data transmission to a central server, improving security & reducing bandwidth needs.
- Autonomous Vehicles: Edge AI powers perception & decision-making tasks in autonomous vehicles, allowing them to quickly identify & respond to road conditions, traffic signs, & obstacles without depending on cloud connectivity, ensuring safety & reliability even in areas with limited internet access.
- Healthcare Monitoring Devices: Edge AI algorithms integrated into wearable health devices analyze biometric data locally, providing live health insights to users while securing data privacy and reducing latency, improving the effectiveness of remote patient monitoring & personal wellness tracking.
- Industrial Predictive Maintenance: Edge AI software deployed on IoT devices in industrial settings analyzes equipment sensor data to predict maintenance needs and prevent downtime, optimizing operational efficiency and minimizing costs by allowing timely maintenance actions directly on the factory floor.
Market Dynamic
The global Edge AI software market is experiencing high growth, driven by factors like growth in AI integration across industries, a rise in cloud computing adoption, and the BYOD policy. Also, Edge AI creates live operations critical for sectors like robotics & autonomous vehicles, reducing data transmission costs & addressing privacy concerns. In addition, it’s autonomous nature & benefits in automation,
automotive, IoT, and telecom sectors, mainly with the emergence of 5G, offer high growth opportunities, albeit security concerns remain a challenge.
However, security concerns create a major challenge to the growth of the global edge AI software market. Despite its advantages, like real-time processing and reduced data transmission costs, concern about data privacy & potential breaches restrict broad adoption. To overcome this challenge, industry players must prioritize implementing strict security measures, encryption protocols, and compliance standards. Addressing these concerns effectively is important for getting trust and ensuring sustained growth in the market.
Research Scope and Analysis
By Offering
Solutions are expected to play an important role in driving the growth of the global edge AI software market in 2024, as businesses around the world look to capitalize on the benefits of edge computing and AI. Also, the solutions providers for edge AI software are stepping up to meet the increase in demand for innovative technologies. These solutions provide businesses the ability to install AI algorithms directly on edge devices, allowing live data processing, analysis, and decision-making without depending on centralized servers.
By using the power of edge AI software, organizations can unlock new opportunities for efficiency, agility, & competitive advantage. In addition, the providers are constantly developing their offerings to address evolving market needs, like better performance, scalability, and security, thereby fueling the growth expansion of the global edge AI software market.
By Data Type
Audio data is expected to dominate the global edge AI software market in 2024, as the increasing popularity of voice-enabled devices & applications, there is a growth in demand for edge AI solutions capable of processing & analyzing audio data in real time. Edge AI software allows devices like smart speakers, virtual assistants, & IoT sensors to perform tasks like speech recognition, NLP, and voice-controlled commands locally, without depending highly on cloud infrastructure, which not only reduces response time & improves user experience but also looks into privacy concerns by reducing the need to transfer sensitive audio data over networks.
As a result, businesses are highly adopting edge AI software to capitalize on the opportunities provided by the expanding audio data ecosystem, which is further driving the expansion of the global edge AI software market.
By End User
The BFSI also known as the Banking, Financial Services, and Insurance sector is projected to play a significant role in driving the growth of the global edge AI software market in 2024, as it is a highly competitive industry, where on-spot decision-making & personalized customer experiences are main edge AI software provide transformative solutions.
Banks, financial institutions, and insurance companies are using edge AI for tasks like fraud detection, risk management, customer service automation, and personalized financial advice. By installing AI algorithms directly on edge devices, these organizations can inspect large amounts of data locally, ensuring quick responses, enhancing security, and improving operational efficiency. As the BFSI sector continues to prioritize digital transformation and innovation, the adoption of edge AI software is expected to grow, driving further growth in the global edge AI software market.
The Edge AI Software Market Report is segmented on the basis of the following:
By Offering
- Solutions
- Services
- Professional Services
- Consulting Services
- Deployment & Integration
- Support & Maintenance
- Managed Services
By Data Type
- Audio Data
- Video & Image Data
- Text & Language Data
- Environmental & Location Data
- Biometric Data
- Multi-Modal Data
By End User
- BFSI
- Government & Public Sector
- Telecommunication
- Healthcare & Life Science
- Media & Entertainment
- Energy & Utilities
- Automotive, Transportations & Logistics
- Manufacturing
- Others
Regional Analysis
North America is expected to lead the global edge AI software market in 2024, capturing 41.1% of revenue share, driven by the expansion of advanced 5G networks. Enterprises in the region are increasing their adoption of advanced technologies like AI, deep learning, &
machine learning, driving further growth.
Further, the Asia Pacific region is anticipated to experience high growth during the period, due to the increasing availability of edge computing infrastructure and a growth in the need for real-time insights. Businesses across many sectors are turning to edge AI software to streamline operations, improve customer experiences, and stay ahead in the competitive landscape. Also, key applications like anomaly detection, predictive maintenance, & autonomous decision-making, focused on improving efficiency and responsiveness are further driving the growth of the region throughout the forecasted period.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The competitive landscape of the global edge AI software market is characterized by strong rivalry among key players competing for market share. Companies are aiming to develop innovative edge AI solutions to gain a competitive edge, driving investments in R&D. In addition, strategic partnerships, collaborations, and mergers & acquisitions are popular as firms look to expand their market presence & enhance their technological capabilities to meet the changing demands of customers across various industries
Some of the prominent players in the global Edge AI Software Market are:
- IBM
- Google
- AWS
- TIBCO
- Octonion
- Anagog
- Gorilla Technology
- Reality AI
- Clearblade
- AzionS
- Other Key Players
Recent Developments
- In February 2024, Intel launched its latest Edge Platform, a modular, open software platform allowing enterprises to develop, install, run, secure, and manage edge & AI applications at scale with cloud-like simplicity, as integrating these capabilities will increase time-to-scale deployment for enterprises, contributing to better total cost of ownership (TCO).
- In February 2024, STMicroelectronics announced that the company is offering a range of solutions for many applications, including industrial, automotive, consumer, and personal electronics, as they are highly popular for their computer offerings including microcontrollers, sensors, analog chips, and embedded systems, which are integral to developing AI-enabled devices operating at the edge.
- In February 2024, Sonatype launched artificial intelligence and machine learning component detection, a first-of-its-kind capability, available as part of the Sonatype Lifecycle, which fundamentally changes the way organizations select &monitor AI/ML software components, allowing them to accelerate software development while effectively managing the risks associated with AI.
- In February 2024, Microsoft announced a partnership with Mistral AI to improve AI innovation. Mistral AI's aims for open-source support and high performance aligns with Microsoft's goals for trustworthy AI, which will allow Mistral AI to gain access to Azure's advanced AI infrastructure, supporting faster development of large language models, which also opens doors for Mistral AI to grow globally & collaborate on research.
- In September 2023, Lenovo introduced leading-edge AI services & solutions focused on making AI more accessible for businesses. The new offerings, like Lenovo TruScale for Edge & AI, enable customers to install edge computing easily & affordably, gaining AI insights where data is created. In addition, Lenovo launched the ThinkEdge SE455 V3, the most powerful edge server, improving efficiency for remote AI tasks.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 1.6 Bn |
| Forecast Value (2033) |
USD 18.8 Bn |
| CAGR (2023-2032) |
31.6% |
| Historical Data |
2018 – 2023 |
| Forecast Data |
2024 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Offering (Solutions and Services), By Data Type (Audio Data, Video & Image Data, Text & Language Data, Environmental & Location Data, Biometric Data, and Multi-Modal Data), By End User (BFSI, Government & Public Sector, Telecommunication, Healthcare & Life Science, Media & Entertainment, Energy & Utilities, Automotive, Transportations & Logistics, Manufacturing, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
IBM, Google, AWS, TIBCO, Octonion, Anagog, Gorilla Technology, Reality AI , Clearblade, AzionS, and Other Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Edge AI Software Market size is estimated to have a value of USD 1.6 billion in 2024 and is expected to reach USD 18.8 billion by the end of 2033.
North America is expected to have the largest market share in the Global Edge AI Software Market with a share of about 41.1% in 2024.
Some of the major key players in the Global Edge AI Software Market are Google, IBM, AWS, and many others.
The market is growing at a CAGR of 31.6 percent over the forecasted period.