Edge AI can be defined as a setup where the AI (Artificial Intelligence) algorithms are processed locally on a hardware device. These algorithms trading utilize the data collected by device itself such as sensors data or signals. The device which uses the AI need not be connected to internet can take decisions independently. The software which work in tandem with edge AI technology are called edge AI software.
Reaching USD 745.39 million by 2028, the global Edge AI Software market is anticipated to grow at a compound annual growth rate (CAGR) of 12.1% from its 2022 valuation of USD 375.71 million.
.jpg "The Global Edge AI Software Market 2018-2028 (USD Million)")
The global edge AI software market revenue is projected to reach close to USD 3.8 Billion by 2028. This can be attributed to the increasing absorption of AI based solutions in enterprises. The increasing use cases if edge AI software are also expected to add to the growth of the global edge AI software market.
However, the growing security concerns about data confidentiality is likely to hamper the market growth. Furthermore, the emergence of intelligent applications is anticipated to be an opportunity for the edge AI software market.
Edge AI Software Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2028 |
| Study Period | 2018-2028 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2028 | USD 745.39 million |
| Growth Rate | CAGR of 12.1% during 2018-2028 |
| Segment Covered | By Component, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | AWS, Google, IBM, Microsoft, Azion technologies, Anagog Ltd., Foghorn Systems, Inc. Chaos Prime, Inc. Gorilla Technology Group, Inc. Imagimob, Nutanix, Octonion, Synaptics, TIBCO Software, and Veea Inc |
Key Segment Of The Edge AI Software Market
By Component
o Solution
• Software Tools
• Platform
o Services
• Training and Consulting Services
• System Integration Testing
• Support and Maintenance
By Data Source
• Biometric Data
• Mobile Data
• Sensor Data
• Speech Recognition
• Video and Image Recognition
By Application
• Access Control
• Autonomous Vehicles
• Energy Management
• Predictive Maintenance
• Remote Monitoring
• Telemetry
• Video Surveillance
• Others
By End Users
• Advance Industries
• Banking and Insurance
• Chemical Agriculture
• Consumers
• Cross Vertical
• Energy and Material
• Health Care Infrastructure
• Media And Entertainment
• Public Sector Utilities
• Retail
• Travel, Transport and Logistics
Regional Overview
North America
• US
• Canada
Europe
• Germany
• France
• UK
• Rest of Europe
Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific
South America
• Mexico
• Brazil
• Rest of South America
Middle East and South Africa
Frequently Asked Questions (FAQ) :
The market value of edge ai software market in 2028 was USD 745.39 million
the edge ai software market is growing at a CAGR of 12.1% during the forecast period.
The major contenders in the global edge ai software market AWS, Google, IBM, Microsoft, Azion technologies, Anagog Ltd., Foghorn Systems, Inc. Chaos Prime, Inc. Gorilla Technology Group, Inc. Imagimob, Nutanix, Octonion, Synaptics, TIBCO Software, and Veea Inc
The growing enterprise workload on cloud across industry domains is the key reason driving the demand for edge AI software solutions. Moreover, in recent years, the growth and development of machine learning and artificial intelligence has buoyed the market incredibly. With the new use cases increasing day by day, the market is projected to increase several folds during the forecast year. However, the concern regarding data theft and data confidentiality are expected to hinder the market growth. The regulations regarding the ethical data use are also likely to hamper the growth of the market.
Component Segment
In terms of components, the market is bifurcated into solutions and services. The solutions and services are further divided into two and three sub-segments respectively. Solutions are divided into software tools and platform. Services are classified into training and consulting, system integration and testing, and support and maintenance. The services segment is estimated to hold a significant market share over the forecast period. However, in the year 2019, the solutions segment gathered the major market share and it is likely to keep its position throughout the forecast years. The market growth of this segment is primarily ascribed to the increasing demand of edge AI based solutions from numerous organizations/enterprises to automate their business operations.
Data Sources Segment
Data sources is divided into video and image recognition, speech recognition, biometric data, sensor data, and mobile data. In 2019, the video and image recognition sub-segment is expected to hold the largest share of the market based on data sources. The sub-segment is also likely to expand at a rapid pace during the forecast years. This is owing to high number of use cases for the same. Also, the vendors in the market have developed solutions by leveraging the power of ML and AI specifically to capture meaningful information from video and image sources.
Application Segment
Based on the application, the market is segmented into autonomous vehicles, access management, video surveillance, remote monitoring and predictive maintenance, telemetry (location services), energy management, and others (point-of-sales, precision agriculture, augmented reality (AR)/virtual reality (VR), and smart wearables). The autonomous vehicles sub-segment is likely to grow the fastest among all the segments owing to the increasing role of edge AI in autonomous vehicles. With edge AI, autonomous vehicles can analyze the contextual information like driving pattern and traffic density much more efficiently. Such vehicles can thus make better decision about the course of the action.
Vertical Segment
In terms of the vertical, the market is segmented into government and public, manufacturing, automotive, energy and utilities, telecom, healthcare, and others (retail and ecommerce, media and entertainment, and banking, financial services, and insurance [BFSI]). Telecom sub-segment is likely to register the highest CAGR during the forecast years owing to the increasing adoption of edge AI based solutions to better handle signal dropping issues, data fluctuations and network optimization.
The North American region is anticipated to hold the largest market size in the global edge AI software market, while Asia Pacific (APAC) is expected to grow at the highest CAGR during the forecast period. In North America region, the adoption of 5G technology is likely to aid the market growth while in Asia Pacific region, the growth can be attributed to the heavy investments made by private and public sectors for enhancing their AI and ML technologies.
.png "North America Edge AI software Market, 2018-2028 (USD Million)")
The major players of the global edge AI software market are IBM, Google, Microsoft, AWS, Nutanix, TIBCO, Octonion, SWIM.AI, Imagimob, Anagog, Foghorn Systems, XNOR.AI, Bragi, Invision.AI, Tact.ai, and Veea Systems. These vendors have adopted various traditional and non-traditional growth strategies to enhance their market share including new product launches, partnerships and collaborations, and mergers and acquisitions.