Edge AI market to hit $66.47 bn by 2030 at CAGR of 21.0%
The global edge AI market size is expected to reach USD 66.47 Billion by 2030, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 21.0% from 2023 to 2030. The growing demand for 5G in areas such as real-time virtual reality experiences, self-driving cars, and mission-critical applications drives further edge AI innovation. The rising demand for IoT-based edge computing services is expected to propel the market growth. IoT generates voluminous amounts of data that can be difficult or impossible to collect. Moreover, edge AI enables full utilization of IoT data by locally analyzing massive amounts of sensor data and automating operational decisions.
Key Industry Insights & Findings from the report:
- The hardware segment dominated the market with a revenue share of 53.6% in 2022. Edge chipsets have high processing capability and low power consumption, making them popular in IoT devices.
- The growing adoption of artificial intelligence products and services opens up lucrative growth opportunities in the edge AI industry, leading to market growth.
- Many businesses are looking for more ways to protect their data. Moreover, edge AI creates an enabling environment for data privacy because data computational activities are performed at the edge of the device or closer to the device, attracting businesses and leading to growth.
- The Asia Pacific region is expected to grow at the highest CAGR of 26.1% during the projected period. Key regional players are expanding their geographical presence by providing advanced technological solutions to developing nations. In Japan, companies are creating edge AI solutions for the automotive and manufacturing industries.
Edge AI Market Growth & Trends
Edge computing allows for the transfer of AI processing tasks from the cloud to near-end devices, thereby overcoming the inherent problems of traditional cloud computing, such as high latency and a lack of security. Moreover, edge AI is gaining popularity in technical advances owing to low latency and bandwidth requirements. For instance, in June 2020, ADLINK Technology Inc., a company manufacturing edge computing products based in Taiwan, collaborated with Tier IV, a Japan-based deep-tech startup, and Taiwan-based Industrial Technology Research Institute (ITRI) to enable autonomous driving with the help of edge AI. This alliance aimed to accelerate the development of open-source self-driving technology to help develop intelligent transportation systems.
The integration of edge AI into AI devices enables data processing on the machine without sending additional data elsewhere. This significantly decreases processing time which can tremendously impact cultivating positive user experiences. Relocating AI computations to the network edge create opportunities for various applications, including new products and services. For instance, in July 2022, Innodisk Corporation, a computer hardware manufacturing company in Taiwan, released an edge computing solid-state drive product line. Edge AI SSDs within edge servers are intended to process data at high speeds at the source, improving latency and lowering costs.
Edge AI computing and 5G enhance network efficiency to support and deploy various real-time AI applications, including AI-based real-time video analytics for intelligent surveillance and security, smart farming, and industrial manufacturing automation. Many businesses are developing and upgrading hardware to improve the performance of cameras to satisfy the growing demand for surveillance dimensions offered by advanced video surveillance analytics. For instance, in March 2023, Hailo AI, a semiconductor manufacturer in Israel, announced a Hailo-15, an AI-centric vision processor. This processor is intended to be directly integrated into intelligent cameras to enhance video processing and analytics at the edge.
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