Global AI in Edge Computing Market reached US$ 16.54 billion in 2024 and is expected to reach US$ 83.86 billion by 2032, growing with a CAGR of 22.50% during the forecast period 2025-2032.
The global Artificial Intelligence (AI) in Edge Computing market is experiencing rapid growth, driven by the increasing demand for real-time data processing and the proliferation of Internet of Things (IoT) devices. The integration of AI capabilities into edge devices is transforming industries by enabling real-time analytics and decision-making at the source of data generation. For instance, McDonald's has implemented AI-powered drive-through systems and internet-connected kitchen equipment to enhance customer service and operational efficiency.
Dynamics
Driver - Proliferation of IoT Devices
The exponential growth of IoT devices is a significant driver for AI in edge computing. As more devices become interconnected, the volume of data generated increases substantially, necessitating efficient data processing methods. Edge computing addresses this need by enabling data analysis closer to the source, reducing latency and bandwidth requirements.
The integration of AI further enhances the ability to derive actionable insights in real-time, making it essential for applications like autonomous vehicles, smart cities, and industrial automation.
Restraint - High Initial Investment and Infrastructure Challenges
Implementing AI in edge computing requires substantial initial investments in hardware, software, and network infrastructure. Organizations may face challenges in upgrading existing systems to support edge computing capabilities, and the costs associated with deploying and maintaining these systems can be prohibitive.
Additionally, ensuring data security and compliance with regulatory standards adds complexity to the implementation process, potentially hindering the widespread adoption of AI in edge computing solutions.
Segment Analysis
The global AI in Edge Computing market is segmented based on component, deployment type, organization size, technology, application, end-use industry, and region.
Industrial Internet of Things (IIoT) represent the largest application segment in the global market.
The Industrial Internet of Things (IIoT) represents the largest segment within the AI in edge computing market, as industries increasingly adopt connected devices to enhance operational efficiency, safety, and productivity. In the energy sector, edge computing facilitates efficient management of distributed energy resources. General Electric employs edge computing techniques to estimate the lifespan of components in heat recovery steam generators, which are subject to extreme conditions, thereby optimizing maintenance schedules and improving reliability. Furthermore, the transportation industry benefits from edge computing through enhanced vehicle-to-infrastructure communication. In Ulm, Germany, a project involving Bosch and the University of Ulm integrates sensors into traffic infrastructure to assist autonomous vehicles in navigating complex urban environments.
Geographical Penetration
North America leads the AI in edge computing market, attributed to its advanced technological infrastructure, significant investments in AI research and development, and a robust ecosystem of tech companies.
The region's emphasis on maintaining leadership in AI has led to substantial investments in infrastructure. For instance, Microsoft and BlackRock announced a $30 billion fund to invest in AI infrastructure include data centers and energy project, focusing on enhancing AI capabilities in the United States. The U.S. government has also prioritized self-sufficiency in semiconductor production, as highlighted by the 2022 CHIPS Act, to reduce reliance on foreign manufacturing and bolster domestic AI capabilities.
Moreover, North American companies are at the forefront of integrating AI into edge computing. Qualcomm, for example, is expanding beyond mobile handsets into automotive and IoT sectors, leveraging its Snapdragon platform to deliver AI capabilities at the edge. The company projects its automotive revenue to reach $4 billion by fiscal 2026 and $8 billion by 2029, with IoT revenue expected to grow to $14 billion, reflecting the region's dynamic market landscape.
Technology Roadmap
The global AI in Edge Computing market is expected to evolve significantly over the coming years, driven by advancements in network infrastructure, the expansion of IoT, and the increasing adoption of artificial intelligence (AI) at the edge. Government initiatives, regulatory frameworks, and private sector investments are set to accelerate AI adoption in cybersecurity across multiple industries.
Competitive Landscape
The major Global players in the market include NVIDIA, Amazon Web Services, Inc., Arctic Wolf Networks Inc., Tata Consultancy Services, Microsoft Corporation, Infosys, IBM Corporation, Intel Corporation, Cisco Systems, Inc., and Nokia.
Why Choose DataM?
• Data-Driven Insights: Dive into detailed analyses with granular insights such as pricing, market shares and value chain evaluations, enriched by interviews with industry leaders and disruptors.
• Post-Purchase Support and Expert Analyst Consultations: As a valued client, gain direct access to our expert analysts for personalized advice and strategic guidance, tailored to your specific needs and challenges.
• White Papers and Case Studies: Benefit quarterly from our in-depth studies related to your purchased titles, tailored to refine your operational and marketing strategies for maximum impact.
• Annual Updates on Purchased Reports: As an existing customer, enjoy the privilege of annual updates to your reports, ensuring you stay abreast of the latest market insights and technological advancements. Terms and conditions apply.
• Specialized Focus on Emerging Markets: DataM differentiates itself by delivering in-depth, specialized insights specifically for emerging markets, rather than offering generalized geographic overviews. This approach equips our clients with a nuanced understanding and actionable intelligence that are essential for navigating and succeeding in high-growth regions.
• Value of DataM Reports: Our reports offer specialized insights tailored to the latest trends and specific business inquiries. This personalized approach provides a deeper, strategic perspective, ensuring you receive the precise information necessary to make informed decisions. These insights complement and go beyond what is typically available in generic databases.
Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies
- 1. Methodology and Scope
- 1.1. Research Methodology
- 1.2. Research Objective and Scope of the Report
- 2. Definition and Overview
- 3. Executive Summary
- 3.1. Snippet by Component
- 3.2. Snippet by Deployment Type
- 3.3. Snippet by Organization Size
- 3.4. Snippet by Technology
- 3.5. Snippet by Application
- 3.6. Snippet by End-Use Industry
- 3.7. Snippet by Region
- 4. Dynamics
- 4.1. Impacting Factors
- 4.1.1. Drivers
- 4.1.1.1. Proliferation of IoT Devices
- 4.1.2. Restraints
- 4.1.2.1. High Initial Investment and Infrastructure Challenges
- 4.1.3. Opportunity
- 4.1.4. Impact Analysis
- 5. Industry Analysis
- 5.1. Porter's Five Force Analysis
- 5.2. Supply Chain Analysis
- 5.3. Value Chain Analysis
- 5.4. Pricing Analysis
- 5.5. Regulatory and Compliance Analysis
- 5.6. AI & Automation Impact Analysis
- 5.7. R&D and Innovation Analysis
- 5.8. Sustainability & Green Technology Analysis
- 5.9. Cybersecurity Analysis
- 5.10. Next Generation Technology Analysis
- 5.11. Technology Roadmap
- 5.12. DMI Opinion
- 6. By Component
- 6.1. Introduction
- 6.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Component
- 6.1.2. Market Attractiveness Index, By Component
- 6.2. Hardware*
- 6.2.1. Introduction
- 6.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 6.3. Solutions
- 6.4. Services
- 7. By Deployment Type
- 7.1. Introduction
- 7.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Deployment Type
- 7.1.2. Market Attractiveness Index, By Deployment Type
- 7.2. On-premises*
- 7.2.1. Introduction
- 7.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 7.3. Cloud-based
- 8. By Organization Size
- 8.1. Introduction
- 8.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Organization Size
- 8.1.2. Market Attractiveness Index, By Organization Size
- 8.2. Large enterprises*
- 8.2.1. Introduction
- 8.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 8.3. Small & Medium Sized Enterprises
- 9. By Technology
- 9.1. Introduction
- 9.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 9.1.2. Market Attractiveness Index, By Technology
- 9.2. Machine Learning*
- 9.2.1. Introduction
- 9.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 9.3. Natural Language Processing (NLP)
- 9.4. Context-aware computing
- 9.5. Others
- 10. By Application
- 10.1. Introduction
- 10.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 10.1.2. Market Attractiveness Index, By Application
- 10.2. IIoT*
- 10.2.1. Introduction
- 10.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 10.3. Remote Monitoring
- 10.4. Content Delivery
- 10.5. Video Analytics
- 10.6. AR&VR
- 10.7. Others
- 11. By End-Use Industry
- 11.1. Introduction
- 11.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-Use Industry
- 11.1.2. Market Attractiveness Index, By End-Use Industry
- 11.2. Banking, Financial Services and Insurance*
- 11.2.1. Introduction
- 11.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 11.3. Retail
- 11.4. Government & Defense
- 11.5. Manufacturing
- 11.6. Enterprise
- 11.7. Healthcare
- 11.8. Automotive & Transportation
- 11.9. Others
- 12. By Region
- 12.1. Introduction
- 12.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Region
- 12.1.2. Market Attractiveness Index, By Region
- 12.2. North America
- 12.2.1. Introduction
- 12.2.2. Key Region-Specific Dynamics
- 12.2.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Component
- 12.2.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Deployment Type
- 12.2.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Organization Size
- 12.2.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 12.2.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 12.2.8. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-Use Industry
- 12.2.9. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 12.2.9.1. US
- 12.2.9.2. Canada
- 12.2.9.3. Mexico
- 12.3. Europe
- 12.3.1. Introduction
- 12.3.2. Key Region-Specific Dynamics
- 12.3.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Component
- 12.3.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Deployment Type
- 12.3.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Organization Size
- 12.3.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 12.3.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 12.3.8. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-Use Industry
- 12.3.9. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 12.3.9.1. Germany
- 12.3.9.2. UK
- 12.3.9.3. France
- 12.3.9.4. Italy
- 12.3.9.5. Spain
- 12.3.9.6. Rest of Europe
- 12.4. South America
- 12.4.1. Introduction
- 12.4.2. Key Region-Specific Dynamics
- 12.4.3. Key Region-Specific Dynamics
- 12.4.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Component
- 12.4.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Deployment Type
- 12.4.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Organization Size
- 12.4.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 12.4.8. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 12.4.9. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-Use Industry
- 12.4.10. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 12.4.10.1. Brazil
- 12.4.10.2. Argentina
- 12.4.10.3. Rest of South America
- 12.5. Asia-Pacific
- 12.5.1. Introduction
- 12.5.2. Key Region-Specific Dynamics
- 12.5.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Component
- 12.5.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Deployment Type
- 12.5.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Organization Size
- 12.5.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 12.5.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 12.5.8. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-Use Industry
- 12.5.9. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 12.5.9.1. China
- 12.5.9.2. India
- 12.5.9.3. Japan
- 12.5.9.4. Australia
- 12.5.9.5. Rest of Asia-Pacific
- 12.6. Middle East and Africa
- 12.6.1. Introduction
- 12.6.2. Key Region-Specific Dynamics
- 12.6.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Component
- 12.6.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Deployment Type
- 12.6.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Organization Size
- 12.6.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 12.6.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 12.6.8. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-Use Industry
- 13. Competitive Landscape
- 13.1. Competitive Scenario
- 13.2. Market Positioning/Share Analysis
- 13.3. Mergers and Acquisitions Analysis
- 14. Company Profiles
- 14.1. NVIDIA*
- 14.1.1. Company Overview
- 14.1.2. Product Portfolio and Description
- 14.1.3. Financial Overview
- 14.1.4. Key Developments
- 14.2. Amazon Web Services, Inc.
- 14.3. Arctic Wolf Networks Inc.
- 14.4. Tata Consultancy Services
- 14.5. Microsoft Corporation
- 14.6. Infosys
- 14.7. IBM Corporation
- 14.8. Intel Corporation
- 14.9. Cisco Systems, Inc.
- 14.10. Nokia
- LIST NOT EXHAUSTIVE
- 15. Appendix
- 15.1. About Us and Services
- 15.2. Contact Us
Research Assistance
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook