Edge AI Software Global Market Report 2024

The edge AI software market size has grown exponentially in recent years. It will grow from $1.35 billion in 2023 to $1.76 billion in 2024 at a compound annual growth rate (CAGR) of 30.6%. The growth observed in the historical period can be ascribed to technological progress, a heightened demand for real-time processing, the expansion of Internet of Things (IoT) devices, the escalating complexity of data at the edge, and enhancements in edge computing infrastructure.

The edge AI software market size is expected to see exponential growth in the next few years. It will grow to $4.68 billion in 2028 at a compound annual growth rate (CAGR) of 27.6%. The expansion anticipated in the forecast period can be ascribed to the improved capabilities of edge AI hardware, the integration of 5G networks, the broadening application of edge AI in healthcare, an increased focus on privacy and data security, and the growing adoption of edge AI in autonomous vehicles. Key trends expected in the forecast period encompass mergers and acquisitions, the incorporation of Edge AI in industrial automation, the utilization of Edge AI for video analytics and surveillance, the deployment of Edge AI in smart cities, the application of Edge AI for personalized user experiences, and the integration of Edge AI in edge-to-cloud synergy.

The growth trajectory of the edge AI software market is anticipated to receive a substantial boost due to the increasing adoption of 5G network technology. Positioned as the fifth generation of mobile network technology, 5G represents a noteworthy advancement over its predecessors, namely 2G, 3G, and 4G/LTE. Its integration into edge AI software facilitates accelerated data transmission and minimal latency, crucial elements for real-time AI processing at the edge. As evidence of this trend, in April 2023, 5G Americas, a US-based industry trade organization, reported a 76% surge in global 5G wireless connections from the close of 2021 to the close of 2022, reaching a total of 1.05 billion connections. Consequently, the burgeoning adoption of 5G network technology emerges as a driving force behind the growth of the edge AI software market.

Prominent entities within the edge AI software market are strategically concentrating on the development of innovative solutions, exemplified by the introduction of the edge AI suite. This term typically encompasses a comprehensive array of software tools, frameworks, and services that collectively empower the implementation of artificial intelligence (AI) capabilities at the network's edge. An illustration of this is evident in the actions of STMicroelectronics NV, a Switzerland-based semiconductor manufacturing company, which unveiled the 'ST Edge AI Suite' in December 2023. Integrated with compatible hardware, this suite expedites the initiation and implementation of connected, autonomous devices embedded with local artificial intelligence. By consolidating various software tools, evaluations, and development kits, STMicroelectronics NV leverages its established AI ecosystem within machine learning (ML), thereby facilitating seamless design and large-scale deployment of such solutions.

In August 2023, Sidus Space, a US-based satellite manufacturing company, executed the acquisition of Exo-Space for an undisclosed sum. This strategic move by Sidus is geared towards amplifying its presence in the AI sector and expanding its portfolio of offerings, including earth and space observation services. Through this acquisition, Sidus endeavors to deliver enhanced and efficient actionable solutions to its existing clientele while simultaneously broadening its customer base. Exo-Space, the acquired entity, is a US-based provider of edge artificial intelligence (AI) software and hardware designed for space applications.

Major companies operating in the edge AI software market report are Alphabet Inc., Google LLC, Microsoft Corporation, Amazon Web Services, Intel Corporation , International Business Machines Corporation, NVIDIA Corporation, Baidu Inc., Renesas Electronics Corporation, Synaptics Incorporated, Nutanix Inc., TIBCO Software Inc., Cloudera Inc., DataRobot Inc., Bragi GmbH, Gorilla Technology Group, Tact.AI Technologies Inc., FogHorn Systems Inc., ClearBlade Inc., Octonion SA, Anagog Ltd., Imagimob AB, Azion Technologies, Avassa, Adapdix, SWIM.AI Inc., Veea Inc., XNOR.AI Inc.

North America was the largest region in the edge AI software market in 2023. The regions covered in the edge AI software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the edge AI software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The edge AI software market includes revenues earned by entities by providing services such as edge AI platforms, edge AI libraries, security solutions, and real-time analytics. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The edge AI software market consists of sales of IoT sensors, smart cameras, servers, uCPE equipment, and processors. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Edge AI (Artificial Intelligence) software refers to software applications and algorithms specifically designed to operate on edge devices, which are situated closer to the source of data generation rather than relying on centralized cloud-based servers. This technology enables devices to make intelligent decisions rapidly without the need to connect to the cloud or external data centers. Edge AI software offers numerous benefits, including reduced power consumption, enhanced privacy and security, minimized bandwidth usage, scalability, and more.

The main components of edge AI software encompass various elements such as solutions, software tools, platforms, and services. Edge AI software solutions comprise a category of applications and platforms engineered to facilitate artificial intelligence (AI) computations on edge devices, thereby reducing reliance on centralized cloud servers. These solutions cater to a wide range of data types, including video and image data, audio data, text and language data, environmental and location data, biometric data, and multi-modal data. They find applications across diverse sectors including banking, financial services, and insurance, government and public sector, healthcare and life sciences, telecommunications, energy and utilities, manufacturing, automotive, transportation and logistics, media and entertainment, and other industries. Additionally, services such as training and consulting, system integration testing, and support and maintenance complement the deployment and utilization of edge AI software solutions.

The edge AI software market research report is one of a series of new reports that provides edge AI software market statistics, including edge AI software industry global market size, regional shares, competitors with an edge AI software market share, detailed edge AI software market segments, market trends and opportunities, and any further data you may need to thrive in the edge AI software industry. This edge AI software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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