The Global Edge AI in Industrial Automation Market size is expected to reach $268.5 billion by 2031, rising at a market growth of 25.4% CAGR during the forecast period.
As industries strive for higher operational efficiency, reduced downtime, and optimized production processes, AI software solutions are vital in analyzing data, detecting anomalies, and generating actionable insights. The growth of this segment is further supported by the increasing adoption of sophisticated algorithms and machine learning models tailored to address specific industrial requirements. These software solutions allow companies to maximize the potential of their hardware investments by leveraging AI for improved decision-making, automation, and overall productivity. Thus, the software segment procured 29% revenue share in the edge AI in industrial automation market in 2023.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In September, 2024, Oracle has formed a partnership with Anduril Industries to integrate Anduril’s Lattice command and control platform with Oracle Cloud Infrastructure. This alliance is set to strengthen global defense capabilities, providing secure and scalable solutions for mission-critical operations from the datacenter to the tactical edge. Additionally, In September, 2024, Gorilla Technology Group Inc. has partnered with Lanner Electronics to establish a joint venture focused on manufacturing next-generation AI-enabled security convergence appliances in Thailand. This collaboration is designed to address global cybersecurity demands through a diverse product lineup, improving manufacturing efficiency, quality, and scalability.
Additionally, this is especially beneficial in hazardous areas where human safety is an issue since it enables robots to perform equipment inspections or material transportation without posing a threat to human laborers because it eliminates the need for human workers to be present. Thus, as the use of robots increases in industries, the demand for edge AI will also increase owing to its advantages. This, in turn, will drive the expansion of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships, Collaborations & Agreements.
The Edge AI in the Industrial Automation market is highly competitive, characterized by rapid technological advancements and a focus on innovation. Key attributes include real-time processing, enhanced data privacy and security, and scalability across various devices. Integration with IoT is essential for smarter manufacturing and predictive maintenance. Companies emphasize partnerships and competitive pricing to attract a diverse customer base. The growing demand for cost-effective automation and customized solutions drives market growth and technological advancements within the industry.
As industries strive for higher operational efficiency, reduced downtime, and optimized production processes, AI software solutions are vital in analyzing data, detecting anomalies, and generating actionable insights. The growth of this segment is further supported by the increasing adoption of sophisticated algorithms and machine learning models tailored to address specific industrial requirements. These software solutions allow companies to maximize the potential of their hardware investments by leveraging AI for improved decision-making, automation, and overall productivity. Thus, the software segment procured 29% revenue share in the edge AI in industrial automation market in 2023.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In September, 2024, Oracle has formed a partnership with Anduril Industries to integrate Anduril’s Lattice command and control platform with Oracle Cloud Infrastructure. This alliance is set to strengthen global defense capabilities, providing secure and scalable solutions for mission-critical operations from the datacenter to the tactical edge. Additionally, In September, 2024, Gorilla Technology Group Inc. has partnered with Lanner Electronics to establish a joint venture focused on manufacturing next-generation AI-enabled security convergence appliances in Thailand. This collaboration is designed to address global cybersecurity demands through a diverse product lineup, improving manufacturing efficiency, quality, and scalability.
KBV Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation and Google LLC are the forerunners in the Edge AI in Industrial Automation Market. In March, 2024, Microsoft Corporation and Hitachi came into partnership to launch a strategic multi-billion-dollar partnership to enhance Lumada solutions with generative AI, improve productivity for 270,000 employees, and train over 50,000 professionals. The collaboration aims to drive innovation in energy, mobility, and sustainability efforts. Companies such as Amazon Web Services, Inc., NVIDIA Corporation and IBM Corporation are some of the key innovators in Edge AI in Industrial Automation Market.
Market Growth Factors
By facilitating real-time decision-making and processing data locally, edge AI guarantees that production continuity is maintained by resolving such issues when they arise. This improves operational efficiency and enhances industrial automation systems' overall reliability and safety, making edge AI a vital technology for modern manufacturing environments. Hence, the benefits of edge AI in improved efficiency and reduced latency further expedite its demand, thereby supporting the market's growth.Additionally, this is especially beneficial in hazardous areas where human safety is an issue since it enables robots to perform equipment inspections or material transportation without posing a threat to human laborers because it eliminates the need for human workers to be present. Thus, as the use of robots increases in industries, the demand for edge AI will also increase owing to its advantages. This, in turn, will drive the expansion of the market.
Market Restraining Factors
The absence of a common framework or standard for interoperability means that integrating these different pieces of equipment with an overarching AI system requires extensive customization. Each piece of machinery may need a unique solution to connect with the edge AI system, which can be cumbersome and add further complexity to the integration process. Thus, these issues make implementation of edge AI solutions at scale challenging.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships, Collaborations & Agreements.
Driving and Restraining Factors
Drivers- Rising demand for improved efficiency and reduced latency
- Increasing use of industrial robots
- Growing adoption of IoT in industrial automation
- High initial costs and ROI uncertainty
- Complexity of integration with legacy systems
- Growing integration with 5G networks
- Need for smart supply chain management
- Data privacy and security concerns
- Lack of skilled workforce
Component Outlook
Based on component, the market is segmented into hardware, software, and services. The hardware segment garnered 56% revenue share in the market in 2023. This expansion was primarily the result of the increasing demand for sophisticated periphery devices that can process AI algorithms locally, thereby reducing latency and facilitating real-time decision-making, which is essential in industrial settings.Solution Outlook
On the basis of solutions, the market is classified into predictive maintenance, quality control & inspection, process optimization, anomaly detection, energy efficiency management, and others. The predictive maintenance segment witnessed 28% revenue share in the market in 2023. Predictive maintenance leverages real-time data processing and machine learning algorithms at the edge to continuously monitor the health of equipment and predict potential issues before they escalate into costly failures.End Use Outlook
By end-use, the market is divided into manufacturing, energy & utilities, oil & gas, automotive, logistics & transportation, healthcare, and others. The energy & utilities segment garnered 19% revenue share in the market in 2023. Edge AI solutions are crucial in monitoring power generation equipment, analyzing energy consumption patterns, and predicting maintenance needs.Deployment Type
Based on deployment type, the edge AI in industrial automation market is bifurcated into on-premise and cloud. The cloud segment acquired 44% revenue share in the edge AI in industrial automation market in 2023. Cloud-based solutions allow companies to access powerful computational resources without significant capital investment in hardware.
Hardware Outlook
The hardware segment is divided into edge devices, sensors, and gateways. The sensors segment witnessed 28% revenue share in the edge AI in industrial automation market in 2023. The expanding segment reflects the increasing need for accurate and reliable data collection across industrial environments. Sensors are fundamental in capturing data related to various parameters, such as temperature, pressure, vibration, and quality metrics, which serve as inputs for AI-driven automation processes.Software Outlook
The software segment is further fragmented into edge platforms, AI algorithms, and machine learning models. The AI algorithms segment procured 30% revenue share in the edge AI in industrial automation market in 2023. AI algorithms, tailored to specific industrial applications, are crucial for processing data collected by edge devices and sensors, enabling real-time insights and decision-making.Services Outlook
The services segment is further segmented into deployment, integration, and consulting. The integration segment recorded 35% revenue share in the market in 2023. Many industrial facilities operate with legacy equipment not initially designed for AI compatibility, making the integration process complex. Specialized integration services help bridge the gap between new AI solutions and traditional systems, ensuring they work cohesively.Organization Type Outlook
On the basis of organization type, the market is divided into large enterprises and small & medium enterprises. The large enterprises segment recorded 68% revenue share in the market in 2023. Large enterprises often have the financial capacity to implement cutting-edge AI solutions on a broad scale, which helps them achieve greater operational efficiency, reduce downtime, and enhance production quality.Market Competition and Attributes
The Edge AI in the Industrial Automation market is highly competitive, characterized by rapid technological advancements and a focus on innovation. Key attributes include real-time processing, enhanced data privacy and security, and scalability across various devices. Integration with IoT is essential for smarter manufacturing and predictive maintenance. Companies emphasize partnerships and competitive pricing to attract a diverse customer base. The growing demand for cost-effective automation and customized solutions drives market growth and technological advancements within the industry.
By Regional Analysis
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment procured 25% revenue share in the market in 2023. European countries have been at the forefront of implementing Industry 4.0 technologies to modernize their industrial processes, focusing on optimizing energy consumption and reducing carbon emissions.Recent Strategies Deployed in the Market
- Sep-2024: Oracle Corporation has launched new AI-powered features for Oracle Fusion Data Intelligence, introducing intelligent applications tailored for Human Capital Management and Supply Chain Management. These enhancements are designed to improve decision-making by delivering actionable insights and facilitating better data integration within organizations.
- Sep-2024: Oracle has formed a partnership with Anduril Industries to integrate Anduril’s Lattice command and control platform with Oracle Cloud Infrastructure. This alliance is set to strengthen global defense capabilities, providing secure and scalable solutions for mission-critical operations from the datacenter to the tactical edge.
- Sep-2024: Gorilla Technology Group Inc. has partnered with Lanner Electronics to establish a joint venture focused on manufacturing next-generation AI-enabled security convergence appliances in Thailand. This collaboration is designed to address global cybersecurity demands through a diverse product lineup, improving manufacturing efficiency, quality, and scalability.
- Jul-2024: Adlink Technology, Inc. launched the AI Edge Server MEC-AI7400 series, designed for smart manufacturing to drive AI innovation and digital transformation. With flexible configurations and rapid delivery, it enhances production efficiency and responsiveness while integrating generative AI and digital twin technologies for future innovations.
- Jun-2024: Adlink Technology, Inc. announced significant advancements in edge AI during COMPUTEX 2024, in partnership with NVIDIA, to enhance offerings in healthcare, smart manufacturing, and transportation. Notable product launches include the DLAP-211-Orin for smart parking solutions, the MLB-IGX for medical AI applications, and the EGX-MXM-AD2000 for enhanced AI graphics capabilities.
- May-2024: Nutanix, Inc. announced AI partnerships and a new partner program at its. Next conference, focusing on enhancing generative AI applications through collaborations with NVIDIA and EnterpriseDB. The initiatives aim to simplify on-premises AI adoption while ensuring scalability, security, and efficiency.
List of Key Companies Profiled
- Microsoft Corporation
- IBM Corporation
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- NVIDIA Corporation
- Google LLC (Alphabet Inc.)
- Synaptics Incorporated
- Nutanix, Inc.
- Adlink Technology, Inc.
- Gorilla Technology Group Inc.
- Oracle Corporation
Market Report Segmentation
By Organization Size- Large Enterprises
- Small & Medium Enterprises
- On-premise
- Cloud
- Hardware
- Edge Devices
- Sensors
- Gateways
- Software
- Edge Platforms
- AI Algorithms
- Machine Learning Models
- Services
- Deployment
- Integration
- Consulting
- Manufacturing
- Energy & Utilities
- Oil & Gas
- Automotive
- Logistics & Transportation
- Healthcare
- Other End-Uses
- Predictive Maintenance
- Quality Control & Inspection
- Process Optimization
- Anomaly Detection
- Energy Efficiency Management
- Other Solutions
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Edge AI in Industrial Automation Market by Organization Size
Chapter 6. Global Edge AI in Industrial Automation Market by Deployment Type
Chapter 7. Global Edge AI in Industrial Automation Market by Component
Chapter 8. Global Edge AI in Industrial Automation Market by End-Use
Chapter 9. Global Edge AI in Industrial Automation Market by Solutions
Chapter 10. Global Edge AI in Industrial Automation Market by Region
Chapter 11. Company Profiles
Companies Mentioned
Some of the key companies profiled in this Edge AI in Industrial Automation Market include:- Microsoft Corporation
- IBM Corporation
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- NVIDIA Corporation
- Google LLC (Alphabet Inc.)
- Synaptics Incorporated
- Nutanix, Inc.
- Adlink Technology, Inc.
- Gorilla Technology Group Inc.
- Oracle Corporation
Methodology
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