According to the latest market research study published by P&S Intelligence, the global edge AI software market is experiencing significant growth, projected to escalate from USD 1,459.0 million in 2024 to USD 8,218.0 million by 2030, marking a robust CAGR of 33.4% during the forecast period. This surge is primarily attributed to the proliferation of 5G networks, the expanding deployment of IoT devices, and the escalating demand for real-time data processing capabilities.
The integration of edge computing with AI technologies is
revolutionizing operational efficiencies across various sectors. By enabling
data analysis at the edge, organizations can achieve faster decision-making
processes, reduced latency, and enhanced data security. The symbiotic
relationship between edge AI and cloud computing further amplifies these
benefits, facilitating seamless data management and processing.
Key Insights
Component Analysis
In 2024, the solutions segment is anticipated to dominate
the market, contributing approximately 60% of the revenue. This dominance is
due to the direct implementation of edge devices and the substantial initial
investments by businesses in AI algorithms, edge computing platforms, and
application-specific software solutions. Conversely, the services segment is
expected to witness a higher CAGR of 35% between 2024 and 2030, driven by the
increasing need for professional and managed services.
Deployment Mode
The cloud-based deployment model is projected to hold the
largest market share of 70% in 2024, growing at a CAGR of 36% during the
forecast period. This preference is due to the scalability, flexibility, and
integration capabilities offered by cloud services, which are essential for
handling and analyzing the vast volumes of data generated at the edge.
Data Type
Video and image data are expected to account for the largest
market share of 40% in 2024, with a CAGR of 30% through 2030. The surge in
demand for real-time visual analytics across sectors such as security,
automotive, and retail is fueling this growth.
End-User Industries
The BFSI sector is projected to be the largest end-user
category in 2024, leveraging edge AI for enhanced security and customer
service. The healthcare sector is anticipated to experience a CAGR of 30%
between 2024 and 2030, driven by the increasing use of AI in medical imaging
and diagnostics.
Regional Outlook
North America is expected to lead the market with a 40%
share in 2024, owing to the presence of leading-edge AI software vendors and
early adoption across various industries. The Asia-Pacific region is poised to
be the fastest-growing market, with a CAGR of 40% during the forecast period,
propelled by industrial advancements and the need for productivity-enhancing
technologies.
Market Dynamics
The market is characterized by fragmentation, with key
players such as Microsoft Corporation, IBM Corporation, NVIDIA Corporation,
Amazon Web Services Inc., and Edge Impulse Inc. offering customized solutions
for diverse applications. The low barriers to entry and open-source initiatives
contribute to this fragmentation.
Technological Advancements
