The edge AI software market is projected to register a CAGR of ~21.3% during the forecast period, 2021–2027. This report includes the segmentation and dynamics of the Edge AI market to offer a better glimpse into the coming years.
AI algorithms that are performed locally on a hardware device are referred to as edge AI. This eliminates the requirement for Edge AI devices to be connected to function correctly, as they can process data and make choices without it.
The major factors driving the growth of the edge AI market are the increasing need for real-time operations, including data creation, increasing demand for edge AI-enabled devices, and the growing emergence of 5G network connectivity. However, the data scarcity at edge and data consistency on edge devices are hindering the market growth. Nevertheless, the increased levels of security reduced costs & latency for data communication, and edge AI overcoming cloud computing challenges are expected to provide lucrative growth opportunities for the players in the market.
The global edge AI software market has been segmented based on component, data source, vertical, and region.
Based on the component, the edge AI software market has been segmented into solution and service. The solutions segment is further bifurcated into software tools and platforms. The service segment has been further segmented into training & consultation services, system integration & testing services, and support & maintenance services. During the forecast period, the solution segment is likely to have a larger market share, while the services segment is likely to grow with the highest CAGR. As these platforms are efficiently used for AI training for mission-critical applications, the edge AI platform, which includes an edge AI inference system, AI workstation with GPU computing, and GPU servers, is anticipated to grow at the quickest rate in the solutions category. This will help the solution segment grow during the projection period.
By data sources, the edge AI software market has been segmented into video and image recognition, speech recognition, biometric data, sensor data, and mobile data. During the study period, the mobile data segment is predicted to have the highest CAGR. As the number of IoT devices expands around the world, artificial intelligence (AI), edge computing, and the internet of things (IoT) are all gaining in popularity. When next-generation 5G cellular networks are deployed, edge computing, artificial intelligence, and machine learning are anticipated to become more prominent.
By application, the edge AI software market has been segmented into autonomous vehicles, access management, video surveillance, remote monitoring & predictive maintenance, telemetry, energy management, and others. The video surveillance segment is expected to gain the largest market size during the forecast period. This is because edge AI software for video surveillance can increase surveillance and monitoring while reducing the quantity of raw data sent to the cloud, resulting in widespread adoption. Machine Learning intelligent camera systems can now gather raw data, parse it, and analyze it using facial recognition to identify people of interest and problematic behavior thanks to the emergence of edge AI.
By vertical, the edge AI software market has been segmented into government & public, manufacturing, automotive, energy & utilities, telecom, healthcare, and others. The health care segment is expected to gain the largest market share during the forecast period, while the government & public segment is expected to have the highest CAGR during the forecast period. Remote surgery and diagnostics and patient vital signs and data monitoring are all examples of edge ai healthcare applications. Doctors can utilize a remote platform to control surgical tools from a safe and comfortable distance. Edge AI devices will be used in buildings and retail malls after Covid to screen people before they enter. They can detect it utilizing AI technology if the people/visitors have a high temperature or are not wearing a mask.
The global edge AI software market is characterized by the presence of several regional and local providers. Some of the key players in the market are Microsoft Corporation (US), IBM Corporation (US), Amazon Web Services (US), Nutanix Inc. (US), Synaptics (US), TIBCO Software (US), Octonion SA (Switzerland), Intel Corporation (US), HPE (US), Oracle Corporation (US), Foghorn Systems (US), Gorilla Technology Group (Taiwan), Azion Technologies (US), ClearBlade (US), TACT.Ai Technologies (US), SIXSQ (Geneva), ADAPDIX (US), and ALEF EDGE (US).
The regional analysis for the global edge AI software market has been done for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. The market in North America accounted for the largest market share in 2019, and it is expected to register strong growth during the forecast period. However, the APAC area is experiencing tremendous growth due to various factors, including expanding local businesses and government programs aimed towards AI developments. The major APAC countries are technologically advanced and provide significant investment and income potential.