Edge AI market expected to reach $66.47 billion by 2030, growing at a CAGR of 21%

A recent Grand View Research, Inc. report predicts that the global edge AI market will reach $66.47 billion by 2030. The report also forecasts that the market will expand at a compound annual growth rate of 21.0% from 2023 to 2030.

The increasing need for 5G technology in various fields, such as real-time virtual reality experiences, autonomous vehicles, and critical applications, drives innovation in edge AI. Additionally, the market is expected to grow due to the rising demand for edge computing services based on the Internet of Things (IoT).

The amount of data generated by IoT devices can be overwhelming. Still, edge AI enables the efficient analysis of large amounts of sensor data and automated decision-making at the local level, making full use of this data.

Edge AI market growth & trends

According to the report, edge computing allows for transferring AI processing tasks from the cloud to near-end devices, thereby overcoming the inherent problems of traditional cloud computing, such as high latency and a lack of security. Moreover, edge AI is gaining popularity in technical advances owing to low latency and bandwidth requirements.

The integration of edge AI into AI devices enables data processing on the machine without sending additional data elsewhere. This significantly decreases processing time which can tremendously impact cultivating positive user experiences. Relocating AI computations to the network edge create opportunities for various applications, including new products and services.

Edge AI computing and 5G enhance network efficiency to support and deploy various real-time AI applications, including AI-based real-time video analytics for intelligent surveillance and security, smart farming, and industrial manufacturing automation. Many businesses are developing and upgrading hardware to improve the performance of cameras to satisfy the growing demand for surveillance dimensions offered by advanced video surveillance analytics.

Key industry insights and findings from the report are:

Hardware segment dominates: The hardware segment is the largest and dominates the market, with a revenue share of 53.6% in 2022. Edge chipsets are particularly popular in IoT devices because of their high processing capability and low power consumption.

AI adoption creates growth opportunities: The growing adoption of artificial intelligence products and services creates significant growth opportunities. As more businesses realize the benefits of AI, they are turning to edge AI for its low latency and real-time decision-making capabilities.

Data privacy is a key driver: Businesses are increasingly concerned about data privacy and are looking for ways to protect their data. It enables data privacy because computational activities are performed at the edge of the device or closer to the device, reducing the need to transmit sensitive data to the cloud.

Asia Pacific region shows the highest growth: The Asia Pacific region may grow at the highest CAGR of 26.1% during the projected period. Key regional players are expanding their geographical presence by providing advanced technological solutions to developing nations. In Japan, companies are creating solutions for the automotive and manufacturing industries.

Overall, the report suggests that the edge AI market is poised for significant growth, driven by the increasing adoption of AI, demand for data privacy, and expanding geographical presence of key players in the Asia Pacific region.

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