“Global AI Edge Computing Market to reach a market value of USD 64.8 Billion by 2031 growing at a CAGR of 20.9%”
The Global AI Edge Computing Market size is expected to reach $64.8 billion by 2031, rising at a market growth of 20.9% CAGR during the forecast period.
Video analytics involves using AI to analyze video feeds in real-time, extracting valuable insights, and enabling automated responses. Edge computing enhances video analytics by processing data close to the source, reducing latency and bandwidth usage. This is particularly important for applications such as security and surveillance, where real-time analysis of video feeds is crucial for identifying potential threats and ensuring public safety. Retailers also use video analytics to understand customer behavior and optimize store layouts, while transportation systems leverage it for traffic management and incident detection. Thus, the Video analytics segment generates 12% revenue share in the market 2023.
The major strategies followed by the market participants are Partnership as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June 2024, HP, Inc. teamed up with NVIDIA, a global technology company, to launch NVIDIA AI Computing by HPE, featuring HPE Private Cloud AI, which integrates NVIDIA's AI computing stack with HPE's infrastructure. This solution would provide a scalable, energy-efficient path for generative AI deployment, supported by global system integrators and advanced infrastructure.
Additionally, In April 2024, Vapor IO came into partnership with VAST Data, a technology company, to enhance AI deployments with Vapor IO's Zero Gap AI and the VAST Data Platform. This partnership provides an adaptable edge-to-core AI fabric, enabling enterprises to optimize their AI systems for various priorities, including cost, latency, accuracy, and resiliency.
Based on the Analysis presented in the KBV Cardinal matrix; Cisco Systems, Inc. is the forerunner in the AI Edge Computing Market. Companies such as IBM Corporation, HP, Inc., Nokia Corporation are some of the key innovators in AI Edge Computing Market. In May, 2024, Cisco Systems, Inc. partnered with Lenovo, a technology company, to deliver integrated infrastructure and networking solutions to accelerate digital transformation. The collaboration combines Lenovo's AI-enabled portfolio with Cisco's networking ecosystem, providing turnkey solutions that enhance AI capabilities, streamline operations, and improve business outcomes with advanced security and performance from edge to cloud.
According to some projections, online-connected devices will surpass 30 billion by 2025. The IoT sector is already large and is expanding at a fast pace. The United Nations Conference on Trade and Development projects that by 2030, it will facilitate an increase from $1.6 trillion in 2020 to $12.6 trillion worldwide.
Additionally, the efficiency of AI models at the edge has improved significantly due to advancements in hardware and software. Edge devices are now equipped with specialized processors, such as GPUs and TPUs, designed to handle AI workloads efficiently. Thus, the advancements in AI and machine learning have significantly enhanced the capabilities of edge computing.
Deploying edge computing systems requires considerable upfront capital expenditure, which can be a significant barrier, especially for smaller organizations. The hardware component of edge computing involves purchasing advanced edge devices capable of handling complex AI tasks. These high-performance processors have a hefty price tag, adding to the overall cost. Hence, the high initial costs associated with deploying the necessary infrastructure pose a substantial challenge for the market.
By application, the market is divided into IIoT, remote monitoring, content delivery, video analytics, AR & VR, and others. The AR & VR segment garnered 24% revenue share in the market in 2023. The integration of edge computing with AR and VR technologies enhances these applications' performance and user experience by providing low latency and high-speed data processing.
Based on vertical, the market is segmented into automotive, healthcare, chemicals, oil & gas, manufacturing & robotics, public infrastructure, transportation & logistics, and others. The manufacturing & robotics segment acquired 24% revenue share in the market in 2023. One of the fundamental reasons for this is the widespread implementation of edge computing in manufacturing environments, which aims to enhance automation, predictive maintenance, quality control, and operational efficiency.
Based on component, the market is divided into hardware, software, and services. The hardware segment garnered 73% revenue share in the market in 2023. The growing demand for sophisticated edge devices, including sensors, processors, and gateways, is the primary factor driving this dominance.
On the basis of organization size, the market is classified into large enterprises and small & medium enterprises. The small & medium enterprises segment recorded 36% revenue share in the market in 2023. SMEs increasingly recognize the benefits of edge computing in terms of cost efficiency, scalability, and enhanced performance.
Free Valuable Insights: Global AI Edge Computing Market size to reach USD 64.8 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment acquired 28% revenue share in the market in 2023. Europe has been at the forefront of adopting cutting-edge technologies to boost its industrial and economic growth.
The AI Edge Computing market is highly competitive with key players focusing on innovation and scalability. Attributes defining this market include robust computing capabilities at the edge, real-time data processing, low latency, and enhanced privacy and security features. Companies are leveraging AI algorithms to optimize edge devices' performance across industries like healthcare, manufacturing, and automotive. The market's growth is driven by increasing demand for decentralized AI solutions that can handle data locally while reducing dependence on cloud resources.
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.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 14.8 Billion |
| Market size forecast in 2031 | USD 64.8 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 20.9% from 2024 to 2031 |
| Number of Pages | 325 |
| Number of Tables | 514 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, Organization Size, Application, Vertical, Region |
| Country scope |
|
| Companies Included | Comsovereign Holding Corp., Nokia Corporation, Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Johnson Controls International PLC, Vapor IO, Inc., IBM Corporation, Rigado Inc., Cisco Systems, Inc., ClearBlade Inc. and HP, Inc. |
By Organization Size
By Component
By Application
By Vertical
By Geography
This Market size is expected to reach $64.8 billion by 2031.
Rising adoption of IoT devices are driving the Market in coming years, however, significant initial investment in edge computing equipmentrestraints the growth of the Market.
Comsovereign Holding Corp., Nokia Corporation, Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Johnson Controls International PLC, Vapor IO, Inc., IBM Corporation, Rigado Inc., Cisco Systems, Inc., ClearBlade Inc. and HP, Inc.
The expected CAGR of this Market is 20.9% from 2024 to 2031.
The Large Enterprises segment is leading the Market by Organization Size in 2023; thereby, achieving a market value of $39.2 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $23.9 billion by 2031.
Our team of dedicated experts can provide you with attractive expansion opportunities for your business.
Unique Offerings 