According to a new report, published by KBV research, 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.
The Small & Medium Enterprises segment is anticipating a CAGR of 27% during (2024 - 2031). Edge AI offers these smaller companies a cost-effective way to implement automation without needing extensive cloud infrastructure, which is particularly beneficial for reducing operational costs and gaining real-time insights. The growing accessibility of edge AI for SMEs has been facilitated by the development of user-friendly AI software platforms and the increasing availability of compact, affordable edge devices. This has allowed them to capitalize on the advantages of automation to improve the quality of their products and processes, thereby fostering growth in this sector.
The On-premise segment is leading the Global Edge AI in Industrial Automation Market by Deployment Type in 2023; thereby, achieving a market value of $140.2 billion by 2031. On-premise deployment allows industries to store and process data locally, which is crucial for sectors with strict data privacy requirements, such as pharmaceuticals, defense, and manufacturing. This approach also ensures real-time decision-making without dependence on internet connectivity, making it suitable for critical applications where latency could result in operational inefficiencies or safety risks. The preference for on-premise deployment reflects industries' focus on maintaining data control and ensuring consistent performance without relying on cloud infrastructure.
The Services segment is registering a CAGR of 26.2% during (2024 - 2031). Implementing edge AI in industrial environments can be complex, requiring specialized expertise to integrate new technologies with existing infrastructure and ensure compatibility across diverse systems. As a result, companies are increasingly seeking professional services to assist with the smooth deployment and customization of edge AI solutions. Additionally, the need for continuous support, maintenance, and training to optimize the performance of edge AI systems drives the demand for services.
The Manufacturing segment is generating maximum revenue in the Global Edge AI in Industrial Automation Market by End-Use in 2023; thereby, achieving a market value of $75.8 billion by 2031. The segment is primarily driven by the increasing need for real-time process optimization as well as the more widespread adoption of technologies that are associated with smart manufacturing. Edge AI enables manufacturers to monitor machinery, detect anomalies, and improve product quality in real-time, reducing downtime and enhancing operational efficiency. This significant role in streamlining production processes and ensuring cost savings has positioned the manufacturing segment as the largest contributor to the market revenue.
The Quality Control & Inspection segment is showcasing a CAGR of 24.6% during (2024 - 2031). Edge AI provides real-time inspection capabilities, allowing for immediate detection of deviations in product quality during production. This is particularly valuable in automotive, electronics, and consumer goods industries, where precision is paramount. Manufacturers can mitigate wastage, revisions, and costs associated with product recalls by automating quality control with edge AI to ensure that only products that meet rigorous standards reach the market. The ability to perform on-the-spot inspections without latency delays also means that defects are caught early, ensuring high production standards and improving customer satisfaction.
Full Report: https://www.kbvresearch.com/edge-ai-in-industrial-automation-market/
The Asia Pacific region dominated the Global Edge AI in Industrial Automation Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $104.4 billion by 2031. The North America region is expected to witness a CAGR of 24.6% during (2024 - 2031). Additionally, The Europe region is expected to witness a CAGR of 25.1% during (2024 - 2031).
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By Deployment Type
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By End-Use
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