What Transformation Has the Embedded AI Market Undergone?
The embedded ai market has seen considerable growth due to a variety of factors.
•In recent years, the embedded AI market has seen accelerated growth. It is projected to expand from a market size of $14.28 billion in 2024 to $15.81 billion in 2025, indicating a compound annual growth rate (CAGR) of 10.7%.
This surge during the historic period can be associated with various factors such as the shrinking size of hardware components, escalating demand for intelligent devices, increased connectivity and internet of things (IoT), advancements in edge computing, and the popularity of wearable devices.
How Will The Embedded AI Market Size Evolve In The Foreseeable Future?
The embedded ai market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of embedded AI is predicted to experience significant expansion in the forthcoming years. It's projected to escalate to $26.66 billion by 2029, with a compound annual growth rate (CAGR) of 14.0%.
The projected growth throughout this period is ascribed to improved energy efficiency in embedded systems, burgeoning industrial automation, rising demand for edge AI in the healthcare sector, growth of 5g networks, and strengthened security measures for embedded AI. Some prevalent trends predicted for this period include the incorporation of AI in consumer electronics, the creation of AI-specific processors, advancements in semiconductor technology, AI-customized microcontrollers, the utilisation of edge AI in robotics and drones, along with the deployment of edge AI in environmentally friendly and green computing.
Which Drivers Are Accelerating Growth In The Embedded AI Market?
The expansion of the embedded AI market is anticipated to be fuelled by a rise in industrial automation. Industrial processes and operations are increasingly being automated using advanced technologies, control systems, and machinery. In terms of enhancing productivity, efficiency, and decision-making within manufacturing and production processes, embedded AI has wide applications in industrial automation. It is employed for applications such as machine vision, quality control, predictive maintenance, and robotics automation. For instance, the International Federation of Robotics, a non-profit organization based in Germany, reported that in 2023, there were 4,281,585 units in operation in factories globally, indicating a 10% rise from the previous year as of September 2024. As a result, the growth of the embedded AI market is being propelled by the surge in industrial automation.
What Are The Core Segments Of The Global Embedded AI Market?
The embedded ai market covered in this report is segmented –
1) By Offering: Hardware, Software, Services
2) By Data Type: Sensor Data, Image And Video Data, Numeric Data, Categorial Data, Other Data Types
3) By Application: Smart Phone, Wearable Device, Vehicle Electronics, Smart Home, Security Monitoring, Drone, Robot, Other Applications
4) By Vertical: Banking, Financial Services And Insurance (BFSI), Information Technology (IT) And Information Technology Enabled Services (ITES), Retail And Ecommerce, Manufacturing, Healthcare And Life Sciences, Media And Entertainment, Telecom, Automotive, Other Verticals
Subsegments:
1) By Hardware: Processors, Sensors, Edge Devices, Boards
2) By Software: AI Frameworks And Platforms, Development Tools, Middleware, Security Software
3) By Services: Consulting Services, Integration Services, Maintenance And Support, Training And Education
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Which Emerging Trends Are Reshaping The Embedded AI Market Size?
The trend of creating innovative technological products is gaining traction in the embedded AI market. Significant companies within this market are aiming to develop unique and cutting-edge products to maintain their market status. As an example, in May 2023, Cognex Corporation, a system software company based in the US, rolled out the Advantage 182 vision system, which is an AI-based embedded vision system. The product's ingenious design aims to automate challenging localization, categorization, and inspection operations within the life science industry. The Advantage 182 comprises advanced machine vision, barcode reading, and edge learning technology and automates a plethora of tasks including presence/absence detection, track-and-trace applications, high-accuracy alignment, and complex color inspections. Furthermore, it includes specific application capabilities, such as detection and classification of test tubes, quantifying the stages of centrifuged blood, and pinpointing pathology samples.
Who Are the Key Players in the Embedded AI Market?
Major companies operating in the embedded ai market include:
• Google LLC
• Microsoft Corporation
• Amazon Web Services Inc.
• Siemens
• Intel Corporation
• International Business Machines Corporation (IBM)
• Qualcomm Technologies Inc.
• Oracle Corporation
• SAP SE
• HPE (Hewlett Packard Enterprise)
• Nvidia Corporation
• Salesforce
• Advanced Micro Devices Inc
• MediaTek Inc.
• Adobe Inc
• STMicroelectronics NV
• NXP Semiconductors NV
• Renesas Electronics Corporation
• Synopsys Inc.
• Xilinx Inc.
• Arm Limited.
• HiSilicon
• Lattice Semiconductor
• SenseTime
• C3.ai
• Appier
• NeuroPace
• AU-Zone Technologies
• LUIS Technology
• VectorBlox Computing Inc.
What are the Regional Insights into the Embedded AI Market?
North America was the largest region in the embedded AI market in 2024. The regions covered in the embedded ai market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
