Edge AI market to hit USD $71 billion by 2034, report says

A new report from Future Market Insights highlights the anticipated growth of the global Edge AI market, projecting it to reach USD $71,131.3 million by 2034 from an estimated USD $8,901.9 million in 2024, growing at a compound annual growth rate (CAGR) of 23.1% during the forecast period.

Edge AI technology involves deploying artificial intelligence algorithms directly onto devices such as smartphones, sensors, and IoT devices, rather than relying on centralised cloud servers. By processing data locally, Edge AI enables faster decision-making, enhanced data privacy, and reduced bandwidth usage. It utilises compact AI models optimised for edge devices through technologies like machine learning, computer vision, and natural language processing.

The adoption of AI in IoT devices and the global roll-out of 5G networks are major trends shaping the Edge AI market. "Edge AI allows localised processing within devices such as sensors, cameras, and gateways, thereby reducing latency and improving responsiveness," notes Future Market Insights. This capability is particularly beneficial in industries such as smart manufacturing where Edge AI enables predictive maintenance by rapidly identifying machinery anomalies.

Another factor driving the growth of the Edge AI market is the rising demand for energy-efficient technologies. Edge AI processes data on devices rather than cloud-based infrastructure, thereby reducing energy consumption significantly. This makes Edge AI attractive to industries prioritising sustainability and aligns with broader green initiatives.

The healthcare sector offers substantial opportunities for Edge AI as demand for real-time diagnostics and patient monitoring increases. Devices leveraging Edge AI can process vital patient data on-site, allowing healthcare providers to receive timely insights without dependence on cloud connectivity. This can enhance patient outcomes by enabling early detection and intervention.

Meanwhile, smart city initiatives are fostering opportunities for Edge AI. Edge AI can optimise traffic management systems by analysing real-time feeds from cameras and sensors, aiding in congestion reduction and enhancing public safety.

However, the Edge AI market faces challenges such as technical complexity in deploying AI models on resource-constrained devices like IoT sensors and microcontrollers. "Designing AI models that perform well within these constraints requires new techniques like model pruning, quantisation, and compression, which demand specialised skillsets," the report mentions.

In the United States, the Edge AI market is poised for continued growth, driven by the integration of 5G technology and support from leading AI innovators such as NVIDIA, Intel, Google, and IBM. These factors accelerate the deployment of Edge AI in sectors including healthcare, automotive, and manufacturing.

China's market is also strong, benefiting from significant investments in AI research and development. The country's commitment to developing its AI technology is evident with state-owned carrier China Telecom's recent achievements in training large language models on domestically-produced processors.

India's Edge AI market is expanding due to government initiatives like "Digital India," the roll-out of 4G/5G networks, and a technology-savvy population. Growth is supported by applications in urban infrastructure and healthcare.

Recent market developments include the introduction of next-generation Edge AI server platforms by Vecow aimed at enhancing AI applications across industries, Infineon's release of the DEEPCRAFT brand focusing on Edge AI solutions, and NTT DATA's launch of its Ultralight Edge AI platform for low-power environments.