Embedded AI Market Analysis

Embedded AI Market Overview

Embedded AI Market Size was valued at USD 8,304.1 million in 2022. The Embedded AI Industry is projected to grow from USD 9,544.8 million in 2023 to USD 43,436.0 million by 2032, exhibiting a compound annual growth rate (CAGR) of 20.9% during the forecast period (2023 - 2032).

Embedded AI Market, commonly known as Embedded Artificial Intelligence (EAI), is a general-purpose AI framework system. It is embedded into network devices and provides common model management, data gathering, and data preprocessing features for these devices' AI algorithm-based functions. It also has the ability to submit inference findings to AI algorithm-based functions. This completely exploits the sample data and computational capabilities of devices, while also providing benefits such as reduced data transfer costs, data security, and real-time inference and decision-making.

The market for Embedded AI Market is influenced by factors such as growing demand for intelligent and autonomous systems, increasing developments in Al and ML technologies enable better and smarter decisions, and Embedded Al is increasingly being used for industry-specific applications. The market offers several opportunities for industry players and new entrants to research and develop technological solutions that may provide the ability to solve problems in day-to-day business activities.    

FIGURE 1: EMBEDDED AI MARKET SIZE (2019-2032) (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Embedded AI Market Opportunity

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  Integration with cloud-based AI services for increased scalability

  
  

By 2025, half of cloud data centers will deploy advanced robots with artificial intelligence (AI) and machine learning (ML) capabilities. Cloud computing provides several advantages for AI. First is the scalability and flexibility of resources based on needs. This allows Embedded AI Market systems to handle fluctuations in data processing needs without impacting performance. Cloud offers a variety of pre trained models library for various tasks. This allows developers to quickly integrate AI functionalities into embedded devices without building models from scratch. Problems like restricted processing power, and storage capacity, among others are not likely on cloud platforms. Cloud platforms provide tools for Embedded AI Market systems for tracking and monitoring. Cloud AI services provide ready-made intelligence for the applications and workflows. AI Services easily integrate with the applications to address common use cases such as personalized recommendations, modernizing the contact centre, improving safety and security, and increasing customer engagement.

Few examples of Cloud based AI include Image and Video Recognition, Natural Language Processing (NLP), and Predictive Analytics among others. Cloud based AI services offer cost effectiveness by offering features based on needs, updating and training models as the infrastructure and tools are already provided. Integration of AI by cloud platforms is also facilitated easily. Cloud services have access to APIs (Application Programming Interfaces) that simplify the process of integrating AI into applications.

A growing opprtunity is the combination of cloud and edge computing for AI applications. Cloud platforms will handle complex tasks and model training, while edge devices will perform real-time, low-latency processing at the network's edge. Cloud services remove the need for on-site infrastructure management, reducing upfront costs associated with purchasing and maintaining hardware. 

Embedded AI Market Segment Insights

Embedded AI Market Offering Insights

Based on offering, the global Embedded AI Market is segmented into hardware, software and services. In 2023, the hardware segment is expected to have the largest market share. The hardware segment includes Embedded AI Market systems' physical components like processors, memory modules, sensors, and other electronic parts. To empower simulated intelligence capacities in implanted gadgets, equipment gives the essential network and computational power.

FIGURE 2: EMBEDDED AI MARKET SHARE BY OFFERING 2022 VS 2032 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Embedded AI Market Data Type Insights

Based on data type, the global Embedded AI Market is segmented into sensor data, image and video data, numeric data, caterogical data and others. Due to high level of reliability and accuracy, sensor data had the largest market share of XX percent in 2022. Information gathered from various embedded sensors, such as temperature, motion, proximity, and environmental sensors, is referred to as sensor data. This kind of information gives ongoing bits of knowledge into the actual world, empowering applications like natural checking, modern computerization, and brilliant home frameworks.

Embedded AI Industry Vertical Insights

The Embedded AI Market based on industry vertical has been bifurcated into BFSI, IT & telecom, retail & ecommerce, manufacturing, energy & utilities, transportation & logistics, healthcare & life sciences, media & entertainment, automotive and others. In 2022, the IT & telecom segment is expected to have the largest market share. In the IT and Telecom industry, implanted computer based intelligence is used for network improvement, prescient upkeep, client experience the executives, wise remote helpers, and online protection. Embedded AI Market is used by technology companies and telecom operators to increase network efficiency, automate customer support, and create novel services and applications.

Embedded AI Market Regional Insights

By region, the study segments the market into North America, Europe, Asia-Pacific, the Middle East, & Africa, and South America. North America had the greatest market share in 2022. North America stands as a pioneer in technological innovation, particularly in the field of AI. The region boasts a robust ecosystem of tech giants, startups, and research institutions driving the development of Embedded AI Market solutions. Silicon Valley, particular, serves as a hub for cutting edge-AI research and development. The presence of leading companies like Google, Microsoft, and Qualcomm among others further fuels innovation in embedded technologies.

In the North American region, Embedded AI Market is used extensively in healthcare, automotive, and consumer electronics industries. In medical services, implanted computer based intelligence fueled gadgets are altering patient consideration through remote checking, prescient examination, and customized therapy proposals. Also, the auto business is utilizing implanted man-made intelligence for independent driving elements, which improves the security and productivity on the streets.

FIGURE 3: EMBEDDED AI MARKET SHARE BY REGION 2022 VS 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Asia Pacific is expected to be the fastest growing region in Embedded AI Market. Asia Pacific area is likewise seeing quick reception pace of Embedded AI Market reasoning in which implanted man-made intelligence is no special case. It is primarily powered by expansion of brilliant gadgets, quick urbanization, and expanding web infiltration. In a variety of industries, China, Japan, and South Korea are leading the way in AI innovation and development.

Europe is expected to be the second-largest market over the projection period. Europe is likewise at developing speed in Embedded AI Market, driven by serious areas of strength for an on moral simulated intelligence standards and information security guidelines like General Data Protection Regulation (GDPR). European nations focus on mindful artificial intelligence Advancement, zeroing in on straightforwardness, responsibility, and decency in artificial intelligence calculations.

Manufacturers in the region are at the forefront of the adoption of Embedded AI Market, incorporating AI-powered features into automobiles to improve safety, navigation, and driver assistance systems. Moreover, European medical care suppliers are progressively sending inserted man-made intelligence answers for illness analysis, customized therapy arranging, and medication disclosure.

The countries considered in the scope of the Embedded AI Market are the U.S, Canada, Mexico, Germany, France, UK, Italy, Spain, Poland, Netherlands, Rest of Europe, China, Japan, India, Australia, South Korea, Malaysia, Indonesia, Rest of Asia Pacific, Brazil, Argentina, Colombia, Rest of South America, Saudi Arabia, UAE, South Africa, and Rest of Middle East & Africa.

Embedded AI Market Key Players & Competitive Insights

The Embedded AI Market is expected to witness high competition as this technology helps industries to present and design product/services easily. Some of the key players in Embedded AI Market are Microsoft, Google, IBM, Siemens, AWS, NVIDIA, Intel, Qualcomm, STMicroelectronics, Oracle, Salesforce, NXP, Lattice, Octonion and HPE among others.

The competition in the Embedded AI Market is driven by various factors, including pricing, quality, delivery time, and the ability to offer customized solutions to customers. Moreover, partnerships and collaborations with other players in the industry, such as service providers and suppliers, are crucial for companies to remain competitive in the market. Mergers and acquisitions are also common in the Embedded AI Market, as companies seek to expand their reach and capabilities. Additionally, the growth of the vendors is dependent on market conditions, government support, and industrial development.

These companies are concentrating on developing Embedded AI Market products with powerful technologies, and these technology allows workers to execute activities in a 360-degree context. Although the international players dominate the market, regional and local players with small market shares also have a significant presence. Moreover, they are focusing on product development and expansion to expand their product portfolio and enhance their customer relationships. Additionally, the companies are investing in the development of new and innovative AI solution.

Key Companies in the Embedded AI Market includes

• Microsoft


• Google


• IBM


• Siemens


• AWS


• NVIDIA


• Intel


• Qualcomm


• STMicroelectronics


• Oracle


• Salesforce


• NXP


• Lattice


• Octonion


• HPE

Embedded AI Industry Developments

In March 2024, Oracle announced new generative AI capabilities within the Oracle Fusion Cloud Applications Suite that will help customers improve decision making and enhance the employee and customer experience. The latest AI additions include new generative AI capabilities embedded in existing business workflows across finance, supply chain, HR, sales, marketing, and service, as well as an expansion of the Oracle Guided Journeys’ extensibility framework to enable customers and partners to incorporate more generative AI capabilities to support their unique industry and competitive needs..

In April 2024, Cloud Software Group Inc. and Microsoft Corp. announced they are deepening their collaboration through an eight-year strategic partnership agreement. The agreement will support the development of new cloud and AI solutions with an integrated product roadmap and strengthen the go-to-market collaboration for the Citrix virtual application and desktop platform.

In June 2021, Determined AI, a San Francisco startup was acquired by Hewlett Packard Enterprise. The latter creates an open-source AI platform for building machine learning models. This is useful as its open-source ML platform will help HPE remove complexity and make production time faster.

Embedded AI Market Model Segmentation

Embedded AI Market Offering Outlook

• Hardware


• Software


• Services

Embedded AI Market Data Type Outlook

• Sensor Data


• Image and Video Data


• Numeric Data


• Caterogical Data


• Others

Embedded AI Industry Vertical Outlook

• BFSI


• IT & Telecom


• Retail & Ecommerce


• Manufacturing


• Energy & Utilities


• Transportation & Logistics


• Healthcare & Life Sciences


• Media & Entertainment


• Automotive


• Others

Embedded AI Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Poland
  
  
  • Netherlands
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Malaysia
  
  
  • Indonesia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Colombia
  
  
  • Rest of South America