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South Korea Embedded AI Market

ID: MRFR/ICT/57950-HCR
200 Pages
Aarti Dhapte
October 2025

South Korea Embedded AI Market Research Report By Application (Smart Home Devices, Industrial Automation, Healthcare Devices, Automotive Systems, Consumer Electronics), By Component (Processors, Sensors, Software, Memory Devices, Connectivity Modules), By Technology (Machine Learning, Natural Language Processing, Computer Vision, Deep Learning, Robotics) and By End Use (Consumer, Commercial, Healthcare, Manufacturing, Transportation)-Forecast to 2035

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South Korea Embedded AI Market Summary

As per Market Research Future analysis, the embedded ai market Size was estimated at 346.25 USD Billion in 2024. The embedded ai market industry is projected to grow from 420.04 USD Billion in 2025 to 2900.2 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 21.3% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The South Korea embedded AI market is experiencing robust growth driven by technological advancements and increasing applications across various sectors.

  • The automotive sector emerges as the largest segment, showcasing a notable increase in embedded AI adoption for enhanced safety and automation features.
  • Smart home applications represent the fastest-growing segment, reflecting a rising consumer interest in connected devices and home automation solutions.
  • Healthcare innovations are gaining traction, with embedded AI facilitating improved diagnostics and patient care management.
  • Key market drivers include the rising demand for automation and advancements in semiconductor technology, which are propelling the overall market forward.

Market Size & Forecast

2024 Market Size 346.25 (USD Billion)
2035 Market Size 2900.2 (USD Billion)
CAGR (2025 - 2035) 21.31%

Major Players

NVIDIA (US), Intel (US), Qualcomm (US), Texas Instruments (US), STMicroelectronics (FR), MediaTek (TW), Renesas Electronics (JP), Analog Devices (US), Xilinx (US)

South Korea Embedded AI Market Trends

The embedded ai market in South Korea is experiencing notable growth, driven by advancements in technology and increasing demand for automation across various sectors. The integration of artificial intelligence into embedded systems is enhancing the functionality and efficiency of devices, leading to smarter applications in industries such as automotive, healthcare, and consumer electronics. As companies strive to innovate, the focus on developing intelligent solutions is becoming paramount. This trend is further supported by government initiatives aimed at fostering research and development in artificial intelligence, which is likely to bolster the embedded ai market in the coming years. Moreover, the rise of the Internet of Things (IoT) is significantly influencing the embedded ai market. With more devices becoming interconnected, the need for intelligent processing at the edge is growing. This shift allows for real-time data analysis and decision-making, which is essential for applications in smart cities and industrial automation. As South Korea continues to invest in digital infrastructure, the embedded ai market is poised for expansion, reflecting the nation's commitment to technological advancement and innovation.

Increased Adoption in Automotive Sector

The automotive industry in South Korea is increasingly integrating embedded ai technologies to enhance vehicle safety and performance. This trend is characterized by the development of advanced driver-assistance systems (ADAS) that utilize ai for real-time data processing and decision-making, thereby improving overall driving experiences.

Growth in Smart Home Applications

There is a rising trend towards the incorporation of embedded ai in smart home devices. This shift is driven by consumer demand for convenience and energy efficiency. Devices such as smart thermostats and security systems are becoming more intelligent, allowing for automated control and monitoring.

Focus on Healthcare Innovations

The healthcare sector is witnessing a surge in the use of embedded ai technologies for diagnostics and patient monitoring. This trend is indicative of a broader movement towards personalized medicine, where ai-driven solutions are employed to analyze patient data and improve treatment outcomes.

South Korea Embedded AI Market Drivers

Rising Demand for Automation

The embedded ai market in South Korea is experiencing a notable surge in demand for automation across various sectors. Industries such as manufacturing and logistics are increasingly integrating embedded AI solutions to enhance operational efficiency and reduce costs. According to recent data, the automation sector is projected to grow by approximately 15% annually, indicating a robust appetite for advanced technologies. This trend is likely to drive investments in embedded AI systems, as companies seek to optimize processes and improve productivity. Furthermore, the push for smart factories aligns with the government's initiatives to modernize industrial operations, thereby creating a conducive environment for the embedded ai market. As automation becomes a cornerstone of competitive advantage, the embedded ai market is poised to benefit significantly from this growing trend.

Growing Focus on Data Security

As the embedded ai market expands in South Korea, there is an increasing emphasis on data security and privacy. With the proliferation of connected devices, concerns regarding data breaches and unauthorized access have become paramount. Companies are now prioritizing the integration of robust security measures within their embedded AI systems to protect sensitive information. This focus on security is likely to drive the development of advanced encryption techniques and secure data processing methods. Market analysts suggest that the data security segment within the embedded ai market could grow by approximately 12% annually, reflecting the rising importance of safeguarding user data. As organizations strive to build trust with consumers, the emphasis on data security will play a critical role in shaping the future of the embedded ai market.

Government Support and Initiatives

The South Korean government is actively promoting the embedded ai market through various support initiatives and funding programs. Recognizing the potential of AI technologies, the government has allocated substantial resources to foster research and development in this field. For example, the Ministry of Science and ICT has launched initiatives aimed at enhancing AI capabilities in industries such as healthcare, automotive, and manufacturing. This support is likely to stimulate innovation and attract investments, thereby accelerating the growth of the embedded ai market. Furthermore, the government's commitment to establishing a robust AI ecosystem is expected to create a favorable environment for startups and established companies alike, facilitating collaboration and knowledge sharing. As a result, the embedded ai market is anticipated to thrive under this supportive framework.

Advancements in Semiconductor Technology

Technological advancements in semiconductor manufacturing are playing a crucial role in the embedded ai market in South Korea. The country is home to some of the world's leading semiconductor companies, which are continuously innovating to produce more efficient and powerful chips. These advancements enable the development of sophisticated embedded AI applications that can operate in real-time and process vast amounts of data. For instance, the introduction of 5nm and 7nm process technologies has led to a significant reduction in power consumption while enhancing performance. This is particularly relevant for applications in consumer electronics and automotive sectors, where efficiency is paramount. As semiconductor technology continues to evolve, it is expected to further propel the embedded ai market, making AI capabilities more accessible and effective across various applications.

Integration of AI in Consumer Electronics

The integration of AI technologies into consumer electronics is significantly influencing the embedded ai market in South Korea. With the increasing demand for smart devices, manufacturers are incorporating embedded AI solutions to enhance user experiences and functionality. Products such as smart TVs, wearables, and home appliances are now equipped with AI capabilities that allow for personalized interactions and improved performance. Market data indicates that the consumer electronics sector is expected to grow by 10% annually, driven by the rising popularity of smart devices. This trend not only boosts the embedded ai market but also encourages innovation in product design and features. As consumer expectations evolve, the demand for AI-enhanced electronics is likely to continue shaping the landscape of the embedded ai market.

Market Segment Insights

Embedded AI Market Application Insights

The South Korea Embedded AI Market is witnessing substantial growth, particularly within various applications such as Smart Home Devices, Industrial Automation, Healthcare Devices, Automotive Systems, and Consumer Electronics. Smart home devices are increasingly integrating embedded AI technologies, enabling features such as intelligent energy management, enhanced security systems, and automation of daily tasks, which all contribute to a more connected and convenient living environment. Meanwhile, industrial automation is a driving force, as businesses gravitate towards AI-enabled solutions for optimizing operations, predictive maintenance, and enhancing productivity, leading to improved efficiency in manufacturing processes.

In the healthcare sector, the empowerment of healthcare devices through embedded AI is significant in revolutionizing patient care by facilitating real-time monitoring, personalized medicine, and efficient data management, ensuring better health outcomes. Automotive systems are becoming more sophisticated as they incorporate embedded AI, driving advancements in autonomous vehicle technologies and enhancing driver assistance systems, which are essential for improving safety and efficiency on the roads. Lastly, consumer electronics represent a substantial segment as companies emphasize smart features in products such as televisions and personal devices, driving innovation through AI integration for enhanced user experiences.

Overall, the diverse applications of the South Korea Embedded AI Market underline its versatility and importance across multiple sectors, paving the way for significant advancements that will shape the future of technology within the region. The South Korea Embedded AI Market is characterized by dynamic trends, such as the demand for automation, efficiency, and intelligent systems that are essentially reshaping the operational landscape and offering numerous opportunities for growth amidst the challenges of technological adoption and integration in various applications.

Fig 2: South Korea Embedded AI Market Insights

Fig 2: South Korea Embedded AI Market Insights

Source: Primary Research, Secondary Research, Market Research Future Database, and Analyst Review

Embedded AI Market Component Insights

The Component segment of the South Korea Embedded AI Market showcases a diverse range of elements, crucial for driving the advancement of intelligent systems within the region. In South Korea, with a robust technological landscape, processors are vital as they serve as the brain of embedded systems, enabling complex computations and real-time decision-making. Sensors play an important role by providing essential data that enhances machine perception and interaction with the environment, which is increasingly pivotal in sectors like automotive, healthcare, and industrial automation.

Software solutions are fundamental, functioning to facilitate the integration and functionality of hardware components, thereby driving innovation in applications such as smart cities and IoT devices. Additionally, memory devices are significant as they store vast amounts of data required for AI algorithms, ensuring efficient data retrieval and processing. Connectivity modules, meanwhile, enable seamless communication between devices, supporting the necessary infrastructure for AI ecosystems.

Collectively, these components form the backbone of the South Korea Embedded AI Market, fostering growth and creating new opportunities across various industries.As the nation continues to emphasize its digital transformation and innovation, the demand for these components is expected to grow significantly, impacting the overall market landscape.

Embedded AI Market Technology Insights

The South Korea Embedded AI Market, particularly within the Technology segment, reflects a rapidly advancing landscape, with Machine Learning, Natural Language Processing, Computer Vision, Deep Learning, and Robotics playing pivotal roles. Machine Learning is increasingly integrated into various applications, enhancing automation and data processing efficiency, which is crucial for industries like manufacturing and finance. Natural Language Processing is gaining traction as businesses seek to improve customer interactions through voice recognition and chatbots, streamlining communication workflows.

Computer Vision is significant in sectors such as automotive and healthcare, enabling innovations such as autonomous vehicles and advanced diagnostic tools. Deep Learning techniques are at the forefront of driving sophistication in AI algorithms, making systems smarter and more intuitive. Robotics continues to make inroads in manufacturing and logistics, where South Korea’s strong emphasis on technology adoption and innovation positions it well to leverage these advancements. The convergence of these technologies is set to reshape processes across various industries in South Korea, driving substantial growth and creating a competitive edge in the global market.

Embedded AI Market End Use Insights

The South Korea Embedded AI Market, segmenting by End Use, demonstrates a dynamic landscape with robust growth across various sectors, including Consumer, Commercial, Healthcare, Manufacturing, and Transportation. The Consumer segment is increasingly adopting voice assistants and smart home devices, enhancing user experience and driving substantial demand. In the Commercial realm, AI integration into operations and customer service has become essential, significantly improving efficiency and decision-making.

Healthcare stands out as a critical area, leveraging AI for diagnostics and personalized medicine, which is vital for enhancing patient outcomes and reducing costs.In terms of Manufacturing, the push for automation and real-time monitoring using AI technologies is streamlining operations and boosting productivity. Transportation is also evolving rapidly; advancements in autonomous vehicles and smart transport systems rely heavily on embedded AI for safety and efficiency. Each of these segments contributes to evolving the landscape of the South Korea Embedded AI Market, reflecting the vital role of AI technologies in optimizing operations and delivering innovative solutions tailored to market needs.

Get more detailed insights about South Korea Embedded AI Market

Key Players and Competitive Insights

The embedded ai market in South Korea is characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for intelligent systems across various sectors. Key players such as NVIDIA (US), Intel (US), and Qualcomm (US) are at the forefront, leveraging their expertise in AI and machine learning to enhance product offerings. NVIDIA (US) focuses on high-performance computing and graphics processing units (GPUs), which are essential for AI applications, while Intel (US) emphasizes its investments in AI hardware and software solutions. Qualcomm (US) is strategically positioned in the mobile sector, integrating AI capabilities into its chipsets to cater to the growing demand for smart devices. Collectively, these strategies foster a competitive environment that prioritizes innovation and technological integration.In terms of business tactics, companies are increasingly localizing manufacturing and optimizing supply chains to enhance operational efficiency. The market structure appears moderately fragmented, with several players competing for market share. However, the influence of major companies is substantial, as they set industry standards and drive technological advancements. This competitive structure encourages smaller firms to innovate and differentiate their offerings, contributing to a vibrant ecosystem.

In October NVIDIA (US) announced a partnership with a leading South Korean telecommunications company to develop AI-driven solutions for smart cities. This collaboration aims to leverage NVIDIA's advanced AI capabilities to enhance urban infrastructure and improve public services. The strategic importance of this partnership lies in its potential to position NVIDIA as a key player in the burgeoning smart city sector, aligning with global trends towards urbanization and digital transformation.

In September Intel (US) unveiled its latest AI accelerator chip designed specifically for edge computing applications. This launch is significant as it addresses the growing need for real-time data processing in various industries, including automotive and healthcare. By focusing on edge AI solutions, Intel (US) aims to capture a larger share of the market, responding to the increasing demand for efficient and scalable AI technologies.

In August Qualcomm (US) expanded its AI research and development center in South Korea, signaling its commitment to the region. This expansion is expected to enhance Qualcomm's ability to innovate and tailor its AI solutions to meet local market needs. The strategic move underscores Qualcomm's focus on strengthening its presence in the embedded ai market, particularly in mobile and IoT applications.

As of November current competitive trends in the embedded ai market include a strong emphasis on digitalization, sustainability, and the integration of AI across various applications. Strategic alliances are increasingly shaping the landscape, enabling companies to pool resources and expertise to drive innovation. Looking ahead, competitive differentiation is likely to evolve, with a shift from price-based competition to a focus on technological innovation, reliability in supply chains, and the ability to deliver customized solutions. This transition may redefine market dynamics, as companies strive to establish themselves as leaders in a rapidly changing environment.

Key Companies in the South Korea Embedded AI Market include

Industry Developments

The South Korea Embedded AI Market has been witnessing significant developments recently, particularly fueled by growing investments and innovations in artificial intelligence. Companies like Samsung Electronics and LG Display are heavily investing in embedded AI technologies to enhance product functionality in consumer electronics and display systems. In September 2023, Naver announced advancements in AI-driven cloud services tailored for manufacturing industries, signaling a shift toward integrated AI solutions. February 2023 saw Rohm Semiconductor enhance its offerings with AI-powered semiconductor solutions aimed at automotive applications, aligning with the increasing demand for smart vehicle technologies.

Mando Corporation has been focusing on developing AI-driven safety features in vehicles, which continuously boosts its market presence. Notably, in November 2022, SK Hynix completed its acquisition of an AI chip startup to expand its technology portfolio in embedded systems. The rise of AI capabilities is projected to elevate the market valuation of these companies significantly, reflecting their strategic importance within the technological landscape of South Korea, a nation recognized for its commitment to innovation and technology development. Additionally, a steady growth trend in AI-related investments indicates a promising future for embedded AI integration across various sectors.

Future Outlook

South Korea Embedded AI Market Future Outlook

The Embedded AI Market in South Korea is projected to grow at a 21.31% CAGR from 2024 to 2035, driven by advancements in IoT, automation, and data analytics.

New opportunities lie in:

  • Development of AI-driven smart home devices for energy efficiency
  • Integration of embedded AI in automotive safety systems
  • Creation of AI-enhanced industrial automation solutions for manufacturing efficiency

By 2035, the embedded AI market is expected to achieve substantial growth and innovation.

Market Segmentation

South Korea Embedded AI Market End Use Outlook

  • Consumer
  • Commercial
  • Healthcare
  • Manufacturing
  • Transportation

South Korea Embedded AI Market Component Outlook

  • Processors
  • Sensors
  • Software
  • Memory Devices
  • Connectivity Modules

South Korea Embedded AI Market Technology Outlook

  • Machine Learning
  • Natural Language Processing
  • Computer Vision
  • Deep Learning
  • Robotics

South Korea Embedded AI Market Application Outlook

  • Smart Home Devices
  • Industrial Automation
  • Healthcare Devices
  • Automotive Systems
  • Consumer Electronics

Report Scope

MARKET SIZE 2024 346.25(USD Billion)
MARKET SIZE 2025 420.04(USD Billion)
MARKET SIZE 2035 2900.2(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 21.31% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled NVIDIA (US), Intel (US), Qualcomm (US), Texas Instruments (US), STMicroelectronics (FR), MediaTek (TW), Renesas Electronics (JP), Analog Devices (US), Xilinx (US)
Segments Covered Application, Component, Technology, End Use
Key Market Opportunities Integration of advanced machine learning algorithms in consumer electronics enhances functionality in the embedded ai market.
Key Market Dynamics Rising demand for smart devices drives innovation and competition in the embedded AI market.
Countries Covered South Korea
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FAQs

What is the projected market value of the South Korea Embedded AI Market in 2024?

The South Korea Embedded AI Market is expected to be valued at 350.0 million USD in 2024.

What will be the market valuation of the South Korea Embedded AI Market by 2035?

By 2035, the South Korea Embedded AI Market is projected to reach a value of 1050.0 million USD.

What is the expected CAGR for the South Korea Embedded AI Market from 2025 to 2035?

The expected CAGR for the South Korea Embedded AI Market during the forecast period from 2025 to 2035 is 10.503%.

Which application segment is anticipated to have the highest value in the South Korea Embedded AI Market by 2035?

By 2035, the Automotive Systems application segment is expected to have the highest value, estimated at 300.0 million USD.

What is the market size for Smart Home Devices in the South Korea Embedded AI Market for 2024?

The market size for Smart Home Devices in 2024 is projected to be valued at 80.0 million USD.

Who are the key players in the South Korea Embedded AI Market?

Major players in the South Korea Embedded AI Market include Qualcomm, Samsung Electronics, LG Display, and SK Hynix.

What is the projected market value for Healthcare Devices in the South Korea Embedded AI Market by 2035?

The projected market value for Healthcare Devices by 2035 is 180.0 million USD.

What are the expected growth drivers for the South Korea Embedded AI Market?

Key growth drivers include advancements in technology and increasing demand for smart applications across various industries.

What is the market valuation for Consumer Electronics in the South Korea Embedded AI Market for 2035?

By 2035, the market valuation for Consumer Electronics is expected to reach 100.0 million USD.

How will the South Korea Embedded AI Market evolve in terms of Industrial Automation by 2035?

The market for Industrial Automation is anticipated to grow significantly and reach a value of 220.0 million USD by 2035.

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