Edge AI Software Market

The research study for the edge AI software market involved extensive secondary sources, directories, IEEE Communication-Efficient Edge AI: Algorithms and Systems, International Journal of Innovation and Technology Management, and paid databases. Primary sources were mainly industry experts from the core and related industries, preferred edge AI software providers, third-party service providers, consulting service providers, end users, and other commercial enterprises. In-depth interviews were conducted with various primary respondents, including key industry participants and subject matter experts, to obtain and verify critical qualitative and quantitative information, and assess the market’s prospects.

Secondary Research

The market size of companies offering edge AI software and services was arrived at based on secondary data available through paid and unpaid sources. It was also arrived at by analyzing the product portfolios of major companies and rating the companies based on their performance and quality.

In the secondary research process, various sources were referred to for identifying and collecting information for this study. Secondary sources included annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases. The data was also collected from other secondary sources, such as journals, government websites, blogs, and vendors' websites. Additionally, edge AI software spending of various countries was extracted from the respective sources. Secondary research was mainly used to obtain key information related to the industry’s value chain and supply chain to identify key players based on solutions, services, market classification, and segmentation according to offerings of major players, industry trends related to software, services, data modality, technology, end uses and regions, and key developments from both market- and technology-oriented perspectives.

Primary Research

In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, including Chief Experience Officers (CXOs); Vice Presidents (VPs); directors from business development, marketing, and edge AI software expertise; related key executives from edge AI software solution vendors, SIs, professional service providers, and industry associations; and key opinion leaders.

Primary interviews were conducted to gather insights, such as market statistics, revenue data collected from software and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped in understanding various trends related to offering, data modality, technologies, end uses, and regions. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Strategy Officers (CSOs), and end users using edge AI software, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current usage of edge AI software and services, which would impact the overall edge AI software market.

Note 1: Others include sales managers, marketing managers, and product managers.
Note 2: Tier 1 companies’ revenues are more than USD 10 billion; tier 2 companies’ revenues range between USD 1 and 10 billion; and tier 3 companies’
revenues range between USD 500 million and USD 1 billion.
Source: Industry Experts

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Market Size Estimation

Multiple approaches were adopted for estimating and forecasting the edge AI software market. The first approach involves estimating the market size by companies’ revenue generated through the sale of edge AI software products.

Market Size Estimation Methodology- Top-down approach

In the top-down approach, an exhaustive list of all the vendors offering products in the edge AI software market was prepared. The revenue contribution of the market vendors was estimated through annual reports, press releases, funding, investor presentations, paid databases, and primary interviews. Each vendor's offerings were evaluated based on the breadth of offering, data modality, technologies, end uses, and regions. The aggregate of all the companies’ revenue was extrapolated to reach the overall market size. Each subsegment was studied and analyzed for its global market size and regional penetration. The markets were triangulated through both primary and secondary research. The primary procedure included extensive interviews for key insights from industry leaders, such as CIOs, CEOs, VPs, directors, and marketing executives. The market numbers were further triangulated with the existing MarketsandMarkets’ repository for validation.

Market Size Estimation Methodology-Bottom-up approach

In the bottom-up approach, the adoption rate of edge AI software products among different verticals in key countries with respect to their regions contributing the most to the market share was identified. For cross-validation, the adoption of edge AI software products among enterprises, along with different use cases with respect to their regions, was identified and extrapolated. Weightage was given to use cases identified in different regions for the market size calculation.

Based on the market numbers, the regional split was determined by primary and secondary sources. The procedure included the analysis of the edge AI software market’s regional penetration. Based on secondary research, the regional spending on Information and Communications Technology (ICT), socio-economic analysis of each country, strategic vendor analysis of major edge AI software providers, and organic and inorganic business development activities of regional and global players were estimated. With the data triangulation procedure and data validation through primaries, the exact values of the overall edge AI software market size and segments’ size were determined and confirmed using the study.

Edge AI Software Market : Top-Down and Bottom-Up Approach

Data Triangulation

After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakup procedures were employed, wherever applicable. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.