Embedded AI Market

[328 Pages Report] The embedded AI market is estimated to grow from USD 9.4 billion in 2023 to USD 18.0 billion by 2028, at a CAGR of 14.0% during the forecast period. Rise in demand for more powerful and energy-efficient processors to effectively handle complex AI algorithms and integration with cloud-based AI services for better scalability to offer opportunities to the end users to leverage embedded AI solutions. Moreover, the growing demand for intelligent and autonomous systems for a personalized experience and the proliferation of connected devices and IoT ecosystems for effective communications will boost market growth worldwide.

Embedded AI Market Technology Roadmap till 2030

The embedded AI market report covers the embedded AI technology roadmap till 2030, with insights around the initiation, development, and commercialization of technologies across AI-driven autonomous systems, AI-driven intelligent devices, and next-gen embedded AI systems. Some of the key findings from the technology roadmap include:

Embedded AI Market Short-term Technology Roadmap (2023-2025)

• Advancements in edge AI platforms to provide enhanced processing power, reduce latency, and flexibility
• Commercialization of Embedded AI enhancing human intelligence in a wide range of applications

Embedded AI Market Mid-term Technology Roadmap (2026-2028)

• Development in hardware accelerators empowers embedded AI solutions by improving performance, energy efficiency, compactness, real-time responsiveness, and cost-effectiveness
• Next-gen embedded AI systems will continue to push the boundaries of what is possible at the edge to enable intelligent, autonomous, and context-aware applications across various industries

Embedded AI Market Long-term Technology Roadmap (2029-2030)

• Advanced AI-driven autonomous systems heavily rely on embedded AI for advanced sensing and perception capabilities
• AI-driven intelligent devices continue to evolve and become more pervasive in homes, workplaces, and other environments, embedded AI will play a vital role in enabling their intelligent and context-aware capabilities

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Market Dynamics

Driver: Growing demand for intelligent and autonomous systems for a personalized experience

The increasing need for advanced technologies that can provide personalized and adaptive experiences to users to boost the adoption of embedded AI solutions in the market. The demand for personalized experiences has led to the integration of AI capabilities into various embedded systems. By leveraging embedded AI solutions, devices and applications can analyze user data, preferences, and behavior to provide tailored recommendations, suggestions, and responses. This enhances user satisfaction and engagement. Moreover, embedded AI solutions can enable autonomous behavior in devices and systems, reducing the need for constant user interference. This is particularly relevant in applications such as autonomous vehicles, smart home automation, and industrial automation, where embedded AI algorithms can enable intelligent decision-making and automated actions. Embedded AI solutions can leverage machine learning algorithms to analyze data patterns and make predictions about user preferences, behavior, or system performance. This helps in anticipating user needs, optimizing resource allocation, and enhancing the overall efficiency of embedded systems. Nowadays, the demand for voice-controlled and natural language interfaces is soaring. Embedded AI solutions can incorporate natural language processing (NLP) and voice recognition capabilities, allowing users to interact with devices and applications using voice commands, making the experience more intuitive and user-friendly. Overall, the growing demand for intelligent and autonomous systems for personalized experience is driving the development and adoption of embedded AI solutions. These solutions enable devices and systems to understand user preferences, adapt to changing contexts, make intelligent decisions, and provide personalized experiences, ultimately enhancing user satisfaction and driving market growth.

Restraint: Concerns related to data privacy and security

Data privacy and security concerns can erode trust between users and embedded AI solutions. Users may hesitate to share their data or engage with AI-powered systems if they are not confident in the security measures. Lack of transparency about how embedded AI solutions collect, store, and use data can further contribute to mistrust and hinder adoption. Embedded AI solutions may have access to a wide range of data, including personal information and user behavior. Concerns arise regarding the ethical use of this data and the potential for misuse or biased decision-making. Ensuring fairness, transparency, and accountability in AI algorithms and data processing becomes crucial to address these concerns. Failure to address ethical considerations can result in resistance to adopting embedded AI solutions. To overcome these challenges and boost the adoption of embedded AI solutions, vendors and organizations need to prioritize data privacy and security. This includes implementing robust security measures, complying with data protection regulations, ensuring transparency and accountability in data handling, and promoting ethical use of data. Building trust among users by addressing privacy concerns and communicating the steps to secure data can help alleviate barriers to adoption and drive wider acceptance of embedded AI solutions.

Opportunity : Rise in demand for more powerful and energy-efficient processors to effectively handle complex AI algorithms

The rise in demand for more powerful and energy-efficient processors to effectively handle complex AI algorithms provides more significant opportunities for embedded AI solution providers in the market. As AI algorithms become increasingly complex and resource-intensive, there is a growing need for processors that can handle computational demands efficiently. The demand for more powerful processors, such as high-performance CPUs, GPUs, and specialized AI accelerators, opens opportunities for embedded AI solution providers to offer advanced hardware solutions. By developing and offering processors specifically optimized for AI workloads, providers can cater to the increasing demand for enhanced performance and enable more sophisticated embedded AI applications. Furthermore, traditional processors may need help to handle the computational requirements of AI algorithms while maintaining energy efficiency. Energy-efficient processors, including low-power CPUs, specialized AI chips, and edge computing solutions, are in high demand to enable embedded AI solutions in resource-constrained environments. Embedded AI solution providers can capitalize on this opportunity by developing energy-efficient processors that deliver high-performance computing while minimizing power consumption. These processors can be integrated into various devices and systems, enabling AI capabilities without compromising energy efficiency. Henceforth, the rise in demand for more powerful and energy-efficient processors to handle complex AI algorithms offers significant opportunities for embedded AI solution providers. By focusing on developing advanced processors, energy-efficient solutions, edge computing capabilities, and fostering partnerships, providers can capitalize on the growing market demand and deliver high-performance embedded AI solutions that meet customers’ evolving needs.

Challenge: Inadequate computational resources and model optimization

Embedded AI solutions often operate on resource-constrained devices with limited processing power, memory, and energy. Inadequate computational resources can limit the performance of AI algorithms, leading to slower inference times, reduced accuracy, and compromised user experience. When AI models cannot be efficiently executed on embedded devices due to computational limitations, it hinders the adoption of embedded AI solutions as they may not meet the performance requirements of the intended applications. Model optimization involves techniques like quantization, pruning, and model compression to reduce the model size and computational requirements without significant loss of accuracy. However, optimizing models for embedded devices can be complex and time-consuming. Inadequate computational resources can limit the ability to optimize models effectively, resulting in suboptimal performance and hindering the widespread adoption of embedded AI solutions. Addressing the challenge of inadequate computational resources and model optimization requires a combination of hardware advancements, algorithmic optimizations, and software frameworks tailored for embedded AI. As the industry continues to innovate in these areas, overcoming these challenges will help accelerate the adoption of embedded AI solutions in various domains and enable deploying more powerful and efficient AI applications on resource-constrained devices.

Embedded AI Market Ecosystem

By offering software to register at the highest CAGR during the forecast period

Embedded AI software plays a crucial role in the market by providing the necessary algorithms, frameworks, and libraries to enable AI capabilities on embedded systems. Embedded AI software unlocks the potential of AI on embedded systems, enabling intelligent decision-making, real-time data analysis, and enhanced functionality across various industries. Embedded AI software allows embedded devices to process and interpret data locally, leading to increased autonomy, improved performance, and enhanced user experiences.

By data type, numeric data to account for the largest market size during the forecast period

Numeric data forms the foundation for training, optimizing, and deploying AI models on embedded systems. Embedded AI systems can leverage numeric data to optimize operations and resource utilization. By analyzing historical data and patterns, AI models embedded in the system can make data-driven decisions to optimize energy consumption, scheduling, routing, or resource allocation. This data-driven optimization can improve efficiency, and cost savings, to enhance performance across various sectors such as energy & utilities, transportation & logistics, manufacturing, and many more.

By Services, training and consulting to register at the highest CAGR during the forecast period

Training and consulting services play a significant role in the market for embedded AI solutions by providing expertise, guidance, and support to organizations adopting embedded AI technologies. Training and consulting services assist organizations in developing and optimizing AI models for embedded systems. They offer guidance in selecting appropriate algorithms, data preprocessing techniques, and well-suited model architectures for the embedded environment. By leveraging their expertise, these services ensure that AI models are efficiently trained, optimized, and fine-tuned to achieve optimal performance on embedded devices.

North America to account for the largest market size during the forecast period

North America is a leading region in adopting and growing embedded AI solutions. The presence of advanced AI technology companies, robust R&D capabilities, and a mature market ecosystem contribute to the rapid growth of embedded AI solutions in this region. Embedded AI adoption in North America has been growing steadily in recent years, driven by advancements in AI technologies, increasing demand for intelligent edge devices, and the proliferation of IoT applications. Overall, embedded AI adoption in North America is gaining momentum across industries, driven by technological advancements, the rise of IoT, a supportive ecosystem, and increasing awareness of its benefits.

Embedded AI Companies

The embedded AI market vendors have implemented various organic and inorganic growth strategies, such as new product launches, product upgrades, partnerships and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. Key players operating in the embedded AI market include Google (US), IBM (US), Microsoft (US), AWS (US), NVIDIA (US), Intel (US), Qualcomm (US), Arm (UK), AMD (US), MediaTek (Taiwan), Oracle (US), Salesforce (US), NXP (The Netherlands), Lattice (US), Octonion (Switzerland), NeuroPace (US), Siemens (Germany), HPE (US), LUIS Technology (Germany), Code Time Technologies (Canada), HiSilicon (China), VectorBlox (Canada), AU-Zone Technologies (Canada), STMicroelectronics (Switzerland), SenseTime (Hong Kong), Edge Impulse (US), Perceive (US), Eta Compute (US), SensiML (US), Syntiant (US), Graphcore (UK), and SiMa.ai (US).

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Scope of the Report

This research report categorizes the Embedded AI market based on offering, data type, vertical, and region.

By Offering:

• Hardware
• Software
• Services

By Data Type:

• Sensor Data
• Image and Video Data
• Numeric Data
• Categorial Data
• Other Data Types (iris & facial data, text data, time series data, and audio data)  

By Vertical:

• BFSI
• IT & ITES
• Retail & Ecommerce
• Manufacturing
• Energy & Utilities
• Transportation & Logistics
• Healthcare & Life Sciences
• Media & Entertainment
• Telecom
• Automotive
• Other Verticals (government, aerospace and defense, construction & real estate, agriculture, education, and travel & hospitality)

By Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia and New Zealand (ANZ)
  • South Korea
  • ASEAN Countries
  • Rest of Asia Pacific
• Middle East and Africa
  • UAE
  • Saudi Arabia
  • South Africa
  • Israel
  • Rest of the Middle East and Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America

Recent Developments:

• In April 2023, IBM announced the launch of Watson Edge for Financial Services, a solution that helps financial institutions deploy AI at the edge to improve customer service, fraud detection, and risk management.
• In April 2023, Qualcomm Technologies partnered with eInfochips, an Arrow company, to launch Edge Labs. Edge Labs is a program that will help developers and innovators accelerate the development and deployment of AI applications for embedded devices. This partnership will help developers and innovators accelerate developing and deploying AI applications for embedded devices. Edge Labs will provide developers with access to Qualcomm’s expertise in AI and eInfochips' development and deployment services.
• In March 2023, Arm partnered with Google Cloud to bring Arm-based solutions to the Google Cloud Platform (GCP). The partnership is expected to help Arm customers take advantage of GCP's AI and machine learning capabilities and to help Google Cloud customers deploy Arm-based solutions.
• In March 2023, IBM acquired Instana, an application performance monitoring software provider. The acquisition will help IBM to expand its edge AI capabilities and provide customers with a more comprehensive view of their applications.
• In March 2023, the AI-powered tool has been designed to assist Microsoft 365 users in performing various tasks, such as troubleshooting, training, and onboarding. Microsoft 365 Copilot, as an embedded AI technology, is integrated within a broader software ecosystem and has been created to function seamlessly with other Microsoft 365 products and services.
• In October 2022, Intel partnered with Amazon Web Services (AWS) to bring Intel-based solutions to AWS. The partnership is expected to help Intel customers use AWS’s AI and machine learning capabilities to help AWS customers deploy Intel-based solutions.
• In June 2022, Microsoft announced a partnership with NVIDIA to accelerate the development and deployment of edge AI applications. The partnership will combine Microsoft’s Azure platform with NVIDIA’s AI hardware and software to create a more comprehensive solution for edge computing.
• In Jan 2022, IBM partnered with Google Cloud to accelerate the development and deployment of edge AI applications. The partnership will combine IBM’s AI and ML expertise with Google Cloud’s infrastructure and AI capabilities.

Frequently Asked Questions (FAQ):

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