The global edge AI market is expected to grow at a compound annual growth rate of 19.27% over the forecast period to reach a market size of US$1,954.244 million in 2026 from US$569.194 million in 2019. The market is expected to surge in the coming years, because of the advancement and innovation in technologies, adoption of 5G solutions, and rising demand for electric vehicles, globally. Major companies such as Apple, Microsoft, Amazon, and others, have been moving towards Edge Ai solutions, intending to bring Artificial Intelligence Inferencing from the cloud to their local and regional hardware. In January 2020, Apple Inc. announced the acquisition of Xnor.ai, a Seattle, United States, based start-up specializing in edge-based, low-powered artificial intelligence tools. Apple paid a sum of US$200 million for the acquisition. The company suggested that Xnor’s Artificial Intelligence-based image recognition tools are expected to become standard and premium features, in webcams and iPhones. These developments are expected to surge the market growth, during the forecast period.
Adoption Of 5G Telecom Network and Solutions
The market is expected to surge in the coming years, because of the adoption of 5G solutions, globally. The major advantage of the 5G solution is that the network latency rate would be reduced, with the introduction of high-end applications. The emergence of 5G solutions, across a wide range of applications, is expected to surge and accelerate the amount of data transferred to the respective data centers, thereby enhancing and accelerating the need for edge networks or intermediary servers. Major countries have been investing a significant sum of capital to develop and introduce 5G solutions, for their respective citizens. In August 2020, The United States Government announced its plans to surge the process of the adoption of superfast 5G wireless networks, by providing an imperative chunk of spectrum available to the wireless industry. According to the reports and statements were given by the government, 5G network could add more than a trillion dollars into the country’s overall GDP. China is also making significant developments in the 5G sector, in the past few years. In December 2020, the Chinese government unveiled its plans to double its 5G wireless capacity, in the year 2021. Carriers from China Telecom Corporation to China Mobile Ltd., are expected to build more than 600,000 base stations, to increase 5G coverage across the country’s major cities. The novel and envisioned rollout would come on top of at least 718,000 base stations, across the country, that would be used to transmit and amplify mobile data and signals. The country had been investing US$1.4 trillion, in the rollout of technology infrastructure. Other countries and regions are also making significant developments in the market, in the past few years. Japan, one of the largest economies in the world, has been spending significant capital on the rollout of 5G networks, across the nation. According to the International Trade Administration, over the next five years, major mobile carriers in Japan, are expected to spend more than US$14 billion, in capital expenditure, to build and roll out their 5G networks. NTT DOCOMO, one of the country’s oldest mobile carriers, had launched its 5G commercial services, in March 2020, in the major cities in the country. The company had been planning to invest over US$7 billion, by the year 2025, to expand its wireless 5G network.
Rising Demand For innovative & advanced Vehicles
The market is expected to surge in the coming years, because of the rise in demand for electric, and autonomous vehicles, globally. According to the International Energy Agency, total sales of electric vehicles topped 2.1 million, in the year 2019, globally. There was a growth of 6%, in 2019 than its the previous year. The agency also estimated that electric vehicle sales will grow at a rate of 40%, annually. China had been the world’s biggest electric vehicle market, followed by Europe and the United States, in the year 2019. These three regions accounted for around 90%, of the electric vehicle sales, in the year 2019. Major companies have been developing novel and advanced edge AI and computing solutions, for their customers. In March 2020, engineers from Tesla discussed the company’s major Virtual Power Plant Project. The project had been an advanced and modern example of a cloud-native architecture, that uses edge computing and AI. Other companies are also making significant developments in the market, in the past few years. For Instance, In January 2021, General Motors announced that they had been teaming up with Microsoft to surge its rollout of self-driving, electric cars. The two companies stated that Microsoft’s edge computing and Azure Cloud platform would be used to commercialize its unique autonomous and self-driving vehicle solutions, at a major scale. These developments are expected to surge the market growth, during the forecast period.
|Market size value in 2019||US$569.194 million|
|Market size value in 2026||US$1,954.244 million|
|Growth Rate||CAGR of 19.27% from 2019 to 2026|
|Forecast Unit (Value)||USD Million|
|Segments covered||Component, Data Sources, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Microsoft Corporation, Alphabet Inc., Amazon, IBM Corporation, Apple, Intel, Anagog Ltd., Nutanix, Octonion SA., Synaptics Incorporated|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the edge AI market size by 2026?
A1. The global edge AI market is expected to reach a market size of US$1,954.244 million in 2026.
Q2. What is the size of global edge AI market?
A2. Edge AI Market was valued at US$569.194 million in 2019.
Q3. What are the growth prospects for the edge AI market?
A3. The edge AI market is expected to grow at a CAGR of 19.27% over the forecast period.
Q4. How is the global edge AI market segmented?
A4. The global edge AI market has been segmented by component, data sources, application, and geography.
Q5. What factors are anticipated to drive the edge AI market growth?
A5. The edge AI market is expected to surge in the coming years, because of the advancement and innovation in technologies, adoption of 5G solutions, and rising demand for electric vehicles, globally.