Edge AI Software Market Overview
Edge AI Software Market is projected to grow from USD 0.71 Billion in 2025 to USD 4.17 Billion by 2034, exhibiting a compound annual growth rate (CAGR) of 21.73% during the forecast period (2025 - 2034). Additionally, the market size for Edge AI Software Market was valued at USD 0.58 billion in 2024.
Rising interest in AI-enabled edge devices and rapid 5G network connectivity are the key market drivers enhancing market growth.
Figure 1: Edge AI Software Market Size, 2025-2034 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Edge AI Software Market Trends
Growing of cloud computing in business driving the market growth
Market CAGR for cloud computing technology is driven by the Increasing adoption of cloud computing is driving daily data transfers to the cloud, which is likely to boost cloud workloads. Edge nodes and devices allow businesses to store and retrieve data that requires a real-time reaction and is only needed temporarily. It is made possible by edge AI software solutions. Artificial intelligence is growing as it finds increasing use in various contexts. These apps require a lot of computing power to do their jobs effectively and usefully, especially when dealing with duties like real-time data processing and data capture.
Additionally, artificial intelligence (AI) technologies normally serviced by a software as a service (SaaS) offering can now function offline or in conditions with low latency or bandwidth requirements thanks to edge computing. Edge AI enables businesses to deploy their machine learning models locally on edge devices, mitigating performance and latency concerns. Real-time input from AI systems can significantly improve essential software. Industrial-scale use cases, such as manufacturing and supply chain, stand to gain the greatest immediate benefits from edge AI. Due to the high cost of implementing edge AI systems, most business executives must see a substantial return on investment before making the plunge.
The efficiency of autonomous vehicles depends on their constant data transmission to the cloud. It is made possible by sophisticated AI and ML technologies that enable these autonomous driving Systems to make decisions. When self-driving cars link up with the network's periphery, they can increase productivity, lower accident rates, boost safety, and ease congestion.
For instance, ADLINK Technology Inc. collaborated with the Industrial Technology Research Institute and Tier IV to bring autonomous vehicles to the masses. The collaboration's primary goal was to advance traffic management systems and intelligent transportation using Autoware's open-source autonomous driving software. As a result, it is anticipated that throughout the projection period, demand for Edge AI Software will increase due to the rising technology rate. Thus, the driving factor of the Edge AI Software market revenue.
Edge AI Software Market Segment Insights
Edge AI Software Data Source Insights
The Edge AI Software Market segmentation, based on data source includes video and image recognition, speech recognition, biometric data, sensor data and mobile data. The sensor data and mobile data industry is expected to grow the fastest. New capabilities for smartphones, tablets, and wearable devices are emerging as computing spreads into every aspect of society. The computing demands of mobile applications are rapidly increasing to meet the growing popularity of computationally intensive mobile uses, such as virtual reality and real-time online gaming.
Edge AI Software Component Insights
The Edge AI Software Market segmentation, based on components, includes solutions and services. The solutions industry is expected to grow fastest and capture the market's largest share. Software solutions on the cutting edge of artificial intelligence enable firms to automate routine administrative tasks and increase output while decreasing costs. Services provided by Edge AI include training and consultancy, system integration and testing, support and maintenance, and standalone solution provisioning.
Figure 2: Edge AI Software Market, by Component, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Edge AI Software Application Insights
The Edge AI Software Market segmentation, based on application, includes autonomous vehicles, access management, video surveillance, telemetry, energy management, and others. The market for autonomous vehicles is expected to increase at a CAGR of 21.73% from 2022-2032, from $138.8 million. A rise in autonomous vehicle production with the aim of reducing traffic accidents and enhancing transportation systems is a key factor propelling the use of edge AI software in this context.
Edge AI Software Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Edge AI Software market will dominate this market, owing to increased interest and a rising number of edge AI software services initiatives in both countries. In addition, governments across North America are actively working to integrate software-based AI solutions across a wide range of sectors, including public utilities, financial institutions, transportation hubs, and airports.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: EDGE AI SOFTWARE MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe’s Edge AI Software market accounts for the second-largest market share due to increasing demand in the industrial, automotive, energy, and utility sectors for artificial intelligence in this area. Further, the German Edge AI Software market held the largest market share, and the UK Edge AI Software market was the fastest growing market in the European region
The Asia-Pacific Edge AI Software Market is expected to grow at the fastest CAGR from 2023 to 2032. The regional market expansion is anticipated to be fueled by the increased investments made by governments and increasing their global footprint by providing cutting-edge technological services to emerging markets. Moreover, China’s Edge AI Software market held the largest market share, and the Indian Edge AI Software market was the fastest growing market in the Asia-Pacific region.
For instance, Blaize and NEXTY Electronics Corp., a subsidiary of the Toyota Tsusho Group, have formalized NEXTY's status as a Blaize distribution partner to reach the Japanese industrial and automotive industries for edge and AI applications.
Edge AI Software Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Edge AI Software market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Edge AI Software industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Edge AI Software industry to benefit clients and increase the market sector. In recent years, the Edge AI Software industry has offered some of the most significant technological development. Major players in the Edge AI Software market, including Microsoft Corporation (US), IBM Corporation (US), Amazon Web Services (US), Nutanix Inc. (US), Synaptics (US), TIBCO Software (US), Octonion SA (Switzerland), Intel Corporation (US), HPE (US), Oracle Corporation (US), Foghorn Systems (US), Gorilla TechnologyGroup (Taiwan), Azion Technologies (US), ClearBlade (US), TACT.Ai Technologies (US), SIXSQ (Geneva), ADAPDIX (US), and others are attempting to increase market demand by investing in research and development operations.
International Business Machines Corporation (IBM) is a Fortune 500 company with operations in more than 175 countries worldwide and is headquartered in Armonk, New York. Hosting and consulting services are also offered in addition to the company's primary focus on computer hardware, middleware, and software for everything from mainframes to nanotechnology. IBM is a company that offers various IT products and services. The firm develops and distributes its hardware and software, providing related services, including hosting and consulting. In March 2023, IBM announced that BESTSELLER India, a subsidiary of BESTSELLER based in India, will be working with IBM Consulting to implement critical transformation initiatives to help create an intelligent and autonomous fashion landscape quickly accelerate business growth.
Adapdix provides Autonomous Systems that quicken the process of going digital. Adapdix technology has been demonstrated to provide AI-enabled performance improvements with market-leading speed and value, as seen by the company's expanding portfolio of Fortune 500 customers. Adapdix is a startup that has called the San Francisco Bay Area home since its inception in 2015. In June 2022, Adapdix acquired Edge Intelligence, the first globally distributed data management platform for analytics built for edge computing and hybrid cloud environments, to further solidify its position as the market leader in AI-powered automation software.
Key Companies in the Edge AI Software market include
- Microsoft Corporation (US)
- IBM Corporation (US)
- Synaptics (US)
- Amazon Web Services (US)
- Nutanix Inc. (US)
- TIBCO Software (US)
- Octonion SA (Switzerland)
- Intel Corporation (US)
- HPE (US)
- Oracle Corporation (US)
- Foghorn Systems (US)
- Gorilla Technology Group (Taiwan)
- Azion Technologies (US)
- ClearBlade (US)
- Ai Technologies (US)
- SIXSQ (Geneva)
- ADAPDIX (US)
Edge AI Software Industry Developments
For instance, in March 2023, HFCL limited, a Telcom provider in India, reached an agreement with Microsoft Corp., a technology company located in the United States, to provide a private version of 5G networks for businesses in ecommerce, warehousing, manufacturing and mining sectors.
For instance, in March 2023, a partnership was formed between Minima Global Ltd, a blockchain platform developer located in Europe, with Inferrix Limited, a software developer based in the UK, by integrating Minima’s blockchain networks with their Inferrix IoT edge and AI solution. This collaboration is targeted at building new-age IoT devices by providing seamless communication between all the sensors and safeguarding critical information.
For instance, in February 2023, Cellnex Ireland, which is a European Telecommunications Infrastructure provider, along with Dublin City University in Europe, announced their partnership to build a smart campus that was integrated with 5G. By means of this partnership, Cellnex implements various telecommunication infrastructures that enable 5G accessibility over the main campus and Mobile Edge Computing capabilities over the campuses.
To illustrate, in September 2022, Nvidia Corporation, an American software enterprise, launched the Nvidia IGX platform to Julien Delaunay to further augment edge AI robotics and healthcare. This platform comes alongside an edge AI hardware device for robotics that is AI -an optimized computational system. This initiative targeted integrating sensors and robotics with computer vision through deep learning in healthcare.
Additionally, in May 2022, a company based in Israel called Habana Labs operates as a subsidiary of Intel specializing in revolutionary data center and cloud solutions, making known its second-generation deep learning processors. Centered around It remains that these new processors come as a response to customers looking for deep composites that are superior in energy efficiency and performance for inferencing and learning processes in a data center.
Similarly, a US-based hardware company, Synaptics, in March of 2022, developed a sequence in the IoT development cycle by launching the Katana Edge AI Kit, which expedited the integration of AI vision and sensor applications. This kit comprises software for motion, vision and sound hardware, converting it to wireless and wired devices, so the concept of edge AI for IoT designs is simplified.
Edge AI Software Market Segmentation
Edge AI Software Data Source Outlook
- Video and Image Recognition
- Speech Recognition
- Biometric Data
- Sensor Data
- Mobile Data
Edge AI Software Component Outlook
Edge AI Software Application Outlook
- Autonomous Vehicles
- Access Management
- Video Surveillance
- Remote Monitoring & Predictive Maintenance
- Telemetry
- Energy Management
Edge AI Software Regional Outlook
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North America
-
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
-
Rest of the World
- Middle East
- Africa
- Latin America
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Report Attribute/Metric
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Details
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Market Size 2024
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0.58 (USD Billion)
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Market Size 2025
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0.71 (USD Billion)
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Market Size 2034
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4.17 (USD Billion)
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Compound Annual Growth Rate (CAGR)
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21.73% (2025 - 2034)
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|
Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2024
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Market Forecast Period
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2025 - 2034
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Historical Data
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2019 - 2023
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Market Forecast Units
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USD Billion
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| Segments Covered |
Data Source, Component, Application, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Microsoft Corporation (US), IBM Corporation (US), Amazon Web Services (US), Nutanix Inc. (US), Synaptics (US), TIBCO Software (US), Octonion SA (Switzerland), Intel Corporation (US), HPE (US), Oracle Corporation (US), Foghorn Systems (US), Gorilla TechnologyGroup (Taiwan), Azion Technologies (US), ClearBlade (US), TACT.Ai Technologies (US), SIXSQ (Geneva), and ADAPDIX (US) |
| Key Market Opportunities |
The emergence of the 5G network will unify the IT and telecom industries |
| Key Market Dynamics |
Growing need for smart devices with AI at the network's edge |
Edge AI Software Market Highlights:
Frequently Asked Questions (FAQ) :
The Edge AI Software Market size was valued at USD 0.58 Billion in 2024.
The global market is projected to grow at a CAGR of 21.73% during the forecast period, 2025-2034.
North America had the largest share of the global market.
The key players in the market are VMware, Inc (US), Microsoft (US), IBM Corporation (US), Cisco Systems, Inc. (US), BMC Software, Inc. (US), New Relic, Inc. (US), Splunk Inc. (US), ServiceNow (US), Dynatrace LLC (US), Datadog (US),Oracle (US), Broadcom (US), Amazon Web Services, Inc. (US), and Google (US).
The solution category dominated the market in 2024.
Autonomous vehicles had the largest share of the global market.
