Embedded AI Market Size, Share, Trends, Industry Analysis Report: By Offering (Hardware, Software, and Services), Data Type, Industry Verticals, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Market Forecast, 2

Embedded AI Market Size, Share, Trends, Industry Analysis Report: By Offering (Hardware, Software, and Services), Data Type, Industry Verticals, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Market Forecast, 2024–2032

The global embedded AI market size is expected to reach USD 29.26 billion by 2032, according to a new study by Polaris Market Research. The report “Embedded AI Market Size, Share, Trends, Industry Analysis Report: By Offering (Hardware, Software, and Services), Data Type, Industry Verticals, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Market Forecast, 2024–2032” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Embedded AI is transforming technology by integrating artificial intelligence (AI) directly into devices and systems, allowing them to perform intelligent tasks without relying on external computing resources. This innovation enables smart and Io devices to process data locally, enhancing speed, efficiency, and privacy.

Increasing demand for intelligent systems drives the expansion of the embedded AI market as businesses and consumers seek more efficient and intuitive technologies. Companies are incorporating AI directly into devices, enabling them to process data locally and respond to user needs in real time. This trend enhances functionality and reduces reliance on cloud computing, addressing concerns related to latency, bandwidth, and data privacy.

Emerging trends such as edge computing would boost the growth of the embedded AI market in the coming years. Edge computing reduces latency and enhances the responsiveness of devices by integrating embedded AI. This shift aligns with the need for real-time analytics in sectors such as manufacturing, logistics, and retail. As businesses embrace these advancements, they unlock new opportunities for innovation and efficiency, positioning themselves to operate in a rapidly evolving technological environment.

The global embedded AI market is expected to grow during the forecast period due to the increasing use of connected IoT devices. Numerous IoT applications, including smart home systems and industrial sensors, need devices to function independently. Embedded AI enables these devices to gain knowledge from their surroundings and make autonomous decisions, thus driving up demand.

Embedded AI Market Report Highlights

• By offering, the software segment is expected to experience a substantial growth rate during the forecast period due to the growing emphasis on data privacy and security along with increasing demand for advanced algorithms and machine learning capabilities.
• The automotive segment, based on industry verticals, dominated the embedded AI market in 2023 owing to the push toward autonomous vehicles and the implementation of strict safety regulations that require advanced technologies to meet compliance.
• In the global embedded AI market, North America held the largest revenue share in 2023 due to the rapid advancements in AI algorithms and hardware coupled with favorable regulations and government initiatives promoting AI research and development.
• A few global key market players are Microsoft; Amazon Web Services, Inc.; NVIDIA Corporation; Intel Corporation; IBM; Qualcomm Technologies, Inc.; Hewlett Packard Enterprise Development LP; Siemens; Oracle; MediaTek Inc.; STMicroelectronics; Edge Impulse Inc.; LUIS Technology GmbH; Huawei Technologies Co., Ltd.; Eta Compute; SensiML Corporation; SiMa Technologies, Inc.; Salesforce; Safran Electronics & Defense; MIPS; Cognex Corporation; and Graphcore.

Polaris Market Research has segmented the embedded AI market report on the basis of offering, data type, industry verticals, and region:

By Offering Outlook (Revenue – USD Billion, 2019–2032)

• Hardware
• Software
• Services

By Data Type Outlook (Revenue – USD Billion, 2019–2032)

• Sensor Data
• Image and Video Data
• Numeric Data
• Categorial Data
• Other

By Industry Verticals Outlook (Revenue – USD Billion, 2019–2032)

• BFSI
• Energy & Utilities
• Government & Defense
• Healthcare & Life Sciences
• IT/ITeS
• Automotive
• Retail & eCommerce
• Telecommunications
• Others

By Regional Outlook (Revenue – USD Billion, 2019–2032)

• North America
• US
• Canada
• Europe
• Germany
• France
• UK
• Italy
• Spain
• Netherlands
• Russia
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• Malaysia
• South Korea
• Indonesia
• Australia
• Rest of Asia Pacific
• Middle East & Africa
• Saudi Arabia
• UAE
• Israel
• South Africa
• Rest of Middle East & Africa
• Latin America
• Mexico
• Brazil
• Argentina
• Rest of Latin America