According to a recent report published by Grand View Research, Inc., the global edge AI market is projected to reach a valuation of USD 66.47 billion by 2030. The market is expected to grow at a robust compound annual growth rate (CAGR) of 21.7% during the forecast period from 2025 to 2030. This growth is largely driven by the increasing global demand for 5G connectivity in applications that require real-time responsiveness and low latency—such as virtual reality (VR) experiences, autonomous vehicles, and mission-critical operations. These advancements are accelerating innovation in the edge AI space.

Another key driver of market growth is the rising adoption of IoT-based edge computing services. The Internet of Things (IoT) generates vast volumes of data from connected devices and sensors, much of which can be challenging to transmit and store centrally due to bandwidth, cost, and latency limitations. Edge AI addresses this challenge by allowing for the local processing of sensor data at the device level. This enables faster decision-making and automation of operations, maximizing the value derived from IoT systems.

Edge computing supports the shift of AI processing tasks from centralized cloud infrastructures to edge devices located closer to the data source. This shift resolves many of the issues commonly associated with traditional cloud computing, such as high latency, data privacy risks, and network congestion. As a result, edge AI is becoming increasingly popular in advanced technological environments, where low-latency performance and minimal bandwidth consumption are essential.

A notable example of innovation in this domain occurred in June 2020, when ADLINK Technology Inc., a Taiwan-based manufacturer of edge computing products, entered into a partnership with Tier IV, a deep-tech startup from Japan, and the Industrial Technology Research Institute (ITRI) of Taiwan. This collaboration focused on leveraging edge AI to enable autonomous driving capabilities, with the goal of advancing open-source self-driving technology and promoting intelligent transportation systems.

One of the core advantages of edge AI is that it allows AI devices to process data locally, directly on the device, without having to transfer information to remote servers or data centers. This localized processing significantly reduces latency and improves responsiveness, which is crucial for delivering seamless user experiences in real-time applications. Additionally, relocating computational tasks to the network edge opens up new opportunities for the development of innovative products and services.

For instance, in July 2022, Innodisk Corporation, a Taiwan-based manufacturer of computer hardware, launched a new product line of edge computing solid-state drives (SSDs). These edge AI SSDs are designed for use in edge servers to perform high-speed data processing at the source, thereby enhancing performance, reducing latency, and lowering overall data transmission costs.

Curious about the Edge AI Market? Download your FREE sample copy now and get a sneak peek into the latest insights and trends. 

Frequently Asked Questions (FAQs) About the Edge AI Market

1. What is the current size of the Edge AI market, and what is its growth forecast?

As of 2024, the global Edge AI market was valued at approximately USD 20.78 billion. It is projected to reach USD 66.47 billion by 2030, expanding at a compound annual growth rate (CAGR) of 21.7% from 2025 to 2030.

2. What factors are driving the growth of the Edge AI market?

Key drivers include:

• Increasing demand for real-time data processing in applications like autonomous vehicles, smart cities, and industrial automation.

• Advancements in 5G connectivity, enabling faster and more reliable data transmission.

• Proliferation of IoT devices, generating vast amounts of data that require efficient processing.

• Need for enhanced data privacy and security, as local data processing reduces reliance on centralized cloud systems.

3. Which industries are adopting Edge AI technologies?

Edge AI is being increasingly adopted across various sectors, including:

• Automotive: For autonomous driving and advanced driver-assistance systems (ADAS).

• Healthcare: In medical imaging, patient monitoring, and diagnostics.

• Manufacturing: For predictive maintenance and quality control.

• Retail: In smart inventory management and personalized customer experiences.

• Telecommunications: To optimize network performance and enable 5G services.

4. Who are the leading companies in the Edge AI market?

Key players in the Edge AI market include:

• ADLINK Technology Inc.

• Alphabet Inc.

• Amazon.com, Inc

• Gorilla Technology Group

• Intel Corporation

• International Business Machines Corporation

• Microsoft Corporation

• Nutanix, Inc.

• Synaptics Incorporated

• Viso.ai

Order a free sample PDF of the Edge AI Market Intelligence Study, published by Grand View Research.