Embedded AI Global Market Report 2024

The embedded AI market size has grown rapidly in recent years. It will grow from $13.04 billion in 2023 to $14.6 billion in 2024 at a compound annual growth rate (CAGR) of 12.0%. The observed growth during the historical period can be attributed to factors such as the miniaturization of hardware components, an increasing demand for smart devices, the growing prevalence of connectivity and IoT (Internet of Things), improvements in edge computing, and the rise of wearable devices.

The embedded AI market size is expected to see rapid growth in the next few years. It will grow to $23.05 billion in 2028 at a compound annual growth rate (CAGR) of 12.1%. The anticipated growth in the forecast period can be attributed to factors such as enhanced energy efficiency in embedded systems, the expansion of industrial automation, increased demand for edge AI in healthcare, the expansion of 5G networks, and enhanced security measures in embedded AI. Major trends expected in the forecast period include the integration of AI in consumer electronics, the development of AI-optimized processors, advances in semiconductor technology, AI-optimized microcontrollers, the application of edge AI in robotics and drones, and the utilization of edge AI for sustainable and green computing.

The projected rise in industrial automation is set to drive the growth of the embedded AI market. Industrial automation employs advanced technologies and control systems to automate industrial processes, and embedded AI plays a crucial role in enhancing productivity, efficiency, and decision-making in manufacturing and production. It finds applications in machine vision, quality control, predictive maintenance, and robotics automation. For example, as of February 2022, the International Federation of Robotics reported a 6% increase in industrial robots operating in UK factories, reaching 23,000 units in 2021. Additionally, new robot sales saw an 8% increase to 2,205 units in 2020. This surge in industrial automation is a significant driver for the embedded AI market.

The growing adoption of IoT devices is anticipated to fuel the expansion of the embedded AI market. IoT devices, embedded with sensors, software, and other technologies, leverage embedded AI to facilitate local processing of data on the device itself. This reduces reliance on constant communication with centralized servers, leading to real-time decision-making, improved efficiency, and the ability to derive meaningful insights directly at the edge of IoT ecosystems. For instance, according to Dataprot, a Serbia-based cybersecurity solutions company, there were over ten billion active IoT devices in use in 2021, with projections to increase to 25.4 billion by 2030. Thus, the increasing adoption of IoT devices is a key driver for the growth of the embedded AI market.

The innovation of technological products stands out as a prominent trend in the embedded AI market, with major companies focusing on developing innovative products to maintain their market positions. In May 2023, Cognex Corporation, a US-based system software company, introduced the Advantage 182 vision system, an embedded AI-based solution designed to automate complex tasks in the life sciences industry. Featuring advanced machine vision, barcode reading, and edge learning technology, the Advantage 182 automates tasks ranging from simple presence/absence detection to high-precision alignment and complex color inspections. Notably, it includes application-specific features such as test tube detection and classification, measuring the phases of centrifuged blood, and identifying pathology samples.

Major companies in the embedded AI market are forging partnerships to develop new products and strengthen their market positions. Collaborations in the embedded AI market facilitate the exchange of expertise, resources, and technologies, fostering innovation and the development of comprehensive solutions. For instance, in September 2021, MicroSys Electronics GmbH, a Germany-based electronics company, partnered with Hailo Technologies Ltd., an Israel-based electronics company, to launch an advanced embedded platform for AI processing at the edge. Combining MicroSys's robust Arm Cortex platforms with Hailo's Hailo-8 AI processors, the miriac AIP-LX2160A platform offers high-performance and scalable AI inference capabilities for industries such as Industry 4.0, automotive, and heavy machinery.

In May 2023, Infineon Technologies AG, a Germany-based semiconductor manufacturing company, completed the acquisition of Imagimob AB for an undisclosed amount. This strategic move aims to enhance Infineon's embedded AI solutions, providing access to Imagimob's leading TinyML and AutoML technologies, and expanding its customer base. Imagimob AB, a Sweden-based software company, specializes in developing embedded AI software for building production-grade machine learning workflows on embedded devices.

Major companies operating in the embedded AI market report are Google LLC, Microsoft Corporation, Amazon Web Services Inc., Siemens, Intel Corporation, International Business Machines Corporation (IBM), Qualcomm Technologies Inc., Oracle Corporation, SAP SE, HPE (Hewlett Packard Enterprise), Nvidia Corporation, Salesforce, Advanced Micro Devices Inc, MediaTek Inc., Adobe Inc, STMicroelectronics NV, NXP Semiconductors NV, Renesas Electronics Corporation, Synopsys Inc., Xilinx Inc., Arm Limited., HiSilicon, Lattice Semiconductor, SenseTime, C3.AI, Appier, NeuroPace, AU-Zone Technologies, LUIS Technology, VectorBlox Computing Inc.

North America was the largest region in the embedded AI market in 2023. The regions covered in the embedded AI market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the embedded AI market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The main offerings in the embedded AI market include hardware, software, and services. Embedded AI hardware comprises specialized components or systems designed to support AI processing directly on embedded devices. It deals with various data types such as sensor data, image and video data, numeric data, categorical data, and others. Applications span across smartphones, wearable devices, vehicle electronics, smart homes, security monitoring, drones, robots, and more. Embedded AI is employed across various verticals, including banking, financial services and insurance (BFSI), information technology (IT) and IT-enabled services (ITES), retail and e-commerce, manufacturing, healthcare and life sciences, media and entertainment, telecom, automotive, and others.

The embedded AI market research report is one of a series of new reports that provides embedded AI market statistics, including embedded AI industry global market size, regional shares, competitors with an embedded AI market share, detailed embedded AI market segments, market trends and opportunities, and any further data you may need to thrive in the embedded AI industry. This embedded AI market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The embedded AI market consists of revenues earned by entities by providing embedded AI services such as image and video processing, speech recognition, machine learning, natural language processing, predictive maintenance, anomaly detection, and edge computing services. The market value includes the value of related goods sold by the service provider or included within the service offering. The embedded AI market also includes sales of smart speakers, autonomous robots, intelligent cameras, industrial automation systems, wearable devices, edge computing devices, and personal assistants that are used in providing embedded AI services. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).


The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.