AI in Edge Computing Market to Surpass USD 83.86 Billion by 2032, Driven by Industrial IoT, 5G, and Intelligent Infrastructure Expansion | DataM Intelligence

AUSTIN, Texas and TOKYO, Nov. 4, 2025 /PRNewswire/ -- According to DataM Intelligence, the AI in Edge Computing Market Size is witnessing robust growth, with the market size valued at USD 16.54 billion in 2024 and projected to reach USD 83.86 billion by 2032, expanding at a CAGR of 22.5% from 2025 to 2032.

This surge is powered by the integration of artificial intelligence and edge computing technologies across industries to enable real-time data processing, lower latency, enhanced security, and localized decision-making. Enterprises are transitioning from cloud-centric models to distributed edge architectures, where AI enables autonomous and efficient processing close to the data source.

Quantitative Growth Drivers

• Data Explosion: Global data generation is forecast to reach 175 zettabytes by 2025, with over 20% processed at the edge to reduce latency and bandwidth costs.
• 5G Proliferation: Over 1 billion active 5G connections worldwide in 2024 are enabling seamless AI inference at the edge, supporting applications such as autonomous driving and industrial automation.
• Hardware Acceleration: Next-gen AI chips (from NVIDIA, Intel, AMD) offer 11× processing efficiency over legacy systems, reducing power consumption by up to 30%.
• Enterprise AI Adoption: Over 68% of global enterprises have already deployed or are planning to deploy AI-enabled edge solutions by 2026.
• Operational Efficiency: Edge AI reduces latency by 90% and cuts network data transfer costs by 30%, a major factor for large-scale IoT deployments.

Collectively, these data-driven factors underline the transition toward intelligent, distributed computing models across enterprise and industrial ecosystems.

Download PDF Brochure: https://www.datamintelligence.com/download-sample/ai-in-edge-computing-market  

Browse in-depth TOC on "AI in Edge Computing Market" 

74 – Tables
69 – Figures
196 – Pages

Market Segmentation Analysis

By Component

The market is categorized into Software, Solutions, and Services.

• Software dominated in 2024, accounting for 48% market share (USD 7.9 billion), driven by AI orchestration, edge inference engines, and real-time analytics tools.
• Solutions (hardware and integrated edge AI systems) represented 35% (USD 5.8 billion) and are expected to record a CAGR of 23.7%, fueled by next-generation processors and hybrid AI edge platforms.
• Services (integration, maintenance, and consulting) contributed 17% (USD 2.8 billion) and are forecast to exceed USD 14 billion by 2032, driven by managed AI deployments.

By Deployment Type

• On-premises deployment accounted for 60% share (USD 9.9 billion) in 2024 due to regulatory and security demands in manufacturing, defense, and healthcare.
• Cloud-based edge deployments are growing fastest at 25.1% CAGR, projected to surpass USD 40 billion by 2032, driven by AI-led hybrid architectures integrating AWS, Azure, and IBM Watson Edge.

By Organization Size

• Large enterprises dominate with 65% share (USD 10.7 billion), supported by large-scale infrastructure investments.
• SMEs, while smaller in base, are growing at 24% CAGR, expected to cross USD 25 billion by 2032, leveraging modular edge-as-a-service solutions.

By Technology

• Machine Learning (ML) leads with 45% market share (USD 7.4 billion) in 2024, enabling predictive analytics, anomaly detection, and adaptive automation.
• Natural Language Processing (NLP) holds 20% share (USD 3.3 billion), driven by AI voice assistants, chatbots, and contextual analysis.
• Context-aware computing (15%) and Other technologies (20%) - including vision AI and federated learning - are rapidly expanding as multi-modal intelligence becomes mainstream.

By Application

• Industrial IoT (IIoT) remains the leading segment, representing 30% share (USD 5 billion), enabling predictive maintenance and factory automation.
• Video Analytics follows with 20% share (USD 3.3 billion), supporting surveillance, smart cities, and retail behavior tracking.
• Remote Monitoring and Content Delivery combined contribute 25% share (USD 4.1 billion), while AR/VR is the fastest-growing sub-segment, projected to exceed USD 9 billion by 2032 due to immersive applications.

By End-Use Industry

• Manufacturing dominates with 22% share (USD 3.6 billion), led by industrial AI and digital-twin adoption.
• BFSI (Banking, Financial Services, and Insurance) accounts for 15% (USD 2.5 billion), leveraging edge AI for fraud detection and real-time risk analytics.
• Healthcare contributes 14% (USD 2.3 billion), driven by AI-assisted diagnostics and remote patient monitoring.
• Automotive & Transportation is the fastest-growing vertical, expanding at 25% CAGR, expected to reach USD 12 billion by 2032 as autonomous mobility scales.
• Retail, Government & Defense, and Enterprise IT collectively account for 30% (USD 5 billion), driven by AI-enabled security, customer analytics, and mission-critical deployments.

Request for Customized Sample Report as per Your Business Requirement: https://www.datamintelligence.com/customize/ai-in-edge-computing-market  

Regional Insights

United States

The U.S. market led globally with 38% share (USD 6.3 billion in 2024) and is forecast to reach USD 30 billion by 2032.

• The U.S. houses over half of the world's edge data centers and leads in chip manufacturing and AI software frameworks.
• Federal AI infrastructure funding exceeded USD 2.8 billion in 2024, mainly targeting smart manufacturing and defense-grade edge systems.
• Widespread 5G rollout (320 million+ active users) has accelerated industrial automation and AI-enabled vehicle networks.

Japan

Japan accounted for 7% of the global market (USD 1.2 billion in 2024) and will reach USD 5.3 billion by 2032, growing at 21.4% CAGR.

• With 75% of major manufacturers adopting AI and robotics, Japan's industrial AI infrastructure is among the most advanced in Asia-Pacific.
• The government's "Society 5.0" initiative invested USD 900 million in 2024 for AI and smart-city development, integrating edge computing across logistics and healthcare.

Competitive Landscape

According to DataM Intelligence, the AI in Edge Computing market is moderately consolidated, with technology giants and service integrators leading innovation across hardware, software, and hybrid edge ecosystems.

Key Players:
NVIDIA | Amazon Web Services, Inc. | Arctic Wolf Networks Inc. | Tata Consultancy Services | Microsoft Corporation | Infosys | IBM Corporation | Intel Corporation | Cisco Systems, Inc. | Nokia

Highlights:

• NVIDIA: Total revenue USD 60.9 billion; edge-AI segment contributed USD 20 billion, up 46% YoY.
• Amazon Web Services (AWS): Cloud revenue USD 96 billion, with AWS Greengrass deployments rising 31% YoY.
• Microsoft Azure Edge: Contributed USD 14 billion, growing 27% YoY.
• Intel Corporation: Shipped 45+ million AI edge chips, capturing 35% global AI accelerator share.
• Cisco Systems: Generated USD 4.5 billion from edge & IoT revenue, expanding 18% YoY.
• IBM Watson Edge: Posted 22% YoY growth, driven by AI analytics integration in enterprise infrastructure.

Collectively, these leaders account for 65% of total market revenue, reflecting robust vertical integration and ecosystem-based innovation.

Recent Industry Developments

• NVIDIA launched Jetson Thor, an AI processor delivering 8× performance for robotics and autonomous systems (April 2025).
• AWS expanded Greengrass 4.0, enhancing real-time AI inference for industrial and logistics operations (March 2025).
• Cisco and Nokia jointly deployed 5G-AI hybrid edge networks across 14 Asia-Pacific countries (February 2025).
• IBM and Tata Consultancy Services announced a USD 200 million partnership to integrate generative AI into edge systems (January 2025).
• Intel introduced EdgeAI Suite combining neuromorphic computing and real-time vision AI modules (December 2024).

Market Outlook and Opportunities

By 2032, the AI in Edge Computing landscape will evolve into an intelligent, decentralized network of AI-powered nodes.

Key Forecast:

• Machine Learning to surpass USD 30 billion, maintaining leadership in predictive analytics.
• IIoT and Video Analytics combined to exceed USD 25 billion in market value.
• Asia-Pacific to grow at 24.1% CAGR, capturing 35% of global revenues by 2032.
• Automotive & Transportation segment to emerge as a USD 12 billion market by 2032, powered by autonomous mobility and smart logistics.

Conclusion

The AI in Edge Computing Market represents the next frontier in intelligent data processing - bridging cloud intelligence with on-device autonomy. With the market set to expand from USD 16.54 billion in 2024 to USD 83.86 billion by 2032, this 22.5% CAGR growth underscores its strategic role in the global AI revolution.

According to DataM Intelligence, the convergence of AI accelerators, 5G infrastructure, and edge-cloud integration will transform industries such as manufacturing, healthcare, BFSI, and transportation. Market leaders including NVIDIA, AWS, Microsoft, Intel, and Cisco are driving this transformation through scalable, secure, and high-performance AI solutions that will define the next decade of digital infrastructure.

Buy This Report with Year-End Offer (Buy 1 report: Get 30% OFF | Buy 2 reports: Get 50% OFF each! Limited time offer): https://www.datamintelligence.com/buy-now-page?report=ai-in-edge-computing-market 

Related Report:

1. Edge Computing for Autonomous Vehicles Market Size to Reach US$39.00 B by 2032 - DataM Intelligence.
2. Edge Computing Market Size to Hit US$ 156.2 Billion by 2030, Fueled by IoT and AI Integration - DataM Intelligence.
3. Mobile Edge Computing Market Size Set to Reach US$ 6.95 B by 2031 - DataM Intelligence.

About DataM Intelligence

DataM Intelligence is a renowned provider of market research, delivering deep insights through pricing analysis, market share breakdowns, and competitive intelligence. The company specializes in strategic reports that guide businesses in high-growth sectors such as nutraceuticals and AI-driven health innovations.

To find out more, visit https://www.datamintelligence.com/ or follow us on Twitter, LinkedIn and Facebook.

Contact:

Sai Kiran
DataM Intelligence 4market Research LLP
Ground floor, DSL Abacus IT Park, Industrial Development Area
Uppal, Hyderabad, Telangana 500039
USA: +1 877-441-4866
Email: Sai.k@datamintelligence.com 

Logo: https://mma.prnewswire.com/media/1858619/3573087/DataM_Intelligence_Logo.jpg