Global Embedded AI Market to Reach $57 Billion by 2036, Growing at 8% CAGR

Growth and Market Size of Global Embedded AI Market Driven by Rising Demand for Edge Computing Solutions in IoT Ecosystem

Research Nester assesses the growth and market size of global embedded AI market which is anticipated to be on account of the surging demand for edge computing solutions, within the IoT ecosystem.

Expansion in Healthcare IoT Devices to Promote Global Market Share of Embedded AI Market

The global embedded AI market is estimated to grow majorly on account of the expansion of healthcare IoT devices and increasing use of embedded AI applications in the healthcare sector. Moreover, IoT enabled healthcare solutions such as wearable devices, remote patient monitoring leveraged embedded AI for tasks including patient data analysis, predictive diagnosis and personalized treatment plans.

In addition, the significant growth in embedded AI market highlights the increasing adoption of smart, AI-infused devices to enhance patient care and utilize healthcare workflows in the healthcare sector. According to recent information, global healthcare IT spending in 2021 reached USD 140 billion.

Some of the major growth factors and challenges that are associated with the growth of the global embedded AI market are:

Growth Drivers:

  • The integration of AI in autonomous vehicles such as self-driving capabilities which heavily depends on embedded AI for real time decision-making.
  • The proliferation of AI-optimized hardware which including dedicated AI chips.


Power consumption, integration complexity and algorithm efficiency are the major factors anticipated to hamper the global market size of embedded AI. The embedded devices such as those in IoT applications, operates under strict power constraints with very limited resources. Moreover, the power consumption will be increased by running sophisticated AI-algorithms on resource-constrained devices which affects device overall performance and battery life. This challenge can hinder the deployment of AI in scenarios where energy efficiency is critical such as wearable devices and remote sensors, particularly in healthcare sector.

By offering segment in the global embedded AI market is segmented into hardware, software and services. The software segment is to garner a significant revenue by the end of 2036 by growing at a significant CAGR over the forecast period. The segment growth can be attributed to factor that there are rapid advances in artificial intelligence and machine learning. The exponential increase in ML applications on GitHub highlights the expanding landscape of AI-driven solutions.

According to recent information, worldwide spending on AI-centric systems was estimated USD 155 billion in 2023 across all industries.  Moreover, as machine learning algorithms are becoming more sophisticated and accessible to software developers, it can help in integrating the capabilities into wide array of applications, ranging from data analytics to automation.

By region, the Europe in embedded AI market is to generate the significant revenue of by the end of 2036. This growth is anticipated by the advent of 5G technology in the region. With the incorporation of 5G  , the embedded devices used in smart video surveillance system for automobiles provide speedy response time. In addition,  the AI adoption in automobile industry helps in providing features such as voice assistance, object identification in driverless vehicles and Advanced Driver Assistance Systems. Moreover, automakers and AI providers forming partnership to provide AI- driven solutions to enhance safety and convenience which lead to growth in the market in the region. According to AI Watch, the EU invested between 7.9 billion and 9 billion in AI in 2019.

This report also provides the existing competitive scenario of some of the key players of the embedded AI market are Intel Corporation, ARM holdings, Google LLC, Microsoft Corporation, MediaTek Inc., Qualcomm Technologies Inc., Texas Instruments Incorporated, NVIDIA Corporation, Advance Micro Devices, Inc., Intel Corporation and others.