Embedded AI Market Analysis

  • Report ID: 5715
  • Published Date: Sep 16, 2025
  • Report Format: PDF, PPT

Embedded AI Market Segmentation:

Offering Segment Analysis   

In embedded AI market, software segment is likely to hold more than 62% share by 2035. The rising use of embedded software across the world will propel the software to grow magnificently during the forecast period. Moreover, worldwide almost 98% of manufactured microprocessors use embedded software.

Embedded systems are employed in many different fields nowadays. Hospital CT and MRI machines, transportation management systems, industrial robots, and interactive kiosks are just a few examples of how embedded systems have transformed automation and human-machine interaction.

Data Type Segment Analysis   

In embedded AI market, sensor data segment is predicted to account for around 45% revenue share by 2035. This huge expansion will be the result of the rising use of sensor data in the embedded AI to give personalized experiences to customers. To illustrate, fitness trackers collect data on heart rate, sleep patterns, and activity levels to offer personalized wellness and health recommendations.

The market development in this area is significantly influenced by the numerous benefits that come with integrating sensor data with embedded AI. These benefits range from improved safety and tailored experiences to higher operational efficiency and cost savings.

Recently smart wearable devices consist of sensor data that have been on the rise globally. According to Strategy Analytics, worldwide shipments of smartwatches increased by 47% yearly in the second quarter of 2021, marking the greatest growth rate for the sector since 2018.

Our in-depth analysis of the global embedded AI market includes the following segments:

     Offering

  • Hardware
  • Software
  • Services

 

 

     End User

  • BFSI
  • IT & ITES
  • Retail & E-commerce
  • Manufacturing
  • Energy & Utilities
  • Transportation & Logistics

     Data Type

  • Sensor Data
  • Image & Video Data
  • Numeric Data
  • Categorial Data

Browse key industry insights with market data tables & charts from the report:

Frequently Asked Questions (FAQ)

In the year 2026, the industry size of embedded AI is evaluated at USD 13.21 billion.

The global embedded AI market size exceeded USD 11.7 billion in 2025 and is set to expand at a CAGR of around 14.3%, surpassing USD 44.53 billion revenue by 2035.

Asia Pacific embedded ai market will secure over 43% share, driven by rapid e-commerce growth and digital transformation in retail, forecast period 2026–2035.

Key players in the market include NVIDIA Corporation, Intel Corporation, Qualcomm Technologies, Inc., ARM Holdings, Google LLC, Microsoft Corporation, IBM Corporation, MediaTek Inc., Texas Instruments Incorporated, Advanced Micro Devices, Inc.
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