The edge AI market is poised for substantial growth in Asia by 2025, driven by increasing demand across various sectors, particularly manufacturing, retail, and transport. According to STL Partners, the global edge AI revenue is expected to rise from US$54 billion in 2024 to US$157 billion by 2030, with a compound annual growth rate (CAGR) of 19% during this period. This trend indicates a significant shift towards the integration of artificial intelligence at the network's edge, which is crucial for chief operating officers (COOs) in Asia as they navigate operational efficiencies and technological advancements.
Manufacturing is projected to be the leading sector in adopting edge AI solutions, accounting for over 35% of the market share by 2030. This growth is largely attributed to the early adoption of computer vision applications for asset monitoring and security, which provide immediate returns on investment. For COOs, this highlights the importance of leveraging edge AI to enhance productivity and streamline operations within their facilities. The ability to process data locally reduces latency and improves real-time decision-making capabilities, essential for maintaining competitive advantage in a rapidly evolving market.
The preference for on-premises edge deployment is another critical consideration for COOs. As enterprises increasingly prioritise security and low latency, on-premises solutions become more appealing. This approach mitigates risks associated with data privacy regulations and reduces costs linked to data backhaul. For COOs, understanding the implications of these deployment strategies is vital for aligning operational frameworks with technological advancements.
Furthermore, the edge AI landscape in Asia is supported by significant investments in smart city initiatives and advanced infrastructure. Countries like Singapore and South Korea are at the forefront of these developments, fostering environments conducive to innovation. COOs must recognise the strategic importance of these initiatives, as they create opportunities for collaboration across industries and enhance overall operational efficiency.
The increasing infusion of AI across applications also suggests that COOs need to focus on integrating AI capabilities into their existing operations. With projections indicating that revenue directly attributable to AI will rise from 69% in 2024 to 72% by 2030, it becomes imperative for leaders to invest in AI accelerators and foster partnerships with technology providers. This collaboration can facilitate the deployment of edge AI applications that deliver tangible business outcomes.
As the edge AI market matures, regions such as East Asia & Pacific are expected to dominate the landscape, accounting for a significant share of the addressable market. However, as other regions like South Asia and Latin America begin to catch up, COOs must remain vigilant about emerging trends and adapt their strategies accordingly.
Looking forward, the anticipated growth of edge AI in Asia presents both challenges and opportunities for chief operating officers. By focusing on strategic investments in technology and infrastructure while fostering collaboration across sectors, COOs can position their organisations for success in an increasingly competitive landscape driven by innovation and efficiency.
