The Japan edge AI market size was valued at $7.79 billion in 2020, and is projected to reach $40.81 billion by 2030, registering a CAGR of 20.0% from 2021 to 2030.
Edge artificial intelligence is an enhanced combination of edge computing and artificial intelligence commonly known as on-Device AI. By speeding up processes and making devices more energy efficient, AI edge computing technology is aimed to improve decision-making and improve the experience with hyper-personalization. Further, artificial intelligence-based edge computing algorithms in Japan are primarily run over hardware devices locally in edge-AI technologies.
Owing to this, hardware-based intelligent compute applications provide superior insight to the user in real-time. This semiconductor-based edge AI hardware application is anticipated to aid the vendors to offer valuable fleet management solutions in Japan’s manufacturing and automotive sector, which is expected to drive the Japan edge AI market.
Moreover, the edge intelligence technology in Japan is witnessing a rise, owing to a significant increase in demand for intelligent applications in residential, healthcare, consumer electronics, and retail chains. In addition, coral AI is beneficial as it allows to process data in milliseconds rather than seconds in the cloud, providing with real-time data and decision-making skills for machine learning intelligence, which acts as a prime driving factor for the Japan edge AI market.
The Japan edge AI market share is expected to witness notable growth during the forecast period, owing to rise in enterprise workload on the cloud platforms. Furthermore, rise in demand and trends toward smart wearable devices drives the growth of the Japan edge AI market during the forecast period. In addition, surge in demand for the number of intelligent applications is expected to propel the Japan edge AI market analysis.
However, rise in privacy and security concerns related to edge AI solutions in Japan is expected to restrain the market growth. In addition, the emergence of the 5G network to bring IT and telecom together is anticipated to provide a lucrative opportunity for the growth of the Japan edge AI Industry.
The emergence of COVID-19 has immensely affected the growth rate of edge AI technology across Japan in 2020. A high positive impact has been witnessed in the healthcare sector in Japan, as prime enterprises have started to realize the potential of edge AI software in opposing the influence of COVID 19. However, due to several obstacles created by the COVID-19 pandemic, such as a lack of skilled professionals, project delays or cancellations, and raw material accessibility, the COVID-19 pandemic significantly impacted the growth of Japan Edge AI strategy across the productivity and mobility sectors. In contrast, the rise in demand for intelligence applications across the healthcare, manufacturing, and automotive areas in Japan is projected to drive the Japan edge AI market growth post-pandemic.
On the basis of offering, the hardware segment dominated the market, in terms of revenue in 2020, owing to rise in demand for automation solution across the commercial and industrial sector, which is driving the need for an edge AI technology.
By Offering
Hardware segment influence the market in 2020, and expected to follow the same in future.
The Japan edge AI market is segmented on the basis of offering, device type, and end user. On the basis of offering, the market is fragmented into Hardware, software and services. From end user, the market is fragmented into automotive/mobility, manufacturing/robotics, plant & infrastructures preservation, smart life, and others. The automotive/mobility market share of security & services segment garnered the highest in 2020, and is expected to grow at a high
CAGR from 2021 to 2030. This report also covers analysis for global edge AI market and global and Japan edge AI market.
Top Impacting Factors
Significant factors that impact the growth of the Japan edge AI market include surge in demand and trend toward smart wearable devices coupled with increase in demand for intelligence applications. Further, increasing enterprise workload on the cloud is projected to drive the growth of the Japan edge AI market in coming years. However, surge in privacy and security concerns related to edge AI solutions is acting as a major barrier for early adoption, which hampers the growth of the market. On the contrary, emergence of the 5G network to bring IT and telecom together is anticipated to provide remunerative opportunities for expansion of the Japan edge AI industry during the forecast period.
By End User
Manufacturing/Robotics segment hold domination position in 2020.
Key Benefits For Stakeholders
- This study comprises analytical depiction of the Japan edge AI market size along with the current trends and future estimations to depict the imminent investment pockets.
- The overall Japan edge AI market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current Japan edge AI market forecast is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the smart display.
- The report includes the market share of key vendors and Japan edge AI market trends.
Japan Edge AI Market Report Highlights
| Aspects | Details |
 By OFERING |
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 By END USER |
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Analyst Review
Edge artificial intelligence addresses the process of implementation and execution of machine learning locally on the hardware. Further, Japan's edge AI market is witnessing a rise in demand, owing to edge AI ability to offer high safety and security level with improved safety and security features to minimize the risk of the edge-AI device. Moreover, the emergence of AI in Edge computing is a growing collection of connected systems and gadgets that collect and analyze data based on end-user preferences. In addition, surge in demand for smart infrastructure solutions across prime Japanese enterprises is expected to offer profitable opportunities for the Japan edge AI market.
The Japan edge AI market is highly competitive, owing to strong presence of existing vendors. Edge AI vendors, who have access to extensive technical and financial resources, are anticipated to gain a competitive edge over their rivals, as they have the capacity to cater to the market requirements. Competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, and different strategies adopted by key vendors.
Surge in demand for intelligent devices paired with rise in trends 5G network solution across manufacturing, retail, and automotive sectors in Japan propels the need to enhance edge AI solutions. Moreover, prime venders, such as the SoftBank and Cinnamon AI plan to develop and deploy next-generation edge AI solutions across various sectors. For instance, in 2021, QuEST Global, announced a collaboration with NVIDIA to deliver next-gen AI solutions across Japan, which is anticipated to provide lucrative opportunities for the market growth.
Among the analyzed segments, manufacturing/robotics sector exhibits the highest adoption rate of edge AI and has been experiencing massive expansion in the market. On the other hand, smart life is expected to grow at a faster pace, predicting lucrative growth due to surge in demand for smart infrastructure solution. Sectors, such as plant & infrastructure preservation, automotive, and manufacturing, are also expected to offer new growth opportunities for the edge AI market in Japan during the forecast period.
In Japan, various key players and government agencies are investing in edge AI technology to make them compatible with various industrial platforms. For instance, on November 24, 2021, Internet Initiative Japan Inc., leading Internet -access and comprehensive network solutions provider, signed a partnership agreement with Zella DC to develop edge data center solution, which is showcasing lucrative growth opportunities for the market.
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