Edge AI in 2025: Bold Predictions and a Reality Check

The fusion of Edge Computing and Artificial Intelligence (AI) has been a game-changer in the tech landscape. 

At Barbara, we see this powerful convergence already reshaping industries by 2025, delivering tangible ROI to industrial operations and cementing its role as a cornerstone of digital transformation in the industrial sector.

With analysts predicting that 50 percent of enterprises will adopt edge computing by 2029, up from 20 percent in 2024, the Edge momentum is undeniable. 

As an example, in 2024 at Barbara, we have quadrupled the amount of companies contacting us to learn about Edge Computing and AI. However, the journey towards widespread Edge AI adoption remains filled with both, opportunities and challenges.

Edge Computing Reality

Edge computing, which brings computational power closer to the data source, is no longer a niche technology. 

For example, in the energy sector, Barbara’s Edge Platform is enhancing smart grid reliability and helping to integrate renewable energy sources through real-time analysis. In manufacturing, we enable predictive maintenance by analyzing machinery data instantly, while in water treatment, our technology supports real-time monitoring and optimization of processes.

As enterprises grow more reliant on real-time data, the role of edge computing has significantly expanded. The “Edge Data Journey” has progressed from basic data acquisition, preprocessing, and cleaning to advanced capabilities such as rule-based automation and machine learning models executed on servers positioned close to data sources. 

This evolution not only enhances privacy and reduces latency but also improves scalability, paving the way for smarter, more efficient operations across industries.

Three Predictions for Edge AI in 2025

After engaging in numerous meetings with customers, partners, and analysts throughout 2024, I've identified three compelling trends shaping the direction of the market in 2025.

#1: The Rise of Industry-Specific Use Cases

Edge AI’s impact will be most visible in critical asset-intensive industries, especially those with highly distributed operations. For example:

Power and Utilities: Edge AI will support real-time data collection from distributed energy resources and substations, enabling flexibility in the network and better asset maintenance

Water Treatment: Edge AI is set to improve resource usage in the water treatment processes by enabling real-time monitoring in order to ensure compliance with safety and quality standards.

Oil and Gas: Edge AI will enhance operational safety and efficiency by enabling real-time monitoring of equipment and pipelines, reducing downtime, and preventing failures.

Process Manufacturing: Edge AI enables real-time monitoring of production processes, enhancing operational efficiency by detecting anomalies and optimizing workflows. Predictive maintenance powered by AI, minimizes equipment downtime by analyzing sensor data, while AI-driven quality assurance ensures that production standards are consistently met.

#2: The Emergence of Edge Platforms

In 2025, companies will move from Edge use cases development to Edge infrastructure deployment. Companies will start their RFI and RFP projects to find Edge Computing Platforms (ECPs), which will eventually become the backbone for managing and orchestrating multiple Edge workloads and use cases.

#3: The Year of Innovation through Partnerships

In 2025, the need to move Edge AI projects from proof of concept (PoC) to large-scale deployments will catalyze partnerships, driving faster and more impactful innovation. 

As the market matures and companies increasingly specialize in niche aspects of Edge AI deployments, partnerships will become essential to address the growing complexity of these projects. 

Organizations of various sizes and areas of expertise will collaborate to co-develop targeted solutions, with companies clustering around key specializations, such as:

AI Developers: They are focused on creating and refining algorithms, models, and applications that power Edge AI. They work on tasks like computer vision, predictive analytics, and anomaly detection, tailoring AI capabilities to specific industrial or operational needs.

Edge AI Platform Providers: These companies, like Barbara, deliver the foundational infrastructure needed to run Edge AI workloads efficiently. They specialize in enabling low-latency, secure, and user-friendly computing at the edge, often offering tools for device and workload orchestration as well as data flow management.

System Integrators: These organizations ensure seamless deployment by integrating Edge AI solutions with existing industrial systems, operational workflows, and IT environments. They play a critical role in tailoring solutions to meet the unique requirements of each deployment.

Sensor and IoT Device Manufacturers: These specialists produce physical devices that collect real-time data for Edge AI systems. Their innovations in sensor accuracy, durability, and connectivity are crucial for feeding reliable data into AI models.

Telecommunications Providers: With the rise of 5G, telecom companies enable the high-speed, low-latency networks required for Edge AI deployments. They play a pivotal role in ensuring real-time communication between edge devices and centralized systems.

Vertical Solution Providers: These experts develop tailored Edge AI solutions for specific industries such as manufacturing, energy, healthcare, and retail bringing deep domain expertise to their offerings.

By combining these specialized skills and resources, partnerships will raise and significantly accelerate the deployment of Edge AI solutions.

The Reality Check

Integration Complexities

Despite the promising advancements, integrating edge computing with existing IT infrastructures remains a challenge, especially for large corporations. 

Enterprises must address compatibility issues between legacy systems and edge-native platforms. Lack of industry standards further complicates deployment, while Kubernetes is gaining more and more traction, it is not suited for all industrial use cases.

Security and Data Privacy

With edge devices operating outside traditional data centers and digitally protected environments, face increased vulnerability to cyber threats. While ensuring data privacy and securing edge nodes against potential breaches is a top priority for enterprises, edge-native security protocols are not yet fully ready to meet these complex demands. 

At Barbara, we trust in the IEC-62443 standard as the benchmark for industrial cybersecurity. This globally recognized framework provides a comprehensive approach to securing industrial systems, addressing the entire lifecycle of edge devices, from design and development to deployment and maintenance. 

Barbara is fully compliant with its strict requirements, ensuring that our solutions deliver the highest level of protection against cyber threats while enabling secure and reliable operations in industrial environments.

Vertical Vendor Dependencies

The edge computing market is still fragmented, with vendors offering solutions tailored to specific verticals. While this helps meet unique industry needs, it also creates a dependency on niche providers, limiting flexibility and scalability.

At Barbara, we believe that Edge Computing Platforms (ECPs) need to be introduced to solve this challenge. ECPs provide a unified, scalable foundation for managing diverse edge workloads across multiple industries. By standardizing key functionalities such as orchestration, security, and device management, ECPs reduce dependency on single-use solutions and enable enterprises to adapt more easily to evolving needs, fostering innovation and long-term growth. - David Purón , CEO at Barbara.

Strategic Recommendations for Enterprises

Navigating the Edge AI landscape in 2025 promises to be as exciting as it is challenging. 

Drawing from my experience and observations, I’d like to humbly share a few recommendations that can help organizations maximize the potential of their Edge AI initiatives while addressing the key challenges they may encounter:‍

Adopt Edge AI platforms

‍Instead of going for vertical solutions that work only for one use case, opt for enabling platforms designed to grow with your needs, ensuring they are robust, secure, and compatible with your current systems. 

Foster Strategic Partnerships

‍Don’t go for the “Do It Yourself", the Total Cost of Ownership of taking an Edge Platform to scale and maintain it, can erode your return on investment. Instead, collaborate with domain experts and specialized vendors to co-develop solutions for your unique operational challenges.

Focus on Advanced Security Measures

Ensure strong, edge-specific security by design implementations starting in the PoC phase, as it can be complex or highly expensive to introduce those measures at a later stage.