South Korea Embedded AI Market Research Report By Application (Smart Home Devices, Industrial Automation, Healthcare Devices, Automotive Systems, Consumer Electronics), By Component (Processors, Sensors, Software, Memory Devices, Connectivity Modules), By Technology (Machine Learning, Natural Language Processing, Computer Vision, Deep Learning, Robotics) and By End Use (Consumer, Commercial, Healthcare, Manufacturing, Transportation)-Forecast to 2035

South Korea Embedded AI Market Overview

As per MRFR analysis, the South Korea Embedded AI Market Size was estimated at 313.95 (USD Million) in 2023. The South Korea Embedded AI Market is expected to grow from 350(USD Million) in 2024 to 1,050 (USD Million) by 2035. The South Korea Embedded AI Market CAGR (growth rate) is expected to be around 10.503% during the forecast period (2025 - 2035).

Key South Korea Embedded AI Market Trends Highlighted

The South Korea Embedded AI Market is witnessing significant trends driven by advancements in technology and government initiatives. A key market driver is the increasing adoption of AI solutions across various sectors, including manufacturing, automotive, and healthcare. This is largely fueled by the South Korean government's support for smart city initiatives and the implementation of the Fourth Industrial Revolution strategies. The country aims to strengthen its global competitiveness through AI technologies, which boosts research and development funding in the embedded AI sector.

Opportunities to be explored include the integration of AI with the Internet of Things (IoT) and the growing demand for automation in industrial processes.As one of the largest manufacturing industries in the world, South Korea's manufacturing sector is looking for new embedded AI solutions to improve efficiency and production. The growth of the self-driving car market is also a big chance, as major car companies put money into AI-powered systems to make driving safer and easier.

Recent trends show that more and more people are moving toward edge computing, which means processing data closer to where it is created. This reduces latency and makes it easier to make decisions in real time, which is very important for smart transportation and connected devices. Also, the trend toward AI models that use less energy is gaining ground, which fits with South Korea's goals for sustainability and carbon neutrality.

As companies increasingly favor lightweight algorithms to reduce power consumption, the emphasis on green AI solutions will likely shape the market's future landscape. These trends reflect South Korea's commitment to innovation and technological advancement in the embedded AI realm.

Fig 1: South Korea Embedded AI Market Overview

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

South Korea Embedded AI Market Drivers

Rising Demand for Smart Devices

The South Korea Embedded AI Market is experiencing significant growth due to the increasing demand for smart devices, such as smartphones, smart appliances, and connected vehicles. As per the Ministry of Science and ICT, the proportion of smart device adoption in South Korean households reached 85% in 2023, showcasing a steady growth from 72% in 2019. This trend indicates a robust shift towards digitization and automation, leading to heightened demand for Integrated Artificial Intelligence capabilities embedded in devices.

Major South Korean tech companies such as Samsung Electronics and LG Electronics are pioneering advancements in embedded AI technologies, enhancing device functionalities and user experience. The strong emphasis on smart technologies is likely to drive the Embedded AI Market further, reflecting a cultural inclination toward adopting innovative solutions, thereby catalyzing future growth and investment in this sector.

Government Support for AI Initiatives

The South Korean government has implemented several initiatives to promote the development and integration of Artificial Intelligence technologies within the economy. The '2030 AI Strategy' aims to position South Korea as a global hub for AI technology, with an investment commitment of over 2 million Korean Won towards Research and Development (R&D) projects.

According to the Ministry of Trade, Industry and Energy, this has resulted in a 150% increase in R&D spending associated with AI technologies since 2020.Such significant governmental backing fosters an encouraging environment for businesses operating in the South Korea Embedded AI Market, which in turn propels the demand for embedded AI solutions across various sectors.

Rapid Advancements in Embedded AI Technologies

Technological advancements within the Embedded AI sector are driving the market growth in South Korea. The country ranks among the top in patent filings related to Artificial Intelligence technologies, with the number of filed patents increasing by approximately 200% from 2018 to 2022, according to data from the Korean Intellectual Property Office.

Notable firms such as Naver Corporation and Kakao are leading the charge in the innovative developments of embedded AI solutions across various applications, including healthcare and automotive sectors.These advancements enhance computational capabilities, responsiveness, and efficiency in products, thereby contributing significantly to the growth of the South Korea Embedded AI Market.

South Korea Embedded AI Market Segment Insights

Embedded AI Market Application Insights

The South Korea Embedded AI Market is witnessing substantial growth, particularly within various applications such as Smart Home Devices, Industrial Automation, Healthcare Devices, Automotive Systems, and Consumer Electronics. Smart home devices are increasingly integrating embedded AI technologies, enabling features such as intelligent energy management, enhanced security systems, and automation of daily tasks, which all contribute to a more connected and convenient living environment. Meanwhile, industrial automation is a driving force, as businesses gravitate towards AI-enabled solutions for optimizing operations, predictive maintenance, and enhancing productivity, leading to improved efficiency in manufacturing processes.

In the healthcare sector, the empowerment of healthcare devices through embedded AI is significant in revolutionizing patient care by facilitating real-time monitoring, personalized medicine, and efficient data management, ensuring better health outcomes. Automotive systems are becoming more sophisticated as they incorporate embedded AI, driving advancements in autonomous vehicle technologies and enhancing driver assistance systems, which are essential for improving safety and efficiency on the roads. Lastly, consumer electronics represent a substantial segment as companies emphasize smart features in products such as televisions and personal devices, driving innovation through AI integration for enhanced user experiences.

Overall, the diverse applications of the South Korea Embedded AI Market underline its versatility and importance across multiple sectors, paving the way for significant advancements that will shape the future of technology within the region. The South Korea Embedded AI Market is characterized by dynamic trends, such as the demand for automation, efficiency, and intelligent systems that are essentially reshaping the operational landscape and offering numerous opportunities for growth amidst the challenges of technological adoption and integration in various applications.

Fig 2: South Korea Embedded AI Market Insights

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Embedded AI Market Component Insights

The Component segment of the South Korea Embedded AI Market showcases a diverse range of elements, crucial for driving the advancement of intelligent systems within the region. In South Korea, with a robust technological landscape, processors are vital as they serve as the brain of embedded systems, enabling complex computations and real-time decision-making. Sensors play an important role by providing essential data that enhances machine perception and interaction with the environment, which is increasingly pivotal in sectors like automotive, healthcare, and industrial automation.

Software solutions are fundamental, functioning to facilitate the integration and functionality of hardware components, thereby driving innovation in applications such as smart cities and IoT devices. Additionally, memory devices are significant as they store vast amounts of data required for AI algorithms, ensuring efficient data retrieval and processing. Connectivity modules, meanwhile, enable seamless communication between devices, supporting the necessary infrastructure for AI ecosystems.

Collectively, these components form the backbone of the South Korea Embedded AI Market, fostering growth and creating new opportunities across various industries.As the nation continues to emphasize its digital transformation and innovation, the demand for these components is expected to grow significantly, impacting the overall market landscape.

Embedded AI Market Technology Insights

The South Korea Embedded AI Market, particularly within the Technology segment, reflects a rapidly advancing landscape, with Machine Learning, Natural Language Processing, Computer Vision, Deep Learning, and Robotics playing pivotal roles. Machine Learning is increasingly integrated into various applications, enhancing automation and data processing efficiency, which is crucial for industries like manufacturing and finance. Natural Language Processing is gaining traction as businesses seek to improve customer interactions through voice recognition and chatbots, streamlining communication workflows.

Computer Vision is significant in sectors such as automotive and healthcare, enabling innovations such as autonomous vehicles and advanced diagnostic tools. Deep Learning techniques are at the forefront of driving sophistication in AI algorithms, making systems smarter and more intuitive. Robotics continues to make inroads in manufacturing and logistics, where South Korea’s strong emphasis on technology adoption and innovation positions it well to leverage these advancements. The convergence of these technologies is set to reshape processes across various industries in South Korea, driving substantial growth and creating a competitive edge in the global market.

Embedded AI Market End Use Insights

The South Korea Embedded AI Market, segmenting by End Use, demonstrates a dynamic landscape with robust growth across various sectors, including Consumer, Commercial, Healthcare, Manufacturing, and Transportation. The Consumer segment is increasingly adopting voice assistants and smart home devices, enhancing user experience and driving substantial demand. In the Commercial realm, AI integration into operations and customer service has become essential, significantly improving efficiency and decision-making.

Healthcare stands out as a critical area, leveraging AI for diagnostics and personalized medicine, which is vital for enhancing patient outcomes and reducing costs.In terms of Manufacturing, the push for automation and real-time monitoring using AI technologies is streamlining operations and boosting productivity. Transportation is also evolving rapidly; advancements in autonomous vehicles and smart transport systems rely heavily on embedded AI for safety and efficiency. Each of these segments contributes to evolving the landscape of the South Korea Embedded AI Market, reflecting the vital role of AI technologies in optimizing operations and delivering innovative solutions tailored to market needs.

South Korea Embedded AI Market Key Players and Competitive Insights

The South Korea Embedded AI Market presents a dynamic landscape enriched by technological advancements and robust competition. Embedded AI integrates artificial intelligence capabilities directly into devices, enabling them to process data and make decisions without requiring constant connectivity to cloud services.

This local market is witnessing rapid growth due to increased investments in AI research, an expanding ecosystem of startups, and collaborations between established companies and technological innovators. Major industries within South Korea, such as consumer electronics, automotive, and telecommunications, are actively seeking to enhance their products with embedded AI features, driving demand for innovative solutions.

Competitive players are focusing on developing efficient algorithms, enhancing hardware capabilities, and creating versatile software platforms to capture a larger share of the market. The competition is further intensified by the proliferation of IoT devices, which increasingly necessitate intelligent processing at the edge.

Qualcomm has firmly established itself as a prominent player in the South Korea Embedded AI Market. With its strong portfolio in semiconductor technology and a commitment to advancing AI capabilities, Qualcomm's strengths lie in its high-performance chipsets tailored for embedded applications. The company's focus on developing specialized AI processors that optimize performance for various devices, including smart appliances and automotive systems, reflects its strategic investment in this growing sector.

Qualcomm's robust research and development capabilities, coupled with its extensive relationships with local manufacturers and tech firms, enable it to innovate and adapt to regional market demands swiftly. Furthermore, Qualcomm's emphasis on 5G technology integration into embedded AI solutions amplifies its presence in the South Korean market as industries push towards greater connectivity and smart solutions.

LG Display also plays a significant role in the South Korea Embedded AI Market, distinguished by its cutting-edge display technologies and commitment to innovation. The company specializes in OLED and LCD panel manufacturing, incorporating AI to enhance the functionality of its products, which include televisions, monitors, and larger display systems. LG Display focuses on optimizing display quality through AI-driven enhancements such as image processing and smart interactive features, catering to the demand for intelligent consumer electronics.

The company's market presence is reinforced by strategic partnerships and collaborations aimed at advancing its technological capabilities in embedded AI solutions. In recent years, LG Display has been involved in various mergers and acquisitions to solidify its competitive edge, integrating new technologies and expertise that further augment its product offerings. Leveraging its strengths in display technology and AI integration strategies, LG Display aims to position itself as a leader in the evolving embedded AI landscape within South Korea.

Key Companies in the South Korea Embedded AI Market Include

• Qualcomm


• LG Display


• Rohm Semiconductor


• POSCO


• Samsung Electronics


• Mando Corporation


• Gumi Semiconductor


• Daeduck Electronics


• Hanwha Systems


• Naver


• Intel Corporation


• LG Electronics


• KT Corporation


• SK Hynix


• Infineon Technologies

South Korea Embedded AI Market Developments

The South Korea Embedded AI Market has been witnessing significant developments recently, particularly fueled by growing investments and innovations in artificial intelligence. Companies like Samsung Electronics and LG Display are heavily investing in embedded AI technologies to enhance product functionality in consumer electronics and display systems. In September 2023, Naver announced advancements in AI-driven cloud services tailored for manufacturing industries, signaling a shift toward integrated AI solutions. February 2023 saw Rohm Semiconductor enhance its offerings with AI-powered semiconductor solutions aimed at automotive applications, aligning with the increasing demand for smart vehicle technologies.

Mando Corporation has been focusing on developing AI-driven safety features in vehicles, which continuously boosts its market presence. Notably, in November 2022, SK Hynix completed its acquisition of an AI chip startup to expand its technology portfolio in embedded systems. The rise of AI capabilities is projected to elevate the market valuation of these companies significantly, reflecting their strategic importance within the technological landscape of South Korea, a nation recognized for its commitment to innovation and technology development. Additionally, a steady growth trend in AI-related investments indicates a promising future for embedded AI integration across various sectors.

South Korea Embedded AI Market Segmentation Insights

Embedded AI Market Application Outlook

• Smart Home Devices


• Industrial Automation


• Healthcare Devices


• Automotive Systems


• Consumer Electronics

Embedded AI Market Component Outlook

• Processors


• Sensors


• Software


• Memory Devices


• Connectivity Modules

Embedded AI Market Technology Outlook

• Machine Learning


• Natural Language Processing


• Computer Vision


• Deep Learning


• Robotics

Embedded AI Market End Use Outlook

• Consumer


• Commercial


• Healthcare


• Manufacturing


• Transportation

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	313.95(USD Million)
MARKET SIZE 2024	350.0(USD Million)
MARKET SIZE 2035	1050.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	10.503% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	Qualcomm, LG Display, Rohm Semiconductor, POSCO, Samsung Electronics, Mando Corporation, Gumi Semiconductor, Daeduck Electronics, Hanwha Systems, Naver, Intel Corporation, LG Electronics, KT Corporation, SK Hynix, Infineon Technologies
SEGMENTS COVERED	Application, Component, Technology, End Use
KEY MARKET OPPORTUNITIES	Smart appliances integration, Autonomous vehicle development, Industrial automation solutions, Healthcare diagnostics enhancement, Edge computing innovations
KEY MARKET DYNAMICS	Growing demand for smart devices, Advancements in AI algorithms, Government support for AI innovation, Rising adoption in automotive sector, Enhanced data processing capabilities
COUNTRIES COVERED	South Korea