Edge computing is an Internet of Things (IoT) method of capturing, storing, processing, and analyzing data as close to the data source as possible via processors equipped with AI software.
The Global Edge Computing Market is projected to grow at a CAGR of around 30% during the forecast period, i.e., 2023-28. The market ascension is attributable to surging government investment in smart city projects, the rising adoption of smart devices and connected vehicles by consumers, and the rollout of super-fast networking technologies, such as 5G wireless technology.
Besides these, the increasing influx of funding by the companies in order to launch products such as home security cameras that use edge computing, cloud gaming consoles, and autonomous vehicles have further expanded the industry in recent years. Moreover, industries such as healthcare &life sciences and transportation & logistics are a burgeoning inclination towards adopting the internet of things (IoT), and artificial intelligence(AI).
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Regions Covered||North America: US, Canada, Mexico|
|Europe: Germany, The UK, France|
|Asia-Pacific: China, India, Japan, Australia|
|South America: Brazil|
|Middle East & Africa: UAE, Saudi Arabia, South Africa|
|Key Companies Profiled||IBM Corporation, Amazon Web Services, Cisco Systems, Inc., Huawei Technologies Co. Limited, ABB Group, Intel Corporation, Microsoft Corporation, SAP SE, Hewlett Packard Enterprise Development LP, AT&T Inc., Rockwell Automation Inc., Atos SE, Digi International Inc., General Electric Company, ADLINK Technology Inc|
|Unit Denominations||USD Million/Billion|
In addition, proliferating demand for remote monitoring of industrial components paired with decreasing prices of hardware components and computation mediums is anticipated to instigate the demand for edge computing technology in the forecast period. Besides, corporations have started using cloud-based methods as a result of quick improvements in telecommunications, cloud computing, and IoT. Due to the growing use of cloud technologies and the expansion of business processes, edge computing solutions have seen a considerable increase in popularity in Asia. However, most IT managers need help locating a solution and cloud providers who can handle the high bandwidth needs and redundant data reporting, which might hinder the market growth in the coming years.
Key Driver: Proliferating Use Cases Requiring Low-Latency Processing
With concrete cloud infrastructure becoming indispensable to enterprises, the need to cope with the latency has become crucial to businesses. As such, the need for better computing technologies that facilitate faster data transmission has arisen. Furthermore, numerous delay-sensitive applications requiring real-time computation, including remote monitoring of oil and gas fields and manufacturing sites, precision decision-making in connected cars before impact, and many more, have added to the popularity of edge solutions. Along similar lines, in order to facilitate a fully responsive and immersive gaming experience, numerous cloud gaming enterprises are planning to enhance the proximity of edge servers to gamers by reducing latency. With such wide applications and escalating need to minimize latency while processing the data in clouds, edge computing servers have gained traction and are likely to gain momentum in the coming years.
Possible Restraint: Integration with Current Cloud Infrastructure Posing a Challenge
Although the existing cloud infrastructure requires upgradation, its integration with edge computing platforms and applications is tedious. Since edge nodes have limited storage and processing power, a well-equipped system between the edge and the cloud is crucial. However, as multi-cloud infrastructures are increasingly opted for by enterprises, it is quite challenging to set up a trustworthy edge network capable of managing network traffic from multiple nodes.
Growth Opportunity: Strengthening 5G Rollout Across the Globe
Businesses must find ways to bring data streaming edge messaging solutions or design a network for Edge that provides distributed access. Since most APIs (Application Programming Interfaces) are restricted to one or two data centers, the advent of 5G may aid the deployment of edge computing solutions. In addition, 5G, with an edge messaging system, enhances application connectivity speed and delivers instant communication experiences. Thus, integration of 5G in EDGE computing solutions is likely to open up new avenues for the market players through 2028.
Key Trend: The Ever-Increasing Penetration of the Internet of Things(IoT)
Over the years, the integration of IoT in daily life has folded in terms of connected cars, smart homes, cloud-based voice services such as Alexa or Siri, and even smart industries. However, with such exponential adoption, a massive amount of data is generated, that cloud computing is burdened with enormous processing. Given the lower latency of cloud computing, edge computing emerges as a better alternative. Moreover, it provides an upper hand in aiding optimized IoT applications, particularly those requiring real-time actions, making users switch over to edge computing solutions and services.
Based on Component,
Based on Components, the Solution segment dominated the global edge computing market in 2022. Out of which, hardware acquired the majority market share in this segment owing to a boost in cloud-based applications amongst the end-users, such as energy & utilities. Other than such extensive applications, the declining prices of hardware such as sensors, router gateways, and others have also maximized the sales of edge computing hardware in the historical period.
On the other hand, the platform segment is also witnessing rapid growth owing to rising demand for edge computing platforms amongst companies to influence set hardware and software functionality. Furthermore, the ever-increasing popularity has resulted in increased spending by enterprises in IT/OT solutions, in turn prompting the launch of various edge-computing platforms by the market players. Thus, these factors are likely to contribute toward the growth of the Edge Computing Market worldwide in the forthcoming years, further says the research report.
Geographically, the Global Edge Computing Market expands across:
Among all regions, Asia-Pacific is expected to witness significant growth during the anticipated timeframe of 2023-28. It is predominantly because of the fact that the region’s market is expanding quickly and luring numerous international companies to do business here. In addition, rising urbanization, technological innovation, and government backing for the digital economy are the possible factors backing such technological breakthroughs within the Asia-Pacific. For instance, the Digital India Initiative by the GOI has received INR 7,000 crore for developing 100 smart cities powered by IoT devices. Likewise, edge computing consortiums led by Mitsubishi Electric Corporation and Fanuc Corporation were formed in Japan to unify standards and aid in developing edge computing products. Similarly, the rollout of 5G connectivity and other investments from the telecom sector in China is likely to influence the edge computing industry in the long run.
Recent Developments in the Market
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Frequently Asked Questions
A. The Edge Computing Market is projected to grow at a CAGR of around 30% during 2023-28.
A. Proliferating use cases requiring low-latency processing is anticipated to drive the Edge Computing Market during 2023-28.
A. IBM Corporation, Amazon Web Services, Cisco Systems, Inc., Huawei Technologies Co. Limited, ABB Group, Intel Corporation, Microsoft Corporation, SAP SE, Hewlett Packard Enterprise Development LP, AT&T Inc., Rockwell Automation Inc., Atos SE, Digi International Inc., General Electric Company, ADLINK Technology Inc. etc., are few of the leading players in the Edge Computing Market.
A. Solutions segment is anticipated to emerge as an area of remunerative opportunities for the leading players in the Edge Computing Market during the forecast period.
A. Globally, Asia-pacific would provide lucrative prospects for the Edge Computing Market in the years ahead.
A. The ever-increasing penetration of the internet of things(IoT) is projected to shape the industry through 2028.
A. Strengthening 5g rollout across the globe provide lucrative prospects for the Edge Computing Market in the years ahead.
A. Integration with current cloud infrastructure posing a challenge to the market during the forecast period 2023-28.