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Edge computing is a distributed computing paradigm where data is processed and applications are run close to the location where data is generated rather than sending data to a centralized cloud data center. Edge computing helps in reducing latency issues and saves bandwidth by processing data locally. With the growing connectivity of IoT devices globally, massive amounts of data is being generated at the edge which is driving the need for edge computing solutions. Edge computing provides real-time insight and analytics closer to the data sources where decisions need to be made. Edge devices are being deployed across various industries like manufacturing, healthcare, transportation, energy etc. to support low latency applications like augmented reality, autonomous vehicles, predictive maintenance and remote monitoring. The ability of edge computing to support latency-sensitive applications is a major factor boosting its adoption.
The Global Edge Computing Market is estimated to be valued at US$ 111.3 Bn in 2024 and is expected to exhibit a CAGR of 15.% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the Edge Computing are Microsoft Corporation,,Google LLC,,IBM Corporation,,Huawei Technologies Co. Limited,,Cisco Systems Inc. These players are focusing on partnerships, collaborations and new product developments to strengthen their presence in the edge computing market.
In terms of opportunities, edge computing provides opportunities for companies to deploy applications at the edge to carry out real-time operations and enable low latency applications across various industries. The ability to make accurate decisions based on real-time data analysis is driving numerous opportunities for edge computing solutions.
Globally companies are expanding their edge infrastructure and capabilities to various regions to support their customers better. Partnerships with telecom operators are helping companies to deploy edge nodes across various telecom towers. Regions with growing IoT connectivity and uptake of autonomous devices will witness higher expansion of edge infrastructure in the coming years.
Market drivers and restrain
The key driver for the edge computing market is the massive growth of IoT connectivity globally which is generating huge amounts of data at the edge. It is estimated that there will be over 75 bn IoT connections by 2030. Processing and analyzing this data locally through edge nodes is boosting the edge computing demand.
However, the key restraint for the edge computing market is the data security and privacy concerns associated with processing sensitive data at the edge nodes located publicly. Ensuring secure transmission and storage of data processed at edge locations is a challenge which needs to be addressed, limiting the adoption of edge computing solutions.
Segment Analysis
The Edge Computing market is segmented based on component, organization size, vertical, and geography. The component segment is further divided into hardware, software and services. The hardware segment dominated the market in 2022 as the deployment of edge infrastructure requires hardware equipment like edge nodes, routers and switches. The services segment is expected to grow at the fastest rate during the forecast period due to the increasing need of various managed and professional services for deploying and updating edge infrastructure and applications.
Based on organization size, the market categorizes into small & medium enterprises and large enterprises. The large enterprises segment holds a major share of the edge computing market and is expected to continue its dominance during the forecast period. This is due to large enterprises having established IT infrastructure and high investments towards digital transformation initiatives.
Key verticals in the edge computing market include manufacturing, retail, healthcare, transportation, energy and utilities, media & entertainment and others. The manufacturing vertical accounted for the largest share due to increasing need to monitor assets and improve operational efficiency on the plant/factory floors. The retail vertical is anticipated to grow at the highest CAGR as adoption of edge enables better customer experience through digital signage, augmented/virtual reality and other technologies.
Global Analysis
The North America region currently holds the highest share in the edge computing market and is expected to continue its dominance during the forecast period. This is attributed to major investments by public and private organizations in the U.S. and Canada for developing edge infrastructure. Asia Pacific region is anticipated to grow at the fastest rate during the forecast period due to rapidly growing economies in countries like China and India. Countries in this region are adopting edge computing technologies for various industrial and commercial applications.
Europe region also holds a considerable share in the global market due to early adoption of edge computing by many enterprises in countries like Germany, U.K, France, Italy and rest of Europe. Latin America and Middle East & Africa are expected promising growth opportunities for edge computing vendors during the forecast period due to initiatives around smart infrastructure and digital transformation projects.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
