"Smart Strategies, Giving Speed to your Growth Trajectory"
The global edge computing market size was valued at USD 10.11 billion in 2023. The market is projected to grow from USD 13.66 billion in 2024 to USD 181.96 billion by 2032, exhibiting a CAGR of 38.2% during the forecast period.
Edge computing is a technology of processing and storing data closer to the source to allow rapid and real-time analysis. It is a mesh network of micro data centers processing and storing data locally and pushing all received data to the cloud storage.
The global market is set to grow exponentially due to the increased use of edge devices. These devices range from Internet of Things (IoT) devices, such as mobile point-of-sale kiosks, smart cameras, industrial PCs, and medical sensors, to gateways and computing infrastructure for faster and real-time insights into the data source.
The COVID-19 pandemic affected the market growth as well, with edge hardware devices experiencing a decline in production. As trade restrictions were enforced during the early stage of the pandemic, the production of edge chip sets, servers, and other devices were put on hold, affecting the progress of the global market. However, with the rapid adoption of advanced technologies and digitalization, businesses have developed innovative uses of edge devices. Also, with the rising introduction of IoT medical applications proved to be a life-saving technology for the healthcare industry during the COVID-19 outbreak.
Gen-AI with Computing Solutions Reduced the Latency to Deliver a Better Customer Experience
Generative AI is poised to have a significant impact on the market, reshaping how data is processed, analyzed, and utilized across industries. Generative AI is influencing edge computing factors as follows:
Thus, integrated gen-AI with computing solutions leads to driving the market by delivering a better customer experience.
Rising Introduction of AIoT and Enormous Investments to Bolster Market Growth
Artificial Intelligence of Things (AIoT) has gained immense traction in recent years. From fitness trackers to AR & VR goggles and smart public transit, AI and machine learning are rapidly being used to make IoT devices more secure. With the help of AIoT, networks, and systems are becoming capable of solving problems across industry verticals. The introduction of AI in programs, chipsets, and edge infrastructure can improve analytics and decision-making processes.
Virtual Reality (VR) and Augmented Reality (AR) are being rapidly adopted by both developed and developing economies. Metaverse-based online games, virtual shopping, and smart cities are connecting with digital worlds, enabling consumers to have a virtual experience.
As per industry analysts, global spending on AR/VR was USD 13.8 billion in 2022 and is expected to grow to USD 50.9 billion by 2026. The need for real-time applications on edge networks combined with hybrid-cloud technologies plays a significant role in creating virtual worlds. For instance,
Surging Need for Edge Infrastructure for 5G Network to Drive Market Growth
Edge-powered SaaS on 5G networks is gaining popularity. Companies across the globe are integrating their services with the cloud, but with increased online reliance on IoT and AI devices, there is heavy data and processing traffic.
As businesses continue to implement artificial intelligence and Internet of Things solutions to analyze progressions and data from their tools, the necessity for low-latency, high-speed wireless connections are growing rapidly. Also, the perspective of 5G and MEC (Multi-access Edge Computing) has progressed substantially. With 5G, users can install these computing applications built on a cloud-driven distributed structure for solutions that require low latency and determined service quality. For instance,
With the rollout of 5G, investments by global companies continue to increase. More than 380 telecom operators are investing in 5G to boost their speed and agility. The edge technology with 5G/6G infrastructure can reduce complexity, save costs, and strengthen cybersecurity defenses. For instance,
High Initial Capital Investments Might Restrain Market Growth
The high initial investment can confine the edge computing market growth. The installation and maintenance of edge infrastructure can increase the Capital Expenditure (CAPEX) of many companies. It is hard to construct a complete and robust solution, as investing in edge nodes, devices, and data centers can be quite expensive.
The computing solutions cost varies differently depending on data, scale, expertise, and location. Total costs can depend on the architecture present in place at edge surroundings.
Securing the entire computing network results in huge costs for the providers, thereby restraining market expansion.
Integration of Industry 4.0 Solutions with Computing Solutions to Enhance Performance of Process Operations
The Industry 4.0 project establishes a structure for updating manufacturing processes in response to industry changes, paving the way for the deployment of edge technologies. Industry 4.0 promotes operational flexibility through the use of technologies that harmonize cyber and physical systems. Smart manufacturing facilities can utilize edge technologies to only send processed data to their cloud servers, which also increases the demand for AI edge computing. The edge acts as a conduit for analyzing data at the local level and then sending summarized data to the cloud. It also used to:
Enhance process excellence: The capacity to make instant decisions, incorporate refined data, and manage intricate data analysis can elevate the standard of industrial operations to unprecedented heights. Equipment and facilities will undergo thorough and precise examination.
Predictive maintenance for better equipment reliability: The exchange of velocity, temperature, and quantity data from a machine offers immediate insights into its condition and efficiency. Should any malfunctions or recurring fluctuations in variables, such as temperature, be identified, the manager can implement proactive strategies to prevent interruptions.
Increased Investment by Hardware Vendors Resulted in Deployment of Hardware Solutions across Several Industries
Based on component, the market is divided into hardware, application/software, edge cloud infrastructure, services, and network.
The hardware segment generated maximum revenue for the market in 2023. Hardware edge vendors are increasing their investments in the market across the globe. For instance, HPE invested around USD 4 billion over four years and is enhancing its already launched computing device, Edgeline Converged Edge Systems.
The edge cloud infrastructure will grow at the highest CAGR during the forecast period. Deploying edge cloud infrastructure provides a cost-effective and high-performance solution to reduce latency and enhance the customer experience by processing data and services.
In the coming years, the demand for such edge services is expected to increase. Companies, including Intel Corporation and Dell Technologies Inc., are engaging in strategic investments to develop and enhance edge intelligence tools for commercial and industrial IoT. These investments are expected to boost the demand for these tools and their related services globally.
Large Enterprises to Heavily Adopt Edge Solutions Due to Rising Deployment of IoT-Connected Devices
Based on enterprise type, the market is segmented into small & medium enterprises and large enterprises. The large enterprises segment is predicted to hold the largest market share in the coming years. There has been a rise in the production of IoT-connected devices across the globe. Enterprises require edge solutions to compute the data generated, enable quicker delivery of information, and enhance customer experience. For instance,
A cloud solution might not meet the latency requirements for real-time processing and performing functionalities to keep the data more secure. Computing solutions manages the challenge of increasing data volumes by strategically handling the traffic, which improves the speed of analyzing real-time data. Owing to these advantages, larger enterprises have showcased a higher level of adoption of edge solutions than small & medium-sized enterprises. However, in the mid-term of the forecast period, small enterprises are expected to adopt edge solutions.
IoT Applications Leads due to Increased Investments in IoT Projects
Based on application, the market is divided into IoT applications, robotics & automation, predictive maintenance, remote monitoring, smart cities, and others.
IoT applications dominated the market due to their extensive applications. According to Omdia, investments and innovations across IoT projects across the globe are continuously increasing despite economic uncertainties.
Smart cities function effectively by deploying computing-enabled technologies, such as IoT and 5G systems. This technology aids smart cities in comprehending benefits, such as minimizing transmission delays, helping data centralization, and creating better network resilience by empowering IoT and 5G systems to work with better proficiency. Such factors have increased the need for edge solutions in smart cities.
To know how our report can help streamline your business, Speak to Analyst
IT & Telecom Holds Leading Position Due to Increasing Business Complexities
Based on industry, the market is classified into manufacturing, oil & gas, BFSI, healthcare, retail, IT & telecom, automotive, and others. The pandemic changed the daily business operations of many companies, forcing them to shift most of their processes to the cloud. IT & telecom industries have rapidly shifted their business operations to the cloud. The inclination of enterprises toward the cloud has played a vital role in increasing the volume of data generation.
This has created the need for instantaneous processing, which has been a restraining factor in the adoption of cloud computing processes. Owing to this, the IT & telecom industries held the largest market share in 2023.
Furthermore, the manufacturing industry is expected to flourish in the upcoming years due to the rising number of applications of computing solutions in the sector. Moreover, the rising adoption of such solutions across the retail, automotive, and oil & gas sectors is expected to increase the edge computing market share.
Regionally, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
North America Claims Management Market Size, 2023 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
North America generated the maximum revenue for the market in 2023. The regional market is majorly influenced by the growing presence of leading players based in the U.S. Some of these players include IBM, Intel, Microsoft, and many others. These companies have been strategically expanding their geographic presence and customer base by merging with and acquiring small-scale companies.
Request a Free sample to learn more about this report.
Globally, North America held the maximum share in 2023 as compared to other regions. Increasing demand for edge computing solutions across different industrial sectors to fulfill the growing network architectural needs of the customers and to provide better customer experience drive the growth of the market.
The U.S. held the maximum share in 2023 compared to other countries in North America. The growing adoption of advanced technologies such as big data and IoT among different industries, such as healthcare, education, and manufacturing, to improve the reliability and security of advanced IT infrastructure boosts the market's growth during the forecast period.
To know how our report can help streamline your business, Speak to Analyst
Various market leaders present across South America are contributing to developing a standard regulatory framework for computing solutions to address the current challenges in the market. There are a limited number of technology substitutes for the market. Technologies, such as cloud computing, can be used as an alternative to the computing technology to fulfill the specific business needs of the end-user present across Brazil, Argentina, and other countries present across the region.
Europe is projected to grow at a moderate rate over the forecast period. Different industrial sectors present across Germany, France, Italy, and the U.K., such as Information Technology & telecommunications, healthcare, shopping, transport & supply chain, energy & services, and more, are offering profitable chances for the market. Additionally, the continuous development of internet networks throughout the area is anticipated to accelerate the market's expansion in the near future.
The Middle East & Africa have been adopting advanced technologies on a large scale amid the pandemic crisis. Companies across these regions have been modernizing their existing processes with advanced technologies. More data generated through connected devices, rising deployment of cloud-based solutions, increasing demand for Industrial Internet of Things (IIoT) solutions, and other factors are expected to impact the market during the forecast period positively.
Asia Pacific is also expected to grow significantly in the coming years. This is owing to the increasing adoption of edge solutions across Japan, India, and China. Besides this, government regulations supporting IT infrastructure have boosted the region's market growth. For instance,
Technological Developments by Leading Enterprises to Aid Market Proliferation
Companies operating in the market mainly include IBM Corporation, Intel Corporation, Amazon.com, Inc., Google LLC, Microsoft Corporation, ADLINK Technology Inc., and Hewlett Packard Enterprise Development LP. These firms are focusing on bringing innovations in the market. To enhance their operations across the globe, market players are using various strategic methods, such as partnerships, product launches, investments, acquisitions, and mergers.
The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.
To gain extensive insights into the market, Request for Customization
ATTRIBUTE | DETAILS |
Study Period | 2019-2032 |
Base Year | 2023 |
Estimated Year | 2024 |
Forecast Period | 2024-2032 |
Historical Period | 2019-2022 |
Growth Rate | CAGR of 38.2% from 2024 to 2032 |
Unit | Value (USD Billion) |
Segmentation | By Component
By Enterprise Type
By Application
By Industry
By Region
|
Companies Profiled in the Report |
|
The market is projected to reach USD 181.96 billion by 2032.
In 2023, the market was valued at USD 10.11 billion.
The market is projected to grow at a CAGR of 38.2% during the forecast period.
The hardware segment holds the largest market share.
Surging need for edge infrastructure for 5G network to drive market growth
IBM Corporation, Intel Corporation, Amazon.com, Inc., Google LLC, Microsoft Corporation, ADLINK Technology Inc., Hewlett Packard Enterprise Development LP, and Cisco Systems, Inc. are the top players in the market.
North America held the highest market share.
By industry, the IT & telecom sector is expected to grow with the highest CAGR during the forecast period.
US +1 833 909 2966 ( Toll Free )