Global Edge Analytics Market Size By Type (Descriptive Analytics, Predictive Analytics, Prescriptive Analytics, Diagnostic Analytics), By Component (Solutions, Services), By Deployment (On-cloud, On-premise), By Business Application (Sales and Marketing, Operations, Finance, Human Resource), By End-User (Retail, E-commerce, Consumer Electronics, Energy and Utilities, Healthcare, Transportation and Logistics, IT and Telecom, Manufacturing, and Other End-Users) By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and, Forecast 2023-2032

Report Overview

The Global Edge Analytics Market is projected to grow from USD 11.6 billion in 2023 to USD 95.0 Billion by 2032, at a CAGR of 27.2%.

Edge analytics refers to the process of performing data analysis near the data source, rather than relying on a centralized data processing system. This approach is especially relevant in environments where rapid decision-making is critical, such as in IoT devices, autonomous vehicles, smart cities, and industrial automation. By processing data at the edge, businesses can reduce latency, enhance data privacy, and make real-time decisions, which are crucial for applications that require immediate insights.

The Edge Analytics Market is growing rapidly, driven by the increasing adoption of IoT devices and the need for real-time data processing capabilities. As more industries move towards decentralized data processing, the demand for edge analytics solutions is expected to rise significantly. Key growth factors include the proliferation of smart devices, advancements in AI and machine learning, and the growing emphasis on reducing bandwidth and storage costs by minimizing the volume of data transmitted to central servers.

Additionally, industries like healthcare, automotive, and manufacturing are increasingly leveraging edge analytics to improve operational efficiency, safety, and customer experiences. Opportunities in the edge analytics market are abundant, particularly in the development of customized solutions for specific industries. For instance, in healthcare, edge analytics can enable remote patient monitoring and real-time diagnostics, while in manufacturing, it can facilitate predictive maintenance and process optimization.

For instance, federal technology leaders have articulated their expectations regarding the transformative impact of edge solutions across various domains. They predict that the most significant effects will be seen in artificial intelligence & machine learning (78%), followed by big data/analytics (58%). The influence extends further to cloud technologies, where a substantial 50% foresee a major impact. Additionally, extended/mixed reality and distributed databases are also anticipated to benefit considerably, with 32% and 30% of leaders, respectively, recognizing their potential enhancements through edge solutions.

Key Takeaways

• The global Edge Analytics Market is projected to reach USD 95.0 billion by 2032, with North America contributing over 34.0% of the total revenue.
• The market is expected to grow at a CAGR of 27.2% from 2023 to 2032, driven by the increasing demand for real-time data processing, the rise of the Internet of Things (IoT), and the need to improve security and reduce latency.
• Key benefits of edge analytics include real-time data processing, improved security, reduced latency, and enhanced scalability.
• Key challenges for the edge analytics market include the lack of standardization, security risks, and high implementation costs.
• The market is expected to be disrupted by the emergence of new technologies such as artificial intelligence and machine learning.
• Edge analytics finds applications in various sectors such as manufacturing, healthcare, transportation, and retail.
• It helps reduce the amount of data sent to the cloud, improving performance and reducing costs.
• The energy and utilities sector leads among other applications, accounting for a 26.0% market share.
• Descriptive analytics holds the largest market share among different types, accounting for 39.0% in 2022.
• The solutions component dominates the market over the services segment, accounting for 68.0% of the market share.
• The on-cloud deployment segment represents a revenue share of more than 52.0%, offering benefits such as faster rollout, expanded platform capabilities, and reduced expenses.
• The sales and marketing segment holds a significant share of over 34.0% and can be utilized to enhance client service and improve customer experience.
• North America leads the global edge analytics market, followed by rapid growth in the Asia Pacific region.

By Type Analysis

Descriptive Analytics accounted for The Largest Market Share.

The Global Edge Analytics Market is segmented based on types such as descriptive analytics, predictive analytics, prescriptive analytics, and diagnostic analytics. In 2022, descriptive analytics accounted for the market share of 39.0%, among other types. The global demand for descriptive analytics is anticipated to be driven by the rise in the demand for descriptive data to improve predictive analytical models & to determine whether to expand edge analytics deployments across various places like construction, industry, and public spaces.

Followed by descriptive analytics, prescriptive analytics will likely expand rapidly among other types. The increased demand for preventative measures to avoid hazardous and disastrous circumstances fuels the expansion of predictive analytics. Therefore, predictive analytics is projected to expand rapidly throughout the projection period.

Component Analysis

The solutions Component leads over Service Component Segment

Based on components, the market is further divided into solutions and services. Among these components, the solutions component accounted for the largest market share of 68.0% in 2022. About edge analytics solutions, decentralization and acceleration take precedence over more traditional methods of collecting massive amounts of data.

By efficiently integrating data obtained from connected gadgets and networking devices for enhanced real-time event analysis, organizations worldwide have concentrated on boosting efficiency and reducing expenses related to the upkeep of analytics solutions. The requirement for edge computing infrastructure, comprising gateways, edge devices, and edge servers with processing and storage power, has surged.

Note: Actual Numbers Might Vary In The Final Report

Deployment Analysis

The on-cloud deployment segment represents a greater share of revenue.

The on-cloud deployment segment represents a revenue share of more than 52.0%. Cloud deployment involves implementing an application through diverse cloud hosting models like platform as a service, infrastructure as a service, and software as a service. This encompasses the entire process, from planning and arrangement to execution and oversight of cloud operations. Leveraging the cloud offers several benefits, such as quicker and more streamlined app rollout, expanded platform capabilities, reduced expenses, enhanced business continuity, and more. By tapping into the adaptable and scalable resources of cloud platforms, businesses can effectively handle large amounts of data generated at the periphery.

Application Analysis

Sales and Marketing Segment Accounted For a Large Market Share

In 2022, the sales and marketing category accounted for over 34.0% of total shares. Edge analytics can be used by financial services companies, especially traditional retail banking businesses, to enhance client service, save costs, and guarantee compliance with regulations. The financial services sector is a highly technologically advanced industry, driven by computing from Fin-Tech startups, a new kind of distributed cloud that offers new and old businesses different opportunities to increase profitability. It can assist companies in real-time monitoring and analyzing customer interactions and comments. By gathering and processing data at the edge, companies can point out areas for improvement, quickly resolve customer complaints, and improve customer experience.

To improve their plans and boost client happiness, sales, and marketing teams can greatly benefit from this feedback loop. By analyzing customer data, market trends, and sales performance at the edge, businesses can supply salespeople with up-to-date information, customized recommendations, and sales guidance. As a result, sales teams can be more efficient, close deals more quickly, and offer better customer service.

End-user Analysis

The energy and utilities segment leads over other application segments.

The energy and utilities segment accounted for a 26.0% market share. The number of houses and energy consumers is rising, as is the need for smart grid technologies, accelerating the segment’s growth. Energy producers can also employ edge analytics to determine how much power can be stored for later use or given to it. Modern systems should be built using cutting-edge analytics to ensure increased yields as climatic circumstances change. This would allow utilities to integrate more renewable energy into the grid while lowering carbon dioxide emissions.

Throughout the projection period, the manufacturing sector is expected to witness high growth. Edge analytics are being used by manufacturing companies to monitor machine performance and output from production and to be capable of solving any problems that may develop in seconds as opposed to minutes.

Key Market Segments

By Type

• Descriptive Analytics
• Predictive Analytics
• Prescriptive Analytics
• Diagnostic Analytics 

By Component

• Solutions
• Services

By Deployment

• On-cloud
• On-premise

By Business Application

• Sales and Marketing
• Operations
• Finance
• Human Resource

By End-User

• Retail
• E-commerce
• Consumer Electronics
• Energy and Utilities
• Healthcare
• Transportation and Logistics
• IT and Telecom
• Manufacturing
• Other End-Users

Drivers

Increase in the Use of Connected Devices

By successfully integrating data gathered from connected gadgets and networking devices for increased real-time event analysis, organizations worldwide have concentrated on boosting efficiency and decreasing management of analytics solutions. The market for data edge analytics solutions, which is predicted to increase at a healthy rate throughout the forecast period, is driven by the rise in the need for continuous tracking and prescriptive analytical modeling.

An Increase in Prescriptive Analytics Demand

Prescriptive analytics represents an advanced analytical approach that simplifies complex network analysis and enhances the ability to predict actions proactively. By anticipating outcomes, prescriptive analytics recommends corrective measures, aiming to enhance business choices. This process thoroughly assesses data derived from historical and predictive analyses, utilizing optimal data analytics techniques. Various sectors like healthcare, BFSI, and retail are embracing edge analytics solutions to implement prescriptive analytics models, intending to enhance operational efficiency and outcomes using cost-efficient strategies.

Restraints

Safety and security concerns

Safety and security concerns, as well as the absence of globally recognized standards, are some of the challenges preventing the market for edge analytics from expanding. Businesses quickly use analytics to gain real-time insights and enhance their decision-making skills. The deployment of edge analytics solutions, however, has raised significant security concerns among businesses. The deployment of sophisticated software and hardware by third parties might make analytics on network devices a risky endeavor. The necessity at that hour for edge analytics solution suppliers is to give extra security measures that hold the faith of the stakeholders and consumers at large in continuing the analysis of the data in real time.

Opportunity

Emergence of linked car infrastructure and autonomous automobiles, including Android Auto and Apple CarPlay

The edge data centers can offload uncritical data while keeping crucial data in the vehicle, making it possible for autonomous cars to use the data collected more quickly and accurately.  Combined with AI and ML, it can also help attain situational awareness in a fraction of the time by supplying localized processing power to hasten the processing of massive amounts of data produced by autonomous vehicles. This cautious driving can efficiently avoid delays and help prevent traffic accidents. Due to the advantages of edge computing, more manufacturers of autonomous vehicles are anticipated to make investments in this technology in the years to come.

Trends

Data Propagation over Connected Devices is Growing, Driving Market Growth

Garrison estimates monthly information traffic via Fixed Wireless Access (FWA) increased from 9.7 exabytes in 2020 to 16 exabytes in 2021. In the upcoming years, there will likely be significant growth, with the monthly Fixed Wireless Access data flow predicted to almost triple to 130 exabytes by 2028. A permanent internet network via 5G, 4G, or 3G is made possible by the FWA technology, which can offer broadband connectivity in places with sparse infrastructure. Although 5G mobile traffic is anticipated to surpass FWA traffic by 2024, Fixed Wireless Access data traffic surpassed that of 5G mobile connections in 2021. Hence, rising data propagation over connected devices can be considered as an emerging trend, which is likely to propel market growth.

Regional Analysis

North America Region Accounted Significant Share of the Global Edge Analytics Market

Due to the growing adoption of edge analytics by small and medium-sized enterprises, which is encouraged by government norms and regulations, North America leads the global market, contributing to more than 34.0% of total revenue with a value of US$ 32.3 Billion. Additionally, the industrial and telecommunications sectors’ extensive use of edge analytics solutions may fuel the market. Insurance companies increasingly see the cloud as a business asset, even though property and liability insurance and life insurance have utilized cloud computing to foster agility, boost operational efficiency, draw in new talent, and lower operating costs.

The Asia Pacific area is expected to experience the most rapid growth in the foreseeable future, driven by numerous companies making substantial investments in the field. Their goal is to enhance their edge analytics services, ensuring timely and cost-effective assessments, managing real-time events, and organizing data for optimal quality.

Note: Actual Numbers Might Vary In The Final Report

Key Regions and Countries Covered in this Report

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherlands
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

Manufacturers and businesses are increasing their reach to establish their monopoly in the client base

Manufacturers and businesses are increasing their reach by working with regional players to establish their monopoly in the client base due to the market’s rapid growth. By investing in product research and development and offering competitive pricing, major companies in the edge analytics market are offering and growing their product portfolios, which encourages market competition. Gaining from the upward trend of the rapidly increasing market, manufacturers and businesses are extending their reach by working with regional competitors to consolidate their monopoly in the eyes of the consumer.

For example, Cisco’s intent-based networking portfolio’s Catalyst 8000 Edge series offers customers an advanced, powerful routing design. With the help of the new platform’s integrated analytics, it is now possible to see network or application issues more clearly and make informed decisions to improve user experiences.

The following are a few of the well-known companies active in the Global Edge Analytics Market:

• Amazon Web Services Inc.
• Cisco Systems Inc.
• Microsoft
• Hewlett Packard Enterprise Development LP
• Databricks
• Dell Statistica
• Edge ConneX
• IBM Corporation
• Intel Corporation
• Oracle Corporation
• SAP HANA

Recent Development

• In June 2022, A technology alliance between Cisco and Kyndryl, one of the top providers of IT infrastructure services, was established to help business clients hasten the transition to data-driven companies powered by Cisco solutions and Kyndryl managed services.
• In April 2022, FlexPod XCS is a platform for automation for current data, applications, and hybrid cloud settings, and was introduced by Cisco and NetApp in collaboration. FlexPod XCS is made to assist businesses in seamlessly moving data and applications between private data centers and the edge of hybrid cloud environments.

Report Scope