Global Edge Computing Market By Component (Hardware, Software, and Services), By Application (Industrial Internet of Things, Smart Cities, Content Delivery, Remote Monitoring, Augmented Reality & Virtual Reality, and Other Applications), By Industry Verticals (Energy and Utilities, Manufacturing, Telecommunications, and Other Industry Verticals), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Nov. 2023
- Report ID: 99739
- Number of Pages: 333
- Format:
- keyboard_arrow_up
Quick Navigation
Report Overview
The global edge computing market size is expected to be worth around USD 206 billion by 2032 from USD 40 billion in 2022, growing at a CAGR of 18.3% during the forecast period from 2023 to 2032.
Edge computing is a technology that brings computing power closer to the devices and sensors generating data, rather than relying solely on centralized cloud servers. It involves processing and analyzing data at or near the edge of the network, reducing latency, improving real-time decision-making, and enhancing overall system performance.
In the edge computing market, this technology is gaining momentum as organizations seek to harness the benefits it offers. By bringing processing capabilities closer to the data source, edge computing enables faster response times and reduced reliance on cloud infrastructure. It is particularly valuable in scenarios where low latency and real-time processing are critical, such as in industrial automation, autonomous vehicles, remote monitoring, and Internet of Things (IoT) applications.
The world of edge computing is seeing rapid growth and expansion, particularly in areas that touch our everyday lives and health. For instance, the use of edge computing in smart city and urban infrastructure projects is expected to jump by 30% from 2022 to 2024, according to Siemens. This means more efficient, responsive city services and infrastructure, from traffic management to energy distribution, making our cities smarter and more livable.
In the healthcare sector, the impact is even more personal. GE Healthcare predicts that about 45% of organizations will embrace edge computing for remote monitoring and telemedicine by the end of 2024. This could dramatically improve the way healthcare is delivered, making it more accessible and timely, especially in remote areas.
Security within edge computing is also getting a significant upgrade. It’s forecasted that by 2024, more than 70% of edge computing solutions will be equipped with advanced security features, such as hardware-based root of trust and secure enclaves, as noted by Microsoft Azure. This is crucial for protecting sensitive data and ensuring the trustworthiness of edge computing platforms.
When it comes to investments in edge computing for 2023, priorities are clear. Security is at the forefront with approximately 45% of investments, followed by data analytics at about 35%, and IoT applications at around 20%. These investments reflect the critical areas for edge computing’s growth and the emphasis on making it secure, insightful, and deeply integrated into our digital and physical worlds.
Key Takeaways
- The edge computing market is projected to reach approximately USD 206 billion by 2032, growing at a robust CAGR of 18.3% from 2023 to 2032.
- Hardware segment held a dominant position within the edge computing market, capturing more than a 45% share.
- Industrial Internet of Things (IIoT) segment held a dominant market position within the edge computing market, capturing more than a 30% share.
- Energy and Utilities segment held a dominant market position within the edge computing market, capturing more than a 16% share.
- By 2024, a huge leap is expected where 75% of data created by companies will be processed right where it happens, up from just 10% in 2021. This shift towards edge computing shows how businesses are moving fast to handle data more efficiently.
- Then, by 2028, the energy used by mobile users for edge computing is expected to be half of the total energy used by all edge computing. It shows how mobile usage is becoming a big part of the edge computing world.
- In just two years, between 2022 and 2024, the use of edge computing to quickly process and analyze data is expected to jump by 50% across different fields. This points to how industries are eager to get real-time insights.
- China is becoming a major player, with about 26% of network edge sites expected to be there by 2026. This indicates China’s growing importance in the global tech landscape.
- By the end of 2024, 60% of organizations are planning to use edge computing for their IoT applications, showing the technology’s critical role in IoT expansion.
- Cloud services are also getting on board, with over 70% expected to include edge computing in their services by 2024. This is a big step for cloud providers to meet their customers’ needs.
- In the manufacturing sector, the use of edge computing for keeping equipment running smoothly is expected to increase by 45% between 2022 and 2024. This highlights its value in reducing downtime.
- Over 65% of edge computing setups are expected to use containerization and microservices by 2024. This reflects the shift towards more flexible and scalable computing architectures.
- Around 55% of organizations aim to combine edge computing with 5G by the end of 2024 to boost speed and reduce delays. This combination promises faster and more reliable connections.
- AI and ML are becoming a key part of edge computing, with over 70% of solutions expected to use these technologies by 2024. This integration is set to make edge computing even smarter.
- For video processing and computer vision, the adoption of edge computing is set to rise by 40% between 2022 and 2024. This shows its growing importance in analyzing visual data.
- More than 60% of edge deployments will likely involve virtualization and software-defined networking by 2024. This points to a trend towards more versatile network management.
- Cybersecurity is another big area, with 50% of organizations planning to use edge computing for better security by the end of 2024. This underlines its role in protecting data.
- The automotive sector is not left out, with a 35% growth expected in the use of edge computing for autonomous vehicles by 2024. This is crucial for the development of self-driving cars.
- Lastly, about 40% of businesses are looking to improve their supply chains and logistics with edge computing by the end of 2024. This could lead to more efficient and transparent supply chains.
Component Analysis
In 2022, the Hardware segment held a dominant position within the edge computing market, capturing more than a 45% share. This significant market share can be attributed to the increasing demand for edge devices and computing infrastructure capable of processing data closer to the source of generation.
The proliferation of IoT devices, coupled with the need for real-time processing and low-latency networks, has propelled the hardware sector to the forefront. Innovations in processors, storage solutions, and networking equipment designed for edge deployments have further fueled this growth. The hardware component is crucial for the foundational structure of edge computing, enabling the seamless execution of applications across various industries, including manufacturing, healthcare, and retail.
Large Enterprises have emerged as leading segments in the edge computing market, driven by their substantial investment capacities and strategic initiatives to enhance operational efficiency and data management. These entities often deal with vast amounts of data that require immediate processing and analysis, making edge computing an essential component of their IT infrastructure.
By leveraging edge computing solutions, large enterprises can reduce latency, improve bandwidth usage, and enhance data security, leading to more informed decision-making and optimized operational processes. Furthermore, the integration of edge computing allows these organizations to achieve greater scalability and flexibility, adapting to changing market dynamics and customer needs effectively. The adoption of edge computing by large enterprises is indicative of its potential to transform business operations and create competitive advantages in a digitally driven economy.
Application Analysis
In 2022, the Industrial Internet of Things (IIoT) segment held a dominant market position within the edge computing market, capturing more than a 30% share. This prominence is largely due to the integral role edge computing plays in the IIoT ecosystem, enabling real-time data processing and analysis at the source of data generation. Industries are increasingly relying on IIoT to drive efficiency, productivity, and innovation by connecting machines, devices, sensors, and people.
The demand for edge computing in this segment is fueled by the need to manage the vast amounts of data generated by these connected devices, requiring immediate processing to make timely decisions. Furthermore, the adoption of edge computing in IIoT applications reduces latency, enhances operational reliability, and supports the deployment of advanced analytics and machine learning models at the edge, leading to optimized industrial operations and improved safety measures.
The IIoT segment’s leadership in the edge computing market can also be attributed to its broad application across various industries, including manufacturing, energy, agriculture, and transportation. In these sectors, the ability to process data on-site or near the data source significantly improves response times, reduces network traffic, and lowers dependence on centralized cloud-based systems. This is particularly critical in applications requiring immediate action, such as predictive maintenance, supply chain optimization, and safety monitoring.
The scalability and flexibility offered by edge computing allow businesses to efficiently manage the complexity and volume of data in IIoT environments. As industries continue to advance towards automation and digital transformation, the significance of the IIoT segment within the edge computing landscape is expected to grow, underlining its pivotal role in enhancing industrial competitiveness and sustainability.
Industry Verticals Analysis
In 2023, the Energy and Utilities segment held a dominant market position within the edge computing market, capturing more than a 16% share. This significant portion of the market is primarily attributed to the critical need for real-time data processing and analysis in energy management and utility operations. The deployment of edge computing solutions in this sector enables the efficient monitoring and control of energy distribution, enhancing grid reliability and optimizing renewable energy sources.
The necessity for immediate data insights in managing fluctuating energy demands, coupled with the integration of smart grids and smart meters, has propelled the growth of edge computing in energy and utilities. Furthermore, edge computing facilitates the reduction of operational costs and improves the sustainability of energy systems by minimizing energy waste and enhancing predictive maintenance capabilities.
The leadership of the Energy and Utilities segment in the edge computing market can also be credited to the ongoing global push towards digital transformation in this sector. As energy providers and utility companies strive to meet the growing demands for cleaner, more reliable, and efficient energy services, the adoption of edge computing technologies becomes increasingly vital.
These technologies not only support the real-time management of energy assets but also enable the integration of IoT devices for enhanced connectivity and data exchange across distributed energy resources. By leveraging edge computing, the energy and utilities sector can achieve greater operational efficiency, support the transition to renewable energy, and enhance customer service through improved outage management and personalized energy solutions.
The growing emphasis on energy sustainability and the rapid advancement of digital technologies in operational practices underscore the pivotal role of the Energy and Utilities segment in driving the expansion of the edge computing market.
Key Market Segments
Based on Component
- Hardware
- Software
- Services
Based on Application
- Industrial Internet of Things
- Smart Cities
- Content Delivery
- Remote Monitoring
- Augmented Reality and Virtual Reality
- Other Applications
Based on Industry Verticals
- Energy and Utilities
- Manufacturing
- Telecommunications
- Retail and Consumer Goods
- Healthcare and Life Sciences
- Transportation and Logistics
- Government and Defence
- Media and Entertainment
- Other Industry Verticals
Drivers
Increasing Demand for Low-Latency Processing
The major requirement in today’s business scenario is decreasing the data sent to the cloud and service access latency, mainly for enterprises using cloud infrastructure. In the computer network, latency refers to the time the packet travels. Lower latency results in a higher data transmission rate. It has several applications, such as content delivery and remote monitoring of manufacturing sites & oil and gas fields.
Edge computing decreases the latency of those applications by allowing computation in real-time and localized processing for faster decisions. Moreover, edge computing also helps in the business efficiency of enterprises by reducing operation costs and helping in increasing application performances. This was accomplished by reducing the costs related to unnecessary transmission and storage in the cloud.
Restraints
Initial CAPEX for Infrastructure
To accelerate and automate their business processes efficiently, enterprises are progressively shifting towards digitalization by implementing developing technologies. Edge computing has the ability to decrease storage costs and data transmission through localized processing. However, investing in the edge infrastructure adds to the company’s CAPEX.
Thus, companies are looking for whole-edge computing solutions, which would require heavy investments in edge devices, edge data centers, and edge nodes. They may also require spending more to make the entire network secure. The major restraining factor in the market’s growth is the edge infrastructure, but the cost will likely decrease due to the continuous R&D process.
Opportunities
The Advent of a 5G Network for Delivering Instant Communication Experiences
The 5G network was likely to provide life-changing advancements during the forecast period, enabling benefits for the deployment of edge computing solutions. The introduction of 5G and enhancing requirements for decentralized data processing power are estimated to boost the demand for edge computing. Also, the shifting significance of high-performing smartphone apps is increasing the market demand. Furthermore, the demand for edge computing will likely propel as the telecom companies enhance their performing speed of mobile applications.
Trends
IoT and Edge Computing for Architects
IoT and edge computing in emerging countries such as China, Indonesia, and India is beneficial for edge computing architecture. IoT and edge computing for architects is also developing as key trend. Edge computing is a technological evolution with no restrictions on any particular industry. Thus, IoT and edge computing hold a prominent future.
Furthermore, large enterprises in the industry, such as manufacturing and telecom, are progressively using edge computing. For instance, Huawei assumed that with above 50 billion connected devices, above 50% of data may be processed, stored, and analyzed on the network edge.
Regional Analysis
North America Dominated the Global Edge Computing Market
North America accounted for the largest revenue share of 42% of the overall market. The increasing implementation of connected devices like tablets, iPad, smartphones, and others has generated a huge demand for edge computing solutions. In this region, several key players are focusing on launching edge computing solutions to gain a competitive market edge.
For instance, Red Hat, Inc. and IBM Corporation announced their new edge computing solutions for different enterprises in the era of 5G. The solutions include IBM Telco Network Cloud Manager, IBM Edge Application Manager, and others to help various organizations enhance their transition to edge computing.
Asia Pacific held a significant revenue share because of an increasing focus on strengthening networking technology due to COVID-19. The significant development of the connected device ecosystem of the region has resulted in a huge amount of data generation. It increases the demand for a robust computational infrastructure. Google Inc. declared the Global Mobile Edge Cloud strategy, mainly aimed at the US market. Microsoft Corporation announced Azure Edge Zones, which will increase the market growth during the forecast period.
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
- Netherland
- 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
The prominent players in the market are concentrated on developing innovative collaboration software to gain a competitive edge and attract a more extensive customer base. For instance, in February 2022, Asana’s work management platform released Asana Flow. It is a complete range of solutions that businesses can use to run, enhance, and build their workflow.
The rising number of such offerings is estimated to favor the market’s growth over the forecast period. A few major players in the market are AT&T Inc., Siemens AG, Amazon.com Inc., Arrow Electronics Inc., ClearBlade Inc., EdgeConneX Inc., FogHorn Systems Inc., Cisco Systems Inc., Alphabet Inc., ADLINK Technology Inc., and other key companies. Listed below are some of the most prominent edge computing market players.
Market Key Players
- ABB Ltd.
- Atos
- General Electric Company
- Cisco Systems, Inc.
- Hewlett Packard Enterprise Development
- IBM Corporation
- Huawei Technologies Co., Ltd.
- Honeywell International Inc.
- Intel Corporation
- Microsoft Corporation
- Other Key Players
Recent Developments
- Atos (June 2023): Launched a new suite of Edge Computing solutions for industrial applications, focusing on automation and data security.
- General Electric Company (October 2023): Announced a partnership with Microsoft to develop and deploy Industrial Edge Computing solutions for their manufacturing operations.
- Hewlett Packard Enterprise (HPE) (March 2023): Acquired a startup specializing in Edge Computing software, strengthening their HPE Edge Centrepoint platform.
- Cisco Systems (May 2023): Unveiled its latest Catalyst 8000 Series routers, specifically designed for enhanced Edge Computing capabilities.
- Honeywell International (September 2023): Partnered with a leading cloud provider to offer a comprehensive Edge Computing solution for building management and automation
- Intel Corporation (February 2023): Introduced its latest Xeon Scalable processors with built-in Edge Computing functionalities.
Report Scope
Report Features Description Market Value (2023) US$ 47 Bn Forecast Revenue (2032) US$ 206 Bn CAGR (2023-2032) 18.3% Base Year for Estimation 2023 Historic Period 2018-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Component- Hardware, Software, and Services; By Application- Industrial Internet of Things, Smart Cities, Content Delivery, Remote Monitoring, Augmented Reality & Virtual Reality, and Other Applications; By Industry Verticals- Energy & Utilities, Manufacturing, Telecommunications, Retail & Consumer Goods, Healthcare & Life Sciences, Transportation & Logistics, Government & Defence, Media & Entertainment, and Other Industry Verticals. Regional Analysis North America – The U.S. and 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 Competitive Landscape ABB Ltd., Atos, General Electric Company, Cisco Sysyems, Inc., Hewlett Packard Enterprise Development, IBM Corporation, Huawei Technologies Co., Ltd., Honeywell International Inc., Intel Corporation, Microsoft Corporation, and Other Key Players. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the study period of Edge Computing Market?The Edge Computing Market is studied from 2017-2030.
What is the growth rate of Edge Computing Market?The Edge Computing Market is growing at a CAGR of 38.24% over the next 9 years.
Which region has highest growth rate in Edge Computing Market?Asia Pacific and North America is growing at the highest CAGR over 2018-2032.
Which region has largest share in Edge Computing Market?North America holds highest share in 2022.
Who Are The Leading Key Players In Edge Computing Market Industry ?ABB Ltd., Atos, General Electric Company, Cisco Systems, Inc., Hewlett Packard Enterprise Development, IBM Corporation, Huawei Technologies Co., Ltd., Honeywell International Inc., Intel Corporation, Microsoft Corporation, Other Key Players
- ABB Ltd.
- Atos
- General Electric Company
- Cisco Systems, Inc.
- Hewlett Packard Enterprise Development
- IBM Corporation
- Huawei Technologies Co., Ltd.
- Honeywell International Inc.
- Intel Corporation
- Microsoft Corporation Company Profile
- Other Key Players
- settingsSettings
Our Clients
Single User $4,599 $3,499 USD / per unit save 24% | Multi User $5,999 $4,299 USD / per unit save 28% | Corporate User $7,299 $4,999 USD / per unit save 32% | |
---|---|---|---|
e-Access | |||
Report Library Access | |||
Data Set (Excel) | |||
Company Profile Library Access | |||
Interactive Dashboard | |||
Free Custumization | No | up to 10 hrs work | up to 30 hrs work |
Accessibility | 1 User | 2-5 User | Unlimited |
Analyst Support | up to 20 hrs | up to 40 hrs | up to 50 hrs |
Benefit | Up to 20% off on next purchase | Up to 25% off on next purchase | Up to 30% off on next purchase |
Buy Now ($ 3,499) | Buy Now ($ 4,299) | Buy Now ($ 4,999) |