The global edge computing market was valued at USD 2,590.3 million in 2019 and is anticipated to grow at a CAGR of 38.9% over the forecast period from 2020 to 2025.
Edge computing puts data processing and closer to the systems where it is collected, instead of relying on a centralized location that can be halfway across the world. This is done to prevent data, particularly real-time information, suffering from latency issues which can affect the performance of an application. Additionally, businesses can also save money by keeping the processing done locally by decreasing the amount of information that needs to be scanned at a cloud-based or centralized.
It is anticipated that the increasing need to process, collect and evaluate the large amounts of data produced by digitization at the edge of the network with decreased latency will fuel the market growth. Large amounts of data are generated by the increasing adoption of Big Data and Internet-of-Things (IoT) coupled with the proliferation of cloud services in various industries, such as retail and consumer, healthcare and life sciences, transportation & logistics, and manufacturing.
As the complexity of processing these large amounts of data increases, so the need for edge computing. An edge application efficiently utilizes the processing power of the IoT systems to score, aggregate and filter the IoT data. At the very same time, it also makes use of the cloud's power and flexibility to perform complex data assessments and make a contribution to the decision-making process.
Additionally, it can thus make sure smooth and robust assimilation between the IoT and the cloud. IoT systems subsequently have a major role to play as the statistical analysis takes place around those devices. This tech evaluates the data at the edge of the network and makes decision-making quick. It meets the needs of local computation by processing the data at the micro data centers instead of sending it to the main center.
It also helps to lower the latency in distant places, where network connectivity is a hurdle. 5G networks and cutting-edge technology often supplement each other, as internet providers are unable to deliver the economic advantages of the 5G standards without using edge computing. In addition, internet providers can use this technology to shift their IT resources and centrally controlled data centers to nearby base stations and other facilities that are closer to the end user as well.
Key segments of the global edge computing market
Component Overview, 2015-2025 (USD Million)
Application Overview, 2015-2025 (USD Million)
- Smart Cities
- Industrial Internet of Things (IIoT)
- Remote Monitoring
- Content Delivery
- Augmented Reality (AR) and Virtual Reality (VR)
Enterprise Size Overview, 2015-2025 (USD Million)
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
Industry Vertical Overview, 2015-2025 (USD Million)
- Energy & Power
- IT and Telecom
- Healthcare & Life Sciences
- Retail & Consumer Goods
Regional Overview, 2015-2025 (USD Million)
- North America
- Rest of Europe
- Asia Pacific (APAC)
- Rest of APAC
- Rest of World
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global edge computing industry
- The overall segmentation of edge computing market, especially key segments such as component, application, enterprise size, and industry vertical are thoroughly studied. Based on component, Hardware segment holds the maximum market share and is anticipated to continue growth till 2025
- Presence of major players and their wide solution across developed countries is anticipated to further boost the growth of edge computing market
What does the report include?
- The study on the global edge computing market includes qualitative analysis of factors such as drivers, restraints, opportunities, and competitive landscape analysis
- The study covers qualitative and quantitative analysis of the overall market segmented on the basis of component, application, enterprise size and industry vertical and breakdown of the same at regional level
- Actual market sizes and forecasts have been provided for all the considered segments
- The study includes the profiles of key market players with a significant global and/or regional presence along with top company positioning
Who should buy this report?
This study is suitable for industry participants and stakeholders in the Edge Computing industry, who want an in-depth insight into the movement of the Edge Computing market. The report will benefit:
- Executives of edge computing manufacturing companies that are engaged in spreading knowledge about advantages of edge computing
- Managers within financial institutions looking to publish recent and forecasted statistics pertaining to edge computing
- Venture capitalists, investors, financial institutions, analysts, government organizations, regulatory authorities, policymakers, researchers, strategy managers, and academic institutions
- looking for insights into the market to determine future strategies
- Vendors of edge computing Components who are looking for new avenues of revenue generation
As the availability of IoT devices is increasing the amount of data generated is also increasing. The companies are also totally dependent on the storage systems and centralised computing. To move the entire infrastructure, it will cost more amount for the companies and will also have deal with latency issues. The businesses which are using IoT sensors and actuators such as pressure sensors, temperature sensors, proximity sensors, infrared sensors and other such sensors are shifting towards edge computing solutions. The edge computing solutions include devices, edge nodes and local data centres. Edge computing can efficiently connect with the existing cloud infrastructure and allows data processing and evaluation easy by enabling companies to make quick decisions.
There are many companies investing large amounts in the development of edge computing solutions. Additionally, the companies are singing agreement and collaborating with other established companies to leverage their existing infrastructure. For instance, in December 2019, Amazon Web Services and Verizon announced a partnership to develop new solutions and applications with IoT enabled features for 5G edge cloud computing. Also established companies such as Microsoft, IBM, Cisco are acquiring as well as funding start-ups that are dealing with edge computing.
Below are some of the major investments, mergers & acquisitions and start-ups owing to which the edge computing market is anticipated to grow further:
- In May 2019, Amazon CloudFront announced the launch of eleven new edge location in United Sates (Salt Lake City, Boston, Seattle, Phoenix), Japan (Tokyo) and India (Hyderabad, Bangalore and Delhi). This will enhance the content delivery network of amazon by enabling increased processing of viewer requests, more ISP peering and ability to cache data locally.
- In June 2018, Hewlett Packard Enterprise announced that it will invest USD 4 billion over the period of next four years to develop intelligent edge devices and its related tech. The investment will be used in R&D with areas covering IoT, 5G, Cloud and analytics.
- Mutable, EdgeInfra, SWIM.AI, AlefEdge, MobiledgeX, Kontron, Affirmed Networks, Edge Gravity, Ori, Packet, EdgeConneX, Section, Hangar, German Edge Cloud are some of the start-ups working on enhancing edge computing solutions
By component, the market is further categorized into hardware, platform and services. Hardware segment dominated the overall market and expected to maintain its lead during the forecast period. Edge computing requires large number of hardware components to be deployed for decentralizing computing and storage operations, enabling complete edge infrastructure deployment, by reducing traffic of the network. Companies are offering advanced computing components that either acts as an original data source point such as edge devices or as an intermediary of the entire network such as servers and gateways or serves as a local processing unit and storage in the overall edge computing system.
As the edge computing is in the early stages of deployment it is dominated by large enterprises which accounted for the highest market share in 2019. Majority of large enterprises have already deployed edge computing as they have better infrastructure and budget allocated for development of company and reduce its operating cost. However, in the coming year with the increasing penetration of these technology many small and medium sized business will accept and adopt the edge computing. Moreover, as the companies are shifting towards more and more digital solutions the amount of data generated is also increasing. To process and analyze such data businesses have to deploy edge computing as it will have various benefits for them.
Edge computing is being deployed across all industries including manufacturing, energy & power, it and telecom, healthcare & life sciences, retail & consumer goods, transportation, education, media & entertainment and banking financial services and insurance. Manufacturing industry holds the highest market share owing to the faster adoption and implementation of industry 4.0 in production plants. However, in the coming years the edge computing will witness a strong demand from across vertical such as banking financial services and insurance, healthcare, ad transportation.
North America leads the overall market and is anticipated to do so over the forecast period. The region is hub for majority of the large companies in the world. The companies here have already deployed latest technologies and business models. Edge computing is also being deployed in many established companies which helps them in easily processing and evaluating the data gathered. In August 2019, CenturyLink announced an investment of USD 700 million in edge computing services across hundred locations in the United States which will offer managed services and hybrid cloud services.
Asia Pacific is expected to witness a strong growth and projected to grow at a fastest CAGR of 41.3% over the forecast period. Due to the lack of necessary infrastructure, the technology is still in its emerging stages of implementation in the region, and since organizations use micro data centres mainly as a precautionary measure against data loss. However, government initiatives such as promoting digitalization and deploying developed infrastructure are anticipated to drive the market during the forecast period. is witnessing a strong growth. India, Japan, South Korea and China are the major contributors of this region. These counties are investing large amount in developing infrastructure and ecosystem for digitalisation which will further enhance IoT penetration.