Edge Analytics Market Analysis

Edge Analytics Market Overview

Edge Analytics Market Size was valued at USD 1.5 Billion in 2022. The edge analytics market industry is projected to grow from USD 1.96 Billion in 2023 to USD 17.04 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 31.00% during the forecast period (2023 - 2032). The rising adoption of Internet of Things (IoT) devices, the increasing demand for real-time data analysis, and the expansion of cloud computing capabilities are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Edge Analytics Market Trends

Rising adoption of Internet of Things (IoT) devices drives market growth

Due to the rising adoption of Internet of Things (IoT) devices, the increasing demand for real-time data analysis, and the expansion of cloud computing capabilities, the edge analytics market has been significantly growing and evolving in recent years. Instead of sending all the data to a centralized data center or cloud for processing, edge analytics refers to analyzing data at or close to the source of data generation, frequently at the "edge" of the network. Numerous advantages of this strategy include decreased latency, enhanced security, and optimized bandwidth usage. The rapid uptake of IoT devices in a variety of sectors, including manufacturing, healthcare, transportation, and smart cities, is one of the major trends driving the edge analytics market. These devices produce enormous amounts of data, which can be overwhelming to process centrally. By performing real-time data analysis on these devices, edge analytics offers a solution and enables quicker decision-making and response times, which is essential in applications where delays could have serious repercussions.

Additionally, as more data is produced and processed at the edge, there is a growing need for edge computing tools and analytics resources. As a result, cutting-edge hardware and software solutions designed to handle edge analytics workloads efficiently have been created. In order to stay competitive in the market, businesses are heavily investing in the development of edge computing platforms and edge-based data analytics algorithms. The growing focus on data security and privacy is a significant trend in the edge analytics market. Concerns about data breaches and unauthorized access have grown as the processing and storage of data have moved closer to the data source. In order to protect sensitive data and adhere to data protection laws, vendors are incorporating strong security measures into their edge analytics solutions.

A significant factor in the growth of the Edge Analytics market has also been the development of 5G technology. Faster and more dependable connectivity by 5G networks allows for seamless data transfer between edge analytics platforms and IoT devices. Real-time applications like augmented reality, virtual reality, and autonomous vehicles, which rely heavily on quick data analysis and response, are made possible by combining 5G and edge analytics. Edge Analytics is becoming more popular among small and medium-sized businesses (SMBs), not just big corporations. SMBs are utilizing edge computing technologies as they become more widely available and cost-effective in order to gain a competitive edge by making data-driven decisions at the edge of their networks. The pandemic has also accelerated the use of edge analytics in the healthcare industry. In order to process patient data from various medical devices in real-time, healthcare providers are using edge analytics. This has the effect of facilitating quicker diagnosis, remote patient monitoring, and better overall healthcare outcomes. Governmental agencies are beginning to understand the significance of edge analytics and its potential effects on various industries on the regulatory front. In order to ensure the responsible and ethical use of edge analytics technologies, they are working to develop policies and standards. Thus, driving the edge analytics market revenue.

Edge Analytics Market Segment Insights

Edge Analytics Components Insights

The edge analytics market segmentation, based on components, includes solutions and services. The solutions segment dominated the market. Data processing and analysis in real-time at or close to the data generation source is made possible by edge analytics software. Businesses can now make quicker and more informed decisions, which improves operational effectiveness and enhances customer experiences. Software in Edge Analytics reduces the time data must be transmitted to centralized data centers by processing data locally at the network's edge. Applications that demand instant responses, like autonomous vehicles, industrial automation, and remote healthcare monitoring, depend on this reduction in latency.

Figure 1: Edge Analytics Market, by Components, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Edge Analytics Deployment Insights

Based on deployment, the edge analytics market segmentation includes cloud and on-premise. The cloud generated the most income. Risk analytics infrastructure up or down depending on demand with cloud platforms, ensuring optimal performance and cost-effectiveness. Pay-as-you-go cloud services let you only pay for the resources you use, which cuts down on infrastructure and up-front costs. For remote teams and distributed workforces, cloud-based risk analytics offer flexibility and convenience because they can be accessed from any location with an internet connection. Quicker risk assessment is possible thanks to cloud solutions' real-time data processing and analysis.

Edge AnalyticsBusiness Application Insights

Based on business applications, the edge analytics market segmentation includes sales, marketing, HR, operations, and finance. The sales generated the most income. Near the data source or device, edge analytics directly processes data at the network's edge. As a result, sales teams' responsiveness and agility in the sales process are improved because they can make decisions in real-time based on the most recent and pertinent data. Edge analytics reduces the time it takes to send data to centralized servers for processing by processing it locally at the edge. Due to the decreased latency, sales teams receive insights and updates quickly, allowing them to take quick action and seize opportunities as they present themselves. Edge analytics localizes data filtering and processing to send only pertinent data to centralized systems. In organizations with dispersed sales teams, this data transmission optimization lessens the demand on network bandwidth, increasing its effectiveness and decreasing its cost.

Edge AnalyticsBusiness Verticals Insights

Based on verticals, the edge analytics market segmentation includes Government, IT and Telecommunication, Manufacturing, Healthcare and Travel and Hospitality. The manufacturing category generated the most income. Manufacturing companies are using cutting-edge analytics to keep better track on machine performance, output, and to be able to react with any problem that emerges in seconds rather than minutes.

Edge Analytics Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific edge analytics market area will dominate this market; with edge analytics becoming more and more popular among all the small and medium-sized businesses supported by the government, North America continues to be a strong market for this technology.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: EDGE ANALYTICS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's edge analytics market accounts for the second-largest market share. The high concentration of manufacturing and telecommunication industries using edge analytics can be credited with the market's expansion. Since cloud traffic and the demand for edge analytics are related, the market has experienced significant growth. Further, the German edge analytics market held the largest market share, and the UK edge analytics market was the fastest-growing market in the European region.

The North American Edge Analytics Market is expected to grow at the fastest CAGR from 2023 to 2032. The way that North American businesses use cloud computing is evolving. Using a distributed edge computing architecture can lower the cloud's cost. Moreover, China’s edge analytics market held the largest market share, and the Indian edge analytics market was the fastest-growing market in the Asia-Pacific region.

Edge Analytics Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the edge analytics market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The edge analytics industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the edge analytics industry to benefit clients and increase the market sector. The edge analytics industry has offered some of the most significant medical advantages in recent years. Major players in the edge analytics market, including AGT International Inc. (Switzerland), Cisco Corporation (U.S.), SAS Institute (U.S.), Oracle Corporation (U.S.), SAP SE (Germany), Foghorn Systems (U.S.), Apigee Corporation (U.S.), and others, are attempting to increase market demand by investing in research and development operations.

SAP SE (Germany) is redefining ERP and building networks of intelligent enterprises that provide transparency, resiliency, and sustainability across supply chains to help businesses of all sizes and industries run better. The market leader in enterprise application software. Customers can operate profitably, continuously adapt, and make a difference ly thanks to our comprehensive suite of applications and services. One of the world's top software developers for business process management, SAP creates products that streamline efficient data processing and information exchange between organizations. The business was founded in 1972 and was initially known as System Analysis Program Development (Systemanalyse Programmentwicklung), later becoming SAP. Since then, it has expanded from a five-person startup to a corporation with more than 105,000 staff members based in Walldorf, Germany.

Networking giant Cisco Systems, Inc., more commonly known as Cisco, is an American multinational digital communications technology conglomerate corporation with its headquarters in San Jose, California. In addition to other high-tech services and goods, Cisco develops, produces, and markets networking hardware, software, telecommunications equipment, and other items. With cutting-edge products like Webex, OpenDNS, Jabber, Duo Security, and Jasper, Cisco is a leader in specialized tech markets like the Internet of Things (IoT), domain security, videoconferencing, and energy management. With over $51 billion in annual revenue and close to 80,000 employees, Cisco is one of the biggest technology companies in the world, coming in at number 74 on the Fortune 100.

Key Companies in the edge analytics market include

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  AGT International Inc. (Switzerland)

  
  


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  Cisco Corporation (U.S.)

  
  


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  SAS Institute (U.S.)

  
  


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  Oracle Corporation (U.S.)

  
  


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  SAP SE (Germany)

  
  


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  Foghorn Systems (U.S.)

  
  


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  Apigee Corporation (U.S.)

  
  


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  CGI Group Inc. (Canada)

  
  


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  Analytic Edge (India)

  
  


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  Prism Tech (U.K.)

  
  

Edge Analytics Industry Developments

March 2022: FogHorn announced that NTT Data had chosen its lightning software to provide their industrial clients with real-time analytics and AI on-premise. The manufacturing and energy sectors are served by FogHorn using the deep expertise and IoT consulting and integration services provided by NTT data.

January 2022: The SAS institute introduced SAS analytics for loT, which aids in analyzing a significant amount of data produced by loT sensors and devices. In order to ensure efficient operations, the analytics software can analyze changing data in real-time and conclude.

Edge Analytics Market Segmentation

Edge Analytics Components Outlook

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  Solutions

  
  


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  Services

  
  

Edge Analytics Deployment Outlook

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  Cloud

  
  


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  On-Premise

  
  

Edge Analytics Business Application Outlook

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  Sales

  
  


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  Marketing

  
  


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  HR

  
  


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  Operations

  
  


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  Finance

  
  

Edge Analytics Verticals Outlook

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  Government

  
  


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  IT and Telecommunication

  
  


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  Manufacturing

  
  


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  Healthcare

  
  


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  Travel and hospitality

  
  

Edge Analytics Regional Outlook

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  North America

  
  

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  US

  
  


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  Canada

  
  

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  Europe

  
  

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  Germany

  
  


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  France

  
  


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  UK

  
  


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  Italy

  
  


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  Spain

  
  


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  Rest of Europe

  
  

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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America