ID: MRFR/ICT/2348-CRR | July, 2018 | Region: Global | 150 pages | Cooked Research Reports
Edge Computing Market, By Technology (Mobile Edge Computing, Fog Computing), Deployment (On Premise, On Cloud), Component (Hardware, Software), Application (IoT, Data Caching, Video Analytics, Environment Monitoring), End Users — Global Forecast till 2023
As businesses become more reliant on data to increase efficiency, behave more intelligently and make ROI-driven decisions, networks that embrace high-speed connectivity gain prominence. However, traditional cloud networks are falling short in terms of capacity needed to handle such massive amounts of data transfer often leading to latency. IoT proliferation has created a large number of network access points that subsequently generate and amass more data. This is where edge computing comes into play as it facilitates much of the data processing at the edge of a network. Rise of IoT era puts technologies such as edge computing at the forefront to tackle network latency issues of the future. The global market for edge computing is set to capture a compound annual growth rate of 27.3% between 2017 and 2023 to reach a valuation of more than USD 9,200 Mn. Enterprise are employing edge computing to optimize their cloud computing systems but its complex infrastructure remains a major hurdle for many to overcome.
The MRFR perspective delivers an in-depth analysis of the global market for edge computing, along with the urrent growth trend and revenue forecast for next five years, until 2023. It also discusses the market opportunities that are likely to arise during the assessment period. For revenue estimations all the important parameters, governing the technology trends in edge computing were analyzed. Mobile computing and fog computing are the two prominent technologies discussed in the research document. The scope of discussion also covers on-premises deployments and on-cloud deployments. Based on components, both edge computing hardware and software categories were analyzed for overall market sizing. Major application areas of edge computing identified include IoT, data caching, analytics, and environment monitoring. Revenue analysis based on end users cover surveillance, automotive, gaming and media, healthcare and education.
Historical market trends, market dynamics, forecast, market value by region as well as by segmentation, country-level analysis for each market segment, key player’s market share analysis and market factor analysis which covers supply chain and Porter’s five forces analysis of the market.
Amazon (U.S.), General Electric (U.S.), Microsoft Incorporation (U.S.), Intel Corporation (U.S.), SAP SE (Germany), Alphabet Inc. (U.S.), Aricent (U.S.), IBM Corporation (U.S.), Huawei Technologies (China), Integrated Device Technology (U.S.)
Market Research Future (MRFR) commissions both qualitative and quantitative evaluation for its reports. This collaborative research method ensures a macro overview of industries and a micro-level examination of cross-category trends. To deliver relevant and up-to-date market foresight, information is probed by undertaking primary and secondary research. The exclusively surveys and first-hand interviews with industry opinion holders and company executives across the value chain (CEOs, MDs, VPs, business development managers and others) form a part of the primary research. The secondary research process verifies the authenticity of the primary data through valuable inputs from SEC filings, white paper references, paid database, research publications and other credible sources available in public domain. Top-down and bottom-up approaches are utilized to extrapolate research findings that are then verified through a powerful data triangulation technique.
For the scope of the research, MRFR’s report offers a comprehensive segmental analysis of the global market for edge computing
The global edge computing market is set to witness an exceptional CAGR of 27.3% during the assessment period. The digital revolution has given rise to several cutting-edge technologies which are expected to transform the efficiency and improve function across various industries. In 2017, the global market for edge computing was valued at USD 2,167.8 Mn and will likely grow to reach an estimated USD 9,219.3 Mn by the end of 2023.
The emergence of IoT and cloud computing has transformed human life. The proliferation of IoT across devices such as smartphones, smartwatches, wearable devices, and virtual and augmented reality technology has changed human life and increased efficiency in task performance. Moreover, the evolution of technology in the IT industry combined with the widespread adoption of cloud computing has led to the streamlining of work performance and has increased flexibility and speed with which daily tasks are carried out. IoT for enterprises offers various benefits including ubiquitous networks, connected devices, process optimization, sensor-driven decision analytics, and marketing automation. This has led to the widespread adoption of IoT across various end-use industry verticals such as healthcare, home, transportation, and entertainment. The rapid adoption and acceptance of these cutting-edge technologies are estimated to promote robust growth for the edge computing market. Additionally, edge computing tools can be deployed to mitigate security concerns in public places. Increasing security concerns regarding crowded public places and the need to effectively manage clouds as led to high demand for relevant and effective solutions. Edge networks are being adopted to dedicate resources toward ensuring that maximum capacity of any given public place is never surpassed and improved surveillance to avoid dangerous situations.
On the other hand, security regarding edge networks is a challenge as there are consistently sophisticated cyber-attacks aimed at weakening the same, thus restraining market growth. Additionally, edge computing requires a complex infrastructure for which there may not be the appropriate amount of skilled labor. However, the advent of 5G network promises next-generation mobile connectivity, faster speed as compared to 4G and a reliable connection across devices. The ongoing advances in this relatively new technology and the use of 5G for edge computing is expected to present the market with opportunities which are projected to lead to further automation and drive substantial growth for the market during and beyond the forecast period.
The global Edge Computing market is segmented into technology, deployment, component, Application, end-users, and region. By technology, the market is further sub-segmented into mobile computing and fog computing. At present, fog computing represents the largest share of the global market due to the advantage the technology offers in data processing received from multiple endpoints. However, the mobile edge computing market is expected to grow at an impressive CAGR of 31.1% and reach an estimated value of USD 4,562 Mn by the end of 2023 due to the flexibility, scalability, and economic scope the technology represents. It waits to place storage resources in 4G radio access network (RAN) to improve content delivery and enable operators to control traffic, optimize service quality and improve overall network efficiency.
By deployment, the market is further sub-segmented into On-premises and On-cloud.Presently, on-premise based deployment leads market growth due to its prevalence of use to replicate cloud services. However, on-cloud deployment is gaining popularity rapidly and is projected to achieve an exceptional CAGR of 32% during the forecast period due to use of cloud computing which uses virtual infrastructure and allows for multi-access edge computing.
By component, the market is further sub-segmented into hardware and software. The hardware segment dominates the market due to the prominence of on-premise deployment. however, with on-cloud deployment growing rapidly, the software segment is expected to grow at the fastest pace and the highest CAGR during the assesment period.
By application, the market is sub-segmented into IoT, data caching, analytics, environment monitoring. the IoT segment leads the market with the largest share due to the significant increase in connected devices and demand for IoT. The significant rise of IoT however has increased cost, delayed data computation and increased cost of mantaining data servers, edge computing solves these problems and enables many benefits. Meanwhile, the Data Caching segment is set to grow at the highest CAGR during the forecast period as it is vital in increasing speed of data delivery upon request.
By end user, the market is further sub-segmented into surveillance, automotive, gaming, and media, healthcare and education. The surveillance segment presently accounts for the most significant segment due to the increase in demand for high-resolution video technology and network-based video surveillance. The new technologies adopted in security services and equipment require fast and reliable network connectivity which is expected to be driven by edge computing. Meanwhile, the automotive segment is set to grow at the highest CAGR of 32.1% during the assessment period due to the increased number of vehicles connected to the internet and the widespread use of sensor-based technology in the automotive industry. The rapid growth of the automotive industry and the demand for edge computing in the same is expected to boost growth.
North America leads the global edge computing market and is closely followed by Europe. These regions are technologicaly advanced and have the presence of several leading market players who have contributed significantly to the technial advancements made. The adopting rate of cloud technology and IoT is high in these regions. In North America, the U.S leads market growth and has generated a revenue of USD 528.4 Mn in 2017. In Europe, Germany leads market growth for the region and possesses the largest share.
The Asia-Pacific is set to grow at the fastest rate with the highest CAGR during the assessment period. Increasing real-time applications of edge computing are a major factor respoinsible for driving market growth. China accounts for the largest share of the regional market and is projected to grow at the highest CAGR during the forecast period.
Market leading players included in the reportfor thier role in the competitive landscape include General Electric, Microsoft Corporation, Intel Corporation, SAP SE, and Amazon Inc. Partnerships, product launches, mergers and aquistions are the key market strategies used by these companies to move the market forward. Other market players of note include Aricent, IBM Corporation, Huawei Technologies, Integrated Device Technology, and Alphabet Inc. among others
Global Edge Computing Market: Competitive Landscape
The global edge computing market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain market share. Intense competition, rapid advances in technology, and frequent changes in the government policies are key factors that are detrimental for the market growth. The vendors compete based on digital services, pricing, reliability, and services. It is crucial for the vendors to provide advanced technology and value-added services for telecom vendors in edge computing industry, to survive and succeed in an intensely competitive market environment.
The market share analysis is derived by considering various factors such as financial position, segmental R&D investment, brand value, edge computing product portfolio, strategy analysis, and key innovations in edge computing market among other factors. The major players holding a prominent position in the edge computing market are Amazon, General Electric, Microsoft Corporation, Intel Corporation, SAP SE, and others.
According to MRFR analysis, Amazon is the leading company in edge computing market. Amazon Web Services is the growing provider of cloud services and has excellent network capabilities. Also, it has built a strong corporate network by partnering with different companies to increase their market sales. It has recently launched Green grass and Lambda edge services enabled with edge computing. Its strong market position and a large customer base supports its hold on edge computing market.
General Electric and Microsoft Corporation has occupied second and third position worldwide respectively in edge computing market. General Electric has wide geographical presence and offers wide range of products in its portfolio. For edge computing, the company highly emphasizes on its research expertise and is working to leverage the same to provide more efficient solutions enabled by edge computing. Whereas, Microsoft Corporation has a wide product portfolio and is a well-established brand. Microsoft Corporation has launched two products in edge computing namely Azure and Virtual Earth and it is also looking to bring edge analytics solution pre-installed in the upcoming version of Windows 10. Other companies such as Intel Corporation, SAP SE, Aricent, IBM Corporation, and IDT are also providing edge computing solutions to a wide range of applications thereby contributing in generating high market value.
The growth of the market vendors is dependent on the market conditions, government support, and industry developments. Thus, they mainly focus on expanding their geographic reach and work toward supporting advances in digital services. The prominent players in the edge computing market are Amazon, Microsoft Corporation, SAP SE, Alphabet, Inc., General Electric Corporation, Aricent, Inc., IBM Corporation, Huawei Technologies Inc., Integrated Device Technology (IDT), and Intel Corporation. These companies primarily focus on the development of edge computing modules and accessories. Although the global players are dominating the market, regional players with small market shares also have a considerable presence in the market. The global players are expected to strengthen their presence worldwide through partnerships, collaboration, and acquisitions during the forecast period.
Source: Annual Report, Press releases, Associations, Government Records, Journals, Expert Interviews, Secondary Research and Market Research Future Analysis