Edge Computing Market Research Report - Global Forecast till 2030

Edge Computing Market Research Report Information By Component (Hardware, And Software and Solutions), By Application (IoT, Data Caching, Analytics, Environment Monitoring, Augmented Reality, Location Services and others), By Vertical (Transportation, Energy & Utilities, Healthcare, Manufacturing, Semiconductor, Government, IT & Telecommunication, Retail, Education, Hospitality and Others), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030

ID: MRFR/ICT/2348-CR | 150 Pages | Author: Aarti Dhapte | February 2020         

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Edge Computing Market Overview

Edge Computing Market Size was valued at USD 29.2 billion in 2021. The Edge Computing market industry is projected to grow from USD 36.35 Billion in 2022 to USD 168.6 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 24.51% during the forecast period (2022 - 2030).  Increasing usage of industrial IoT and increasing workload on cloud infrastructure are the key market drivers enhancing the market growth.
Edge Computing Market Overview
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Edge Computing Market Trends

Growing use in IoT to boost market growth

The Internet of Things (IoT) business has experienced tremendous growth in recent years and is predicted to experience exponential growth in the years to come. The amount of data produced by connected devices is growing rapidly as their number steadily rises. The increasing demand to handle and evaluate this data more quickly. Even if cloud computing is essential to the success of IoT, there are some situations where cloud computing needs to satisfy the expectations for faster data processing.

To fulfill the rising demand, the telecommunications sector is quickly developing new video conferencing tools like Microsoft Teams and Zoom. For instance, SK Telecom and Amazon Web Services teamed up to offer 5G MEC-based edge cloud services in December 2020.

As communications infrastructure continues to be developed, demand for edge computing is anticipated to increase in the years following the COVID-19 pandemic. Working from home is gradually replacing traditional office work. In addition, a network design needing high security and low latency connectivity is anticipated to emerge as the healthcare system gains traction through online consultations. With unique tools and architectures created for distinct use cases, edge computing has developed into a solution-specific technology. Next-generation CDNs, network function and 5G virtualization, and streaming gaming are a few application cases where the edge is anticipated to get a sizable proportion throughout the anticipated time. This is the first step toward a time when access to the edge is widely available. Therefore, the such condition has enhanced the Edge Computing market CAGR in recent years.

However, the growing demand for low-latency processing, gathering, and analysis of the massive amounts of data generated by digitization at the network's edge is another factor driving the edge computing market revenue growth.

Edge Computing Market Segment Insights

Edge Computing Component Insights

The edge computing market segmentation is based on components into hardware, software, and solutions. The hardware segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. it is becoming popular in the managed services sector. The amount of data produced by IIoT and IoT devices is rapidly growing along with their quantity. The need for edge routers, which connect local and wide-area networks, is boosted by the rising number of data centers across numerous industries. Hence, rising applications for Edge Computing positively impact market growth.

Figure 2: Edge Computing Market, by Component, 2021 & 2030 (USD Million)
Edge Computing Market, by Component, 2021 & 2030
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Edge Computing Application Insights

Based on application, the Edge Computing market segmentation includes IoT, data caching, analytics, environment monitoring, augmented reality, location services, and others. The IoT segment held the majority share in 2021, contributing around ~28% concerning the Edge Computing market revenue. For manufacturers to achieve the aim of digitizing their facilities, edge computing has been crucial. Edge computing has a sizable installed base in the manufacturing sector in device edge. As services become more complex and the infrastructure edge is more easily accessible, the demand for edge infrastructure is anticipated to rise.

Edge Computing Verticals Insights

Verticals have bifurcated the edge computing market data into transportation, energy & utilities, healthcare, manufacturing, semiconductor, government, it & telecommunication, retail, education, hospitality, and others. The energy & utilities segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Smart grids, which rely on device-edge infrastructure, will likely help the energy and utility sector's income grow. attempts to increase the efficiency of electrical utility services, including developing alternative renewable power sources like solar and wind, are being fueled by environmental sustainability programs.

Healthcare was the fastest-growing segment. The market is tightly regulated, with authorization promoting advancement rather than obvious disruption. Hospitals and clinics are nevertheless progressively putting into practice digital health initiatives, albeit to varying degrees of sophistication and efficacy, as the healthcare sector becomes more digital..

Edge Computing Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North America Edge Computing market accounted for USD 12.58 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. IIoT and edge computing convergence create ideal conditions for American manufacturers to transition to connected manufacturing. Several businesses have also developed to provide platforms for creating edge-enabled products, which are projected to accelerate the local market's growth.

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

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

Europe's Edge Computing market accounts for the second-largest market share due to the increasing usage of IoT, the necessity to deal with the dramatically increased data, the growing need for low-latency processing and real-time automated decision-making solutions, and the strain on cloud infrastructure. Further, the Germany Edge Computing market held the largest market share, and the UK Edge Computing market was the fastest-growing market in the European region

The Asia-Pacific Edge Computing Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the COVID-19 pandemic's increased regional emphasis on bolstering networking technology. The significant growth of the connected device ecosystem in the area generates a lot of data, necessitating the need for a strong computational infrastructure. Moreover, China's Edge Computing market held the largest market share, and the India Edge Computing market was the fastest-growing market in the Asia-Pacific region.

Additionally, in October 2021, NEXTY Electronics Corp., a key member of the Toyota Tsusho Group, and Blaize, an AI computing company active in automotive and edge computing, announced that NEXTY had been appointed as a Blaize distribution partner serving the automotive and industrial markets for AI edge computing in Japan. Blaize's low-power, low-latency, and compute-efficient AI inference accelerator solutions will enable the adoption of edge AI applications across various industries by focusing on innovation and anticipating client demands..

Edge Computing Key Market Players & Competitive Insights

The major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for edge computing. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking a variety of strategic activities to expand their presence. In order to grow and survive in an environment where competition is fierce and the market is growing, competitors in the edge computing industry must provide affordable products.

Manufacturing locally to cut operational costs is one of the main business tactics used by manufacturers in the Edge Computing industry to benefit customers and develop the market sector. The edge computing industry has recently offered some of the most important advantages. The Edge Computing market major player such as SixSq, Litmus edge and others are working to expand the market demand by investing in research and development activities.

SixSq is the business that offers the edge-to-cloud management platform Nuvla, enabling organizations to create a secure and all-encompassing edge and cloud strategy without being locked in. In June 2022, SixSq announced their continued collaboration to provide Nuvla Marketplace users with intelligent sound-embedded software to analyze particular sounds. Thanks to this agreement, the unique sound processing technology from Securaxis can now be purchased, deployed, and managed much more easily.

Also, For enterprise-scale Industry 4.0, Litmus integrates device connection, data intelligence, and data integration on a single platform trusted by Google Cloud, Dell Technologies, HPE, Hitachi, Mitsubishi, and other Fortune 500 businesses. In May 2022, To make the challenging process of gathering data from many production devices and making it accessible to Google Cloud data and Al applications simpler, Litmus and Google Cloud jointly developed the Manufacturing Connect platform.

Key Companies in the Edge Computing market includes

Edge Computing Industry Developments

June 2023: DXC Signal Private LTE and 5G, a managed secure private wireless network and digitalization platform solution that assists industrial organisations in digitally transforming their operations, has been presented by Nokia and DXC Technology, a multinational technology services company.

The two firms have committed to offering world-class private wireless networking solutions that will propel enterprises into the future as part of a worldwide, strategic alliance. DXC and Nokia, working together, provide a strong solution to organisations that demand high-bandwidth, low-latency wireless networks to support more automation, enhanced flexibility, operational technology (OT) data processing, and privacy requirements.

DXC Signal Private LTE and 5G is intended to fulfil the increasing demand for private wireless networks in critical market categories such as manufacturing, energy, healthcare, supply chain and logistics, transportation, and education. This sophisticated solution combines Nokia Digital Automation Cloud (DAC) and Nokia MX Industrial Edge (MXIE) with DXC Platform XTM to offer organisations cutting-edge monitoring and analytics capabilities, increased security, and seamless communication.

April 2023: With its new open-source operating system created to handle data in various industrial applications sans the need of sending it to the cloud, Zededa Inc. recently claimed to be reinventing the edge.

Zededa and the Linux Foundation collaborated to develop the EVE-OS, a component of Project EVE, as an open on-premise solution for business edge computing.

Ouissal, founder and CEO of Zededa, said, what they saw is the edge in fact is so distinct and so different from what they have seen in the data centre in the cloud that they needed to design a full brand new purpose-built visualization and virtualization solution.

According to Ouissal, it can become expensive and challenging to have enough bandwidth to transfer all data from the nodes back into the cloud as society links more and more devices to the network's edge. In highly dispersed situations, Zededa provides a software suite that may be used to monitor every node.

With the recent signing of an OEM contract, Zededa's edge orchestration technology may now be incorporated into VMware's Edge Compute Stack. Through the use of VMware Edge Compute Stack 2.0, this advancement will improve the synchronization of VMware edge devices and give clients a better understanding of their edge devices.

According to Ouissal, VMware clients desire that multi-edge, multi-cloud orchestration experience. Customers can now enjoy a unified experience from the cloud to the edge and everywhere in between thanks to their integration into that vision.

Zededa just completed a USD 26 million Series B investment round, indicating that it has no plans to scale down its expansion. Also, they have some extremely exciting things in the works thanks to a VMware OEM deal. They intend to keep demonstrating their product and expanding their clientele. For them, it is about keeping the product viable across a growing number of industries.

Edge Computing Market Segmentation

Edge Computing Component Outlook

  • Hardware

  • Software and Solutions

Edge Computing Application Outlook

  • IoT

  • Data Caching

  • Analytics

  • Environment Monitoring

  • Augmented Reality

  • Location Services

  • Others

Edge Computing Verticals Outlook

  • Transportation

  • Energy & Utilities

  • Healthcare

  • Manufacturing

  • Semiconductor

  • Government

  • IT & Telecommunication

  • Retail

  • Education

  • Hospitality

  • Others

Edge Computing Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

Report Scope:

Report Attribute/Metric Details
Market Size 2021 USD 29.2 billion
Market Size 2022 USD 36.35 billion
Market Size 2030 USD 168.6 billion
Compound Annual Growth Rate (CAGR) 24.51% (2022-2030)
Base Year 2021
Market Forecast Period 2022-2030
Historical Data 2018 & 2020
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Component, Applications, Verticals, and Region
Geographies Covered North America, Europe, Asia Pacific, and Rest of the World
Countries Covered The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled General Electric Company, Amazon Inc., Intel Corporation, Microsoft Corporation, SAP SE, Schneider Electric SE, Alphabet Inc., IBM Corporation, ADLINK Technology Inc.,Huawei Technologies Co. Ltd.
Key Market Opportunities Emergence of IoT technologies
Key Market Dynamics Evolving Network Technologies

Frequently Asked Questions (FAQ) :

The Edge Computing market size was valued at USD 29.2 Billion in 2021.

The market is projected to grow at a CAGR of 4.7% during the forecast period, 2022-2030.

North America had the largest share in the market.

The key players in the market are General Electric Company, Amazon Inc., Intel Corporation, Microsoft Corporation, SAP SE, Schneider Electric SE,.

The Hardware category dominated the market in 2021.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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