Edge Computing Market

Market Overview:

The global edge computing market size reached US$ 14.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 90.3 Billion by 2032, exhibiting a growth rate (CAGR) of 24.35% during 2024-2032. The increasing demand for low-latency computing, the rising utilization of advanced technologies, the growing use of data-intensive applications in numerous end-use industries, and the escalating concerns regarding security and compliance risks associated with storing sensitive data in centralized data centers are some of the factors propelling the market.

Edge computing represents a distributed computing framework designed to bring computational tasks and data storage closer to their point of use, often situated at the network edge. The overarching objective is to curtail latency, optimize bandwidth usage, and enhance response times, enabling swift and near real-time data processing and analysis. The distinctive attributes of edge computing encompass on-site data processing, a network of distributed computing nodes, integration with cloud resources, and the utilization of sensors and edge devices. This approach facilitates immediate data handling, filtering, local analysis, storage, and caching, creating a robust platform for executing applications at the network periphery. It proves particularly effective for scenarios necessitating rapid low-latency processing, including domains like autonomous vehicles, industrial automation, and virtual reality. Edge computing's merits encompass diminished latency and network congestion, heightened security and privacy safeguards, augmented efficiency, and dependability, and data transfer and cloud infrastructure cost savings. Given the escalating number of internet-connected devices demanding real-time processing capabilities, edge computing is progressively garnering global traction as a transformative computing paradigm.

The global market is majorly driven by the growing demand for low-latency computing, facilitating real-time decision-making and enhancing performance. This rise can be attributed to the rapid adoption of cutting-edge technologies like the Internet of Things (IoT), Artificial Intelligence (AI), and the rapid expansion of high-speed 5G internet connectivity. Simultaneously, the remarkable increase in data-intensive applications across diverse industries such as healthcare, finance, and retail is propelling market growth. Organizations generating vast amounts of data worldwide are inclined to minimize processing times, further driving market expansion. The rising adoption of cloud computing among businesses has amplified the need for seamless integration between cloud infrastructure and edge computing, particularly to establish hybrid cloud environments. Another driving force stems from concerns about security and compliance risks linked to centralized data centers, pushing organizations towards decentralized solutions. The market's momentum is bolstered by the imperative to reduce data transfer and storage costs while optimizing cloud resources efficiently.

Edge Computing Market Trends/Drivers:

Increasing digital transformation initiatives

The increasing digital transformation initiatives are stimulating the market. As businesses across industries strive to modernize their operations and harness the potential of advanced technologies, edge computing emerges as a crucial enabler. The transition to digitized processes, data-driven decision-making, and the proliferation of Internet of Things (IoT) devices necessitates efficient and swift data processing. Edge computing's ability to handle data closer to its source aligns perfectly with the requirements of a digitally transformed ecosystem. Its adoption empowers organizations to seamlessly manage and analyze data in real time, improving operational efficiency and enhancing customer experiences. As more companies recognize the advantages of edge computing in supporting their digital transformation journeys, the demand for edge solutions grows.

Rise of Industry 4.0

The rise of Industry 4.0 is catalyzing the market. This industrial revolution, characterized by the fusion of digital technologies, automation, and data exchange, reshapes manufacturing and operations. Integrating smart devices, IoT, big data analytics, and artificial intelligence enhances efficiency, productivity, and connectivity. As organizations embrace Industry 4.0 principles, the demand for edge computing is rising. Edge computing's ability to process data at or near its source aligns seamlessly with the real-time requirements of Industry 4.0. It empowers factories and production facilities to analyze data locally, reducing latency and enabling timely decision-making. In the context of Industry 4.0, edge computing is essential for harnessing the vast amounts of data generated by connected machines and devices. It enables organizations to extract actionable insights at the edge, optimizing processes and enabling predictive maintenance. Therefore, the rise of Industry 4.0 is propelling the adoption of edge computing as businesses seek to unlock the full potential of this industrial revolution.

Growing research and development (R&D) efforts

The escalating emphasis on research and development (R&D) activities is bolstering the market. Organizations and institutions are increasingly investing resources into exploring new technologies, refining existing processes, and developing novel solutions to address complex challenges. This heightened focus on R&D directly impacts the edge computing market by fostering advancements and improvements in edge-related technologies. The continuous exploration and refinement of edge computing capabilities lead to the creation of more efficient hardware, enhanced software frameworks, and optimized data processing methodologies. These developments cater to the evolving demands of businesses seeking agile and responsive data processing solutions. The synergy between growing R&D efforts and edge computing extends beyond technology itself. It also encompasses creating specialized applications, tools, and strategies that leverage edge computing's strengths. As R&D efforts drive the evolution of edge computing, its adoption becomes more viable, efficient, and aligned with the diverse needs of industries.

Edge Computing Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global edge computing market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on component, organization size and vertical.

Breakup by Component: 

• Hardware
• Software
• Services
   

Hardware dominates the market

The report has provided a detailed breakup and analysis of the market based on the component. This includes hardware, software, and services. According to the report, hardware represented the largest segment.

As organizations increasingly adopt edge computing solutions, a growing demand for specialized hardware that can efficiently process and manage data at the network edge is growing. The unique requirements of edge computing, such as low-latency processing and real-time analytics, drive the development of hardware components tailored to these demands.

Hardware innovations in edge computing encompass a spectrum of devices, including edge servers, gateways, sensors, and edge devices equipped with optimized processors and memory. These hardware components are designed to handle data processing closer to the source, reducing latency and enhancing overall system performance.

Moreover, hardware evolution in the edge computing sector contributes to edge deployments' scalability, reliability, and cost-efficiency. As more industries recognize the advantages of edge computing in enhancing data processing efficiency, the hardware segment continues to drive innovation, expanding the market's capabilities and appeal. 

Breakup by Organization Size:

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises
   

Large enterprises dominate the market

The report has provided a detailed breakup and analysis of the market based on the organization size. This includes small and medium-sized enterprises (SMEs) and large enterprises. According to the report, large enterprises represented the largest segment.

Large enterprises play a significant role in propelling the market. With their extensive resources and complex operational requirements, these enterprises are increasingly adopting edge computing solutions to optimize data processing and enhance operational efficiency. The scalability and customization potential of edge computing aligns well with the diverse needs of large organizations.

Large enterprises benefit from edge computing's ability to process and analyze data closer to the source, enabling quicker decision-making and reducing latency. This capability is especially critical for industries with massive data volumes requiring real-time insights, such as manufacturing, logistics, and healthcare.

As large enterprises embrace edge computing to gain a competitive edge, the demand for tailored solutions, robust infrastructure, and seamless integration rises. Their influence drives technological advancements, encourages innovation, and fosters collaborations within the edge computing ecosystem, shaping and expanding the market landscape.

Breakup by Vertical:

• Manufacturing
• Energy and Utilities
• Government and Defense
• BFSI
• Telecommunications
• Media and Entertainment
• Retail and Consumer Goods
• Transportation and Logistics
• Healthcare and Life Sciences
• Others
   

Energy and utilities dominate the market

The report has provided a detailed breakup and analysis of the market based on vertical. This includes manufacturing, energy and utilities, government and defense, BFSI, telecommunications, media and entertainment, retail and consumer goods, transportation and logistics, healthcare and life sciences, and others. According to the report, energy and utilities represented the largest segment.

The energy and utilities sector is pivotal in bolstering the market. As this industry undergoes a digital transformation, the integration of advanced technologies like the Internet of Things (IoT) and real-time data analytics becomes crucial. Edge computing's capability to process data at the point of generation aligns perfectly with the energy and utilities sector's need for rapid decision-making and efficient operations.

In this sector, edge computing enables real-time monitoring of energy distribution, predictive maintenance of equipment, and optimization of power generation and consumption. By reducing latency and enhancing data processing efficiency, edge computing empowers energy and utility companies to respond promptly to fluctuations in demand, mitigate potential disruptions, and improve overall system reliability.

Furthermore, the energy and utilities sector's edge computing investment drives hardware, software, and analytics innovation tailored to its specific needs. As the industry embraces edge solutions, it shapes the market, fosters technology advancements, and sets a precedent for other sectors seeking to harness the benefits of edge computing.

Breakup by Region: 

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market for edge computing.

As a hub for technological innovation and digital transformation, North America is rapidly adopting edge computing solutions across various industries. The region's advanced IT infrastructure, increasing deployment of IoT devices, and emphasis on real-time data analytics contribute to the rise in demand for edge computing.

In North America, edge computing is leveraged to enhance the manufacturing, healthcare, finance, and transportation sectors. Its ability to process data at the edge aligns with the region's emphasis on minimizing latency and optimizing decision-making processes.

Numerous key players, startups, and research institutions further foster the market. As the region pioneers the integration of edge computing into diverse sectors, it sets trends, encourages innovation, and significantly shapes the global edge computing market landscape.

Competitive Landscape:

Top companies actively strengthen market growth through strategic initiatives and innovative solutions. These industry leaders are consistently investing in research and development, driving the evolution of edge computing technologies and applications. They are pivotal in shaping industry standards and best practices, ensuring scalability, security, and efficiency of edge computing implementations. Furthermore, these companies are fostering collaborations with technology partners, cloud providers, and businesses across various sectors. By offering comprehensive solutions that integrate edge computing with cloud resources, they enable the creation of hybrid environments that cater to diverse operational needs. Top companies also lead in the development of specialized hardware and software, addressing the unique requirements of data processing at the edge. Their thought leadership, active participation in industry events, and educational initiatives contribute to increasing awareness and understanding of edge computing's benefits.

The report has provided a comprehensive analysis of the competitive landscape in the edge computing market. Detailed profiles of all major companies have also been provided.

• ABB Ltd.
• Amazon Web Services (AWS), Inc.
• Cisco Systems Inc.
• Digi International Inc.
• General Electric Company
• Hewlett Packard Enterprise Development LP
• Huawei Technologies Co. Ltd.
• IBM Corporation
• Intel Corporation
• Microsoft Corporation
• SAP SE
• Siemens AG

Recent Developments:

• In July 2023, ABB and Microsoft joined forces in a collaborative effort to introduce generative AI to industrial applications. ABB and Microsoft collaborate to integrate generative AI functionalities into industrial digital solutions to elevate operational standards toward safety, intelligence, and sustainability.
• In July 2023, Amazon Web Services (AWS) announced a pioneering service called AWS HealthScribe, harnessing the power of generative AI. This innovative offering is designed to automate the creation of clinical documentation.
• In August 2023, Cisco Systems Inc. introduced automated ransomware recovery. Cisco's Extended Detection and Response (XDR) introduces groundbreaking features enabling organizations to rebound from ransomware attacks autonomously. This innovative capability empowers businesses to automatically recover from such incidents, marking a significant advancement in cybersecurity technology. 

Edge Computing Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the edge computing market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global edge computing market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the edge computing industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.