Rising Implementation of IoT to be the Major Growth Driver for the Global Edge Computing Market
Edge computing refers to an approach of processing data near the edge of network where the data is being generated. So, edge computing is an approach of distributed computing that enables computation and data storage near the location where it is needed, instead of a centralized data-processing system. This helps improve response time, save bandwidth, and enable real-time processing of data without latency.
So, edge computing allows devices to respond to data instantaneously, and this will increase the popularity and adoption of edge computing across the world. Any device that generates data at the edge of the network can be termed as an edge device. Edge computing helps reduce the load on the cloud infrastructure. As edge computing enables real-time applications in analyzing and processing collected data, its adoption is expected to increase further in the coming years.
The volume of data generated has grown exponentially due to the rise of the Internet of Things (IoT). The need to process the large volumes of data generated by IoT devices will increase the demand for edge computing and thereby, promote the growth of the global edge computing market. Further, this technology helps organizations gain real-time insights, which too will increase the adoption of edge computing across various industry verticals.
The use of edge computing for data center applications will provide a major thrust to the global edge computing market. However, higher maintenance cost can be a hindrance for the market. But the emergence of autonomous vehicles and connected car infrastructure is expected to play an important role in the growth of the edge computing market, as edge computing ensures faster processing closer to the source of data. This allows more accurate and faster utilization of the collected data.
The main challenges before the global edge computing market are possible cyberattacks and the requirement of high initial investments. However, the rising adoption of edge computing in the IT & telecom sector is expected to provide ample growth opportunities for the global market soon.
The global Covid-19 pandemic has affected business across a large spectrum. The market for edge computing may also be impacted by the global pandemic to some extent, as the pandemic has affected the end-users of edge computing. The extent of the effect of coronavirus pandemic will mainly depend on how long it takes to find a cure or vaccine for the disease and the duration of the restrictions imposed to control the spread of the virus.
North America is a major market for the global edge computing market and is likely to hold the largest share in the market over the next few years. The growth of this regional market will be driven by the presence of a large number of edge computing vendors in the region and rapid adoption of new technologies in North American enterprises.
The global edge computing market is presently being dominated by players such as IBM, Cisco, Huawei, Dell Technologies, HPE, Nokia, FogHorn Systems, Litmus Automation, SixSq, Saguna Networks, MachineShop, ADLINK Technology, Axellio, Vapor IO, and Altran, among others.