Edge Computing Market Overview:
The Global Edge Computing Market was valued at US$ 2,986.2 Mn in 2020 is expected to reach US$ 21,589.6 Mn by 2027, with a growing CAGR of 32.7% during the forecast period (2021-2027). Edge computing is a technology developed to process large volumes of data created at the edge of the network. The data generated using devices connected to the Internet are generally processed using edge computing. The accelerating adoption of Internet-of-Things (IoT) across various industrial sectors primarily manufacturing, consumer IoT and transportation is boosting the edge computing industry demand. It enables increased data security, improved business reliability, and efficiency, unlimited scalability, better app performance and reduced operational costs for business organizations. Companies are increasingly shifting towards edge computing to overcome the limitations of IoT data analysis in the cloud. IoT offers opportunities to the companies to differentiate products, optimize assets and reimagine business models for strategic advantage and hence highly utilizing edge computing technology on a large scale.
Furthermore, with 4G and 5G networks, smart and artificially intelligent devices are increasingly connected using the internet which is generating a large amount of data. A large amount of data is increasing the burden on cloud storage and creates network congestion and latency. To overcome these drawbacks edge computing is used. In addition to this, the emerging infrastructure for an autonomous and connected vehicle is further anticipated to proliferate the edge computing market growth during the forecast period. However, the high cost of infrastructure maintenance associated with edge computing is hampering the growth of the edge computing industry.
By Organization Size
By Industry Vertical
Based on the component, hardware is expected to hold the largest market share and is anticipated to register the highest CAGR of 33.4% during the forecast period
The increasing adoption of edge computing technology is leading to the rising need for suitable infrastructure supporting the edge computing industry demand. The edge computing devices such as sensors, rugged edge computers, and monitoring devices among others are contributing to data production. The companies across the edge computing ecosystem provide devices with extended lifecycle and dual GPU options for content caching, machine learning, data aggregation, and analytics functionality at the edge. With the deployment of edge devices near the network large number of hardware devices are required accelerating the demand for edge computing hardware.
Based on the industry vertical, BFSI is anticipated to account for a market share of 25.4% during the forecast period with the energies and utilities industry segment witnessing the highest growth rate
The banking, financial, and services institutions are at the forefront of adopting digital innovations coupled with other technological advancements such as blockchain technology, mobile banking, and cloud technology among others. The BFSI sector is increasingly shifting away from selling a product to creating a seamless customer experience that can be achieved using real-time data and analytics. To gather information and provide real-time analysis BFSI sector is increasingly deploying IoT devices to interact with their customers to further enhance their experience. In addition to this, edge computing allows the ease of data management closer to the source while enabling the banks to scale their levels of operation. It is anticipated that by 2025, three-quarters of the enterprise data will be created and processed through edge further accelerating the edge computing industry demand in the BFSI sector.
Based on regions, the Asia Pacific region is witnessing the highest growth rate with North America holding the largest market share of 38.7% in the base year 2020
With the increasing number of users for cloud technology across the Asia Pacific region, the maintenance and management of the data are becoming a challenging task. This is encouraging business organizations to switch to edge computing technology to avoid congestion, speed up data processing, and reduce latency. The industry verticals such as retail stores, BFSI, transportation are adopting edge computing industry solutions to concentrate on the edge locations away from the core data center. Moreover, the countries such as China, Taiwan, and India among others are increasingly investing in edge computing project developments which are anticipated to boost the demand for edge computing across the Asia Pacific region.
However, the North America region has the dominant position across the edge computing market analysis primarily owing to the excellent technology infrastructure and integration of IoT across the industrial sector. Furthermore, the U.S. accounts for the largest market share in the North America edge computing market forecast with Canada witnessing the significant growth rate. Moreover, the rising 5G testing and developments in the 5G technology are anticipated to boost the edge computing market growth in the region.
Company Profiles and Competitive Intelligence: The major players operating in the global edge computing market are Dell Inc., Nokia, IBM Corporation, Cisco Systems, Inc., Huawei Technologies Co., Ltd., Amazon Web Services, Inc., Capgemini, Microsoft, Google LLC, and FogHorn Systems, among others.
The report also provides an in-depth analysis of edge computing market dynamics such as drivers, restraints, opportunities, and challenges
COVID-19 Impact on the Edge Computing Market Analysis
The edge computing industry witnessed significant impacts of the COVID-19 pandemic, but the growth remained stable. The edge data centers and edge computing played a vital role to manage a large amount of data for organizations across the globe amid pandemic. The boom in the use of digital technologies owing to the work from home culture supported the growth of the edge computing market during the coronavirus pandemic. The pandemic has compelled business organizations to move their critical data to the cloud. With cloud gaining momentum these companies are furiously looking for solutions to optimize their network and storage. To meet these requirements edge computing turned out to be the perfect solution further accelerating the market growth.
The report also provides an in-depth analysis of key trends in the edge computing market
|1||IoT adoption is rapidly expanding resulting in an influx of data to be processed with reduced latency, higher bandwidth, and enhanced security. Edge computing provides closer computing to IoT devices for data collection and analysis thereby optimizing the IoT applications.||Positive|
|2||The stakeholders across the edge computing ecosystem such as service providers, data center providers, and industry verticals are coming together to gain a larger market share||Positive|
The report also provides an in-depth analysis of recent news developments and investments
Company Profiles and Competitive Intelligence
The key players operating in the market are:
The unique insights provided by this report also includes the following:
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