Edge Computing Market Share, Size, Trends, Industry Analysis Report, By Component (Hardware, Software, Services); By Application; By Organization Size (Large Enterprises, SMEs); By Verticals; By Region; Segment Forecast, 2022 - 2030
- Published Date:Nov-2022
- Pages: 118
- Format: PDF
- Report ID: PM2833
- Base Year: 2021
- Historical Data: 2018-2020
Report Outlook
The global edge computing market was valued at USD 7.43 billion in 2021 and is expected to grow at a CAGR of 38.8% during the forecast period. The growing demand for the edge computing market is expected to be driven by the rising adoption of smart devices and industrial IoT, increasing expenditure for autonomous vehicles, and growing demand for deployment of a 5G network.
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A huge number of devices are connected to the internet, which creates a high volume of data in traditional data center infrastructures. The emerging technologies & evolution of rapid adoption of computing devices across many industries are anticipated to create a high volume of decentralized data. A large amount of data generation reduces latency and inefficiencies while processing; edge computing relocates this data processing to the data sources rather than relying on the data center to handle and analyze data. This help organization optimizes their systems, which is considered a major factor in driving the market.
The edge computing market has increased the use of edge computing services during COVID-19 owing to the greater emphasis and investment in communications technology. In addition, increased internet usage was observed as many businesses started working remotely and all the process was done digitally owing to the global shutdown influencing the market. Moreover, the healthcare sector also benefitted from the software provided to the professionals and patients; patients used to mention their illnesses, and the physicians used to guide accordingly after receiving the data, which positively impacted the market.
With the emerging trends and digitization, end-use industries are adopting cutting-edge technologies to improve daily operations and speed up their processes. Though edge computing reduces storage and data transport costs, it eventually increases the capital expenditure of businesses. Moreover, the networked architecture of this system makes known threats more prevalent, making it vulnerable to malware invasion and security weaknesses. Furthermore, huge initial investments to build advanced infrastructure is required, which is a major restraining factor.
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Industry Dynamics
Growth Drivers
The global edge computing market is likely to be driven by the rising adoption of IoT devices, which creates a huge amount of data that needs to be processed and analyzed. In addition, organizations shifting from cloud computing and storage systems to edge computing owing to its better bandwidth and low latency for analysis is an essential factor fueling the market growth.
Furthermore, edge computing brings computation closer to IoT devices. As a result, data is more secure, and network latency is decreased due to a reduction in the distance for data transfer. This enables edge computing to optimize IoT applications requiring real-time responses, supporting market growth.
For instance, Klika Tech partnered with the tinyML foundation to solve real business issues by integrating machine learning models, software, and hardware. Moreover, the partnership is based on empowering tinyML to expand its business using resource-limited devices to become better, smarter, and more responsive, which is projected to propel the market growth.
Report Segmentation
The market is primarily segmented based on component, application, organization size, verticals, and region.
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By Component |
By Application |
By Organization Size |
By Verticals |
By Region |
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Hardware segment accounted for the largest share in 2021
The hardware segment accounted for the highest revenue share in 2021, owing to the growing adoption of connected devices. The emerging IoT trend increases the devices' capabilities, ultimately increasing the demand for real-time decision-making with reduced latency and accuracy. Additionally, with the increasing volume of data, hardware is deployed to relieve the burdens from data and cloud centers, which is anticipated to support segment growth.
Furthermore, businesses are opting for hardware that is robust, compact, has enough storage capacity, offers a variety of connectivity choices to operate over a wide power range, and also meets the requirement for which it is used. This hardware is mostly used in situations where it must perform reliably and optimally, increasing its demand in the military and defense sector; such factors influence segment growth.
Industrial internet of things is expected to lead the market
The demand for the industrial internet of things (IIoT) is driven by the introduction of industry 4.0, which enables manufacturers to adopt edge computing. Data processing tasks in industries rely on data from numerous sensors, controllers, and servers from various remote locations that require proper analysis and are helpful for real-time decision-making.
In addition, the rising automation across industries with edge computing integration helps reduce operational procedures. These technologies help remove communication and processing time gaps to drive real-time automation with minimal human intervention and labor contracts which boosts the segment growth.
Large enterprises are expected to witness faster growth
The demand for edge computing in large enterprises is expected to surge significantly over the forecast period owing to the increased demand for data security and growing cloud-based data traffic. Many large enterprises are adopting advanced technologies such as artificial intelligence and machine learning to enhance the overall productivity of their firms. Additionally, these firms generate a large amount of raw data which needs to be processed and analyzed, which increases the demand for edge computing.
Moreover, many end-use industries are deploying edge computing as it enables data retrieval more quickly as keeps data near the devices that are using it, which guarantees real-time data utilization. Also, large enterprises create a lot of data that needs to be confidential and free from threat; edge computing improves the privacy and security of the generated data, which is expected to drive segment growth.
Manufacturing industries are expected to account for the largest share in 2030
The manufacturing vertical is expected to dominate the market over the forecast period owing to emerging digital technologies for data collection, analysis, product insights, and efficiency. These emerging technologies and advanced-level infrastructure support smart manufacturing to reduce downtime, enhance product quality and improve overall output, which is expected to fuel the segment growth.
Organizations are adopting smart manufacturing integrated with edge computing solutions to make autonomous decisions. Businesses can look upon all the stages of the manufacturing process, from design to the product's supply chains, which increases flexibility and reactivity in the operations and keeps on a competitive edge with other participants projected to boost the segment growth. Moreover, edge computing enables condition-based monitoring, which enables the manufacturer to access machine data to monitor the issues of the equipment and identify the cause of the problem, which results in early detection and prevention of the condition, which also supports segment growth.
Asia Pacific is expected to witness the fastest growth over the forecast period
Asia Pacific is expected to witness faster growth over the forecast period owing to the rapid digitalization, innovation in technologies, and expansion of connected devices across developing nations such as China, India, Japan, and South Korea. In addition, the presence of major telecom players and increasing IT investments to deploy edge computing support regional growth.
Furthermore, rising government funding to empower digitization and the increasing need for many businesses to store and process data contribute to market growth. Moreover, emerging IoT applications across smart cities create huge amounts of data. The increasing demand for processing and analyzing data at a comparatively low cost compared to cloud computing to produce information and enhance real-time decision-making near the data source drives segment growth.
Competitive Insight
Some of the major players operating in the global market include ABB, ADLINK Technology Inc., Alphabet Inc., Amazon Inc, Amazon Web Services, Aricent, Inc., Atos, Cisco Systems, Dell Technologies, EdgeConnex Inc, ElnfoChips, FogHorn Systems, General Electric Company, Google LLC, Hewlett Packard Enterprises Development, Honeywell International Inc., Huawei Technologies Co. Ltd, IBM Corporation, Intel Corporation, Juniper Networks, Microsoft Corporation, Rockwell Automation, Inc, Saguna Networks, SAP SE, Schneider Electric SE, and Siemens AG.
Recent Developments
In July 2022: SixSq participated in the 5G-EMERGE project to develop solutions that use 5G technology and satellite broadcasting and enable distribution of high-quality content services all over Europe.
In November 2021: Litmus acquired kickdynamic to expand its portfolio with content automation, and AI-driven product users can build, test, and collaborate on high volumes of emails and also provide personalized email customer experience.
Edge Computing Market Report Scope
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Report Attributes |
Details |
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Market size value in 2022 |
USD 10.1 billion |
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Revenue forecast in 2030 |
USD 140 billion |
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CAGR |
38.8% from 2022 - 2030 |
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Base year |
2021 |
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Historical data |
2018 - 2020 |
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Forecast period |
2022 - 2030 |
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Quantitative units |
Revenue in USD billion and CAGR from 2022 to 2030 |
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Segments covered |
By Component, By Application, By Organization Size, By Verticals, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key Companies |
ABB, ADLINK Technology Inc., Alphabet Inc., Amazon Inc, Amazon Web Services, Aricent, Inc., Atos, Cisco Systems, Dell Technologies, EdgeConnex Inc, ElnfoChips, FogHorn Systems, General Electric Company, Google LLC, Hewlett Packard Enterprises Development, Honeywell International Inc., Huawei Technologies Co. Ltd, IBM Corporation, Intel Corporation, Juniper Networks, Microsoft Corporation, Rockwell Automation, Inc, Saguna Networks, SAP SE, Schneider Electric SE, and Siemens AG |
