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Edge Computing Market Size, Share & Industry Analysis, By Component (Hardware, Application/Software, Edge Cloud Infrastructure, Services, and Network), By Enterprise Type (Small & Medium Enterprises and Large Enterprises), By Application (IoT Applications, Robotics & Automation, Predictive Maintenance, Remote Monitoring, Smart Cities, and Others), By Industry (Manufacturing, Oil & Gas, BFSI, Healthcare, Retail, IT & Telecom, Automotive, and Others), and Regional Forecast, 2024 – 2032

Report Format: PDF | Published Date: Mar, 2024 | Report ID: FBI103760 | Status : Published

The global edge computing market size was valued at USD 15.96 billion in 2023. The market is projected to grow from USD 21.41 billion in 2024 to USD 216.76 billion by 2032, exhibiting a CAGR of 33.6% during the forecast period.

Edge computing is a technology of processing and storing data closer to the source to allow rapid and real-time analysis. It is a mesh network of micro data centers processing and storing data locally and pushing all received data to the cloud storage.

The global market is set to grow exponentially due to the increased use of edge devices. These devices range from Internet of Things (IoT) devices, such as mobile point-of-sale kiosks, smart cameras, industrial PCs and medical sensors, to gateways and computing infrastructure for faster and real-time insights into the data source. According to industry experts, 75% of data will be created outside central data centers by 2025. Emerging technologies, such as Industry 4.0, artificial intelligence, and IoT, are likely to boost the global market during the forecast period.

The COVID-19 outbreak has affected the market growth as well, with edge hardware devices experiencing a decline in production. As trade restrictions were enforced during the early stage of the pandemic, the production of edge chip sets, servers, and other devices was put on hold, affecting the progress of the global market. However, with the rapid adoption of advanced technologies and digitalization, businesses have developed innovative uses of edge devices. Also, with the rising introduction of IoT medical applications, edge computing proved to be a life-saving technology for the healthcare industry during the COVID-19 outbreak.

Edge Computing Market Trends

Rising Introduction of AIoT and Enormous Investments to Bolster Market Growth

Artificial Intelligence of Things (AIoT) has gained immense traction in recent years. From fitness trackers to AR & VR goggles and smart public transit, AI and machine learning are rapidly being used to make IoT devices more secure. With the help of AIoT, networks and systems are becoming capable of solving problems across industry verticals. The introduction of AI in programs, chipsets, and edge infrastructure can improve analytics and decision-making processes.

Virtual Reality (VR) and Augmented Reality (AR) are being rapidly adopted by both developed and developing economies. Metaverse-based online games, virtual shopping, and smart cities are connecting with digital worlds, enabling consumers to have a virtual experience.

As per industry analysts, global spending on AR/VR was USD 13.8 billion in 2022 and is expected to grow to USD 50.9 billion by 2026. The need for real-time applications on edge networks combined with hybrid-cloud technologies plays a significant role in creating virtual worlds. For instance,

  • In September 2023, Lenovo announced the launch of edge AI solutions and services for businesses to fast-track their AI readiness. It enabled users to use the firm’s recent solutions and services through a pay-as-you-go model to deploy edge computing and gain AI-powered insights straight at the source of data generation.

Edge Computing Market Growth Factors

Surging Need for Edge Infrastructure for 5G Network to Drive Market Growth

Edge-powered SaaS on 5G networks is gaining popularity. Companies across the world are integrating their services with the cloud, but with increased online reliance on IoT and AI devices, there is heavy data and processing traffic.

As businesses continue to implement artificial intelligence and Internet of Things solutions to analyze progressions and data from their tools, the necessity for low-latency, high-speed wireless connections is growing rapidly. Also, the perspective of 5G and MEC (multi-access edge computing) has progressed substantially. With 5G, users can install edge computing applications built on a cloud-driven distributed structure for solutions that require low latency and determined service quality. For instance,

With the rollout of 5G, investments by global companies continue to increase. More than 380 telecom operators are investing in 5G to boost their speed and agility. Edge computing with 5G/6G infrastructure can reduce complexity, save costs, and strengthen cybersecurity defenses. For instance,

According to the GSMA Mobile Economy Report 2023, there will be 5 billion 5G users by 2030 and more than 50% adoption by 2030. 5G is projected to surpass 4G in the year 2029. The technology would add approximately USD 1 trillion to the economy globally in 2030, with advantages spread across various industries.


High Initial Capital Investments Might Restrain Market Growth

The high initial investment can confine the edge computing market growth. The installation and maintenance of edge infrastructure can increase the CAPEX of many companies. It is hard to construct a complete and robust solution, as investing in edge nodes, devices, and data centres can be quite expensive.

The edge computing cost varies differently depending on data, scale, expertise, and location. Total costs can depend on the architecture present in place at edge surroundings.

Securing the entire computing network results in huge costs for the providers, thereby restraining market expansion.

Edge Computing Market Segmentation Analysis

By Component Analysis

Deployment of Hardware Solutions across Several Industries to Aid Market Growth

Based on component, the market is divided into hardware, application/software, edge cloud infrastructure, services, and network. The hardware segment generated maximum revenue for the market in 2023.

Hardware edge vendors are increasing their investments in edge computing across the globe. For instance, HPE invested around USD 4 billion over four years and is enhancing its already launched edge computing device, Edgeline Converged Edge Systems.

In the coming years, the demand for such edge services is expected to increase. Companies, including Intel Corporation and Dell Technologies Inc., are engaging in strategic investments to develop and enhance edge intelligence tools for commercial and industrial IoT. These investments are expected to boost the demand for these tools and their related services globally.

By Enterprise Type Analysis

Large Enterprises to Heavily Adopt Edge Solutions Due to Rising Deployment of IoT-Connected Devices

Based on enterprise type, the market is segmented into SMEs and large enterprises. The large enterprises segment is predicted to hold a large market share in the coming years. There has been a rise in the production of IoT-connected devices across the world. Enterprises require edge solutions to compute the data generated, enable quicker delivery of information, and enhance customer experience.

A cloud solution might not meet the latency requirements for real-time processing and performing functionalities to keep the data more secure. Edge computing manages the challenge of increasing data volumes by strategically handling the traffic, which improves the speed of analyzing real-time data. Owing to these advantages, larger enterprises have showcased a higher level of adoption of edge solutions than small & medium-sized enterprises. However, in the mid-term of the forecast period, small enterprises are expected to adopt edge solutions.

By Application Analysis

Smart Cities to Adopt Maximum Edge Solutions to Function Effectively

Based on application, the market is divided into IoT applications, robotics & automation, predictive maintenance, remote monitoring, smart cities, and others.

Smart cities function effectively by deploying edge computing-enabled technologies, such as IoT and 5G systems. Edge computing aids smart cities in comprehending benefits, such as minimizing transmission delays, helping data centralization, and creating better network resilience by empowering IoT and 5G systems to work with better proficiency. Such factors have increased the need for edge solutions in smart cities.

On the other hand, IoT applications dominated the market due to their extensive applications. According to Omdia, investments and innovations across IoT projects across the globe are continuously increasing despite economic uncertainties.

By Industry Analysis

IT and Telecom to Dominate Due to Increasing Business Complexity

Based on industry, the market is classified into manufacturing, oil & gas, BFSI, healthcare, retail, IT & telecom, automotive, and others. The pandemic changed the daily business operations of many companies, forcing them to shift most of their processes to the cloud. IT and telecom industries have rapidly shifted their business operations to the cloud. The inclination of enterprises toward the cloud has played a vital role in increasing the volume of data generation. This has created the need for instantaneous processing, which has been a restraining factor in the adoption of cloud computing processes. Owing to this, IT and telecom industries held the largest market share in 2023.

Furthermore, the manufacturing industry is expected to flourish in the upcoming years due to the rising number of applications of edge computing in the sector. Moreover, the rising adoption of such solutions, across the retail, automotive, and oil & gas sectors, is expected to increase the edge computing market share.


The market is analyzed across North America, South America, Europe, the Middle East & Africa, and Asia Pacific, by geography.

North America generated the maximum revenue for the market in 2023. The regional market is majorly influenced by the growing presence of leading players based in the U.S. Some of these players include IBM, Intel, Microsoft, and many others. These companies have been strategically expanding their geographic presence and customer base by merging with and acquiring small-scale companies.

For instance, in February 2022, IBM acquired Sentaca to accelerate its hybrid cloud consulting business and add intricate skills to help Communications Service Providers (CSPs). With this acquisition, the company expected to modernize its cloud platforms and transform its business.

Asia Pacific is also expected to grow significantly in the coming years. This is owing to the increasing adoption of edge solutions across countries such as Japan, India, and China. Besides this, government regulations supporting IT infrastructure have boosted the region's market growth. For instance,

  • In September 2022 - India's telecom operator, Bharti Airtel, partnered with IBM Corporation to deploy its edge computing platform in India. This partnership will include over 120 network data centers in around 20 cities.

Moreover, South America, Europe, and the Middle East & Africa have been adopting advanced technologies on a large scale amid the pandemic crisis. Companies across these regions have been modernizing their existing processes with advanced technologies. More data generated through connected devices, rising deployment of cloud-based solutions, increasing demand for Industrial Internet of Things (IIoT) solutions, and other factors are expected to positively impact the market during the forecast period.

List of Key Companies in Edge Computing Market

Companies Focus on Mergers, Acquisitions, and Partnerships to Gain Competitive Edge

Key players in the global market are continuously engaging in mergers and acquisitions to gain a strong competitive edge over other companies in the market. They are adopting this strategy to combine the best of their capabilities with the expertise of the firms they acquire. The products developed from this combination can effectively cater to the changing requirements of the users.

List of the Key Companies Profiled:


  • February 2024 – At MWC Barcelona, ADLINK revealed 5G and industrial edge computing. At MWC Barcelona, partners and customers of ADLINK, including AgrandTech, SageRAN, and Askey, would be representing several 5G network solutions built on the MECS series of ADLINK Edge Server.

  • January 2024 - EQT Infrastructure announced a collaboration with EdgeConneX to progress data centers for hyperscale customers globally. This new alliance would build numerous megawatts of new data center capability to aid future cloud, artificial intelligence and other precarious digital infrastructure necessities.

  • January 2024 – IBM and American Tower announced an alliance to propel the adoption of edge computing. The purpose of the collaboration is to accelerate the deployment of a multi-cloud, hybrid cloud computing platform at the edge, transporting business applications closer to essential data sources.

  • December 2023 - McDonald's Corporation announced a collaboration with Google to join the Google Cloud mechanism across its thousands of restaurants globally. With the partnership, McDonald's would make use of Google Cloud’s edge computing to empower these new platforms, transporting data storage and high power-driven computing into separate restaurants.

  • March 2023 – BT Group and Amazon Web Services expanded their alliance on 5G edge computing services, cloud networking proposals, and IoT solutions for U.K.-based enterprise customers. The deal aims at a USD 500 million revenue prospect to sell IoT services and connectivity to U.K. businesses, predominantly over the coming five years.


The research report highlights major regions to offer a better understanding of the market to the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies deployed across the globe. In addition to this, the report highlights driving factors and restraints that help the user gain in-depth knowledge about the market.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 33.6% from 2024 to 2032


Value (USD Billion)


By Component

  • Hardware

  • Application/Software

  • Edge Cloud Infrastructure

  • Services

  • Network

By Enterprise Type

  • Small & Medium Enterprises

  • Large Enterprises

By Application

  • IoT Applications

  • Robotics & Automation

  • Predictive Maintenance

  • Remote Monitoring

  • Smart Cities

  • Others (Video Analytics, Smart Homes)

By Industry

  • Manufacturing

  • Oil & Gas

  • BFSI

  • Healthcare

  • Retail

  • IT & Telecom

  • Automotive

  • Others (Gaming, Entertainment)

By Region

  • North America (By Component, By Enterprise Type, By Application, By Industry)

    • U.S. (By Application)

    • Canada (By Application)

    • Mexico (By Application)

  • South America (By Component, By Enterprise Type, By Application, By Industry)

    • Brazil (By Application)

    • Argentina (By Application)

    • Rest of South America

  • Europe (By Component, By Enterprise Type, By Application, By Industry)

    • U.K. (By Application)

    • Germany (By Application)

    • France (By Application)

    • Italy (By Application)

    • Spain (By Application)

    • Russia (By Application)

    • Benelux (By Application)

    • Nordics (By Application)

    • Rest of Europe

  • Middle East & Africa (By Component, By Enterprise Type, By Application, By Industry)

    • Turkey (By Application)

    • Israel (By Application)

    • GCC (By Application)

    • North Africa (By Application)

    • South Africa (By Application)

    • Rest of MEA

  • Asia Pacific (By Component, By Enterprise Type, By Application, By Industry)

    • China (By Application)

    • India (By Application)

    • Japan (By Application)

    • South Korea (By Application)

    • ASEAN (By Application)

    • Oceania (By Application)

    • Rest of Asia Pacific

Frequently Asked Questions

How much was the global edge computing market worth in 2023?

As per a study by Fortune Business Insights, the market size was USD 15.96 billion in 2023.

At what CAGR is the edge computing market projected to grow in the forecast period of 2024-2032?

The market is likely to record a CAGR of 33.6% over the forecast period of 2024-2032.

Which is the leading component segment in the market?

The hardware segment is expected to lead the market due to rising investments of hardware vendors in edge technologies.

What was the value of the North American market in 2023?

The market size in North America stood at USD 5.16 billion in 2023.

What are the key factors driving the market?

Surging need for edge on 5G network to have significant impact is driving the market growth.

Who are the top players in the market?

Some of the top players in the market are IBM Corporation, Intel Corporation, Google LLC Microsoft Corporation, and Amazon.com, Inc.

Which country dominated the market in 2023?

The U.S. dominated the market in terms of the presence of key players in 2023.

Which factor is expected to restrain the deployment of the product?

High initial capital investments may restrain market growth.

  • Global
  • 2023
  • 2019-2022
  • 196
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