"Smart Strategies, Giving Speed to your Growth Trajectory"
The global edge computing market size was valued at USD 11.99 billion in 2022 and is projected to grow from USD 15.96 billion in 2023 to USD 139.58 billion by 2030, exhibiting a CAGR of 36.3% during the forecast period. North America market size was worth USD 4.13 Billion in 2022.
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 on the data source. According to Gartner, 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 edge computing market during the forecast period.
Digital Transformation Caused by Pandemic Boosted the Product Demand
The COVID-19 pandemic caused considerable impact on enterprises as they are accelerating and improving their digital transformation and turning to technology to help them adapt to any scenario. The 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 were put on a hold, affecting the global market progress.
However, with the rapid adoption of advanced technologies and digitalization, businesses have developed innovative uses of edge devices. For instance, during the COVID-19 pandemic, the Sensormatic video-based AI solution aided retailers in opening stores safely by tracking occupancy and monitoring social distancing.
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. Work-from-home provisions, video conferencing applications, and business automation & intelligence boosted the growth of the edge computing market.
Request a Free sample to learn more about this report.
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.
According to the IDC report 2022, 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 November 2021, Philips launched an AI powered platform to improve diagnosis from imaging scans. This simplified the process of collecting and sharing patient data.
Surging Need of Edge Infrastructure for 5G Network to Drive Market Growth
Edge-powered SaaS on 5G networks are 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.
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, in June 2021, IBM Corporation collaborated with new edge partners to drive digital transformation for enterprise clients. The company partnered with over 30 partners including Capgemini, Atos, Foghorn, HP Inc., Lenovo, and more. This partnership will help businesses infuse client operations with edge technology by leveraging artificial intelligence, hybrid cloud, and 5G.
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 centers can be quite expensive.
Securing the entire computing network results also incurs huge costs for the providers, thereby restraining market expansion.
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 2022.
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 an 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.
Large Enterprises to Heavily Adopt Edge Solutions Due to Rising Deployment of IoT-Connected Devices
Based on enterprise type, the edge computing 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.
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. This has boosted the demand 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.
To know how our report can help streamline your business, Speak to Analyst
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 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 2022.
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.
North America Edge Computing Market Size, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
The edge computing 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 2022. 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.
To know how our report can help streamline your business, Speak to Analyst
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.
Companies Focus on Mergers, Acquisitions, and Partnerships to Gain Competitive Edge
Key players in the edge computing 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.
An Infographic Representation of Edge Computing market
To get information on various segments, share your queries with us
The edge computing market 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 which help the user gain in-depth knowledge about the market.
CAGR of 36.3% from 2023 to 2030
Value (USD Billion)
By Enterprise Type
As per a study by Fortune Business Insights, the market size was USD 11.99 billion in 2022.
The market is likely to record a CAGR of 36.3% over the forecast period of 2023-2030.
The hardware segment is expected to lead the market due to rising investments of hardware vendors in edge technologies.
The market size in North America stood at USD 4.13 billion in 2022.
Surging need for edge on 5G network to have significant impact is driving the market growth.
Some of the top players in the market are IBM Corporation, Intel Corporation, Google LLC Microsoft Corporation, and Amazon.com, Inc.
The U.S. dominated the market in terms of the presence of key players in 2022.
High initial capital investments may restrain market growth.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry