Edge Computing Market Size, Share & COVID-19 Impact 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, 2023– 2030

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.

COVID-19 IMPACT

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.

LATEST TRENDS

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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.

DRIVING FACTORS

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.

RESTRAINING FACTORS

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.

SEGMENTATION

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 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.

By Enterprise Type Analysis

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.

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. 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.

By Industry Analysis

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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.

REGIONAL INSIGHTS

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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.

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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.

KEY INDUSTRY PLAYERS

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.

List of the Key Companies Profiled:

• IBM Corporation (U.S.)


• Intel Corporation (U.S.)


• Amazon.com, Inc. (U.S.)


• Google LLC (U.S.)


• Microsoft Corporation (U.S.)


• ADLINK Technology Inc. (Taiwan)


• Hewlett Packard Enterprise Development LP (U.S.)


• Cisco Systems, Inc. (U.S.)


• Huawei Technologies Co., Ltd. (U.S.)


• EdgeConneX Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2022 - Scale Computing partnered with Intel Corporation to incorporate its HyperCore tool into Intel’s NUC Enterprise Edge Compute (EEC) platform. This launch would help the company enable its enterprise users to solve problems in real-time and monitor the edge infrastructure.


• 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.


• August 2022 – Google partnered with AT&T Inc. to utilize 5G edge computing solutions and services to cater to users’ requirements. The companies will use this technology to help its users improve speed and increase security by running applications in its edge infrastructure.


• May 2022 - Vodafone partnered with Google Cloud and Cardinality.io, a data analytics firm to expand its presence across Europe.


• January 2022 – Amazon Web Services (AWS) collaborated with Telenor to deliver edge and 5G services primarily dedicated to enterprise verticals such as automotive, manufacturing, supply chain, and logistics.

REPORT COVERAGE

An Infographic Representation of Edge Computing market

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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.

Report Scope & Segmentation