The Edge Computing Market is projected to reach $122.7 billion by 2030, at a CAGR of 37.1% from 2023 to 2030. The growth of the edge computing market is attributed to the growing adoption of Industrial IoT solutions and the rising demand for low-latency processing and real-time automated decision-making solutions. However, the high capital expenditure required for infrastructure development restrains the market’s growth.
Moreover, the emergence of autonomous vehicles and connected car infrastructure is anticipated to offer significant opportunities for the growth of the global edge computing market. However, security concerns related to IoT devices may hinder the market's growth.
Rising Adoption of Industrial IoT Drive the Growth of the Global Edge Computing Market
Leading manufacturing companies across diverse geographic regions are consistently expanding their manufacturing operations while embracing smart manufacturing technologies. The integration of IoT sensors and IoT-enabled devices is at the center of this technological evolution of the industrial sector. However, the challenge lies in managing extensive data transmissions to and from numerous IIoT devices located in remote sites, connected via diverse network connections, all within tight timeframes. Industrial IoT solutions play a pivotal role in facilitating digital transformation across various industrial and critical infrastructure sectors.
In recent years, many organizations have shifted their focus toward edge-based solutions, recognizing the value that edge computing can bring to their industrial Internet of Things (IIoT) projects. Market participants are increasingly collaborating to offer edge computing solutions for industrial IoT applications. For instance, in September 2023, SECO S.p.A. (Italy) partnered with Qualcomm Technologies, Inc. (U.S.) to accelerate the development of new edge computing products for industrial IoT applications. Additionally, in February 2021, IBM Corporation (U.S.) collaborated with Siemens AG (Germany) and Red Hat, Inc. (U.S.) to leverage IBM's open hybrid cloud approach, based on Red Hat OpenShift, to develop MindSphere industrial IoT software and expand their edge computing footprint. This endeavor aims to provide an open, flexible, and more secure solution for manufacturers and plant operators to derive real-time value from operational data. These developments are driving the adoption of industrial IoT solutions and, thus, supporting the growth of the edge computing market.
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Key Findings in the Edge Computing Market Study:
In 2023, the Hardware Segment is Expected to Dominate the Global Edge Computing Market
Based on component, in 2023, the hardware segment is expected to account for the largest share of the global edge computing market. In 2023, the hardware segment is expected to account for the largest share of the global edge computing market. The large market share of this segment is attributed to the increasing IoT deployments and increasing investments in edge computing infrastructure by market players. For instance, in February 2023, bitsensing (South Korea) launched 24GHz Traffic Insight Monitoring Sensor (TIMOS), powered by the NVIDIA Jetson platform, with AI edge computing to enable the smart city environment by delivering accurate and reliable real-time detection on the road including traffic statistics, incidents, violations, and ETA.
The Content Delivery Segment to Register the Highest CAGR During the Forecast Period
Based on application, the content delivery segment is projected to register the highest CAGR during the forecast period. The growth of this segment can be attributed to the growing demand for expedited data processing over content delivery networks and the increasing need to minimize data transmission costs for enterprises and various stakeholders.
In 2023, the Energy & Utilities Segment is Expected to Dominate the Global Edge Computing Market
Based on end-use industry, in 2023, the hardware segment is expected to account for the largest share of the global edge computing market. In 2023, the energy & utilities segment is expected to account for the largest share of the global edge computing market. The large market share of this segment can be attributed to the increasing initiatives by market players to implement edge computing for data processing in remote locations, as well as the growing need to enhance production capabilities, streamline processes, and extend the life of assets. For instance, in June 2023, Itron Inc. (U.S.) launched the Edge Gateway, an edge-computing platform aimed at empowering utilities to achieve decarbonization and sustainability objectives while efficiently managing critical infrastructure.
Asia-Pacific to Register the Highest CAGR During the Forecast Period
Based on geography, Asia-Pacific is projected to register the highest CAGR during the forecast period. The growth of this regional market is attributed to the increasing cloud traffic, a growing preference among both government bodies and market players for local data storage and processing, and the rising investments in the telecommunications sector. Additionally, government initiatives promoting digitalization across various industries and substantial investments in IoT and cloud technologies contribute to the market's growth in the region.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by major market players in the last three to four years. The key players profiled in the global edge computing market study are Amazon Web Services (U.S.), Microsoft Corporation (U.S.), Dell Technologies, Inc. (U.S.), Hewlett-Packard Enterprise Company (U.S.), General Electric Company (U.S.), Huawei Technologies Co., Ltd. (China), IBM Corporation (U.S.), Juniper Networks, Inc. (U.S.), Cisco Systems, Inc. (U.S.), FogHorn Systems, Inc. (U.S.), Google LLC (U.S.), Intel Corporation (U.S.), SAP SE (Germany), MachineShop, Inc. (U.S.), and Saguna Networks Ltd. (Israel).
Scope of the Report:
Edge Computing Market Assessment, by Component
- Hardware
- Platform
- Services
- Training and Support
- Consulting Services
Edge Computing Market Assessment, by Application
- Smart Cities
- Industrial IoT
- AR/VR
- Remote Monitoring
- Content Delivery
- Other Applications
Edge Computing Market Assessment, by End-use Industry
- Energy & Utilities
- Transportation & Logistics
- Manufacturing
- Healthcare
- Government & Defense
- Retail
- Telecommunications
- Media & Entertainment
- Other End-use Industries
Edge Computing Market Assessment, by Geography
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- Japan
- China
- India
- South Korea
- Australia & New Zealand
- Rest of Asia-Pacific
- Latin America
- Middle East & Africa
Key questions answered in the report: