Edge Computing Market Size, Share, Trends, Growth, and Industry Analysis, By Organization Size (Large Enterprises, and Small and Medium-sized Enterprises (SMEs)), By Component (Software, Hardware, and Services), By End-use (Retail and Consumer Goods, Transportation and Logistics, Manufacturing, Energy and Utilities, Government and Defence, BFSI, Telecommunications, Media and Entertainment, Healthcare and Life Sciences, and Others), Regional Analysis and Forecast 2032.
Edge Computing Market Trend
Global Edge Computing Market size was USD 18.93 billion in 2023 and the market is projected to touch USD 89.03 billion by 2032, at a CAGR of 21.35% during the forecast period.
Edge computing is the process of processing data closer to its location of origin, such as, for example, at the source, like IoT devices or sensors, rather than centralized cloud servers. This would allow for faster analysis and response times by applications in the domains of, for instance, autonomous vehicles, smart cities, and more.
With the advancement of connected devices and the Internet of Things in the past couple of years, the need for edge computing has gained importance. Nowadays, organizations produce vast amounts of data, for which traditional cloud computing does not keep up with their processing requirements. Edge computing overcomes this challenge because it processes data locally and minimizes their travel length to such long distances to the data centers. The implementation rate of edge solutions is quite high in industries such as health-care, manufacturing, and retail to achieve better operational efficiency and excellent customer experience. Growth in the 5G segment will also be a huge catalyst for the growth of the edge computing market since faster connectivity, along with reliability, will enable edge applications to become much more sophisticated.
Edge Computing Report Scope and Segmentation.
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Report Attribute |
Details |
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Estimated Market Value (2023) |
USD 18.93 Billion |
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Projected Market Value (2032) |
USD 89.03 Billion |
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Base Year |
2023 |
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Historical Year |
2018-2022 |
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Forecast Years |
2024 – 2032 |
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Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment—Based on By Organization Size, By Component, By End-Use, & Region. |
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Segments Covered |
By Organization Size, By Component, By End-use, & By Region. |
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Forecast Units |
Value (USD Million or Billion), and Volume (Units) |
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Quantitative Units |
Revenue in USD million/billion and CAGR from 2024 to 2032. |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. |
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Countries Covered |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others. |
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Report Coverage |
Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis. |
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Delivery Format |
Delivered as an attached PDF and Excel through email, according to the purchase option. |
Dynamic Insights
The exponential growth in the data generated by connected devices, particularly in IoT, is a significant driver for edge computing. Increasing data need faster processing capacity to allow analytics and decision-making on time. Edge computing perfectly supports that with the closeness of the processing of data to its source. Increased low latency applications such as autonomous vehicles and smart city infrastructure demand the deployment of edge solutions across all industry verticals.
Security threats and challenges in managing dispersed computing assets will, however remain a significant challenge to the market's growth. Most edge devices are operating in less controlled environments, hence greater susceptibility to cyber threats. Besides, most organizations face problems integrating edge computing into their current IT infrastructure. However, the improvements in security technologies and the development of robust frameworks to manage edge networks mitigate the concerns.
Drivers Insights
The Internet of Things and the number of connected devices have seen an explosive growth never before imagined to generate data. According to estimates, by 2025, more than 75 billion devices across the globe would be interconnected, generating huge amounts of real-time data. Edge computing helps organizations process such data closer to where it is being generated, reducing latency and bandwidth consumption. Such immediacy enables enterprise to extract actionable insights much faster than their competitors, thereby enabling in-time decision in applications like autonomous vehicles, industrial automation, and smart cities. Rising demand for optimizing operations and improving the customer experience is driving demand for edge computing solutions - a major market expansion driver.
The increasing need for low-latency responses in applications such as virtual reality, augmented reality, and real-time analytics is another significant driver for the edge computing market. Traditional cloud computing models can introduce delays, which can be detrimental in scenarios that require immediate action, such as autonomous driving or remote surgery. Edge computing mitigates this issue by enabling data processing at the location of data generation, thus minimizing response times. This capability is particularly crucial for industries like healthcare, where delays can have serious consequences, and for gaming, where seamless user experiences are paramount. The demand for real-time processing capabilities across various sectors is driving widespread adoption of edge computing solutions.
Restraints Insights
One of the primary challenges facing the edge computing market is the heightened security risks associated with decentralized data processing. Unlike centralized systems, where security measures can be uniformly applied, edge computing involves numerous distributed devices that may be more susceptible to cyber threats. These vulnerabilities can lead to unauthorized access, data breaches, or service disruptions, which can undermine user trust and deter organizations from adopting edge solutions. Companies must invest in robust security protocols and technologies to protect edge devices and data, creating a barrier to widespread implementation and adoption.
The integration of edge computing into existing IT infrastructures can pose significant challenges for organizations. Many businesses have established cloud-based systems and legacy infrastructure that may not easily accommodate edge computing technologies. Transitioning to an edge computing model requires careful planning, investment, and technical expertise, as companies must ensure compatibility and functionality across various platforms and devices. This complexity can slow down the adoption of edge solutions, particularly for small and medium-sized enterprises that may lack the resources for such integration efforts.
Opportunities Insights
The rollout of 5G networks presents a significant opportunity for the edge computing market. With its enhanced speed, capacity, and reduced latency, 5G can support a broader range of applications and use cases for edge computing. This advancement enables real-time data processing and analytics in various sectors, including healthcare, transportation, and manufacturing. As businesses leverage 5G technology, they can develop innovative solutions that harness the power of edge computing, creating new revenue streams and enhancing operational efficiency. The convergence of 5G and edge computing is expected to unlock numerous opportunities for growth in the market.
Segment Analysis
The edge computing market can be categorized by organization size into two major segments: large enterprises and SMEs. Large enterprises will always be at the forefront because of their massive resources, high volume of data, and very complex operations. Having adopted edge computing, large organizations go on to leverage these applications to improve their efficiencies of operations, optimize their supply chains, and sharpen their sense of customer experience by processing such data in real-time. These companies adopt massive edge computing infrastructures to provide high processing capacity to manage large volumes of data associated with business units. Edge computing is also, however, gaining a strong foothold within SMEs, especially when the network and infrastructure are scarce. Edge solutions allow these SMEs to respond much better to latency, operational agility, and data security, thus upscaling the SME's potential to compete with big players. Huge demand for edge computing solutions from huge enterprises as well as SMEs further fuels overall growth in the market and the need for vendors to tailor their offerings to the unique needs of organizations across different sizes.
Another way by which the edge computing market can be segmented is based on components-which include software, hardware, and services. Software refers to the applications and platforms that process, analyse, and manage data at the edge. It is an important component because it provides the tools and functionalities that allow one to operate optimally at the edge. Hardware refers to the physical devices like servers, gateways, and IoT devices that facilitate processing data closer to its source. In terms of hardware technology, it definitely impacts the efficiency and capabilities of edge computing solutions. The services extend from consulting to implementation, and even support to ensure organizations have the efficient and effective deployment and management of their edge computing solutions. All of these factors engage and interact to provide a robust edge computing ecosystem as companies seek integrated solutions combining best-of-breed software, reliable hardware, and holistic support services to maximize their edge computing investments.
The edge computing market is further bifurcated by end-use in the various industries such as retail and consumer goods, transportation and logistics, manufacturing, energy and utilities, government and defense, BFSI, telecommunications, media and entertainment, healthcare and life sciences. Each of these sectors uses edge computing to increase operational efficiencies and deliver better services. For example, in the retailing industry, real-time inventory management is facilitated through edge computing, at the same time making customer-side personalization possible. In transportation and logistics, an efficient fleet management is achieved while fleet optimization is also attained. The use of edge solutions is for predictive maintenance and quality control in manufacturing, and in energy, for real-time monitoring and management of resources. Improvements in data security will benefit the government and defense sectors, too, along with the efficient distribution of resources. BFSI institutions use edge computing for improving transaction processing and fraud detection. Telecommunications organizations use edge technology so that they have a great network performance and reliability. Media and entertainment sectors use edge technology for content delivery and streaming services.
Regional Analysis
North America is currently at the top of the list, and this is almost primarily because of major technology companies in the area that pay more attention to innovation. Acceleration in IoT device adoption along with the necessity for low latency applications in healthcare and automotive and others manufacturing industries is driving the demand for edge computing solutions. Edge infrastructure is being made a sizeable investment by companies in order to build data processing capabilities and ultimately improve customer experiences.
Growth in Europe is also huge and increasing, as governments are slowly transitioning towards digital transformation and smart city projects. The region also focuses on data privacy and security and promotes edge computing solutions for the local processing of data so that large quantities of sensitive data do not have to be uploaded across continents to get processed and comply with regulations. Asia-Pacific: Rapid urbanization and increased internet penetration with more IoT devices being added to it will drive market growth in this geography. Investments in edge computing are done with strategic intent by countries like China, Japan, and India to fuel their digital economies and to further enhance operational efficiency across various sectors.
Competitive Landscape
Major technology players, including Amazon Web Services (AWS), Microsoft, and Google Cloud, are leading the charge, offering end-to-end edge computing solutions that play well with their cloud infrastructures. Companies can leverage the investments the companies have made in infrastructure and in their expertise in cloud computing to develop extremely robust edge services and process data efficiently at the edge while enjoying the scalability and flexibility of the cloud.
Besides these tech giants, many specialized companies are surfacing with specific hardware and software products for edge computing. Organisations like Cisco, IBM, and Hewlett Packard Enterprise (HPE) provide edge infrastructure through IoT gateways, edge servers and data analytics tools. The competing forces in this market are also growing in the form of new companies, specifically start-ups and niche players that are developing innovative solutions for niche needs, such as FogHorn in real-time analytics or Litmus Automation and industrial IoT applications. Also emerging as a driving force for the rollout of 5G networks are partnerships between technology providers and telecommunications companies looking to enhance edge computing abilities.
List of Key Players:
Recent Developments:
Global Edge Computing Report Segmentation:
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Objectives of the Study
The objectives of the study are summarized in 5 stages. They are as mentioned below:
Research Methodology
Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region. The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.
Data Collection
Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.
Primary Research
After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market.
Secondary Research
A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.
Top-Down Approach & Bottom-Up Approach
In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.
In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.
This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.
Market Analysis & size Estimation
Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.
Quality Checking & Final Review
The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.
