Edge Analytics Market Size - By Component (Solution, Services), By Business Application (Marketing, Sales, Finance, Operations, Human Resource), By Type (Predictive, Prescriptive, Descriptive, Diagnostic), Deployment Model, Industry Vertical & Forecast, 2023 – 2032

Edge Analytics Market Size

Edge Analytics Market size was valued at USD 8.7 billion in 2022 and is projected to register a CAGR of 24.2% between 2023 and 2032, driven by the appreciable rise in IoT devices worldwide. The rapid expansion of the Internet of Things (IoT), led by the increasing internet penetration, has led to an explosion of connected devices generating massive volumes of data at the network edge. According to the latest facts and figures by the International Telecommunication Union, as of 2022, an estimated 5.3 billion people, equivalent to 66% or two-thirds of the world’s population, have internet access. This represents a growth of 6.1% over 2021.
 

Edge analytics enables real-time data processing and insights at the source, reducing the need to send all data to centralized cloud servers. It offers low-latency data processing, allowing organizations to derive real-time insights from the data as it is generated. This capability is crucial for time-sensitive applications like industrial automation, autonomous cars, and remote monitoring, driving the expansion of the edge analytics market.
 

Burgeoning demand for autonomous systems across several end-use verticals is playing a significant role in fueling the edge analytics business globally. Edge analytics is crucial for powering autonomous systems, such as autonomous vehicles and drones, by enabling quick decision-making and reducing reliance on cloud connectivity for critical operations. To that end, in 2022, Intel announced working with BMW to develop edge computing technology for autonomous vehicles. This technology would allow BMW vehicles to process and analyze data locally, reducing latency and improving safety.
 

However, factors, including challenges related to data security and privacy at the edge and complexities in managing and integrating diverse edge devices, may impact edge analytics market dynamics in the long run. Additionally, potential limitations in the processing power and storage capacity of edge devices and the need for standardized frameworks to ensure interoperability across various edge analytics solutions could drive down market growth over the next ten years.
 

COVID-19 Impact

The COVID-19 pandemic had a significant impact on the edge analytics market. With lockdowns and restrictions limiting physical access to data centers, organizations increasingly relied on edge computing and analytics to process data closer to the source. The surge in remote work and the need for real-time insights to manage supply chains, healthcare systems, and social distancing measures further accelerated the adoption of edge analytics solutions. For instance, in the healthcare sector, edge analytics played a crucial role in monitoring patient data, enabling remote diagnostics, and facilitating telemedicine consultations during the pandemic.
 

Edge Analytics Market Trends

The emergence of Industry 4.0 and smart manufacturing techniques is expected to carve a healthy growth trajectory for the edge analytics industry. In Industry 4.0, edge analytics plays a vital role in optimizing manufacturing processes, predictive maintenance, and improving overall operational efficiency. Companies are using edge analytics to enhance their production lines.
 

For instance, in 2022, Bosch used edge analytics to improve the efficiency of its production lines. The company installed edge devices on machines that collect data on things like temperature, pressure, and vibration. This data is then analyzed in real-time to identify potential problems before they cause downtime, enabling the company to reduce the number of unplanned outages by 20%. Additionally, the growing adoption of edge computing as a paradigm for processing data at the network edge naturally drives the demand for edge analytics solutions.
 

Edge Analytics Market Analysis

The solution segment held over 70% of the edge analytics market share in 2022. One of the primary factors driving the demand for edge analytics solutions is the need for real-time data processing and analysis. With the increasing volume of data being generated by IoT devices, edge analytics solutions can help process and analyze this data at the edge of the network, improving response times and reducing latency. Another factor is the need for improved efficiency and cost savings.
 

Edge analytics can help organizations optimize their operations and reduce costs by identifying inefficiencies and opportunities for improvement. For instance, a manufacturing company can use edge analytics to detect equipment faults before they cause downtime, reducing the need for costly repairs and maintenance.
 

The IT & telecom segment accounted for 20% of the edge analytics market share in 2022, due to the increasing complexity of networks, the need for real-time monitoring and optimization, and the exponential growth of data generated by connected devices. Edge analytics enables telecom companies to process and analyze network data closer to the source, leading to reduced latency and improved network performance. For instance, edge analytics can help monitor network traffic in real-time to identify anomalies and potential security threats promptly, enhancing overall network efficiency and reliability.
 

North America edge analytics market was over 33% of the revenue share in 2022. Edge analytics solutions and services are gaining traction in North America due to their ability to provide real-time insights and faster decision-making. With the advent of the Internet of Things (IoT), there is a growing demand for processing data at the edge, closer to the source of data generation. This reduces latency and enables companies to make more informed decisions in real-time. For instance, in the healthcare industry, edge analytics can help monitor patient vitals and alert healthcare providers in case of abnormal readings, leading to timely interventions.
 

Edge Analytics Market Share

Major companies operating in the edge analytics market are:

• Amazon Web Services Inc
• Microsoft
• Cisco Systems Inc
• Hewlett Packard Enterprise Development LP
• Databricks
• Dell Statistica
• EdgeConneX
• Intel Corporation
• Oracle Corporation
• Predixion Software
• PTC
• SAP HANA
• SAS Institute Inc
• IBM Corporation.

These companies are focused on strategic partnerships to develop new solutions.
 

For instance, In April 2022, Hewlett Packard Enterprise and Maxis partnered to create Malaysia's first multi-access edge computing (MEC) solution for enterprises. The solution will use MEC to minimize connectivity problems and reduce data storage costs for businesses operating time-critical edge applications.
 

Edge Analytics Industry News

• In April 2022, Cisco and NetApp partnered to launch FlexPod XCS, an automated platform for modern applications, data, and hybrid cloud environments. FlexPod XCS is designed to help organizations move data and applications smoothly across hybrid cloud environments, from private data centers to the edge.
   

This edge analytics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Component

• Solution
• Service

Market, By Business Application

• Marketing
• Sales
• Operations
• Finance
• Human resources

Market, By Deployment Model

• Cloud
• On-premises

Market, By Type

• Predictive analytics
• Descriptive analytics
• Prescriptive analytics
• Diagnostic analytics

Market, By Industry Vertical

• IT & telecom
• BFSI
• Manufacturing
• Healthcare and life science
• Retail
• Transportation and logistics
• Government
• Energy and utilities
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico
• MEA
  • South Africa
  • UAE
  • Saudi Arabia