Edge Computing Market Size - By Component (Hardware, Software, Service), By Application (Industrial IoT, Remote Monitoring, Content Delivery, AR/VR), By Enterprise Size (SME, Large Enterprise), By Industry Vertical & Forecast, 2024 - 2032
Report ID: GMI5275
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Published Date: June 2024
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Report Format: PDF
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Base Year: 2023
Companies covered: 19
Tables & Figures: 300
Countries covered: 28
Pages: 140
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Edge Computing Market
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Edge Computing Market Size
Edge Computing Market size was valued at USD 13.4 billion in 2023 and is estimated to register a CAGR of over 28% between 2024 and 2032. The rapid expansion of the Internet of Things (IoT) ecosystem, encompassing diverse devices, such as sensors, wearables, and smart appliances, has propelled the edge computing industry. The large volume of data generated by these devices necessitates local processing to increase network congestion and reduce latency.
In the realm of edge computing, the proliferation of IoT devices, smart sensors, and real-time data processing poses intricate challenges to system integration and performance optimization. These technologies introduce new sources of data and potential pathways for data migration within edge networks. Edge computing engineers play a pivotal role by analyzing and identifying potential bottlenecks in data flow, designing robust network architectures and protocols to ensure seamless data transmission, and optimizing edge device placement to enhance overall system efficiency and reliability.
Additionally, the increasing demand for edge computing solutions is highlighted by stringent regulatory frameworks governing data privacy and security. Governments worldwide are enacting laws and regulations, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the U.S., which was signed into law on June 28, 2018, and went into effect on January 1, 2020. It is a state statute intended to enhance privacy rights and consumer protection for residents of California to safeguard consumer data.
Compliance with these regulations necessitates the expertise of edge computing service providers who specialize in implementing robust security protocols, conducting thorough data audits, and ensuring transparency in data handling practices. The role of skilled engineers and service providers remains critical in navigating regulatory complexities and fostering trust in data-driven technologies as the adoption of edge computing continues to accelerate across industries.
The edge computing market faces significant barriers to entry, primarily due to high capital investments and substantial operational costs. Setting up edge computing infrastructure requires significant initial expenditures on hardware such as edge servers and networking equipment. Additionally, deploying specialized software for data processing and analytics involves expensive licensing fees.
Recruiting skilled engineers proficient in edge computing technologies further adds to operational costs. With fewer competitors, established companies may have less pressure to keep prices competitive, potentially leading to higher costs for edge computing services. The complexity of setting up these systems can be daunting, especially for smaller companies that lack the resources of larger enterprises such as Amazon and Hewlett Packard Enterprise (HPE).
Edge Computing Market Trends
The edge computing industry has made significant technological strides in recent years. Advanced edge computing platforms now support faster and more efficient data processing at or near the data source, enabling real-time decision-making across diverse sectors. These developments have improved latency, reduced operational costs, and enhanced capabilities in industries such as manufacturing, healthcare, and logistics.
Innovations in edge computing hardware, including compact yet powerful edge servers and IoT devices, facilitate seamless integration into existing infrastructures, enabling businesses to deploy edge computing solutions for improved efficiency and scalability. Moreover, these advancements are reshaping how industries utilize data, driving the widespread adoption of edge computing solutions to achieve competitive advantages in today's digital landscape.
For instance, in March 2023, FedEx implemented edge computing solutions to optimize its supply chain operations. By deploying edge servers directly at its distribution centers, FedEx significantly reduced latency in data processing for real-time inventory management software and route optimization. This enabled the company to enhance delivery efficiency, reduce operational costs, and improve customer satisfaction by ensuring timely deliveries even during peak periods. The use of edge computing technology allowed FedEx to achieve these benefits without relying solely on centralized cloud services, demonstrating the practical advantages of edge computing in enhancing operational agility and performance in logistics operations.
Edge Computing Market Analysis
Based on component type, the market is categorized into hardware, software, and services. The hardware segment is projected to exceed USD 50 billion by 2032, due to the increasing adoption of robust edge computing devices. New product launches in hardware have fuelled market growth, with innovations such as advanced processors and compact edge servers gaining popularity. The emphasis on hardware innovation highlights its pivotal role in driving the expansion of edge computing solutions.
By providing scalable and reliable computing power at the edge of the network, hardware components enable businesses to deploy advanced applications and services seamlessly. This technological evolution is reshaping industries by enabling smarter and more responsive systems that can handle the demands of the digital age effectively.
Based on enterprise size, the edge computing market is divided into large enterprises and SME. The large enterprise segment held a major market share of around 81% in 2023. New edge computing launches have increased the popularity of the IC drive type in the market. They often integrate advanced IC propulsion systems, enhancing manoeuvrability and efficiency. For instance, in August 2023, Hurricane Edge Computing launched the SunDeck 2600. This outboard edge computing presents water enthusiasts with an expansive layout, ensuring a secure & steady surface and complemented by the potency & efficiency needed for an exciting aquatic experience.
North America dominated the edge computing market with a share of over 34% in 2023. Strategic partnerships have emerged as pivotal drivers, propelling the North America edge computing industry forward. These collaborations focus on advancing and delivering state-of-the-art LTE and 5G private wireless services, alongside Industry 4.0 solutions, to a diverse global clientele. By providing integrated and tailored solutions, these strategic partnerships accelerate adoption rates, effectively addressing industry-specific requirements and bolstering the growth trajectory of the edge computing sector in North America.
Asia Pacific is rapidly becoming a significant player in the global edge computing market, with countries, such as China, Japan, and India, leading the charge. The region's growth is driven by increasing investments in smart city projects, advanced manufacturing, and IoT applications, which are heavily reliant on edge computing solutions. Government initiatives and favorable policies supporting IT infrastructure development further accelerate market expansion, with countries, including India, partnering with global tech giants to deploy edge platforms.
Europe holds a significant share in the global edge computing market, with a focus on enhancing industrial IoT and smart manufacturing capabilities. Collaborations between European companies and global tech firms are instrumental in developing cutting-edge computing infrastructure, ensuring robust and scalable solutions. Additionally, Europe's stringent data protection regulations and cybersecurity standards necessitate the deployment of secure and efficient edge computing technologies, further bolstering market growth in the region.
Edge Computing Market Share
Amazon and HPE hold a significant market share of more than 18% in the edge computing industry. Amazon and Hewlett Packard Enterprise (HPE) lead the edge computing industry by leveraging their extensive cloud and infrastructure capabilities to offer advanced edge solutions. Amazon Web Services (AWS) provides a comprehensive suite of edge services, including AWS Outposts and AWS Wavelength, which integrate seamlessly with its cloud platform to deliver low-latency, high-performance computing closer to end users.
HPE's Edgeline Converged Edge Systems and Aruba Edge Services Platform empower enterprises to deploy and manage edge computing resources efficiently, driving innovations in sectors such as industrial IoT, telecommunications, and smart cities. Other top companies in the edge computing market, such as IBM and Cisco, focus on integrating edge solutions with their existing cloud and networking platforms to provide comprehensive, end-to-end services.
IBM leverages its hybrid cloud and AI capabilities to deliver robust edge computing solutions tailored for industries, such as telecommunications and manufacturing, while Cisco emphasizes secure and scalable edge infrastructure to support IoT and enterprise applications. These strategies enable them to meet the diverse needs of their clients, driving adoption and innovations in the edge computing space.
Edge Computing Market Companies
Major players operating in the edge computing industry are:
Edge Computing Industry News
The edge computing market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) from 2021 to 2032, for the following segments:
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Market, By Component
Market, By Application
Market, By Enterprise Size
Market, By Industry Vertical
The above information is provided for the following regions and countries: