Edge Computing Market - By Component (Hardware, Software, Service), By Application (Industrial IoT, Remote Monitoring, Content Delivery, AR/VR), By Enterprise Size, By Industry Vertical, Forecast 2023 – 2032

Edge Computing Market Size

Edge Computing Market size was valued at USD 9.1 billion in 2022 and is anticipated to register a CAGR of 34.3% between 2023 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. Edge computing offers a solution by enabling data to be analyzed closer to the data source, which enhance efficiency and more real-time insights across various IoT applications.
 

Edge computing is fundamental for applications demanding real-time or near-real-time processing. Industries including autonomous vehicles, automation, and healthcare rely on fast data analysis for informed decision-making. By processing data locally at the edge, edge computing minimizes the delays associated with data transmission to centralized data centers. This results in quicker responses, higher efficiency, and safer operations in critical, time-sensitive scenarios.
 

A significant challenge in edge computing is maintaining robust data security and privacy. Distributing data processing to edge devices can increase the attack surface and expose sensitive information to potential breaches. End-to-end encryption, secure data transmission, and authentication mechanisms are crucial. Additionally, managing compliance with data protection regulations while processing & storing data at the edge also presents a complex landscape that requires careful design, implementation, and continuous monitoring to safeguard user privacy.
 

COVID-19 Impact

The COVID-19 pandemic accelerated the adoption of edge computing solutions. As remote work and digital transformation became necessary, and businesses pursued ways to ensure reliable & efficient operations. Edge computing offers the ability to enhance real-time data processing, reduce latency, and optimize network bandwidth, aligning with the demands of remote collaboration, cloud-based services, and IoT deployments. This resulted in increased investments in edge infrastructure including edge computing and edge security, driving market growth and becoming a vital component of resilient & agile business strategies.
 

Edge Computing Market Trends

The demand for real-time data insights and immediate response by low latency between processing and data sources is fueling growth in the edge computing industry. For instance, in August 2023, StackPath, a provider of edge computing platforms, introduced expanded StackPath Edge Computer Virtual Machine and Container instances. These instances offer increased virtual CPU (vCPU) core counts along with in-built RAM. This enhancement equips enterprises with the necessary computational strength for data-intensive tasks. Deployed at the edge of the internet, these larger instances minimize latency between data processing and sources, catering to the demands of low-latency applications.
 

Edge Computing Market Analysis

Based on enterprise size, the edge computing market is divided into large enterprises and SMEs. The large enterprises segment held a market share of over 81% in 2022. New edge computing launches have increased the popularity of the IC drive type in the market. They often integrate advanced IC propulsion systems, enhancing maneuverability and efficiency. For instance, in August 2023, Hurricane Edge Computing, renowned for its adaptable edge computing concepts, launched the SunDeck 2600, a new hull for the model year 2023. 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.
 

Based on industry vertical, the edge computing market is categorized into IT & telecommunication, BFSI, government, healthcare, retail, manufacturing, utility, and others. The manufacturing segment held a market share of 27% in 2022. The integration of edge computing within Industry 4.0 is accelerating the manufacturing sector's adoption of edge solutions. Industry 4.0's emphasis on smart factory and interconnected processes aligns with edge computing's ability to process data locally, enabling real-time insights and predictive maintenance on the factory floor. This convergence empowers manufacturers to achieve operational efficiency, enhance quality control, and streamline production processes, propelling the adoption of edge computing within the manufacturing industry.
 

North America dominated the global edge computing market with a major share of over 34% in 2022. Strategic partnerships have emerged as a prominent force in propelling the North America edge computing industry. For instance, in February 2023, Kyndryl, a provider of IT infrastructure services, and Nokia, a well-known name in networking technology, revealed a three-year extension and broadening of their global network & edge collaboration. The partnership emphasizes the advancement & provision of cutting-edge LTE and 5G private wireless services, along with Industry 4.0 solutions, to a global customer base. By offering integrated and customized solutions, strategic partnerships accelerate adoption to address industry-specific needs, further boosting the North America edge computing business.
 

Edge Computing Market Share

Major players operating in the edge computing market are

• Amazon Web Services Inc.
• HPE
• Microsoft Corporation
• IBM Corporation
• Intel Corporation
• Google LLC
• Dell Technologies Inc.

These companies continually invest in research and development to create innovative products and solutions that address emerging market needs.
 

Edge Computing Industry News

• In March 2023, BT and AWS amplified their partnership for IoT and 5G edge computing. This collaboration aims to introduce fresh 5G edge computing services fueled by AWS Wavelength for BT's business customers in the UK.
   
• In March 2023, Microsoft partnered with prominent third-party providers to establish a strong partner network spanning all facets of the value chain. This comprehensive ecosystem empowers Azure private Multi-access Edge Compute (MEC) to accommodate a wide array of use cases and demands, allowing partners to contribute distinctive value to enterprise clients.
   

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

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By Component

• Hardware
• Nodes
• Sensors
• Others 
• Software
• Service
• Training and education
• Support & maintenance

By Application

• Industrial IoT
• Remote monitoring
• Content delivery
• AR/VR
• Others

By Enterprise Size

• Large enterprises
• SMEs

By Industry Vertical

• IT & telecom
• BFSI
• Government
• Healthcare
• Retail
• Manufacturing
• Utility
• Others

The above information is provided for the following regions and countries:

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