Edge Computing Market size is expected to cross USD 60 billion by 2030, according to a new research report by Global Market Insights Inc.
The industry growth is attributed to the growing demand for next-generation 5G networks. The governments of different countries, such as Canada, the UK, and the U.S., are actively investing to accelerate digitalization. For instance, in August 2021, the Government of Canada invested USD 44 billion for driving the country’s economic growth and facilitating affordable broadband internet & 5G connectivity for all Canadians. The investment was led by Telesat, an innovative satellite operator. Through this partnership, the company facilitated more advanced and high-speed internet connectivity for the people of the country.
Major players are focusing on forming partnerships to develop advanced and integrated edge solutions. For example, in March 2022, SK Telecom partnered with Dell Technologies to launch a 5G mobile edge computing solution that offers ultra-low latency communication by minimizing the distance of data transmission. It is specially designed for smart factories, the automotive industry, and others.
Rising demand for high-performance computing solutions
The edge computing market for software segment is poised to register a 25% growth rate till 2030. This growth is credited to increasing acceptance of virtual network solutions across enterprises. The edge computing software comprises an edge operating system and an operating platform to enhance the computing capabilities of connected network infrastructures, edge devices & data centers. These platforms collect data from the hardware system remotely and monitor it. It also debugs and tests the data flow to achieve the next level of security including edge-based threat detection, decentralized infrastructure, and data minimization.
Browse key industry insights spread across 367 pages with 402 market data tables and 42 figures & charts from the report, “Edge Computing Market Size By Component (Hardware [Nodes, Sensors], Software, Service [Training and Education, Support & Maintenance]), By Application (Industrial IoT, Remote Monitoring, Content Delivery, AR/VR), By Enterprise Size (SMEs, Large Enterprises), By Industry Vertical (IT & Telecom, BFSI, Retail, Government, Utility, Manufacturing, Healthcare), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2030”, in detail along with the table of contents:
Increasing penetration of IoT technology
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The industrial IoT segment held over 30% of edge computing market share in 2021. Growth is impelled by the rising demand for manufacturing automation. According to the Digital Economy report 2021, 76% of the manufacturers are planning to adopt 5G and IIoT technologies to reduce processing and labor costs. The growing number of IoT sensors requires strong operating and computing platforms. Industrial IoT requires a high level of automation as it uses cyber-physical systems to merge the physical and the digital world.
Growing adoption of cloud computing technology across the SMEs sector
SMEs segment in the edge computing market is estimated to attain a 30% CAGR by 2030, on account of the increasing usage of cloud-based solutions across SMEs. Small and medium businesses are emphasizing on cloud and digital infrastructures to enhance their propositions. These enterprises also face difficulties in their operations due to a lack of maintenance professionals and poor networking experience. Owing to the need to address the above-mentioned issues, enterprises operating in the market are offering sophisticated solutions for SMEs.
Extensive penetration of advanced technologies like AI, ML, and IoT across the utility sector
The utility segment captured 15% of revenue share in 2021 due to the increasing penetration of the internet and connected devices across the utility vertical. The necessity of real-time monitoring and data tracking has influenced the edge computing platform demand in the utility sector. The active monitoring & data analysis of risky gas pipes, water level, humidity, pressure, and temperature has become an important aspect of the edge computing platform.
Growing penetration of 5G networks across the APAC region
Asia Pacific edge computing market is anticipated to reach USD 15 billion by 2030. The market growth is attributed to growing technological advancements and an increase in 5G infrastructures & services in the region. The utilization of 5G services for massive machine-type communications in the manufacturing industry will reduce repetitive tasks. Machines connected to the network need security policies against cyberattacks or malware.
The APAC is a highly lucrative market for the adoption of IoT technologies because of the numerous government initiatives for large-scale digitalization of urban infrastructure in countries including China, South Korea, and India. Moreover, an increasing number of startup firms are creating ample growth opportunities.
Leading participants are focusing on forming partnerships to develop advanced edge computing solutions
Companies operating in the edge computing market include ADLINK Technologies, Inc., Amazon Web Services, Inc. (Amazon.com, Inc.), Cisco Systems, Inc., ClearBlade, Inc., Cloudera, Inc., Dell Technologies, Inc., Google LLC, Hitachi Vantara Corporation (Hitachi, Ltd.), Hewlett Packard Enterprise Company, Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Microsoft Corporation, Nutanix, Inc., Oracle Corporation, Redis Labs Inc., Saguna Networks, Ltd., SAP SE, and Siemens AG. These leaders are focusing on forming partnerships to develop advanced solutions to meet customer demands.