Edge Computing Market size is set to exceed USD 60 billion by 2030, according to a new research report by Global Market Insights, Inc.
The growing demand for next-generation 5G networks will boost the market revenue. The governments of different countries, such as Canada, the UK, and the U.S., are actively investing to accelerate digitalization. Major players are focusing on forming partnerships to develop advanced and integrated edge solutions.
Increasing penetration of IoT technology
The industrial IoT segment held over 30% edge computing market share in 2021, owing to the rising demand for manufacturing automation. For instance, 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 increasing 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.
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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)”, in detail along with the table of contents:
Increasing demand for high-performance computing solutions
The software segment will grow at over 26% CAGR from 2022 to 2030. The growth is attributed to increasing adoption 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.
Rising adoption of cloud computing technology across SMEs
The SMEs segment in the edge computing market is predicted to witness 30% growth during the forecast period, credited to increasing adoption of cloud-based solutions across SMEs. Small and medium businesses are emphasizing on cloud and digital infrastructures to enhance their business 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, such as AI, ML, and IoT, across the utility industry
The utility vertical segment accounted around 15% market share in 2021, due to 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 market growth 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 Asia Pacific region
The Asia Pacific edge computing market size is anticipated to cross 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.
Asia Pacific is a highly lucrative market for the adoption of IoT technologies due to 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 for the market.