Edge Computing Market Size - By Component, By Deployment, By Organization Size, By Application, By End Use, Growth Forecast, 2026 - 2035

Edge Computing Market Size

The global edge computing market size was estimated at USD 21.4 billion in 2025. The market is expected to grow from USD 28.5 billion in 2026 to USD 263.8 billion in 2035, at a CAGR of 28% according to latest report published by Global Market Insights Inc.
 

As companies utilize more distributed processing models as they continue to transition their IT infrastructure away from centralized models, edge computing will increasingly be used for applications. The International Data Corporation (IDC) estimates that globally, there will be nearly ~180 ZB of new data generated by 2025, thus increasing the requirement for edge computing (domestic caliber) being completed at the device level rather than in data centers or cloud environments.
 

The growing number of real-time application requirements is also increasing the number of edge nodes deployed. The number of global connections will increase to over 29 billion connected devices by 2030, thereby generating additional revenue streams for service providers through the scaling of latency-sensitive workloads and processing data at the endpoint in order to maintain service quality/reliability.
 

In addition to telecommunications, industrial automation includes enhanced operational visibility with reduced downtime enabled by the use of edge computing. According to industry experts, the manufacturing sector is forecasted to invest upwards of $200 billion in IoT applications for manufacturing and industrial processes by 2030 and drive the growth of distributed processing models throughout all production facilities.
 

Telecommunications service providers are continuing to expand the number of Multi-Access Edge Computing (MEC) infrastructure locations to support the increasing demand for data and video traffic on their networks. The increase is forecasted to exceed 3,000 exabytes of mobile data traffic annually by 2030, resulting in increased integration of MEC infrastructure within service providers' organic service delivery networks (OSDN).
 

Edge Computing Market Trends

Distributed processing standards have made a lot of progress and improved the ability for organizations to work with multiple vendors using different technologies to satisfy customer requirements. International Data Corporation forecasts that more than 60% of worldwide enterprises will deploy unified edge frameworks by 2027 to allow the implementation of standardized deployment models and reduce the complexity of integrating different technology solutions within many environments.
 

There is a rapid increase in the requirement for low latency computing now which is resulting in a shift to the development of localized infrastructure. In the global market, average global round trip latency of using Cloud providers (Cloud Nodes) can range anywhere from 60 to 100 milliseconds, while Edge Nodes can reduce this latency to below 10 milliseconds or more, thereby enabling real-time applications across sectors (Industrial/Commercial) or Customer Segments.
 

Asia Pacific has been the leader in early deployment of Edge Nodes, primarily driven by strong telecommunications infrastructure investments in the region. The combined markets of China, India, and Japan are forecasted to contribute more than 40% of worldwide Multi Access Edge Installations (MAEI) in 2024 and will see rapid growth due to the deployment of 5th generation Wireless and large-scale Industrial deployments.
 

Smart Cities utilize the Edge Infrastructure to provide services such as surveillance, traffic analytics, and to provide monitoring of local public infrastructure. Total Worldwide Smart City Spend will reach over $1 trillion by 2030, increasing the number of localized-edge nodes (Data Centre) and therefore allowing faster analytics and greater independence from existing central locations.
 

Mobility platforms are implementing edge analytics to enhance fleet coordination and improve route accuracy. The global connected vehicle population will surpass 400 million vehicles by 2030 creating greater demand for near-source decision-making and reduction of network load on transport systems.
 

The standardization of data management practices and security protocols is driving greater enterprise adoption. The International Institutes of Electrical & Electronics Engineers continue to publish guidance for distributed processing and therefore improve vendor interoperability and ensure consistent compliance across different industries.
 

Edge Computing Market Analysis

Based on component, the edge computing market is segmented into hardware, software and services. The hardware segment dominates the market with 51% share in 2025, and the segment is expected to grow at a CAGR of 26.5% from 2026 to 2035.
 

• The growing demand for hardware is being driven by the estimated twenty-nine billion globally connected devices by 2030 which will require increased amounts of processing units, storage modules and network equipment located at the Point-of-Use (POU) as opposed to being located hundreds of miles away in corporate data centres or other enterprise and public infrastructures.
   
• Software platforms are poised for significant growth due to the use of real-time analytics, security tools and orchestration systems for devices. A projected forty billion dollars in spending on software for Edge related applications by 2030 is expected to result from adoption rates across manufacturing, energy and logistics.
   
• The growing trend of using low-latency workloads in industrial automation will result in more investments in hardware nodes which accounted for more than forty percent of total spending in 2024. Increased adoption of these devices across production lines and utility companies creates an increased demand for ruggedized equipment and Local computing resources.
   
• As organizations deploy AI models at Edge, they see more rapid software adoption. IDC estimates that > 60% of organizations will leverage Edge Analytics by 2027, thus creating a growing need for platforms that can support the complete continuum of Data Ingestion, Data Model Execution, and Policy Management.
   

Based on deployment, the edge computing market is divided into on premise cloud based and hybrid. On premise segment dominates with 41.8% market share in 2025 and is growing at a CAGR of 24.3% from 2026 to 2035.
 

• The industrial Internet of Things (IIoT) enables new business practices across different industries, and on-premises deployment continues to be popular, expected to reach US$ 200 Billion in the worldwide spending of IIoT by 2030. This is positively impacting the adoption of Localized Infrastructure due to the need for production line logistics operations, and real-time asset monitoring.
   
• Cloud-Based Edge Platform technology is growing rapidly as a result of the need for Scalable Edge Analytics and Storage services. In 2024, spending on cloud-enabled edge solutions is expected to exceed US$ 15 billion, with widespread adoption in Retail, Energy, Healthcare, and Transportation applications.
   
• Hybrid Deployments are becoming increasingly popular, and companies are leveraging the benefits of combining local processing with cloud resources. According to the International Data Corporation, nearly 60% of all organizations are projected to adopt a hybrid edge architecture by 2027, driven by the demand for workload distribution and greater operational flexibility.
   
• As more companies invest in creating and maintaining Secure Environments where Data cannot leave the Enterprise's physical Facilities, the on-premise Segment is growing significantly. The industries of Defense, Financial Services, and Healthcare continue to leverage local computing resources as a means of ensuring Compliance and Operational Reliability.
   

Based on organization size, the edge computing market is segmented into large enterprises, small & medium enterprises (SMEs). The large enterprises segment dominates with 70.5% market share in 2025.
 

• Globally, the information technology industry has spent in excess of Five Trillion US dollars. The growth of the IT sector has led to increased investment by clients, including large enterprise clients, in the implementation of local processing capabilities for the purposes of automation security and analytics. To support their factory operations, logistics networks, and customer platforms, these organizations have implemented Distributed Nodes.
   
• Small to medium-sized businesses are also seeing consistent growth, primarily due to decreasing hardware prices and increased availability of simplified software platforms. In addition to their large enterprise clients, small and medium business clients spent over 800 billion US dollars in 2024, further supporting the implementation of digital infrastructure across commercial, healthcare, and service sectors.
   
• Due to their complex operational requirements, large enterprise clients are turning to local computing solutions for real-time processing. With the implementation of localized nodes by the manufacturing, energy, and retail industries, organizations can improve asset visibility and reduce latency, creating demand for Distributed Computing Resources.
   
• As Cloud Dependency rises, small to medium-sized businesses are turning to various Edge Computing Solutions to eliminate reliance on cloud service providers and shorten onsite decision cycles. Furthermore, as small and medium business clients continue to connect equipment and implement point of sale applications, demand for low latency processing in economical and compact environments will increase.
   

Based on application, the edge computing market is divided into industrial internet of things and automation, smart cities, video surveillance and analytics, content delivery, augmented reality and virtual reality, autonomous and connected vehicles, remote monitoring, smart retail, telemedicine and healthcare edge and others. Internet of things and automation dominate with 27% market share in 2025.
 

• With the continued growth of the Internet of Things (IoT), it is anticipated that the overall number of connected devices will exceed 29 billion by 2030. This growth provides a driving force for the local processing of data across multiple locations, whether it be a manufacturing floor, a logistics location, or a utility network.
   
• In addition to IoT, smart cities are helping to create a significant demand for local infrastructure to support transport management, energy management systems and public safety. By 2030, it is estimated that global expenditures on smart cities will exceed $1 trillion, creating further opportunities to use edge computing platforms for real-time analytics and the operation of responsive cities.
   
• Another major use case for localized processing is video surveillance and video analytics. This is due to an increased focus on security throughout urban and commercial areas, driving the need for greater local processing. The localized processing of video surveillance data will reduce the cost of transmitting data and allow quicker detection of potential threats. Globally, the amount of video data generated is expected to continue to grow at a rate of more than 20 percent each year across all regions.
   
• Content Delivery is another area where edge nodes are utilized to alleviate network congestion during the streaming and distribution of content. The amount of traffic sent over the internet is expected to surpass 900 exabytes per month by 2027. As a result, content distribution networks are increasingly being built using distributed content infrastructure across service providers.
   

US dominates the North America edge computing market accounting for 87% and generating USD 7 billion in 2025.
 

• The rise in 5G service in the United States is expanding opportunities for deploying edge compute capabilities in verticals such as transportation, healthcare, manufacturing and public safety. By 2024, there will be approximately 270 million active 5G connections in the US, creating a need for more localized edge compute resources to help balance load on the network and support the creation of real-time services.
   
• Industrial adoption of these technologies is continuing to grow as companies across Manufacturing, Logistics and Energy Industries adopt predictive maintenance, Automation and Asset Monitoring. US Spending on The Industrial Internet of Things will exceed $100 billion by 2027 creating continued demand for Edge Processing at a location near the factory.
   
• Technology and Cloud Services continue to create distributed data centers in metropolitan areas of the US many large firms are operating thousands of micro-data centers throughout the country to support the creation of content delivery networks and provide artificial intelligence inference, computation, and real-time analytics for both consumers and businesses.
   
• An expansion in connected vehicle initiatives in the US automotive sector necessitates merging the processing capabilities of vehicles at intersections and street level computing facilities. The increased acceptance of advanced driver assistance systems in more vehicles places additional demands on transportation infrastructure to support lower-latency (faster) computation.
   

Germany dominates Europe edge computing market growing with a CAGR of 26.1% from 2026 to 2035.
 

• As the manufacturing automotive logistics public sector are working toward modernizing their productivity platforms and lessening reliance on centralized cloud computing solutions, Germany is deploying use cases for edge computing to undergo these changes. With an established foundation of robotics and industrial automation in place, a consistent demand for local processing units exists to provide machine control, quality inspection and predictive maintenance for these industries.
   
• Automotive original equipment manufacturers (OEMs) and part suppliers are establishing edge nodes in manufacturing facilities to facilitate the optimization of workflow in near real-time and to create communication between connected production lines. This trend is developing for positioning and supporting the increased use of software-defined vehicles wherein edge infrastructure supports the validation testing and filtration of test data directly at the test facility.
   
• Logistics organizations throughout Germany are leveraging edge computing solutions for both warehouse automation and logistics automation (smart picking solutions and real-time fleet tracking systems), helping large-scale port and airport owners integrate edge-platforms with computer vision-based solutions to monitor cargo flow and improve security protocols.
   
• Smart energy and public infrastructure initiatives are continuing to grow in the German market and include grid automation, traffic management and public safety systems where edge servers will provide quicker response time and more seamless integration with existing infrastructure and furthermore, continued regulatory focus and enforcement around the management of data and local processing is driving more organizations to migrate compute resources to the edge of the networks instead of transmitting all data for processing.
   

China dominates the Asia Pacific edge computing market, showcasing strong growth potential, with a CAGR of 31.8% from 2026 to 2035.
 

• China is increasing the use of edge computing through industrial automation and smart city programs and the growth of devices. The telecom operator and equipment vendors have installed numerous distributed computing nodes (DCNs) at factories, ports, and other locations in order to achieve the low latency processing needed for robotics, visual inspections, and diagnosis of equipment.
   
• In addition, many manufacturers are also adopting edge-based platforms to support real-time production line control, quality inspections, and predictive maintenance. With the recent increase in manufacturing of electric vehicles and batteries, localized filtering of data and Computer Vision is also increasing at assembly plants.
   
• Smart city initiatives depend on distributed edge servers for traffic management, monitoring public safety, environmental tracking, and utility automation. By doing so, the smart cities can respond to incidents more quickly and decrease their dependence on far-away cloud regions.
   
• Additionally, many retail and logistics companies in China have deployed edge-based systems in warehouses, sorting centers, and retail stores to improve the accuracy of their inventories, routing, and last mile visibility. The rising adoption of private 5G Networks in Industrial Areas is also allowing for an increase in the deployment of edge workloads.
   

Brazil leads the Latin American edge computing market, exhibiting remarkable growth of 28.7% during the forecast period of 2026 to 2035.
 

• Brazil is expanding edge computing applications in various industries including industrial automation, specifically within the manufacturing and energy sectors, thanks to the localized compute nodes that provide lower latency as well as improved monitoring capabilities, while also allowing manufacturers to implement predictive maintenance practices in their production facilities.
   
• Edge computing platforms are being utilized by Brazil's smart cities to manage traffic flows, ensure public safety, and monitor the environment. With an edge computing platform using real-time data processing, quick decisions can be made and resources efficiently allocated.
   
• In addition, with the incorporation of edge nodes into 5G networks, Brazilian telecom operators can provide such applications as video analytics, autonomous logistics, and low latency enterprise apps. As a result, both urban and rural environments will have access to greater connectivity and service levels.
   
• The Agriculture sector uses edge-enabled sensors, drones, and analyses of crop yields, irrigation, and machinery operation. By using edge processing, agriculture can take advantage of timely data without relying on distant cloud infrastructure for real-time data.
   
• Both the Retail and Banking sectors have implemented edge computing for improved fraud detection, analytics of in-store customer behavior, and transaction processing. Real-time processing at the edge results in more efficient transactions and enhances customer privacy.
   

UAE to experience substantial growth in the Middle East and Africa edge computing market in 2025.
 

• Edge computing is being used in the United Arab Emirates (UAE) to support the smart city initiative as well as digital government programs, enterprise modernization, and traffic management through greater use of localized compute resources as opposed to relying on remote cloud servers which are typically found outside of the city or country.
   
• UAE Telecommunication providers combine (edge nodes) with 5th Generation Network (5G) infrastructure to facilitate low latency real-time analytics, lower operational costs and build connected systems for their business customers, in a variety of industries including Logistics, Financial Services, and Retail.
   
• Transportation & Logistics companies across the country use predictive maintenance, asset tracking and the ability to automate processes with edge computing. By processing information at the point of service versus sending all the data across the network to a central server (where it takes time and costs money), these businesses can operate at a higher level of efficiency, thus reducing the time their assets spend out of service.
   
• Telemedicine and Healthcare firms using Edge Computing Technologies benefit from being able to provide their patients with faster diagnostic, image analysis and secure processing of personal data. Edge Computing allows the firm to retain their patient’s data close to the source therefore satisfying regulatory requirements as it relates to patient privacy.
   
• Retail and Smart Building installations are using edge nodes to monitor in real time, create smart analytics and provide personalized services for customers. This will improve Energy Management, enhance Security, and enhance the customer experience in retail locations.
   

Edge Computing Market Share

• The top 7 companies in the edge computing industry are AWS, HPE, Microsoft, Cisco, Dell, NVIDIA, and Intel. Collectively contributed around 37% of the market in 2025.
   
• AWS has vast technology and distributes computing network nodes, uses cloud technology to integrate its services into the applications of developers. With this, AWS can provide users with a multitude of advanced analytics capabilities. Among the segments AWS serves are industrial, telco and enterprise.
   
• Hewlett Packard Enterprise (HPE) enables enterprises to adopt their enterprise-edge solutions by combining the use of edge systems with an array of hardware solutions. HPE was created to improve the way edge systems and hardware are used in industries such as industrial, healthcare and manufacturing through enhanced lifecycle-management processes, integration of its solutions and consulting with enterprises to create and support their deployments globally across their enterprise.
   
• Microsoft provides enterprises with the opportunity to leverage cloud and edge integration through their Azure Cloud Solution. The product includes enterprise analytics solutions, an extensive array of device management options and AI (Artificial Intelligence) inference solutions for enterprise and public sector customers. As a result, enterprises can take advantage of hybrid deployments and the capabilities of real-time enterprise processing capabilities.
   
• Cisco is the leader in networking and security when it comes to edge computing. They provide edge solutions that combine routers, switches and secure edge nodes for the management of distributed workloads for enterprises, smart cities and industrial automation projects. Cisco solutions for edge computing include routers, switches and secure edge nodes that allow enterprises to manage workloads distributed across a number of physical locations.
   
• Dell Technologies has products that help manufacturers, logistics companies, and smart building companies to build high performance, scalable architectural platforms for their manufacturing, logistics and smart building applications. Dell's edge products help manufacturers to process data at a low latency, at the local level, and to create hybrid-edge architectures.
   
• NVIDIA focuses on providing AI-accelerated edge platforms through its GPU-enabled platforms for autonomous vehicles, industrial robots, AR/VR, and analytical workloads. NVIDIA's high-performance, computing capability allows it to provide customers with AI inference edge computation capabilities.
   
• Intel supplies processors, accelerators and development platforms for deploying at the edge. The above-mentioned products provide data centers, industrial automation, autonomous vehicles and telecommunications with the ability to process data close to where it was generated through localized computation, allowing real-time analysis.
   

Edge Computing Market Companies

Major players operating in the edge computing industry are:

• AWS
• Cisco
• Dell
• Google Cloud
• HPE
• IBM
• Intel
• Microsoft
• NVIDIA
• Oracle
   
• Increasing numbers of connected devices, the demand for automation in industry, smart cities, and autonomous vehicles, as well as the adoption of network to support these changes, have driven the growth of the edge computing market as the enterprise shift to a distributed processing model that eliminates latency; improves security and enhances real-time decision-making capabilities.
   
• More and more enterprises across various industrial sectors are using edge nodes on the site where their operations are occurring, including manufacturing, energy, logistics and healthcare. By deploying edge computing, these organizations are eliminating their dependence on distant cloud-based resources and increasing operational efficiency.
   
• A few of the key elements propelling this trend are the proliferation of 5G networks, the increase in the number of IoT devices being utilized and the growing use of artificial intelligence and analytics at the edge. Hybrid and hybrid-cloud integrated models provide enterprises with options for both the scalability and speed of edge deployment; furthermore, public initiatives and smart city efforts are increasing the overall adoption rate of edge solutions.
   
• Enterprises can benefit from many opportunities in addition to overcoming challenges such as installation costs, integration complexity and a lack of standardization. Opportunities include leveraging artificial intelligence (AI) based edge solutions, optimizing the delivery of content, and creating private edge networks. Additionally, with the ongoing digital transformation of enterprise technology and systems, continued growth in this market will be supported by further investments in hardware, software, and managed services that are purpose-built for distributed computing environments.
   

Edge Computing Industry News

• In December 2025, Amazon Web Services (AWS) announced it will integrate NVIDIA’s NVLink Fusion technology into its upcoming AI chips (Trainium4) and launched updated servers powered by Trainium3 with up to four times the performance and 40 percent lower power use.
   
• In December 2025, AWS announced the general availability of Trainium3 instances, delivering 4x higher training performance than the previous generation Trainium2. The release is paired with the new Amazon Nova 2 multimodal foundation models, specifically optimized for low-latency inference on edge-connected "Outposts" racks.
   
• November 2025, Microsoft released major updates to Azure Local (formerly Azure Stack HCI), introducing "air-gapped" Agentic AI capabilities. This update allows highly regulated industries (defense, manufacturing) to run autonomous AI agents locally without continuous cloud connectivity, fully managed via Azure Arc.
   
• In October 2025, Hewlett Packard Enterprise updated its HPE Private Cloud AI portfolio to include the new NVIDIA RTX 6000 Ada/Blackwell generation GPUs. The update targets "Visual AI" workloads at the far edge, such as real-time quality inspection in factories, utilizing the NVIDIA IGX platform.
   
• In August 2025, Dell released the NativeEdge "Infinity" Update, adding automated blueprints for NVIDIA NIM (Inference Microservices). This allows retail and logistics customers to deploy optimized GenAI models (like Llama 4-Edge) to thousands of edge endpoints in a single click.
   
• In April 2025, Intel formally launched the Intel Tiber Edge Platform, a unified software stack that consolidates its previous "Project Strata" efforts. The platform provides a single control plane for managing mixed fleets of Intel Core Ultra (AI PC) and Xeon 6 edge servers.
   
• In January 2025, NVIDIA unveiled the GeForce RTX 50 Series (Blackwell architecture) and the NVIDIA Cosmos platform for physical AI. The launch included specific "Industrial Edge" reference architectures, enabling standard workstation cards to be used for heavy-duty robotics simulation and inference.
   
• In November 2024, Microsoft officially rebranded "Azure Stack HCI" to Azure Local, signaling a strategic pivot to unify its distributed infrastructure under a single "Local" brand identity that encompasses everything from ruggedized edge servers to data center clusters.
   

The edge computing market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Mn) from 2022 to 2035, for the following segments:

Market, By Component

• Hardware
  • Edge Servers
  • Networking Equipment
  • Storage Devices
• Software
  • Edge Computing Platform
  • Application Software
• Services
  • Professional services
  • Managed services

Market, By Deployment

• On-premise
• Cloud-based
• Hybrid

Market, By Organization Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

Market, By Application

• Industrial IoT & Automation
• Smart Cities
• Video Surveillance & Analytics
• Content Delivery
• Augmented Reality (AR) & Virtual Reality (VR)
• Autonomous & Connected Vehicles
• Remote Monitoring
• Smart Retail
• Telemedicine & Healthcare Edge
• Others

Market, By End Use

• BFSI
• Energy & Utilities
• Telecommunication & IT
• Healthcare
• Retail & E-commerce
• Media & Entertainment
• Government & Public Sector
• Automotive
• Manufacturing
• Agriculture
• Others

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

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Netherlands
  • Sweden
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Singapore
  • Thailand
  • Indonesia
  • Vietnam
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Turkey