July 25, 2024

Growing Adoption of Edge Computing to Drive the Global Edge Computing Market Growth

Market Overview:

The global Edge Computing Market is estimated to be valued at US$ 53.6 billion in 2023 and is projected to exhibit a CAGR of 15.7% over the forecast period of 2023-20230, according to a new report published by Coherent Market Insights. Edge computing refers to the decentralized processing of data, closer to the source, enabling faster response times, reduced latency, and improved efficiency. The advantages of edge computing include real-time analytics, enhanced security, reduced network traffic, and cost optimization. The increasing need for faster data processing and analysis, rising demand for low-latency computing, and the proliferation of Internet of Things (IoT) devices are driving the demand for edge computing solutions across various industries.

Market Key Trends:

The key trend shaping the global edge computing market is the emergence of 5G technology. With the deployment of 5G networks, edge computing is poised to play a crucial role in supporting the massive data volumes generated by IoT devices and applications. 5G’s high-speed and low-latency capabilities require computing infrastructure to be closer to the end-users, hence driving the demand for edge computing solutions. This technology enables real-time data processing, enhances network efficiency, and supports various applications such as autonomous vehicles, smart cities, and remote healthcare monitoring. As a result, the integration of 5G with edge computing is expected to revolutionize the way data is processed, transmitted, and utilized, leading to significant growth opportunities for the edge computing market.

Key Players: Microsoft Corporation, IBM Corporation, Cisco Systems Inc., Google Inc., Hewlett Packard Enterprise Company, Intel Corporation, Schneider Electric SE, Nokia Corporation, Huawei Technologies Co. Ltd., and Aricent Inc.

Segment Analysis:

The edge computing market can be segmented based on component, application, organization size, and vertical.

In terms of component, the hardware segment dominates the market and is expected to continue its dominance during the forecast period. This is due to the increasing demand for high-performance and low-latency computing infrastructure at the edge. Hardware components such as edge servers, gateways, and routers play a crucial role in enabling edge computing capabilities. As organizations across various industries adopt edge computing solutions, the demand for hardware components is expected to rise.

Based on application, the manufacturing industry segment is dominating the market. Manufacturing organizations are increasingly leveraging edge computing to optimize their operations, enhance efficiency, and reduce operational costs. Edge computing enables real-time data processing and analytics at the edge of the network, allowing manufacturers to make faster and more informed decisions. It also helps in minimizing network latency and improving overall system performance. As a result, the manufacturing industry is witnessing a significant uptake of edge computing solutions.

Key Takeaways:

The Global Edge Computing Market Growth is expected to witness high, exhibiting a CAGR of 15.7% over the forecast period. This growth can be attributed to several factors. Firstly, the increasing adoption of IoT devices and the proliferation of data generated by these devices are driving the demand for edge computing solutions. Edge computing enables real-time data processing and analytics, making it ideal for managing the growing volume of data generated by IoT devices.

Regionally, North America is the fastest-growing and dominating region in the edge computing market. The region has a strong presence of key market players, advanced IT infrastructure, and a high adoption rate of emerging technologies. Moreover, initiatives such as smart cities, autonomous vehicles, and Industry 4.0 are driving the demand for edge computing solutions in the region. Asia Pacific is also expected to witness significant growth, owing to the rapid digital transformation and increasing investments in IT infrastructure.

Key players operating in the edge computing market include Microsoft Corporation, IBM Corporation, Cisco Systems Inc., Google Inc., Hewlett Packard Enterprise Company, Intel Corporation, Schneider Electric SE, Nokia Corporation, Huawei Technologies Co. Ltd., and Aricent Inc. These players are focusing on strategic partnerships, product innovations, and mergers and acquisitions to strengthen their market position and gain a competitive edge.

 

*Note:
1.  Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it