Edge Computing Market Forecasts to 2028 – Global Analysis By Type (Descriptive Analytics, Predictive Analytics) Application (Smart Cities, Smart Grids), End User (Datacenters, Energy and Utilities) and By Geography

Edge Computing Market Forecasts to 2028 – Global Analysis By Type (Descriptive Analytics, Predictive Analytics) Application (Smart Cities, Smart Grids), End User (Datacenters, Energy and Utilities) and By Geography

According to Stratistics MRC, the Global Edge Computing Market is accounted for $9,169.82 million in 2021 and is expected to reach $56,007.91 million by 2028 growing at a CAGR of 29.5% during the forecast period. Edge computing provides real-time data analysis, reduces the cost related to data management and operations, and also makes sure that all other IT assets remain in working condition even though anyone device breakdowns.

Market Dynamics:

Driver:

Increasing adoption of IoT across industries

The proliferation of IoT has led to a significant increase in data, due to which organizations are increasingly relying on centralized cloud computing and storage solutions. Migrating to the cloud for the entire IT infrastructure poses latency and economic feasibility issues. Hence, organizations using IoT sensors, actuators, and other IoT devices are increasingly looking for edge computing solutions, such as edge nodes, devices, and hyper-localized data centers. Edge computing supplements the existing cloud paradigm by facilitating data processing closer to the data source, thereby enabling organizations to speed up decision-making. For instance, Purdue University uses IoT sensors and devices to study and improve plant growth and food production processes, partnered with an edge computing solution provider. With the partnership, the university now leverages wireless and edge computing technologies to gather, collocate, process, and transmit the voluminous data generated by the sensors. Consequently, the technologies help the university save time and money by increasing the speed and accuracy of their research and facilitating faster communication.

Restraint:

Initial CAPEX for infrastructure

Enterprises are rapidly moving toward digitalization by adopting emerging technologies to automate and accelerate their business processes efficiently. Edge computing might reduce data transmission and storage costs through localized processing but investing in edge infrastructure still adds to the CAPEX of companies. Companies looking for comprehensive edge computing solutions would require investing heavily in edge nodes, other edge devices, and edge data centers. They would also be required to spend more on making the devices and the entire network secure. Due to this, various content delivery enterprises are reluctant to move toward the edge just for achieving low latency processing. For instance, in 2018, Netflix, a live and on-demand video streaming company rejected the idea of investing in edge computing. Content delivery does not add any value to the company’s performance and cost, and video-on-demand services do not require low latency communication as compared to live video streaming or live events. The edge infrastructure cost is a restraining factor in the growth of the edge computing market, though, with advancement and continuous R&D, the cost of edge technology is expected to reduce soon.

Opportunity:

Emergence of autonomous vehicles and connected car infrastructure

Rising consumer demands and various technological advancements have led to the proliferation of autonomous and connected vehicles infrastructure. Autonomous vehicles broadcast information about weather, light, and road conditions and utilizes the same to navigate, control, and drive. As edge computing makes processing faster and closer to the source of data, there lie significant opportunities for edge computing to support the evolution of autonomous vehicles. Many companies have started reinventing the cloud through edge computing to support autonomous and connected car technologies, though it is still in the nascent stage. In April 2021, Honda and Verizon announced a research collaboration to test how new connected safety technology is using 5G and mobile edge computing solutions to ensure fast, reliable communication between road infrastructure and vehicles to reduce road collisions.

Threat:

Complexity in integrating with existing cloud architecture

Integrating edge computing applications and platforms with the existing cloud architecture is necessary to understand the potential of edge computing. The limited storage and computing capability of edge nodes require a well-equipped system between edge and the cloud. With the increasing adoption of multi-cloud infrastructures within the organization, establishing a reliable edge network to handle the network traffic from multiple nodes will be a challenge. Most IT managers are facing challenges in finding a suitable solution and cloud vendors that can address the high bandwidth requirements, as well as redundant data reporting.

The software segment is expected to have the highest CAGR during the forecast period

The software segment is growing at the highest CAGR in the market. Enterprises across different industry verticals are reducing their spending or are slashing their investments in upgrading software and servers to achieve rapid cost savings. The telecom sector is witnessing high growth in video conferencing software such as Zoom and Microsoft Teams and is rolling out new products to cope with the ever-increasing demand.

The hardware segment is expected to be the largest during the forecast period

The hardware segment is expected to be the largest share in the market. As the number of IoT and IIoT is increasing rapidly, the volume of data generated by these devices is also increasing. To cope with the amount of data being generated, edge computing hardware is utilized to reduce the burden in the cloud and data centers. The edge computing hardware needs to be rugged; compact; and should have sufficient storage, connectivity, and power range. The edge computing hardware must meet the requirements as they are often deployed in tough environmental conditions.

Region with highest share:

North America is projected to hold the largest share in the market. The convergence of edge computing with IIoT is encouraging manufacturers in the U.S. to move toward connected factories. Additionally, several startups have emerged to provide platforms for developing edge-enabled solutions, which is expected to drive the regional market. For instance, telecom companies in Canada, such as Telus Communications, are working with MobiledgeX, Inc. to develop the MobiledgeX Early Access Programme, which would allow developers to build, experiment, and gauge the effectiveness of edge-enabled applications in a low latency atmosphere.

Region with highest CAGR:

The Asia Pacific is projected to have the highest CAGR during the forecast period. IT spending across organizations in the region is gradually increasing, which is projected to lead to a surge in the adoption of edge computing. APAC is a base to various global telecommunications and edge network companies which acts as a growth factor for the edge computing market.

Key players in the market:

Some of the key players profiled in the Edge Computing Market include Amazon Web Services (AWS), AT&T Inc., Cisco Systems, Inc., Dell Technologies Inc., Fujitsu Limited, General Electric Company, and Hewlett Packard Enterprise Co., Huawei Investment & Holding Co. Ltd., Intel Corp., International Business Machines Corp., Litmus Automation, Microsoft Corp., Nokia Corp., NVIDIA Corp., and Schneider Electric SE.

Key developments:

In June 2021: Cisco announced its new portfolio of catalyst industrial routers to extend the capability of enterprise network to the edge with flexibility, scalability, and security with embedded 5G technology.

In April 2021: Verizon and AWS launched its private mobile 5G edge computing to enterprises in the US through Verizon private 5G network and AWS outposts.

In March 2021: Nokia launched of edge automation solution to remove the complexity of managing multiple cloud data center by automating it through a unified platform.

In February 2021: HPE announced it is accelerating its space exploration with its HPE’s Spaceborne Computer-2 (SBC-2), an edge computing system by enabling real-time processing and advanced commercial edge computing in space for the first time.

In January 2021: Dell Technologies announced that Dell Technologies, VMware, and SK Telecom are developing a single multi-edge computer product for private 5G helping enterprises utilize mobility and edge computing capabilities.

In January 2021: Litmus Automation announced the release Litmus edge 3.0 a modern edge platform to collect ana analyze, build, and run applications, and integrating it with the organization’s system.

Organization Sizes Covered:
Small and Medium-Sized Enterprises (SMEs)
Large Enterprises

Components Covered:
Edge-Managed Platform
Micro Data Center
Software
Hardware
Platform
Services

Types Covered:
Descriptive Analytics
Predictive Analytics

Technologies Covered:
Fog Computing
Mobile Edge Computing

Deployments Covered:
On-Premise
Cloud

Applications Covered:
Assets Tracking
Augmented Reality (AR) and Virtual Reality (VR)
Critical Infrastructure Monitoring
Smart Cities
Smart Grids
Traffic Management
Data Caching
Environment Monitoring
Industrial Internet of Things (IIoT)
Remote Monitoring
Internet of Things (IoT)
Location Services
Optimized Local Content Distribution
Other Applications

End Users Covered:
Smart Cities, Smart Homes, Smart Buildings
Transportation and Logistics
Wearables
Oil and Gas
Government and Defense
Information Technology (IT) & Telecommunications
Agriculture
Datacenters
Energy and Utilities
Healthcare and Life Sciences
Manufacturing
Media and Entertainment
Retail and Consumer Goods
Automotive
Other End Users

Regions Covered:
North America
US
Canada
Mexico
Europe
Germany
UK
Italy
France
Spain
Rest of Europe
Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
South America
Argentina
Brazil
Chile
Rest of South America
Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances