The global edge computing market was valued at $8.1 billion in 2021 and it is expected to reach $90.1 billion at a CAGR of 22.4% between 2022 and 2032. The development is anticipated to be fueled by rising worries about the security of data being exchanged through a public internet connection. Customers can access the internet using public connections by using a virtual private network, which offers an encrypted connection. These secure connections are used by many businesses to guarantee that only authorized users can access their networks remotely.
Unprecedented amounts of data have been generated as a result of the IoT devices' rapid expansion and rising computational capability. And as 5G networks expand the number of mobile devices connected, data volumes will continue to increase. Additionally, edge computing with 5G opens up enormous prospects in every sector. It allows for improved data control, lower costs, quicker insights and actions, and continuous operations by bringing computation and data storage closer to the point where data is generated. Compared to only 10% currently, 75% of enterprise data will be processed at the edge by 2035.
In the past, the promise of cloud computing and artificial intelligence was to automate and speed up innovation by generating useful data insights. However, the linked devices' ability to produce data on a scale and in a complexity never before seen has exceeded network and infrastructure capacities. It also has a few special advantages over conventional models, which concentrate computer power at an on-site data center. By locating computing at the edge, businesses may better manage and utilize physical assets and develop fresh, engaging, human experiences.
Source: SAI Research
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When consumers attempt to use centralized hosting systems or centers-hosted programs and data, a delay may result. When there are problems with internet access, the process of requesting data from these data centers can become delayed. Because data can be retrieved directly from the endpoints rather than from a remote centralized data center, then sent back to the endpoints, organizations may avoid concerns with speed and connectivity thanks to edge computing. Additionally, in the world of IT, data security and privacy protection are hot topics. Because data is handled locally rather than coming from centralized servers, edge computing offers a higher level of data security and privacy protection. This in no way implies, however, that edge computing devices are not at all vulnerable. In other words, when data kept on centralized servers are breached, privacy can be readily jeopardized because they have more detailed information about individuals, places, and events. Furthermore, one of the things that organizations spend a lot of money on is moving data around on cloud hosting services. The more money that corporations spend, the more data is transported on these centralized hosting services.
Based on component type, the hardware category accounted for the largest share of the market. Hardware is expected to hold the largest market share throughout the forecast since it is becoming more and more popular in the managed services sector. The amount of data produced by IoT and IIoT devices is rapidly growing along with their quantity. Edge servers, the primary piece of hardware in edge infrastructure, will be in extremely high demand during the period covered by the projection. Consequently, this would influence the market going forward. Additionally, the growth of data centers in a variety of industries increases the need for edge routers that connect local and wide-area networks
In terms of application type, the smart cities segment accounted for the larger share of this market and is also anticipated to propel the market growth during the forecast period from 2022 to 2032. As a result, there is a sharp increase in the amount of data being transported to centralized data centers or the cloud for additional processing and analysis, which is expensive. Edge computing can be quite helpful in this situation to analyze information and make decisions closer to the source of the data. Additionally, an edge platform can be used by smart factories to provide only processed data to their cloud solutions. By doing local data analysis and transferring compiled data to the cloud, the edge serves as a path.
By verticals, the energy and utility segment is expected to drive the growth of the market during the forecast period. Global attempts to increase the efficiency of electrical utility services, including the development of alternative renewable power sources like solar and wind, are being fueled by environmental sustainability programs. However, the medical sector and transportation sector are also projected to boost market growth over the forecast period from 2022 to 2032. To support these tactics, hospitals and clinics are implementing edge computing solutions across key use cases, including medical record management, ongoing patient monitoring, remote patient care, and intervention.
Based on regions, the Asia-pacific region is expected to hold its dominant position in the future due to numerous collaborations of major key players and some other business strategies such as mergers and acquisitions. In this area, edge computing technologies are openly being used. The fastest growth of this region in the edge computing market is also supported by rapid population growth and rising economic development. As some of the most technologically advanced nations in the world, this region's China, India, Japan, and South Korea provide significant growth potential for market participants. The region's tremendous growth of the ecosystem for connected devices produces a lot of data, necessitating the need for a strong computational infrastructure.
According to the study, key players such as Amazon (U.S), ABB (Switzerland), ADLINK (Taiwan), Atos (France), Alphabet Inc (U.S), Capgemini (France), Cisco (U.S), Dell (U.S), General Electronics (U.S), HPE (U.S), Honeywell International (U.S), Huawei (China), IBM (U.S), Itmus Automation (U.S), Intel (U.S), Microsoft (U.S), Nokia (Finland), Rockwell Automation (U.S), Siemens (Germany), SAP SE (Germany), among others are leading the global edge computing market.
|Market Size in 2021||US$ 8.1 Billion|
|Market Volume Projection by 2032||US$ 90.1 Billion|
|Forecast Period 2022 to 2032 CAGR||22.4%|
|Historical Data||2019, 2020 and 2021|
|Forecast Period||2022 to 2032|
By Component Type: Software, Hardware & Services
By Application Type: Smart Cities, Remote Monitoring, Content Delivery, Augmented Reality, Virtual Reality, IIoT & Others
North America, Europe, Asia-Pacific, LAMEA
|Companies covered||Amazon (U.S), ABB (Switzerland), ADLINK (Taiwan), Atos (France), Alphabet Inc (U.S), Capgemini (France), Cisco (U.S), Dell (U.S), General Electronics (U.S), HPE (U.S), Honeywell International (U.S), Huawei (China), IBM (U.S), Itmus Automation (U.S), Intel (U.S), Microsoft (U.S), Nokia (Finland), Rockwell Automation (U.S), Siemens (Germany), SAP SE (Germany), among others|
The Global Edge Computing Market Has Been Segmented Into:
The Global Edge Computing Market – by Component Type:
The Global Edge Computing Market – by Application Type:
The Global Edge Computing Market – by Verticals:
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