Edge Computing Market

[359 Pages Report] The Edge computing market size is expected to grow from USD 60.0 billion in 2024 to USD 110.6 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 13.0% during the forecast period. The impact of the recession on the market is covered throughout the report. Businesses across industries require real-time insights to drive operational efficiency, improve customer experiences, and enable predictive maintenance. Edge computing facilitates data processing closer to the source, enabling faster decision-making and response times.

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Recession Impact on the Global Edge Computing Market

A recession can significantly impact the Edge computing market across organizations, industry verticals, and regions. Businesses may delay investments in advanced technologies as they prioritize cost-cutting over innovation. Startups in the field may struggle to secure funding as investors become more risk-averse. The impact of a recession on the digital media Edge computing market could be mitigated to some extent by the growth of online advertising. However, the industry/market might encounter hurdles due to reduced consumer spending and intensified competition for advertising revenue. Declining consumer expenditure during economic downturns could dampen the demand for entertainment offerings such as recreational tickets and cable TV subscriptions, reducing the earnings of video solutions and service firms engaged in their production and distribution.

The impact of recession is likely to fuel volatility in the global economy and capital markets in the upcoming three years (2024 through 2027), many economists believe. The experts also foresee an increase in localization, strengthening of geoeconomic blocs, and a widening divergence between the Global North and South over the upcoming three-year timeframe. According to the Chief Economists Outlook survey, World Economic Forum, January 2024, 69% of economists expect Geoeconomic fragmentation to accelerate in 2024. According to chief economists, in the upcoming three years (2024 through 2027), the following geopolitical developments are predicted to sharply increase statistics such as 87% volatility in the global economy, 86% localization of economic activity, 80% stock market volatility, 80% geoeconomic blocs of economic activity, 57% inequality and North-South divergence, 36% disruption in global supply chains, 13% globalization of economic activity. 50% of economists have predicted generative AI to be commercially disruptive through 2024.

Edge computing market Dynamics

Driver: Integration of AI/ML, a critical factor that leverage(s) global Edge computing market significantly

Integrating artificial intelligence (AI) and machine learning (ML) algorithms into edge computing devices enables real-time data analytics and decision-making at the network edge. Edge-based AI/ML applications, such as predictive maintenance, anomaly detection, and personalized content delivery, leverage local processing capabilities to analyze data in near real-time, enabling organizations to derive actionable insights and improve operational efficiency. AI/ML integration drives the edge computing market by allowing real-time data analysis and decision-making at the edge. By deploying AI and ML algorithms closer to where data is generated, organizations can extract valuable insights faster, optimize operations, and enhance user experiences. This integration also reduces the need for extensive data transmission to centralized cloud servers, minimizing latency and bandwidth requirements while improving edge computing solutions' overall efficiency and responsiveness.

Restraints: Complex nature of the edge computing infrastructure

Implementing edge computing solutions often requires significant investment in infrastructure, including edge devices, networking equipment, and management systems. This complexity can pose a barrier to adoption for organizations lacking the expertise or resources to deploy and maintain edge computing environments effectively. The complexity of infrastructure deploying edge computing solutions is a limiting factor for the global market. Organizations often face challenges setting up and managing the required edge devices, networking components, and management systems. This complexity can deter adoption, particularly for businesses lacking the expertise or resources to effectively navigate the intricacies of deploying and maintaining edge computing environments.

Opportunities: Tailored edge computing solutions address unique challenges and requirements that increase adoption and innovation across sectors

Customizing edge computing solutions to meet various industries' specific requirements presents a significant opportunity for market growth. Industries such as manufacturing, healthcare, transportation & logistics have distinct challenges and demands that can be effectively addressed through tailored edge computing solutions. For instance, in manufacturing, edge computing can optimize production processes and enable predictive maintenance, while in healthcare, it can support remote patient monitoring and real-time data analysis. Similarly, edge computing can enhance customer experiences in retail through personalized services and efficient inventory management. By catering to these industry needs, edge computing providers can unlock new avenues for adoption and innovation, driving the market forward.

Challenges: Challenges in compatibility or interoperability

The heterogeneous nature of edge computing ecosystems, with various devices, protocols, and standards, can lead to interoperability challenges. Integrating disparate edge devices and systems from different vendors may require extensive customization and integration efforts, potentially limiting the scalability and flexibility of edge computing deployments. This can hinder seamless data exchange and collaboration across edge nodes, affecting the overall effectiveness of edge computing solutions. Interoperability issues present a significant challenge to the global edge computing market. As edge solutions involve diverse hardware, software, and networking components from different vendors, ensuring seamless interoperability between these elements becomes crucial. A lack of standardized protocols and interfaces across devices and platforms can lead to compatibility issues, hindering the integration and scalability of edge computing deployments. This challenge complicates adoption and may deter organizations from investing in edge computing solutions.

Edge computing Market Ecosystem

Based on Components, Hardware will hold the largest market share in the Edge computing market during the forecast period.

In the hardware segment of the edge computing market, a diverse array of devices and equipment plays a crucial role in enabling distributed computing closer to data sources. This includes edge servers, routers, switches, gateways, sensors, and specialized edge computing chips. These hardware components are designed to efficiently process and analyze data at the edge, reducing latency and enhancing real-time decision-making capabilities. As edge computing continues to increase across industries, demand for optimized and scalable hardware solutions is rising, driving innovation and investment in this market segment.

Based on Application, the IoT & sensor data utilization segment will record the highest CAGR in the Edge computing market during the forecast period.

Utilizing IoT and sensor data in edge computing involves processing and analyzing data collected from connected devices and sensors at the network edge. Organizations can reduce latency, improve real-time decision-making, and optimize bandwidth usage by processing data closer to the source. This enables faster insights and actions, enhancing operational efficiency and productivity. Additionally, leveraging IoT and sensor data at the edge allows organizations to extract valuable insights, detect anomalies, and predict maintenance needs, leading to improved asset performance, reduced downtime, and lower maintenance costs. Overall, effectively utilizing IoT and sensor data in edge computing drives innovation, accelerates digital transformation, and delivers tangible business benefits.

North America is predicted to hold the largest Edge computing market share during the forecast period.

In North America, the edge computing market is witnessing significant growth driven by the increasing adoption of IoT devices, rising demand for low-latency processing in various industries, and advancements in 5G technology. Major players in the region are investing heavily in edge computing infrastructure to support emerging applications such as autonomous vehicles, smart cities, and industrial automation. Key technology hubs and a robust ecosystem of edge computing vendors contribute to the region's leadership in this market. North America is expected to continue leading the global edge computing market with further investments in edge infrastructure, partnerships, and innovative use cases across industries.

Key market players

The Edge computing market is dominated by startups as well as established companies such as HPE (US), Dell Technologies (US), AWS (US), Cisco (US), and Microsoft (US), among others. These vendors have a large customer base, a strong geographic footprint, and organized distribution channels. They incorporate organic and inorganic growth strategies, including product launches, deals, and business expansions, boosting revenue generation.

The study includes an in-depth competitive analysis of these critical Edge computing market players with their company profiles, recent developments, and key market strategies.

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Scope of the Report

This research report categorizes the Edge computing market to forecast revenue and analyze trends in each of the following submarkets:

Based on Component:

• Hardware
  • Edge Servers
  • Edge Gateways
  • Edge Sensors
  • Edge Devices
• Software
  • Data management
  • Device management
  • Application management
  • Network management
• Services
  • Professional services
  • Managed services

Based on Application:

• Real-time data processing & analytics
• Real-time cargo monitoring
• Predictive maintenance & optimization
• IoT & sensor data utilization
• Personalized customer experiences

Based on Organization Size:

• SMEs
• Large Enterprises

Based on Verticals:

• Manufacturing
• Energy & Utilities
• Government & Defense
• Telecommunications
• Media & Entertainment
• Retail & Consumer Goods
• Transportaion & Logistics
• Healthcare & Life Sciences
• Other Verticals

Based on Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • Australia & New Zealand
  • Rest of Asia Pacific
• Middle East & Africa
  • Gulf Cooperation Council (GCC)
    • UAE
    • Saudi Arabia
    • Rest of GCC
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments

• In February 2024, AWS entered this agreement to help NTT DOCOMO deploy its nationwide 5G open radio access network (RAN) in Japan. With this development, AWS will continue to enable its truly cloud-native, sustainable, and AI-driven 5G networks. AWS is curious about its journey with NTT DOCOMO to deliver 5G Core and Open RAN with new levels of resiliency, energy efficiency, and enhanced customer experiences. (AWS has been working with CSPs for quite some time to develop solutions in advanced networking, silicon innovation, and edge services for 5G technology).
• In February 2024, Cisco collaborated with Intel. Cisco's innovation center, partners, and other vendors gained the opportunity to authenticate their 5G end devices and demonstration systems using Cisco's advanced Mobility Services Platform and Intel Mobile Edge Computing applications. Moreover, Cisco has collaborated with various radio access network (RAN) vendors to actualize innovative private 5G scenarios tailored for practical deployment in multiple industries.
• In January 2024, HPE acquired Juniper Networks to create the pathway for advanced networking solutions that bring cloud-native capabilities, AI management, and control for hybrid cloud environments when combined with HPE Aruba Networking. It is noteworthy in a related development that Juniper Networks launched its new security services architecture for edge data centers in October 2023.
• In September 2023, Microsoft Advertising launched a new video advertisement (ad) offering called Video and Connected TV (CTV) ads (advertising strategy). CTV feature expands ad-serving possibilities simultaneously while leveraging audience intelligence to target high-value customers and increase the conversion rate. CTV ads are served across Microsoft's sites and publisher partners and on connected TV in the US.
• In May 2023, Dell launched the NativeEdge software platform that simplifies, secures, and automates edge infrastructure and application deployment. Dell NativeEdge offers extensive capabilities such as secure device onboarding, remote management, and multi-cloud application orchestration. It is uniquely designed to support various enterprise edge scenarios, facilitating seamless deployment without manual intervention. It also features an open system architecture compatible with multiple hardware within Dell's comprehensive portfolio. Equipped with built-in Zero Trust functionality, Dell NativeEdge enhances security measures by safeguarding customers' applications and infrastructure across their entire edge environment.

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