Edge Computing Market
Edge Computing By Component (Hardware, Software, Services), By Application (Energy & Utilities, Industrial, Transportation & Logistics, Smart Cities, Smart Homes & Smart Buildings, Healthcare, Agriculture, Retail, Datacenters), By Region - Market Insights 2022 to 2032
Edge Computing Market Snapshot (2022-2032)
The edge computing market is likely to garner a market value of US$ 5 Bn in 2022, anticipated to register a positive CAGR of 30% in the forecast period 2022-2032 and reach a value of US$ 69 Bn.
Edge Computing Market Size (2022)
US$ 5 Bn
Sales Forecast for edge computing (2032)
US$ 69 Bn
Global Market Growth Rate (2022 to 2032)
Key Companies Profiled
Demand Analysis of Edge Computing from 2017-2021 Vs Future Outlook 2022-2032
From 2017 to 2021, the global edge computing market registered significant gains, reaching a valuation of US$ 2.86 Bn in 2021. The introduction of 5G coupled with the increasing requirements for decentralized data processing power is projected to drive the demand for edge computing.
Shifting preference for high-performance smartphone apps is also contributing to the edge computing market’s revenue growth. The global edge computing market will multiply 13.7x from its current value during the forecast period. The adoption of Multi-access Edge Computing (MEC) by telecom companies will generate profitable opportunities for edge computing market leaders.
As telecom companies look to enhance the performance speed of mobile applications, edge computing products will witness a steep rise in demand. Benefits of multi-access edge computing, such as reduced network congestion are primary drivers of growth. According to Fact.MR’s analysis, the market is projected to show a promising growth rate for edge computing growing at a CAGR of around 30% over the forecast period (2022 to 2032.
What are the Recent Trends in the Market?
“IoT and Edge Computing For Architects to Emerge As One Of the Leading Trends.”
Consumer demand for high-performance smartphone applications such as high-definition multiplayer online battle arena (MOBA) games is important edge computing use cases. Edge computing and Internet of Things (IoT) in developing countries such as India, Indonesia, and China present lucrative opportunities for edge computing architecture.
In addition to this, IoT and edge computing for architects is emerging as one of the key trends. Edge computing is a technology evolution that is not restricted to any particular industry. As edge evolves, more industries find it relevant, which only brings fresh requirements or gives existing ones different contexts, attracting new parties to solve these challenges. Now more than ever, IoT and edge computing for architects holds a very promising future.
IoT-enabled devices warrant the use of advanced network infrastructure, and high processing speed, both of which are core benefits of edge computing. Therefore, IoT devices along with high-performance smartphone applications will strengthen the growth of the edge computing market between 2022 and 2032.
Furthermore, large enterprises in the industries like telecom and manufacturing are increasingly using use edge computing. With more than 50 billion connected devices, Huawei predicts that, by 2020, over 50% of data may be analyzed, processed, and stored in the network edge.
Which Region is projected to dominate the Usage of edge computing?
North America is the largest regional market accounting for 46% share of the total market value. Developed countries such as the US are homes to start-ups and prominent market players.
When coupled with the high-disposable income of consumers, the North American region will continue its share-wide dominance with over 27% CAGR during the projection period. Regions in the Asia Pacific, namely, East Asia and South Asia & Oceania present the most remunerative opportunities from six major regions.
East Asia will grow at 30% CAGR and South Asia & Oceania will grow at 32% CAGR from 2022 to 2032. Booming digital economies in these regions such as Indonesia, India, Singapore, China, Japan, and South Korea are central to the skyrocketing growth.
The increasing disposable income of consumers and penetration of edge computing-based products such as electric vehicles, fitness trackers, and smart home appliances drive the demand in this region.
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How attractive are the Opportunities for Edge Computing Landscape in India?
The Indian market will continue to be a lucrative market for edge computing, with an ever-expanding growth and development of infrastructure. The government of India is making efforts and launching various initiatives to develop the infrastructure for edge computing.
For instance, as part of the Digital India initiative, the Government of India planned to give IoT a push in the country. The government has allocated funds worth INR 7,000 crore for the development of 100 smart cities powered by IoT devices. The government intends to control traffic, efficiently use water and power, and collect data using IoT sensors for healthcare and other services.
How is the Market Performing in the US?
As per the Fact.MR analysis, the emergence of edge computing and IIoT is motivating the manufacturers in the U.S. In addition to this, a lot of startups have emerged to provide platforms for developing edge-enabled solutions, which is expected to drive the regional market.
The US holds a lot of potential for the market owing to the trend of digital transformation among organizations and consumers alike, which presents exponential growth opportunities for market players. Further, it is expected that once on-board, users of edge computing will realize the benefits of the varied range of products and continue to generate demand during the forecast period.
Which Component Type is expected to dominate the Market?
High Demand for Hardware Edge Computing Components Anticipated
According to the Fact.MR analysis, hardware components account for a majority share of more than 46% of the total market value. Technologies such as EDC, AMR, and MEC employ edge nodes, gateways, sensors, and routers. This further increases the demand for hardware components of edge computing. The segment will grow at a stupendous ~28% CAGR through 2032.
As organizations across the world leverage industry 4.0 technologies such as artificial intelligence, machine learning, and the internet of things, they require high-performance hardware components to aid precision performance. However, the highest growth can be traced to the edge computing services segment.
Which Application of Edge Computing is Propelling Growth?
By application, energy & utilities will emerge as the highest revenue application with more than 18% share of the total market value. Increasing emphasis on efficient energy utilization is increasing the adoption of remote monitoring and controlling of energy grids.
Edge computing examples such as Automatic Meter Reading (AMR), distributed generator management, and real-time analysis of electricity generation are giving tailwinds to the market. The energy & utility segment will continue to generate revenues at an astounding 29% CAGR through 2032.
An Adaptive Approach to Modern-day Research Needs
The competitive landscape of the edge computing market is shaped by product innovation and strategic mergers & acquisitions. Front Runners are emphasizing capacity enhancements and global footprint expansion to leverage lucrative prospects in developing economies.
- In January 2022, Amazon Web Services (AWS) announced the general availability of its new Amazon Elastic Compute Cloud (Amazon EC2) Hpc6a instances. These "purpose-built" EC2 instances leverage 3rd Gen AMD EPYC CPUs to process high-performance computing (HPC) workloads at what Amazon claims.
- In November 2021, Kyndryl announced a landmark global strategic partnership that will combine its market-leading capabilities in the service of enterprise customers. The deal with Microsoft is Kyndryl’s first since recently becoming an independent public company and provides incremental multi-billion dollar revenue opportunities for the two companies.
Key Market Segments in Edge Computing Industry Research
- Edge Computing Hardware
- Edge Nodes/Gateways (Servers)
- Edge Computing Software
- Edge Computing Services
- Edge-Managed Platform
- Edge Computing Hardware
- Edge Computing for Energy & Utilities
- Edge Computing for Industrial Applications
- Edge Computing for Transportation & Logistics
- Edge Computing for Smart Cities, Smart Homes, Smart Buildings
- Edge Computing for Healthcare
- Edge Computing for Agriculture
- Edge Computing for Retail
- Edge Computing for Datacenters
- Edge Computing for Other Applications
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Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
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