Edge Computing Market

Edge Computing Market Study by Hardware, Software, Services, and Edge-Managed Platforms for Energy & Utilities, Industrial, Transport & Logistics, Smart Cities & Homes, and Others from 2024 to 2034

Analysis of Edge Computing Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Edge Computing Market Outlook (2024 to 2034)

The global edge computing market is projected to increase rapidly from a size of US$ 13.1 billion in 2024 to US$ 154.7 billion by the end of 2034, which amounts to expansion at a high-value CAGR of 28% over the next ten years.

A large number of devices are connected to the internet resulting in a massive amount of data in traditional data centers. Emerging technologies and the fast use of computing devices across several industries are projected to result in a large volume of decentralized data.

A vast amount of data results in latency and inefficiencies in processing. Edge computing shifts this data processing to the data sources instead of relying on data centers to manage and analyze data. This helps organizations in optimizing their systems. The healthcare industry has benefited from the use of software applications to track patient progress. Patients share their illnesses, and physicians guide them accordingly after receiving the data, which has fueled market growth.

Industries are implementing advanced technology to improve daily operations and speed up processes amid the growing trend of digitalization. Edge computing reduces storage and data transfer expenses, but it eventually raises organizations' capital expenditure. A system’s networked architecture exposes it to cyberattacks, making it prone to malware invasion and security flaws.

Report Attributes Details
Edge Computing Market Size (2024E) US$ 13.1 Billion
Projected Market Value (2034F) US$ 154.7 Billion
Global Market Growth Rate (2024 to 2034) 28% CAGR
China Market Value (2034F) US$ 17 Billion
Canada Market Growth Rate (2024 to 2034) 28.6% CAGR
North America Market Share (2024E) 23.9%
East Asia Market Value (2034F) US$ 35.7 Billion
Key Companies Profiled
  • Cisco Systems Inc.
  • Microsoft Corporation
  • Amazon Web Services (AWS) Inc.
  • Moxa Inc.
  • NVIDIA Corporation.
  • Juniper Networks
  • Axellio
  • GE Digital

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What are the Edge Computing Market Trends to Follow?

“Growing Demand for IoT Devices and High-Performance Smartphone Applications”

Consumer demand for high-performance smartphone applications, such as high-definition multiplayer online battle arena (MOBA) games, is a significant edge computing use case. Edge computing and Internet of Things (IoT) technologies in countries like South Korea and China offer lucrative opportunities for service providers. IoT and edge computing for architects is emerging as a key trend. Edge computing is a technology evolution that transcends any particular industry.

As edge computing continues to evolve, more industries find it relevant, bringing new requirements or offering existing ones in different contexts, attracting new parties to address these challenges. IoT-enabled devices require advanced network infrastructure and high processing speed, which are core benefits of edge computing. Consequently, the adoption of IoT devices, along with the introduction of high-performance smartphone applications, are contributing to the edge computing market growth. Large enterprises, such as those in the telecom and manufacturing sectors, are increasingly adopting edge computing.

What Obstacles are Edge Computing Service Providers Facing?

“Lack of Standardized Protocols and Interoperability Issues”

Edge computing manufacturers face a variety of challenges. Interoperability issues due to the diverse range of devices and systems involved in edge computing. This is closely tied to the standardization of protocols. Without standardized protocols, the integration and communication between different devices can be problematic.

Data security and privacy are also major concerns. As edge computing involves processing data closer to the source, ensuring the security and privacy of data becomes more complex. Infrastructure development is another challenge, especially for manufacturing plants in remote areas. These locations may struggle to provide the necessary infrastructure and power sources required for successful edge computing implementation.

Funding is a significant obstacle. Developing a hybrid cloud infrastructure, which is often essential for edge computing, requires substantial investment. These challenges must be addressed for edge computing to realize its full potential in the manufacturing industry.

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Country-wise Insights

Fact.MR, a market research and competitive intelligence provider, through its newly published analysis, asserts that North America is projected to hold 24.3% edge computing market share by 2034. Edge computing solution providers have expanded their reach to varied worldwide regions such as Southeast Asia, Central and South America, and Australia. This expansion allows them to efficiently meet rising worldwide demand and reduce reliance on a single source of supplies.

Which Factors are Enhancing Market Performance in the United States?

“Growing Adoption of 5G Services and IoT”

Attribute United States
Market Value (2024E) US$ 1.4 Billion
Growth Rate (2024 to 2034) 28.5% CAGR
Projected Value (2034F) US$ 17.1 Billion

The United States market is being influenced by the growing adoption of the Internet of Things (IoT) across various industry verticals, which is accompanied by an increase in the number of smart applications. Development and significance of big data as well as the rise in adoption of 5G devices and artificial intelligence (AI) are also contributing to the expansion of the edge computing market size.

As the number of connection points and the amount of data created by these devices increase, transporting all of that data to distant clouds for processing becomes more inefficient and costly. As a result, many enterprises are contemplating a hybrid cloud approach that incorporates edge computing into their existing cloud plans. This brings the cloud's scalable and elastic computing capabilities closer to the devices that create and consume data.

Which Key Strategies are Helping Market Players Establish Their Dominance in China?

“Focus on Establishing Smart Grids and Collaboration among Industry Stakeholders”

Attribute China
Market Value (2024E) US$ 1.4 Billion
Growth Rate (2024 to 2034) 28% CAGR
Projected Value (2034F) US$ 17 Billion

The pursuit of smart grids has sparked innovation in China's edge computing business. Chinese businesses are making great efforts to adapt to tough working conditions and operating environments on industrial sites. This includes building edge computing solutions that can withstand electromagnetic interference, dust, explosions, tremors, and current/voltage variations.

Ecosystem cooperation is developing with the efforts of both local and international organizations. This includes the edge computing consortium (ECC), which aims to foster collaboration among industry resources from the government, vendor, academic, research, and client sectors. Chinese companies are diversifying their product offerings and pursuing acquisitions and mergers.

Category-wise Insights

Edge computing components are divided into three segments such as hardware, software, and services. Out of these three, the hardware edge computing segment is set to occupy a 45% market share in 2024.

How Do Hardware Components Optimize System Efficiency?

“Role of Hardware Components in Reducing Latency and Accelerating Data Processing”

Attribute Hardware
Segment Value (2024E) US$ 5.9 Billion
Growth Rate (2024 to 2034) 26.5% CAGR
Projected Value (2034F) US$ 61.9 Billion

A hardware component comprises sensors, routers, and edge nodes or servers, with edge nodes/servers accounting for the majority of the market share. These edge nodes/gateways act as a bridge between local devices and the cloud, bringing processing capacity closer to the data source. This minimizes latency, accelerates data processing, and increases overall system efficiency.

Hardware components are designed to withstand a variety of operational environments such as electromagnetic interference, dust, explosions, vibrations, and current/voltage variations. This versatility makes them appropriate for deployment in a variety of situations and is boosting their demand in the market.

What is Contributing to High Demand for Edge Computing Solutions in the Industrial Sector?

“Decentralized Storage in Industrial Edge Computing Reducing Cybersecurity Risks”

Attribute Industrial
Segment Value (2024E) US$ 3.4 Billion
Growth Rate (2024 to 2034) 26.4% CAGR
Projected Value (2034F) US$ 35.6 Billion

Growing trend of factory automation and the use of connected devices in several end-use industries such as automotive and logistics is driving demand for edge computing. Edge computing allows enterprises to use the potential of IT and OT convergence, real-time data processing, and advanced analytics to drive efficiency, cut costs, and improve business outcomes in manufacturing.

Industrial edge computing enables enterprises to save network bandwidth by minimizing data transferred to the cloud. Organizations can potentially reduce cloud computing and storage costs by processing data locally. When computers and storage are decentralized, there is a lower danger of data compromise or a cyberattack bringing down the entire network. Industrial edge computing also has cost-cutting advantages.

Transferring vast amounts of inconsequential data to a centralized cloud is expensive, therefore retaining such data at the edge and deleting it after use saves money. Edge computing also allows for easy tracking of specific devices or equipment implementation on a work floor. This helps manufacturers optimize equipment performance while reducing expenses and hazardous conditions.

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Competitive Landscape

Market growth is being driven by several factors, including evolving consumer preferences, technological advancements, and global economic conditions. Key players in the edge computing market are Cisco Systems Inc., Microsoft Corporation, Amazon Web Services (AWS) Inc., Moxa Inc., NVIDIA Corporation, Juniper Networks, Axellio, and GE Digital.

  • Nokia launched four third-party applications for MX Industrial Edge in April 2023, enabling enterprises to connect, collect, and analyze data from disparate sources, including video cameras, and thus unlocking the value of operational technology assets over a robust and secure on-premises edge.

Key Segments of Edge Computing Market Research

  • By Component :

    • Hardware
    • Software
    • Services
    • Edge-Managed Platform
  • By Application :

    • Energy & Utilities
    • Industrial Applications
    • Transportation & Logistics
    • Smart Cities, Smart Homes, Smart Buildings
    • Healthcare
    • Agriculture
    • Retail
    • Data Centers
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

- FAQs -

How big is the edge computing market in 2024?

The global edge computing market is estimated at US$ 13.1 billion in 2024.

Which application is predicted to hold a leading market share in 2024?

Edge computing application in the industrial sector is set to account for 26.4% market share in 2024.

What is the estimated revenue generation from edge computing by 2034?

The market is forecasted to generate a revenue of US$ 154.7 billion by 2034.

What is the expected market growth rate through 2034?

The global market for edge computing is projected to expand at a CAGR of 28% through 2034.

How is the market projected to fare in North America?

The market in North America is forecasted to expand at a CAGR of 28.2%.

What is the growth rate for the East Asia market?

The market in East Asia is projected to grow at a CAGR of 28.4% from 2024 to 2034.

What are the forecasts for the market in Japan?

The edge computing market in Japan is calculated to increase at a CAGR of 28.6% through 2034.

Edge Computing Market

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