Edge Computing Market Trends & Size Analysis 2028

The edge computing market is expected to grow from US$ 40.84 billion in 2022 to US$ 132.11 billion by 2028; the market is estimated to grow at a CAGR of 21.6% from 2022 to 2028.

With a significant increase in data, organizations in various industries rely on centralized cloud computing and storage solutions. Edge computing helps industries and enterprises enhance operational efficiencies, improve performance, and automate core business processes. In addition, the increasing penetration of 5G and the growing preference for high-performance smartphone apps continue to support the growth of the edge computing market. In April 2022, Casa Systems received a multi-year contract from Verizon to provide its 5G Core Network Functions to help enable Verizon's public mobile edge computing service offering. Moreover, Verizon plans to invest ~US$ 40 million in equity in Casa Common Stock.

The edge computing market growth in North America is attributed to the increasing adoption of IoT, along with the need to address elevated data needs, and the load building on cloud infrastructure. 5G connectivity enhances digital experiences, improves performance, supports data security, and enables continuous operations in every industry. 5G will further open up significant avenues for edge computing in enterprises, allowing them to analyze large data volumes on-site (or on devices) in real time. Further, initiatives from the North American countries for encouraging developments in fully autonomous cars are propelling the demand for edge computing solutions. In March 2022, the US National Highway Traffic Safety Administration (NHTSA) issued final rules for the production and deployment of driverless vehicles that do not include manual controls, such as steering wheels or pedals. Thus, growing regulatory support and significant research & development activities by autonomous vehicle manufacturers are anticipated boost the popularity and adoption of autonomous cars in the coming years, thereby driving the need for edge computing in North America to ensure improved safety and efficiency, reduce accidents, and manage traffic congestion scenarios.

The edge computing market has been analyzed on the basis of the following segments: component, application, enterprise size, industry, and geography. Based on component, the market is further segmented into hardware, software, and services. The software segment is expected to held the largest share in the edge computing market during the forecast period. The edge computing market, by application, is subsegmented into smart cities, Industrial Internet of Things (IIoT), content delivery, augmented reality and virtual reality, and others. The smart cities segment is expected to held the largest share in the edge computing market during the forecast period. The market, by enterprise size, is subsegmented into small and medium enterprises, and large enterprises. The SMEs segment is expected to grow at the height CAGR in the edge computing market during the forecast period. The edge computing market, based on industry, is further segmented into manufacturing, energy & utility, government, IT and telecom, healthcare, retail and consumer goods, and others. The IT and telecom segment is expected to led the edge computing market during the forecast period. In terms of geography, the edge computing market is further segmented into five major regions—North America, Europe, Asia Pacific, the Middle East & Africa, and South America. North America dominated the overall market in 2021, and Europe accounted for the second-largest share of the market in 2021.

Strategic Insights

Impact of COVID-19 Pandemic on Edge Computing Market

The COVID-19 pandemic crisis has drastically affected two huge markets in APAC—India and China. However, the rising demand for edge computing in the post-pandemic period is primarily attributed to the growing demand for low-latency processing and real-time automated decision-making solutions, increasing implementation of IoT, , and growing burden on cloud infrastructure. In April 2020, the National Development and Reform Commission of China defined the scope of "new infrastructures, " including new infrastructures in cloud computing and intelligent computing centers. Furthermore, in February 2021, the Ministry of Transport of China issued the "National Comprehensive Three-dimensional Transportation Network Planning Outline" that promotes the digitization and connection of transportation infrastructures, deploying traffic perception systems in an all-around way and facilitating the application of autonomous driving and vehicle-infrastructure cooperation. In January 2022, RailTel planned to establish 102 edge data centers in Tier-2 and Tier-3 towns in India. Also, in February 2022, The NxtGen Datacenter and Cloud Technologies promised to set up 236 edge data centers in Chennai, Hyderabad, and Visakhapatnam by the first quarter of 2022-2023, with an investment of ~US$ 100 million. Such upcoming prospects are anticipated to drive the demand for edge computing products during the post-pandemic period in the coming years.

Lucrative Regions for Edge Computing Market

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Market Insights– Edge Computing Market

Increase in Adoption of IoT across Industries Boost Edge Computing Market Growth

The advent of IoT has enabled more than billions of devices to be connected over the internet. The proliferation of IoT has led to a significant surge in data, due to which industries increasingly rely on centralized cloud computing and storage solutions. Edge computing is performed at locations where data is collected or used, allowing the gathering and processing of IoT data at the edge rather than sending them back to a datacenter or cloud. According to the Ericsson Mobility report, mobile network data traffic rose by 40% worldwide from Q1 2021 to Q1 2022. This exponential growth in data traffic over the internet is attributed to the growing penetration of smartphones and other consumer electronic devices that can be connected over the internet due to the growing popularity of IoT. A few advantages of edge computing, including efficient data management, low connectivity costs, and better security practices, accelerate its usage across industries such as automotive, agriculture, oil & gas, and healthcare.

Component-Based Insights

Based on component, the edge computing market is segmented into hardware, software, and services. The hardware segment accounted for the largest share of the edge computing market in 2021 owing to the increasing adoption of IoT with a rise in the number of connected devices. Moreover, the services segment is projected to grow at the fastest CAGR during the forecast period owing to increase in demand for 5G network services.

Application-Based Insights

Based on application, the edge computing market is segmented into smart cities, Industrial Internet of Things (IIoT), content delivery, augmented reality and virtual reality, and others. The smart cities segment accounted for the largest share of the edge computing market in 2021.

Industry-Based Insights

Based on industry, the edge computing market is segmented into manufacturing, energy & utility, government, IT and telecom, healthcare, retail and consumer goods, and others segment. The IT and telecom segment accounted for the largest share of the edge computing market in 2021.

Players operating in the edge computing market are mainly focused on the development of advanced and efficient products.

• In January 2022, Verizon and Amazon Web Services (AWS) announced the expansion of their 5G mobile edge-computing solutions to 19 metro areas in the US.
• In February 2022, Amazon Web Services (AWS) and VMware collaborated to offer 5G and edge computing solutions in the US.

List of Companies

• ADLINK Technology
• Amazon Web Services, Inc.
• Dell Technologies
• EdgeConnex Inc.
• FogHorn Systems
• International Business Machine Corporation
• Litmus Corporation
• Microsoft Corporation
• The Hewlett Packard Enterprise Company
• Vapor IO, Inc