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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.
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Edge Computing Market: Strategic Insights
Market Size Value in US$ 40.84 Billion in 2022 Market Size Value by US$ 132.11 Billion by 2028 Growth rate CAGR of 21.6% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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Edge Computing Market: Strategic Insights
| Market Size Value in | US$ 40.84 Billion in 2022 |
| Market Size Value by | US$ 132.11 Billion by 2028 |
| Growth rate | CAGR of 21.6% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Organization Size, Application, and Industry
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The increase in adoption of IoT across industries and extremely low latency and high availability of bandwidth is anticipated to fuel the growth of the market in the coming years.
The introduction of autonomous vehicles and connected car infrastructure is expected to provide potential opportunity for the market growth during the forecast period.
North America to dominate the edge computing market in 2021.
The rising trend of the adoption of 5G network across the world is expected to augment the demand for edge computing during the forecast period.
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; and Vapor IO, Inc. are the leading companies in the edge computing market.
The List of Companies - Edge Computing Market
- 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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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