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.
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Edge Computing Market: Strategic Insights
Edge Computing Market
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![](https://www.theinsightpartners.com/assets/images/rd_int_img/cagr.png)
CAGR (2022 - 2028)
21.6%
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Market Size 2022
US$ 40.84 Billion
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Market Size 2028
US$ 132.11 Billion
Market Dynamics
GROWTH DRIVERS
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FUTURE TRENDS
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OPPORTUNITIES
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Key Players
- 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
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
Component
- Hardware
- Software
- Services
Organization Size
- SMEs and Large Enterprises
Application
- Smart cities
- Industrial Internet of Things
Industry
- Manufacturing
- Energy & Utility
- Government
- IT and Telecom
- Healthcare
- Retail and Consumer Goods
- Others
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Edge Computing Market: Strategic Insights
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CAGR (2022 - 2028)21.6% -
Market Size 2022
US$ 40.84 Billion -
Market Size 2028
US$ 132.11 Billion
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Market Dynamics
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Key Players
- 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
Regional Overview
![](https://www.theinsightpartners.com/assets/images/rd_int_img/ig-regional.png)
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
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- Hardware
- Software
- Services
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- SMEs and Large Enterprises
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- Smart cities
- Industrial Internet of Things
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- Manufacturing
- Energy & Utility
- Government
- IT and Telecom
- Healthcare
- Retail and Consumer Goods
- Others
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
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.
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.
Edge Computing Market Report Scope
Report Attribute
Details
Market size in 2022
US$ 40.84 Billion
Market Size by 2028
US$ 132.11 Billion
Global CAGR (2022 - 2028)
21.6%
Historical Data
2020-2021
Forecast period
2023-2028
Segments Covered
By Component - Hardware
- Software
- Services
By Organization Size - SMEs and Large Enterprises
By Application - Smart cities
- Industrial Internet of Things
By Industry - Manufacturing
- Energy & Utility
- Government
- IT and Telecom
- Healthcare
- Retail and Consumer Goods
- Others
Regions and Countries Covered
North America - US
- Canada
- Mexico
Europe - UK
- Germany
- France
- Russia
- Italy
- Rest of Europe
Asia-Pacific - China
- India
- Japan
- Australia
- Rest of Asia-Pacific
South and Central America - Brazil
- Argentina
- Rest of South and Central America
Middle East and Africa - South Africa
- Saudi Arabia
- UAE
- Rest of Middle East and Africa
Market leaders and key company profiles
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
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Report Attribute | Details |
---|---|
Market size in 2022 | US$ 40.84 Billion |
Market Size by 2028 | US$ 132.11 Billion |
Global CAGR (2022 - 2028) | 21.6% |
Historical Data | 2020-2021 |
Forecast period | 2023-2028 |
Segments Covered |
By Component
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Regions and Countries Covered | North America
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Market leaders and key company profiles |
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
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](https://www.theinsightpartners.com/assets/rdimages/report_coverage.png)
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
![Segment Covered](https://www.theinsightpartners.com/assets/rdimages/segment_covered.png)
Segment Covered
Component, Organization Size, Application, and Industry
![Regional Scope](https://www.theinsightpartners.com/assets/rdimages/regional_scope.png)
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
![Country Scope](https://www.theinsightpartners.com/assets/rdimages/country_scope.png)
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
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 rising trend of the adoption of 5G network across the world is expected to augment the demand for edge computing during the forecast period.
North America to dominate the edge computing market in 2021.
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.
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.