May 21, 2024
Ict

Edge Computing Market is Poised to Flourish Driven by Enhancements in IoT Connectivity


Edge computing is an evolving technology that encompasses computation, storage, and networking services closer to IoT devices and sensors to decrease latency and bandwidth constraints. Edge computing allows developers to create applications and services that leverage low-latency connectivity, location awareness, and site-specific information while keeping data security and privacy in mind. As the number of IoT devices connected to the internet surges exponentially, edge computing acts as a complimentary infrastructure to cloud computing for processing IoT data in a timely manner, improving user experience, and optimizing bandwidth consumption.

The Global Edge Computing Marketis estimated to be valued at US$ 111.3 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period from 2023 to 2030.

Key Takeaways

Key players operating in the Edge Computing are Microsoft Corporation,,Google LLC,,IBM Corporation,,Huawei Technologies Co. Limited,,Cisco Systems Inc. These players are investing heavily in developing edge infrastructure and tools to capture a larger share of this emerging market.

The key opportunities in the edge computing market include enabling real-time analytics for smart cities and industries, powering augmented/virtual reality applications, and facilitating edge-native applications and services. As more sensitive data from critical infrastructures and enterprises moves to the edge, there will be substantial demand for edge security solutions as well.

The adoption of edge computing is expanding globally with communications service providers and cloud operators establishing points of presence around the world to provide edge services at scale. Hyperscalers are building edge data centers and partnering with telcos to deliver low-latency site-specific services. The availability of standardized hardware and unified software frameworks will further accelerate the global proliferation of edge infrastructure.

Market drivers

One of the primary drivers for the growth of edge computing is the ever-increasing connectivity of IoT devices that generate enormous volumes of data. With billions of sensors transmitting data in real-time, there is a need to process and act on this data as close to the source as possible. This is where edge computing plays a crucial role in addressing bandwidth limitations and supporting mission-critical low-latency applications. As more enterprises adopt IoT and deploy more sensors across facilities and assets, the edge computing market is poised for significant expansion.

PEST Analysis
Political: Edge computing brings data processing and storage closer to end users. This reduces latency and ensures regulatory compliances. However, differing laws across regions can impact seamless deployment of edge infrastructure.
Economic: Edge computing market is expected to witness high growth due to cost savings from reduced network usage and bandwidth requirement. Enterprises can offer differentiated services and user experiences with localized computing at the edge.
Social: Edge enables new applications and services like augmented and virtual reality that were previously not possible. Widespread use of IoT devices require processing and analysis of data close to source of generation for applications in smart cities and connected vehicles.
Technological: Edge distributed architecture with localized data centers provides lower latency compared to cloud. Technologies like 5G and AI will further accelerate edge adoption. Larger volume of data generated from IoT devices also necessitates processing power closer to source of generation.

Europe dominated the edge computing market with more than 30% share in 2024. The presence of major technology companies and supportive government policies drive edge infrastructure development. North America held second largest share due to early adoption of edge computing in sectors like manufacturing, transportation and healthcare.

Asia Pacific edge computing market is poised to grow at highest CAGR during the forecast period. Countries like China, India and Japan are investing heavily in developing edge infrastructure to support 5G roll out and smart city projects. Increasing penetration of IoT devices will generate huge volume of data requiring local processing for applications across sectors.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it