Edge Computing Market (By Component: Hardware, Software, Services, Edge-managed Platforms; By Organization Size: Large Enterprises, SMEs; By Deployment: On Premise, Cloud; By Industry Vertical: Industrial, Energy & Utilities, Healthcare, Agriculture, Transportation & Logistics, Retail, Datacenters, Wearables, Smart Cities, Smart Homes, Smart Buildings; By Application: IIoT, Remote Monitoring, Content Delivery, Video Analytics, AR/VR, Others) - Market Size, Share, Growth, Trends and Forecast 2023 to 2032

The global edge computing market size was estimated at USD 254.61 billion in 2022 and it is projected to surpass around USD 3,605.58 billion by 2032 at a compound annual growth rate (CAGR) of 30.4% during the projected timeline from 2023 to 2032.

Edge Computing Market Size 2023 to 2032

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Key Takeaway

  • North America region garnered the largest market share 42% in 2022.
  • By component, the U.S. edge computing market was valued at USD 694.2 million in 2022 and is expected to witness growth at a CAGR of 33.1% from 2023 to 2032.
  • By component, the server sector held more than 45.5% of total revenue in 2022.
  • The revenue share of edge sensors/routers was 25% in 2022.
  • In 2022, the energy and industrial category accounted for more than 18.6% of total revenue. 
  • In 2022, the Industrial Internet of Things (IIoT) application category had a revenue share of more than 33%.

Edge Computing Market in the U.S. 2023 To 2032

The U.S. edge computing market size was valued at USD 97.09 billion in 2023 and is expected to reach USD 1,043.89 billion by 2032, growing at a CAGR of 30.20% from 2023 to 2032.

U.S. Edge Computing Market Size 2023 to 2032

North America accounted highest revenue share of around 42% in 2022. By component, the US market was valued at US$ 692 million in 2022.

APAC is expected to develop at the quickest proportion in the next years. APAC has seen rapid implementation of new and is expected to have the greatest CAGR throughout the projection period. Moreover, IT investment in the zone is steadily growing, which is expected to contribute to an increase in the usage of edge computing.  APAC is home to a number of major telecoms and edge network firms, including China Telecom Huawei, Telstra, Vodafone, Optus, and NTT Docomo, Vodafone which contributes to the expansion of the edge computing industry. Yet, as relative to North America and Europe, APAC penetration of edge computing is modest.

Edge Computing Market Share, By Region, 2022 (%)

This is due to the absence of understanding among many of the region's small and medium-sized businesses (based on a survey by Vertiv, a cloud computing technology provider). The poll also revealed that the region's acceptance of edge computing is projected to skyrocket in the next 3–5 years, owing to a trend favoring edge technology across Asian retail and BFSI firms.

Growth Factors

The COVID-19 epidemic has led to a surge in edge computing and data centres. Nevertheless, with increased deployment, investment on these technologies is projected to fall modestly over the subsequent few months. To attain quick cost reductions, companies across several business verticals are lowering their expenditure or eliminating their resources in modernising software and servers. There are few outliers, such as growing expenditures in edge and IoT in the medical and telecommunications sectors. The telecom industry is growing at a high rate in video conferencing software like as Zoom and Microsoft Teams, and creative approaches are being introduced to meet the increased demand. For example, in December 2020, SK Telecom and Amazon Web Services developed edge cloud services centred on the 5G MEC. Corporations are seizing possibilities to address the present circumstances by delivering innovative services.

The severe acceleration in request for the edge computing and is projected to persist for the next three to four years following the COVID-19 pandemic, as the strain on expanding core network will not abate in the near future. Working from home being new normal as well as the healthcare system reaching saturation point with the online consultations, is predicted to give birth to such network architecture requires minimal connectivity and strong security. Telecom firms are likely to seize on this possibility since the cost of setting up advanced compared facilities or establishing full-sized data centre will outweigh the cost of edge facilities per unit. This financial advantage will hasten telecom firms' transition to large-scale data centre development in the coming years. Edge computing has evolved into a solution-oriented technology, containing unique designs and hardware designed for specific use cases. This is the first step forward to the future in which the edge becomes a viable portion of the internet with user-friendly platforms for many developers to make the most of it.

Edge Computing Market Scope

Report Coverage Details
Market Size in 2023 USD 330.74 Billion
Market Size by 2032

USD 3,605.58 Billion

Growth Rate from 2023 to 2032 CAGR of 30.4%
North America  Market Share in 2022 41%
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered Component, Organization Size, Deployment, Industry Vertical, Application, Geography
Companies Mentioned Amazon Web Services (AWS), Inc., ABB, Siemens AG IBM Corporation, Aricent, Inc., Atos, General Electric Company, Hewlett Packard Enterprise Development, Cisco Systems, Inc., Huawei , Technologies Co., Ltd., Honeywell International Inc., SAP SE, Intel Corporation, Microsoft Corporation, Rockwell Automation, Inc

Component Insights

The servers segment dominated the market in 2022. Servers that enable edge apps are often owned by organisations, linked to devices through a private network, and placed on-premises. Servers are progressively being installed in distant and edge locations, reducing latency among data producers and consumers. In addition, as the telco edge evolves, telcos are developing Multi-access Edge Computing (MEC) server architecture for information process technology.

The growing number of available centres in various industries is driving up market for edge routers. The routers serve as a gateway between both the local network and the external WAN. All data packets join the network to be routed through the entire edge router. Furthermore, the edge router is ultimately responsible for the operational security, filtering out unwanted access requests. Edge data centres must be well-equipped with diverse and strong edge routers capable of handling a high volume of traffic coming with low latency.

Industry Vertical Insights

The energy and industrial category segment dominated the market in 2022. Smart grids, which operate on device edge infrastructure, are important in contributing to profitability in the energy and utilities industry. Sustainable environmental measures are pushing global attempts to enhance the effectiveness of electricity distribution services, as well as the development of alternative renewable energy sources like wind and solar. Globally, smart grids are being introduced to increase productivity improvements and offer features including as interconnection with smart appliances, real-time consumption control, and micro-grids to support distributed renewable production.

In 2022, the healthcare industry had a sizable revenue share. When it comes to the use of digital technology, the healthcare industry has always been cautious. The industry is highly controlled, with permission driving improvement rather than blatant interruption. Nonetheless, as the healthcare industry becomes more digital, hospitals and clinics are increasingly implementing digital health initiatives with variable degrees of sophistication and effectiveness. Clinics and hospitals are integrating edge computing solutions across critical use cases to enable these objectives, namely remote patient care, patient record management, intervention and constant patient monitoring.

Application Insights

The Industrial Internet of Things (IIoT) segment has dominated the market with highest revenue share in 2022. Edge computing has been critical in enabling firms to achieve facility digitalization. A major portion of edge computing in the industrial industry is implemented as machine edge. As system complexity rises and the infrastructures edge becomes more accessible, demands for edge set up to guarantee is projected to rise.

Industry 4.0 stresses speed and flexibility through the use of techniques that allow the integration of physical and cyber systems. Smart factories can use an edge platform to communicate only collected information to their cloud - based solutions. By evaluating data remotely and delivering summary data to the cloud, the edge provides a gateway. In a smart factory, for example, edge devices may proactively correct specific problems and alert plant managers to concerns on the manufacturing floor.

Edge Computing Market Players

  • Amazon Web Services (AWS), Inc.
  • ABB
  • Siemens AG
  • IBM Corporation
  • Aricent, Inc.
  • Atos
  • General Electric Company
  • Hewlett Packard Enterprise Development
  • Cisco Systems, Inc.
  • Huawei Technologies Co., Ltd.
  • Honeywell International Inc.
  • SAP SE
  • Intel Corporation
  • Microsoft Corporation
  • Rockwell Automation, Inc

Segments Covered in the Report

By Component

  • Hardware
    • Edge Nodes/Gateways (Servers)
    • Sensors/Routers
    • Others
    • Cameras
    • Drones
    • HMD
    • Robots
    • Others
    • Hardware by Type
    • Hardware by End Point Devices
  • Software
  • Services
  • Edge-managed Platforms

By Organization Size

  • Large Enterprises
  • SMEs

By Deployment

  • On Premise
  • Cloud

By Industry Vertical

  • Industrial
  • Energy & Utilities
  • Healthcare
  • Agriculture
  • Transportation & Logistics
  • Retail
  • Datacenters
  • Wearables
  • Smart Cities
  • Smart Homes
  • Smart Buildings

By Application

  • IIoT
  • Remote Monitoring
  • Content Delivery
  • Video Analytics
  • AR/VR
  • Others

 By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

What is the current size of edge computing market?
The global edge computing market size was accounted at USD 254.61 billion in 2022 and it is expected to reach around USD 3,605.58 billion by 2032.
What will be the CAGR of global edge computing market?
The global edge computing market is poised to grow at a CAGR of 30.4% from 2023 to 2032.
Who are the prominent players operating in the edge computing market?
The major players operating in the edge computing market are Amazon Web Services (AWS), Inc., ABB, Siemens AG IBM Corporation, Aricent, Inc., Atos, General Electric Company, Hewlett Packard Enterprise Development, Cisco Systems, Inc., Huawei , Technologies Co., Ltd., Honeywell International Inc., SAP SE, Intel Corporation, Microsoft Corporation, Rockwell Automation, Inc
Which are the driving factors of the edge computing market?
Growing adoption of IoT across industries is the driving factors of the edge computing market.
Which region will lead the global edge computing market?
North America region will lead the global edge computing market during the forecast period 2023 to 2032.


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