Schedule a Meeting
Get a SampleSeptember 2024
The global edge computing market size was USD 332.01 billion in 2023, estimated at USD 432.94 billion in 2024 and is anticipated to reach around USD 5,132.29 billion by 2034, expanding at a CAGR of 28% from 2024 to 2034.
The global edge computing market size is calculated at USD 432.94 billion in 2024 and is predicted to reach around USD 5,132.29 billion by 2034, growing at a CAGR of 28% from 2024 to 2034.
The U.S. edge computing market size was valued at USD 97.68 billion in 2023 and is expected to reach USD 1,521.83 billion by 2034, at a CAGR of 28.14% from 2024 to 2034.
North America led the edge computing market in 2023 with the largest share. North America, particularly the United States, is home to many of the world’s leading technology companies and research institutions. This ecosystem fosters rapid advancements in edge computing technologies, including the development of advanced hardware, software, and integrated solutions. Major tech giants such as Amazon, Microsoft, and IBM are at the forefront of offering edge computing solutions, driving market growth through continuous innovation. Industries in North America, including healthcare, manufacturing, and retail, are increasingly adopting edge computing to enhance operational efficiency, reduce latency, and enable real-time data processing. The strong presence of these sectors, coupled with their readiness to invest in cutting-edge technologies, has significantly contributed to the region's leadership in the edge computing market.
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.
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.
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.
| Report Coverage | Details |
| Market Size in 2023 | USD 332.01 Billion |
| Market Size in 2024 | USD 432.94 Billion |
| Market Size by 2034 | USD 5,132.29 Billion |
| Growth Rate from 2024 to 2034 | CAGR of 28% |
| Largest Market | North America |
| Base Year | 2023 |
| Forecast Period | 2024 to 2034 |
| Segments Covered | Component, Organization Size, Deployment, Industry Vertical, Application, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
The servers segment dominated the market in 2023. 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.
The energy and industrial category segment dominated the market in 2023. 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 2023, 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.
The Industrial Internet of Things (IIoT) segment has dominated the market with highest revenue share in 2023. 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.
Segments Covered in the Report
By Component
By Organization Size
By Deployment
By Industry Vertical
By Application
By Geography
For inquiries regarding discounts, bulk purchases, or customization requests, please contact us at sales@precedenceresearch.com
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client
September 2024
September 2024
March 2025
April 2025