The global edge computing market size was estimated at USD 45.53 billion in 2022 and it is projected to surpass around USD 116.5 billion by 2030 at a compound annual growth rate (CAGR) of 12.46% during the projected timeline from 2022 to 2030.
Key Takeaway
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.
Report Scope of the Edge Computing Market
| Report Coverage | Details |
| Market Size in 2022 | USD 116.5 Billion |
| Market Size by 2030 |
USD 45.53 Billion |
| Growth Rate from 2022 to 2030 | CAGR of 12.46% |
| North America Market Share in 2021 | 41% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2030 |
| 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.
Region Insights
North America accounted highest revenue share of around 42% in 2022. By component, the US market was valued at US$ 692 million in 2021.
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.
Some of the prominent players
Segments Covered in the Report
(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)
By Component
By Organization Size
By Deployment
By Industry Vertical
By Application
By Geography
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