The Edge Computing Market Size Is Expected To Reach Over US$ 52.3 Billion By 2028. The growing adoption of internet of things (IoT) along with the growing demand for low-latency processing are the major factors for edge computing market growth. Alchemy Research and Analytics LLP provided this information in a recently published report, titled, “Edge Computing Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware, Platform, and Service), By Application (Smart Cities, Industrial Internet of Things (IoT), Remote Monitoring, Content Delivery, Augmented Reality & Virtual Reality, and others), By Organization Size (Small & Medium Enterprises and Large Enterprises), By Verticals (Manufacturing, Energy & Utilities, Government & Defense, Telecommunications, Media & Entertainment, Retail & Consumer Goods, Transportation & Logistics, Healthcare & Life Sciences, and Others), and By Region(Europe, North America, Asia Pacific, Latin America, and the Middle East & Africa), and Regional forecast 2020-2028.” The edge computing report further mentions that the market size stood at US$ 3.2 billion in 2019, and it is likely to exhibit a CAGR of 36.4% during the forecast period between 2020 to 2028.
The Increased adoption of Internet of Things (IoT)
The growing adoption of internet of things (IoT) along with increased data traffic and data volumes are the key factors for the global edge computing market growth. As per a recent report published by Global System for Mobile Communications Association (GSMA) in 2020, there is around 12.0 Bn internet of things (IoT) connections worldwide in 2019 which is anticipated to reach 24.6 Bn by 2025. Furthermore, the emergence of autonomous vehicles worldwide is another key factor anticipated to enhance the global edge computing market growth over the forecast period.
Rising demand from emerging economies
The increased demand for edge computing in emerging economies such as India, China, Brazil, Indonesia, and others along with rising demand for low-latency processing & real-time data monitoring are some other key factors for the global edge computing market growth over the upcoming years. Furthermore, the growing adoption of smart applications worldwide and the emergence of 5G are some other key factors anticipated to enhance the global edge computing market growth during the forecast period.
Alchemy Research and Analytics LLP, had taken the impact of the ongoing COVID-19 pandemic on the edge computing market for the year 2020 and 2021. As per our extensive secondary and primary research, the demand for edge computing has increased in the COVID-19 period owing to sudden lockdown and people working from home. However, the severe impact of the COVID-19 pandemic on the manufacturing industry across the globe had reduced the supply of raw material and other computing-related devices worldwide owing to which the growth of the edge computing market in the year 2020 and 2021 impacted severely.
Key Manufacturers Aim to Enhance Their Portfolios by Partnerships
According to Alchemy Research and Analytics major market players in the edge computing market are focusing on strategies such as partnerships, collaboration, acquisitions, and mergers to enhance their geographic presence as well as product portfolio. The edge computing market is highly fragmented.
Alchemy Market Research lists out the names of key market players in the edge computing market. They are as follows:
- Cisco Systems Inc.
- Hewlett Packard Enterprise
- Huawei Technologies
- Dell Technologies
- Nokia Corporation
- Amazon Web Services
- Foghorn Systems
- Litmus Automation
A Significant Industry Development-
- May 2020: IBM Corporation and Red Hat Corporation introduced new edge computing solutions for the 5G era at its Think Digital Conference. With new edge services, IBM Business Partners, and open multicloud solutions from IBM, enterprises will be able to tap into the potential of 5G to support crucial uses like emergency response, robotic surgery, or connected-vehicle safety features that benefit from the few milliseconds latency saved by not having to send workloads to a centralized cloud.
Further Report Findings-
- Asia Pacific is presumed to witness the fastest growth over the forecast period owing to the growing building of edge data centers to cope up with better IoT management and 5G computing.
- North America accounted for the largest share in the global edge computing market in 2019 owing to early technological adoption and convergence of edge computing with the industrial internet of things (IoT).
- Based on component, the hardware category accounted for the largest share in the global edge computing market in 2019 and had over 40% of the market revenue share in the same year. This is mainly due to the large-scale deployment of hardware components to enable comprehensive edge infrastructure deployment, reduce network traffic, and others. Besides, the services category is presumed to witness the fastest growth during the forecast period owing to the rising need for services of edge computing hardware and software.
The global market can be segmented in the following way:
|Unit||Value (US$ billion)|
· Smart Cities
· Industrial Internet of Things (IIoT)
· Remote Monitoring
· Content Delivery
· Augmented Reality (AR) and Virtual Reality (VR)
· Others (Autonomous Vehicles, Drones, and Gaming)
|By Organization Size
· Small and Medium-sized Enterprises (SMEs)
· Large Enterprises
· Energy and Utilities
· Government and Defense
· Media and Entertainment
· Retail and Consumer Goods
· Transportation and Logistics
· Healthcare and Life Sciences
· Others (Education and Banking, Financial Services, and Insurance)