edge computing Market

The edge computing market is expected to grow from US$ 40.84 million in 2022 to US$ 132.11 million by 2028; the market size is estimated to grow at a CAGR of 21.6% from 2022 to 2028.

The development of robust internet infrastructure, including fiber optic cables and 5G networks, in developed nations, along with the implementation of advanced infrastructure, is facilitating new use cases like Massive IoT, Critical IoT, and Fixed Wireless Access. The progression of internet technology is driving individuals and organizations to capitalize on the opportunities and increase their revenue streams. According to Ericsson's mobility report, published in June 2022, broadband IoT (4G/5G) has overtaken 2G and 3G, and it currently holds the largest share of all cellular IoT-connected devices. In addition, the number of IoT devices connected by Massive IoT technologies like NB-IoT and Cat-M has risen by approximately 80% in 2021, with a projected overtaking of 2G/3G by 2023. Furthermore, the proliferation of smartphones and other consumer electronics in India and China's vast populations, coupled with government initiatives for digitizing economies, is fueling exponential growth in data traffic over the internet globally and across various countries.

In addition to individuals, businesses across several sectors such as automotive, agriculture, oil & gas, healthcare, and manufacturing understand the significance of IoT, sensors, and communications, which drives the integration of sensors into devices. Many enterprises and service providers regard IoT as a critical enabler of digital transformation and operational efficiency enhancements. Consequently, edge computing is playing an essential role in deploying IoT across various industries, resulting in the growth of the edge computing market.

The emergence of 5G connectivity is facilitating the development of user-centric networks through network slicing and composable networking, which enables Communication Service Providers (CSPs) to provide faster network capabilities and more advanced offerings. With the help of distributed cloud computing, CSPs can now expand their services beyond traditional connectivity-service models to generate new sources of revenue. Moreover, the integration of 5G and edge computing technology reduces latency, improves response times, and enhances data processing and collection capabilities, which results in faster connectivity services and instantaneous communication experiences. This increasing adoption of 5G networks is driving the growth of the edge computing market.

Edge computing is based on a highly distributed network that eliminates the need for round trips to the cloud, which results in reduced latency and real-time responsiveness. This low latency allows millions of connected devices to communicate 400 times faster than the blink of an eye. Accelerating data transmission has become a key business objective. Many applications require low latency to improve the user experience and maintain customer satisfaction by ensuring that applications run smoothly at high speeds. These applications include online meetings and mission-critical computation applications hosted on the cloud. Low latency also indicates the reliability and robustness of connections, reducing connection loss, delays, lags, and buffers, which greatly benefits applications in healthcare, air traffic control, combat situations, and other fields. It is essential for many businesses and industries that depend on real-time applications or live streaming, such as banking, diagnostic imaging, navigation, stock trading, weather forecasting, collaboration, research, ticket sales, video broadcasting, and online gaming. Thus, low latency improves the operation speed at the edge and is a driving factor for the growth of the edge computing market.

The edge computing market has been analyzed based on the following segments: component, application, enterprise size, industry, and geography. Based on component, the market is further segmented into hardware, software, and services. The edge computing market, by application, is sub segmented into smart cities, Industrial Internet of Things (IIoT), content delivery, augmented reality and virtual reality, and others. The market, by enterprise size, is sub segmented into small and medium enterprises, and large enterprises. The edge computing market, based on industry, is further segmented into manufacturing, energy & utility, government, IT and telecom, healthcare, retail and consumer goods, and others. In terms of geography, the edge computing market is further segmented into five major regions-North America, Europe, Asia Pacific, the Middle East & Africa, and South America.  

The edge computing market size has been determined through comprehensive research using primary and secondary sources. The secondary research involved gathering qualitative and quantitative information from internal and external sources to gain an overview and forecast of the market across all its segments. To validate the data and gain further analytical insights, several primary interviews were conducted with industry participants and commentators, such as market intelligence managers, VPs, business development managers, national sales managers, and external consultants, including key opinion leaders, valuation experts, and research analysts, specializing in the edge computing market.

Major players in the edge computing market include Amazon Web Services, Inc., ADLINK Technology, Dell Technologies, EdgeConnex Inc., FogHorn Systems, International Business Machine Corporation, Litmus Corporation, Microsoft Corporation, The Hewlett Packard Enterprise Company, and Vapor IO, Inc. These companies are implementing various strategies, such as mergers, acquisitions, and product developments, to enhance their product offerings and remain competitive in the edge computing market.