Global Edge Computing Market to Expand to $20 Billion by 2028 with a 16% CAGR

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Dec 29, 2022, 10:45 ET

DUBLIN, Dec. 29, 2022 /PRNewswire/ -- The "Global Edge Computing Market Size, Segments, Outlook, and Revenue Forecast 2022-2028 by Component, Application, End-User Region" report has been added to ResearchAndMarkets.com's offering.

According to this analysis, the Global Edge Computing Market was valued at ~US$ 3 billion in 2017. It is estimated to be ~US$ 8 billion by 2022 and is expected to reach a market size of ~US$ 20 billion by 2028 growing at a CAGR of ~16% during the forecast period (2022-2028). Edge computing demand is anticipated to increase as a result of the rollout of 5G and the rising demand for decentralized data processing capability.

Edge computing adds to the organization's complexity by allowing a broad group of stakeholders to maintain IT infrastructures, networking, software development, traffic distribution, and service administration. Edge further blends networking architecture, software, and hardware solutions to address a range of use cases across numerous industries.

The development of edge computing is still in its early stages. Although its operational and deployment models have not yet developed, edge computing is anticipated to present considerable growth opportunities for new entrants in the coming years.

Edge computing use cases include the consumer desire for high-performance smartphone applications like high-definition multiplayer online battle arena (MOBA) games. Edge computing and the Internet of Things (IoT) offer attractive potential for edge computing architecture in developing nations like China, India, and Indonesia.

Since the storage and computing power of edge nodes is constrained, a well-equipped system is needed to connect the edge and the cloud. The barrier to the growth of the edge computing market will be the rise in network traffic from numerous nodes. Even when they are employing high bandwidth needs, many IT professionals still have the same problems.

Scope of the Report

The edge computing market is segmented by component, application, and end-user. In addition, the report also covers market size and forecasts for the four region's edge computing markets. The revenue used to size and forecast the market for each segment is US$ billion.

By Component

Hardware
Software
Services

By Application

IIoT
Remote Monitoring
AR/VR
Content Delivery
Others

By End-User

Manufacturing
Energy & Utility
Healthcare
Telecommunications
Retail
Others

By Geography

North America (USA, Canada, Mexico)
Europe (Germany, UK, France, Spain, Italy)
Asia-Pacific (China, Japan, South Korea, India, Indonesia, Australia)
LAMEA (Latin America, Middle East, Africa)

Leading Companies

General Electric Company
IBM Corporation
Intel Corporation
Microsoft Corporation
SAP SE
Amazon Inc
Huawei Technologies Co. Ltd
Hewlett Packard Enterprise Development
Honeywell International Inc
Google LLC

Key Trends by Market Segment

By Component: The hardware segment held the largest market share in 2021 as it is becoming more and more popular in the managed services sector

The amount of data produced by IoT and IoT devices is rapidly growing along with their quantity. Enterprises are therefore implementing edge computing equipment to reduce the stress on the cloud and data centers to the volume of data generated
Further subdivided into edge nodes/gateways (servers), sensors/routers, and others, the hardware market was dominated by the edge nodes/gateways (servers) segment. Additionally, the expansion of data centers in a variety of industries increases the demand for edge routers that connect local and wide-area networks (WAN).

By Application: Industrial Internet of Things (IIoT) segment held the largest market share in 2021, In the manufacturing sector, edge computing has a sizable installed base in the form of device edge. As services become more complex and the infrastructure edge is made more accessible, it is anticipated that demand for edge infrastructure will rise.

Edge computing has been essential in helping businesses digitalize their facilities. Machine edge computing makes up a significant percentage of edge computing in the industrial sector.
Demand for edge infrastructure that is set up to guarantee is expected to increase as system complexity increases and the edge of the infrastructure becomes more accessible.

By End-User: Energy & utility segment held the largest market share in 2021, smart grids, which rely on device-edge infrastructure, are probably going to help the energy and utility sector's income grow.

Global attempts to increase the efficiency of electrical utility services, including the development of alternative renewable power sources like solar and wind, are being fueled by environmental sustainability programs.
In order to increase capabilities and improve operating efficiencies, smart grids are being implemented all over the world. These networks can support microgrids to support generation from dispersed renewable sources, real-time consumption control, and integration with smart appliances.

By Geography: North America segment held the largest market share in 2021.

The convergence of IIoT and edge computing is creating favorable conditions for manufacturers in the USA to transition to connected manufacturing.
Several startups have also emerged to provide platforms for building edge-enabled solutions, which are expected to help the regional market's growth. For instance, the MobiledgeX Early Access Program was developed in cooperation between Telus Communications and MobiledgeX, Inc. The software has made it possible for programmers to create, test, and evaluate the effectiveness of edge-enabled apps in a low-latency setting.

Competitive Landscape

The global edge computing market is highly competitive with ~200 players which include globally diversified players, regional players, and country-niche players with their niche in the edge computing market.

Key Topics Covered in the Report

Snapshot of the Global Edge Computing Market
Industry Value Chain and Ecosystem Analysis
Market size and Segmentation of the Global Edge Computing Market
Historic Growth of the Overall Global Edge Computing Market and Segments
Competition Scenario of the Market and Key Developments of Competitors
Porter's 5 Forces Analysis of the Global Edge Computing Industry
Overview, Type Offerings, and Strengths & Weaknesses of Key Competitors
COVID-19 Impact on the Overall Global Edge Computing Market
Future Market Forecast and Growth Rates of the Total Global Edge Computing Market and by Segments
Market Size of Application Segments with Historical CAGR and Future Forecasts
Analysis of Global Edge Computing in Major Regions
Major Type/Supply and Consumption/Demand Hubs within Each Region
Major Country-wise Historic and Future Market Growth Rates of the Total Market and Segments
Overview of Notable Emerging Competitor Companies within Each Major Region