|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The Edge Computing Market was valued at USD 5242.90 million in 2021 and is expected to register a CAGR of 44.90% over the forecast period (2022 - 2027). The increasing adoption of IoT is augmented by 5G operations, primarily driving the growth of the market studied. A significant share of industrial IoT service providers and aggregators are offering 5G capable network offerings that are expected to adopt edge computing over the coming years for handling the sheer amount of data.
- The key players that are significantly active in the market studied include cisco, HPE, Dell, and Huawei. They have been developing edge computing products that adapt to harsh working conditions and operating environments at industrial sites, such as anti-electromagnetic interference, anti-dust, anti-explosion, anti-vibration, and anti-current/voltage fluctuations. These companies are making significant efforts in the edge computing market to create the next big thing by engaging in partnerships and making frequent product developments.
- Edge computing is being led by initiatives like OpenFog Consortium, an organization headed by vendors in the market studied, including Cisco, Intel, Microsoft, and Dell EMC, as well as academic institutions like Princeton University and Purdue University. The consortium aims at developing reference architectures for fog and edge computing deployments.
- In January 2022, Verizon and AWS partnered to expand to 30% more metro area locations in the United States with mobile edge computing with the addition of Charlotte, Detroit, Los Angeles, and Minneapolis. The combination minimizes the latency and network hops required to connect from an application hosted on the platform to the end user’s device.
- The edge computing market is dominated by major vendors that cover a significant share of the market studied, and they are intensely competing to gain a foothold in different regional markets. Owing to this, vendors are involved in several partnerships and alliances to gain market presence and technological capabilities.
- For instance, In April 2022, Ball extended its agreement with AWS. This collaboration aims to launch the first public multi-access edge computing (MEC) with AWS Wavelength in Canada. 5G network is expected to bring new growth opportunities to the edge computing market.
- The COVID-19 pandemic positively affects the 5G and multi-access edge computing (MEC) deployments as businesses strategize service speed and low latency as key differentiators. The tight integration of network and compute to support next-generation apps is the way forward.
Scope of the Report
Edge computing refers to the distributed computing paradigm, mainly used to bring computing and data storage closer to the location to improve the response time. The analysis tools used across industries are beginning to drive new levels of performance and productivity. Therefore, the distributed computing paradigm called edge computing is gaining traction.
The market studied is segmented into different components of edge computing, i.e., hardware, software, and services. It also covers the uses and applications of the technology across various end-user segments, such as the financial and banking industry, retail, healthcare and life sciences, industrial, energy and utilities, telecommunication, and other end users. The study further analyzes the overall impact of COVID-19 on the ecosystem.
|Financial and Banking Industry|
|Healthcare and Life Sciences|
|Energy and Utilities|
Key Market Trends
Industrial Sector to Account for the Largest Market Share
- In today's digitally-driven manufacturing environments, many sensors, devices, and too much data depend on manual processes. Manufacturing organizations need to automate systems monitoring across the factory floor and their responses to abnormal conditions, such as equipment showing signs of stress.
- The edge computing framework significantly reduces the complexity of interconnected systems, making it easier to collect and analyze data in real time. It can also allow devices to gather critical information in remote sites where network connectivity is inconsistent or not cost-effective. Edge devices can be IoT-enabled machines, gateways, sensors, or single-board computers.
- Data can be gathered and analyzed locally, with only critical information being transmitted back to the central network when connections are possible. Combining edge computing and industrial IoT devices would make it easier to streamline industrial processes, optimize supply chains, and create the "smart" factory.
- With the increase in IoT deployment, manufacturing companies have been rapidly adopting edge computing to enhance interoperability among IoT devices, reduce unforeseen downtime issues, and improve production efficiency.
- Industrial manufacturing is witnessing a revolution, owing to the potential of edge computing. Combined with a new generation of smart IoT edge devices, edge computing applications would completely transform manufacturing in the coming decades to drive better efficiency and productivity while also controlling costs. This is expected to impact the market's growth over the forecast period positively.
- The key players in the market are involved in strategic collaborations to remain competitive in the industry. For instance, In February 2022, AT&T collaborated with Microsoft to develop AT&T Private 5G Edge. The companies aim to develop it as simply as possible for customers to install and operate the private 5G network and the edge computing equipment.
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Asia Pacific is Expected to have Significant Market Share
- China has made a good start in terms of 5G and the edge; a surveillance culture could set the course for the evolution of technology. Western companies such as Meta, Apple, Netflix, and Google have shaped the global digital economy by establishing standards for using personal data to target ads. Chinese companies such as Alibaba, Baidu, Huawei, and ZTE are shaping the future direction of edge computing-backed surveillance technology. Such initiatives in China cater to the demand; thus, the country has the highest share in the region.
- According to a survey by GSMA, approximately 90% of mobile ecosystem players in China recognized edge computing as a significant revenue opportunity in the 5G era. The country's edge computing deployments are majorly designed to serve the requirements of smart ports, smart campuses, and smart factories. As the 5G networks scale over the next few years, edge computing use cases, such as sporting events, gaming, and autonomous driving, will be possible.
- IIJ deployed MDC on the premises of Shiroi Data Center Campus (Shiroi DCC). The MDC, from Australian manufacturer Zella DC, was the first to be installed in Japan. It is equipped with the functions a data center needs, including a cooling unit, an uninterruptible power supply (UPS), environmental sensors, security cameras, and physical security, including a remote-controlled electronic lock.
- Moreover, in October 2021, Blaize, an AI computing company involved in automotive and edge computing, and NEXTY Electronics Corp, a core member of the Toyota Tsusho Group, announced that it had made NEXTY a Blaize distribution partner serving automotive and industrial markets for AI edge computing in Japan. Focusing on innovation and anticipating customer needs across multiple industries will drive the adoption of edge AI applications enabled by Blaize's low-power, low-latency, and compute-efficient AI inference accelerator products.
- As part of the Digital India initiative, the Government of India planned to give IoT a push in the country. The government has allocated INR 7,000-crore funds to develop 100 smart cities powered by IoT devices. The government intends to control traffic, efficiently use water and power, and collect data using IoT sensors for healthcare and other services.
- In February 2022, Reliance Jio enabled edge computing on its cloud-native 5G network at more than 50 facilities across India. The telco has completed 5G planning for the "top 1,000 cities" across India, and dedicated teams have been formed to focus on "dedicated solutions for 5G deployment" in the country. Jio, Airtel, and Vodafone Idea are currently piloting innovative 5G use cases with their equipment and enterprise partners using the trial 5G spectrum.
- Moreover, in March 2022, Tata Consultancy Services announced the launch of an enterprise 5G edge solution suite with Microsoft Azure Private Mobile Edge Computing (Private MEC).
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The edge computing market is fragmented and competitive in nature. Currently, the market is dominated by cloud-based IoT vendors, such as Dell, Microsoft, Amazon, and Google. Companies like GE, which have the expertise of delivering edge computing solutions across different industries, including aerospace or manufacturing, also have significant market positions. Acquisitions, partnerships with industry participants, and new product/service rollouts have been the vendors' key competitive strategies. Some of the recent developments in the market are:
- July 2022 - Lumen Technologies is expanding its Edge Computing Solutions into Europe and investing in its global Edge network, giving businesses the low latency platform to extend their high-bandwidth, data-intensive applications out to the cloud edge. This expansion is part of Lumen's ongoing commitment to next-generation solutions that revolutionize digital experiences and meet the requirements of today's global businesses.
- April 2022 - Dell Technologies expanded its edge solutions to help retailers quickly generate more value and deliver enhanced customer experiences from data generated in retail locations.
- March 2022 - FogHorn collaborated with IBM to provide a secure and open next-generation hybrid cloud platform with advanced, closed-loop system control capabilities and edge-powered artificial intelligence (AI). By bringing together edge and cloud capabilities, FogHorn and IBM plan to help customers rapidly process, deploy, analyze, store, and train critical data from the edge to the cloud and enhance their business processes.
- May 2022 - 5TONIC, the open research and innovation laboratory focused on 5G technologies, founded by Telefónica and IMDEA Networks, took a step toward network as a service by integrating the 5G SA network and a multiaccess edge computing platform with Ericsson, Intel, Telefónica, DeepSight, and Capgemini Engineering.
- March 2022 - Huawei and Du signed a memorandum of understanding (MoU) for joint innovation on multiaccess edge computing (MEC). The two companies would research, verify, and replicate MEC-oriented applications in the Middle East. The companies also aim to accelerate digital transformation in the Middle East, along with supporting the development of the global digital economy.
- March 2022 - ADLINK Technology Inc. and AUO, leading providers of optoelectronic solutions, announced that they would be hosting their first joint virtual technology forum for the EMEA region.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Widespread Adoption of Cloud and Growth of Latency-specific Applications
5.1.2 Evolving Network Technologies
5.2 Market Restraints
5.2.1 Security Concerns in Edge Computing
6. MARKET SEGMENTATION
6.1 By Component
6.2 By End-user
6.2.1 Financial and Banking Industry
6.2.3 Healthcare and Life Sciences
6.2.5 Energy and Utilities
6.2.7 Other End-users
6.3 By Geography
6.3.1 North America
188.8.131.52 United States
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
6.3.3 Asia Pacific
18.104.22.168 Rest of Asia Pacific
6.3.4 Latin America
22.214.171.124 Rest of Latin America
6.3.5 Middle East and Africa
126.96.36.199 United Arab Emirates
188.8.131.52 Saudi Arabia
184.108.40.206 Rest of Middle East and Africa
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Microsoft Corporation
7.1.2 Google LLC (Alphabet Inc.)
7.1.3 IBM Corporation
7.1.4 Huawei Technologies Co. Limited
7.1.5 Cisco Systems Inc.
7.1.6 Hewlett Packard Enterprise Company
7.1.7 Juniper Networks Inc.
7.1.8 Dell Technologies Inc.
7.1.9 Capgemini Engineering (Capgemini)
7.1.10 EdgeIQ (MachineShop Inc.)
7.1.11 ADLINK Technology Inc.
7.1.12 General Electric Company
7.1.13 Amazon Web Services Inc.
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Edge Computing Market market is studied from 2020 - 2027.
What is the growth rate of Edge Computing Market?
The Edge Computing Market is growing at a CAGR of 44.9% over the next 5 years.
Which region has highest growth rate in Edge Computing Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Edge Computing Market?
North America holds highest share in 2021.
Who are the key players in Edge Computing Market?
Microsoft Corporation, Google LLC, IBM Corporation , Huawei Technologies Co. Limited , Cisco Systems Inc. are the major companies operating in Edge Computing Market.