Edge computing refers to a distributed computing infrastructure which brings computation and data storage closer to the locations where it is needed. This enables real-time response times and lower bandwidth requirements. Key use cases for edge computing include industrial IoT, augmented and virtual reality, telemedicine, video analytics, smart cities and autonomous vehicles.
The Edge Computing market is estimated to be valued at US$ 111.3 Bn in 2023 and is expected to exhibit a CAGR of 15.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing adoption of connected devices such as smart sensors, cameras, meters and wearable devices is driving the demand for real-time data analytics capabilities on the edge. By 2030, it is estimated that over 75 billion IoT devices will be connected globally. Edge computing facilitates efficient data processing and analytics for IoT applications with minimal latency. Furthermore, increasing deployment of 5G networks globally is expected to boost edge infrastructure and services. 5G capability reduces latency significantly which is crucial for low latency applications like autonomous driving, AR/VR etc where split second responsiveness is needed. The increasing data volumes being generated from connected devices also requires distributed computing resources like edge servers for storage and processing.
SWOT Analysis
Strength: Edge computing enables faster response times compared to centralized cloud computing due to proximity to data sources and end users. It offers improved security through decentralized infrastructure. Edge solutions help reduce bandwidth usage and network congestion.
Weakness: Initial adoption requires significant upfront investments. Lack of common frameworks and standards leads to vendor lock-in.
Opportunity: Growth of IoT devices and need for low-latency applications drive the demand for edge computing solutions. Rise of autonomous vehicles and smart cities provide major growth opportunities.
Threats: Data privacy and security concerns limit wider acceptance of edge infrastructure. Lack of skilled workforce hinders innovations and large-scale deployments.
Key players: Key players operating in the edge computing market are Microsoft Corporation, Google LLC, IBM Corporation, Huawei Technologies Co. Limited, Cisco Systems Inc. These companies have captured a major share of the market through innovative product offerings and strategic partnerships with various industries adopting edge solutions.
Key Takeaways
The global edge computing market is expected to witness high growth, exhibiting a CAGR of 15% over the forecast period, due to increasing adoption of IoT devices and mobile applications. It is estimated that the number of IoT connections worldwide will reach over 25 billion by 2030. Edge solutions help efficiently process and action data generated at the source instead of sending it to centralized cloud facilities, thereby reducing latency issues.
Regional analysis: North America currently dominates the edge computing market, accounting for over 35% share of the global revenues. Significant investments by leading technology companies such as Microsoft, IBM and Cisco contribute to the regional leadership. Asia Pacific is projected to be the fastest growing regional market, growing at a CAGR of around 20% during the forecast period. This can be attributed to the expanding manufacturing sector and growing smart city developments in countries such as China and India.
