Edge computing is the method that allows data created by internet of things (IoT) devices to be processed at the place where it is produced, instead of at an integrated data-processing warehouse. Edge computing enables mobile computing and internet of things (IoT) technologies on an open IT architecture that allows real-time data processing. Edge computing solutions provide the opportunity to improve performance and efficiency for various organizations. Edge computing has the ability to process data even at remote sites which benefits numerous organizations around the globe. Minimization of operating costs, limited use of internet bandwidth, improvement in performance and exploration of potential new business models are some of the benefits of edge computing that are anticipated to contribute towards the increase in adoption of edge computing and support the growth of the edge computing market in near future. Moreover, improvements in surveillance capability of industries with the help of edge computing which enables quick reactions to security issues is estimated to drive the growth of global edge computing market.
The global edge computing market is anticipated to record a CAGR of around 38% over the forecast period, i.e., 2019-2027. The market is segmented by component, by end user and by region. On the basis of component, it is segmented into hardware, software, services and edge-managed platform. On the basis of end-users, the market is segmented into education, entertainment, healthcare, retail, surveillance, industrial manufacturing sector and others, out of which, industrial manufacturing sector is anticipated to hold major share in the market over the forecast period. The adoption of edge technology supports the manufacturing units in order to increase production gains on the back of its ability to streamline industrial process and optimize its supply chain. Various industries are anticipated to create substantial new service opportunities on the back of benefits such as reduced storage and bandwidth costs, improved dependability and quick response to service requests. According to a report by International Data Corporation (IDC), by 2019, at least 40 % of data created by IoT will be stored, processed and analyzed close to or at the edge of the network.
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One of the notable factors for the growth of the market is the rise in adoption of edge platform across various industries. Edge computing contributes towards increasing the efficiency of industries by implementing modern cost-saving measures. Moreover, its ability to extract valuable and meaningful information to control industrial and operational processes and improve productivity along with customer experience is anticipated to fuel the growth of the market over the forecast period.
The anticipated exponential increase in number of IoT connected devices in near future is estimated to contribute towards the growth of the edge computing market owing to its ability to analyze and process volumes of complex data generated by connected devices. Additionally, increase in investments, rise of 5g network and mitigation of security concerns in cloud computing are some of the applications projected to benefit edge computing market over the forecast period.
High maintenance cost and lack of technical knowledge among the professionals for the adoption of complex edge computing technology is estimated to negatively affect the growth of edge computing market over the forecast period.
Our in-depth analysis of the global edge computing market includes the following segments:
On the basis of regional analysis, the global edge computing market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America accounts for largest market share currently and is projected to hold the major share in the market during the forecast period on the back of presence of key players along with early adoption of new and advanced technologies across multiple end-users in the region. The edge computing market in Europe is estimated to witness growth at a significant rate on account of increased demand for technologies and increased investments in research and development in the region. Furthermore, the market in Asia Pacific is anticipated to project highest growth rate during the forecast period owing to increased investments in telecommunication sectors and high penetration of smart devices in emerging economies of countries such as India and China. These factors along with increasing adoption and integration for edge solutions across the sectors are anticipated to fuel the growth rate in the region.
The global edge computing market is further classified on the basis of region as follows:
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