Edge Computing Market Segmentation By Component (Hardware, Software, Services and Edge-Managed Platform); By End-Users (Education, Entertainment, Healthcare, Retail, Surveillance, Industrial Manufacturing Sector and Others) – Global Demand Analysis & Opportunity Outlook 2027
Buy Now Report ID: 1945 | Published Date: Feb 14, 2023
Rising Adoption of Edge Platform
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.
Increased Applications of Edge Technology
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.
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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Lack of Professional Knowledge
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:
Recent Trends and News
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
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