Edge computing refers to a distributed computing infrastructure where data is processed and stored close to IoT devices and edge networks, rather than sending all data to centralized cloud data centers for processing. This architecture provides benefits such as low latency and bandwidth, real-time response and offline operations. With increasing adoption of IoT devices and applications requiring low latency like augmented reality, autonomous vehicles and industrial IoT, the demand for edge computing infrastructure is rising globally.
The global Edge Computing Market is estimated to be valued at US$ 111.3 Bn in 2024 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 key trends:
The rising demand for low latency and high bandwidth applications is a major trend fueling the growth of edge computing market. Many emerging applications like autonomous vehicles, industrial IoT, augmented and virtual reality require real-time processing of data with latency less than 10 milliseconds. Sending all this data to centralized cloud for processing increases latency and bandwidth costs. Edge computing enables processing of data close to source where it is generated through distributed infrastructure of edge nodes and local edge clouds. This architecture is well suited for applications requiring instant response times and localized processing of data without cloud connectivity. Edge computing is increasingly becoming indispensable for providing the required level of latency, bandwidth and responsiveness for such low latency applications driving its adoption globally.
Strength: Edge computing provides low latency and real-time response which enhances customer experience. It also offers geo-distributed computation which ensures reliability.
Weakness: Issues related to data security and privacy as computing is shifted to the edge from the centralized cloud. Maintenance of large number of edge nodes is also challenging.
Opportunity: Rise of IoT and connected devices generates huge amount of data which can be analyzed locally through edge computing. Industries like manufacturing, transportation and healthcare are adopting edge solutions.
Threats: Lack of common standards leads to lock-in creating technology silos. Competition from existing cloud players who are also building edge capabilities.
The global edge computing market is expected to witness high growth. The global Edge Computing Market is estimated to be valued at US$ 111.3 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030.
Regional analysis comprises edge solutions are widely adopted in North America due to technological advancements and in Asia Pacific due to rapid digitalization. Europe and Latin America are also emerging markets for edge computing.
Key players operating in the edge computing market are Microsoft Corporation, Google LLC, IBM Corporation, Huawei Technologies Co. Limited, and Cisco Systems Inc. Microsoft offerings like Azure Stack aims to deliver cloud computing capabilities to the edge while Google Edge TPU provides AI inferencing near user devices. IBM’s edge computing platform Watson Works focusses on industries like transportation and manufacturing. Huawei Mobile Edge Computing solutions addresses MEC applications in telecom networks. Cisco also offers edge infrastructure and appliances to support distributed applications at the network edge.
- Source: Coherent Market Insights, Public sources, Desk research
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