Market Overview:
The Edge Computing Market refers to the practice of processing data on the edge or closer to the source of data generation, rather than sending it to a centralized data center or cloud. This allows for quicker data processing, reduced latency, and enhanced real-time decision-making capabilities. This market finds applications in various industries such as manufacturing, healthcare, transportation, and retail, among others. Edge computing enables businesses to efficiently handle the vast quantities of data generated by IoT devices while ensuring low latency and high-speed data analysis.
Market Dynamics:
The increasing adoption of IoT devices and the growing demand for low latency and real-time data analysis is driving the growth of the edge computing market. With the proliferation of IoT devices, the volume of data generated has significantly increased. Edge computing allows for localized data processing, reducing the burden on cloud infrastructure and improving response times. Additionally, the need for real-time data analysis and decision-making capabilities in industries such as healthcare and manufacturing is further propelling market growth.
Segment Analysis:
The edge computing market can be segmented based on component, deployment model, application, and industry vertical. By component, the market can be classified into hardware, software, and services. Among these, the hardware segment is dominating the market due to the increasing adoption of edge devices such as gateways, sensors, and servers. The hardware segment is expected to continue its dominance in the forecast period as the demand for edge devices continues to rise.
The global Edge Computing Market Share is estimated to be valued at US$11.24 Billion in 2023 and is expected to exhibit a CAGR of 37.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
PEST Analysis:
Political: The political stability in many countries is favorable for the growth of the edge computing market, as it encourages investments and technological developments.
Economic: The growing economy in emerging markets is contributing to the expansion of the edge computing market. The increasing disposable income and investments in infrastructure development are driving the demand for edge computing solutions.
Social: The rising penetration of smartphones and internet usage is fueling the demand for edge computing solutions. The growing popularity of connected devices and IoT applications is also driving the market.
Technological: The advancements in technologies such as 5G, artificial intelligence, and cloud computing are providing opportunities for the growth of the edge computing market. These technologies require low latency and faster processing, which can be achieved through edge computing.
Key Takeaways:
The global edge computing market is expected to witness high growth, exhibiting a CAGR of 37.9% over the forecast period. This growth can be attributed to the increasing adoption of IoT devices and the need for low-latency applications. The market is projected to reach USD 11.24 billion in 2023.
In terms of regional analysis, North America is the fastest-growing and dominating region in the edge computing market. The region has a well-established IT infrastructure and is witnessing significant investments in technologies such as IoT and cloud computing.
Key players operating in the edge computing market include Microsoft Corporation, IBM Corporation, Cisco Systems Inc., Google Inc., Hewlett Packard Enterprise Company, Intel Corporation, Schneider Electric SE, Nokia Corporation, Huawei Technologies Co. Ltd., and Aricent Inc. These players are focusing on partnerships, acquisitions, and product launches to gain a competitive edge in the market.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it