Edge Computing Industry Overview
The global edge computing market size is anticipated to reach USD 155.90 billion by 2030, exhibiting a CAGR of above 38.9% during the forecast period, according to a new report by Grand View Research, Inc. Artificial Intelligence (AI) integration into the edge environment is projected to drive the market growth. An edge AI system is estimated to help businesses in making real-time decisions in milliseconds. The need to minimize privacy concerns associated with transmitting huge amounts of data, as well as latency and bandwidth issues that limit an organization’s data transmission capabilities, is projected to fuel market growth in coming years.
Machinery control and precision monitoring are a few use cases that are well suited to using AI on the edge. The latency requirement for a fast-running production line must be maintained to a bare minimum, which can be accomplished by using the edge. Bringing data processing closer to the manufacturing facility can prove to be extremely important, which can be accomplished using AI. Artificial intelligence-based edge devices can be utilized in a wide range of endpoint devices, including sensors, cameras, smartphones, and other IoT devices.
Edge Computing Market Segmentation
Grand View Research has segmented the global edge computing market based on component, application, industry vertical, and region:
Based on the Component Insights, the market is segmented into Hardware, Software, Services, and Edge-managed Platforms.
- The hardware segment seized a revenue share of more than 40% in 2021. The hardware is increasing in popularity in the managed services industry and is predicted to account for the most significant market share during the forecast timeline.
- The hardware segment is further bifurcated into Edge Nodes/Gateways (Servers), Sensors/Routers, and Others, wherein the Edge Nodes/Gateways (Servers) segment accounted for significant market share. Moreover, the increasing number of data centers across various industries boosts the demand for edge routers, linking local and wide-area networks (WAN).
- Edge data centers must be well-equipped with flexible and powerful edge routers capable of handling a large volume of incoming traffic while maintaining low latency. The demand for secure and efficient data processing at the edge of the network is likely to boost the growth of the hardware segment during the forecast period.
Based on the Application Insights, the market is segmented into IIoT, Remote Monitoring, Content Delivery, Video Analytics, AR/VR, and Others.
- The Industrial Internet of Things(IIoT) segment dominated the edge computing market in terms of application. The segment captured a revenue share of over 28% in 2021. Edge computing has played an important role in allowing manufacturers to reach the goal of digitization of their facilities. A significant stake of edge computing is installed in the form of device edge in the manufacturing segment.
- The Industry 4.0 initiative creates a framework for modernizing manufacturing concerning industry disruptions, preparing the path for edge deployment. Industry 4.0 encourages operational agility by using technologies that bring uniformity to the cyber and physical systems. Smart factories can use an edge platform to transmit only processed data to their cloud solutions.
Based on the Industry Vertical Insights, the market is segmented into Industrial, Energy & Utilities, Healthcare, Agriculture, Transportation & Logistics, Retail, Datacenters, Wearables, Smart Cities, Smart Homes, and Smart Buildings.
- Smart grids are being installed worldwide to enable capabilities and enhance operational efficiencies, including real-time consumption control, incorporation with smart appliances, and microgridsto support generation from dispersed renewable sources.
- The energy and utility segment seized a revenue share of more than 15 % in 2021. Smart grids, which depend on device edge infrastructure, are likely to contribute to revenue growth in the energy and utility segment.
- IoT in healthcare and life sciences and applications of the edge is estimated to experience robust growth in the coming future. The Internet of Things (IoT) and edge computing have enabled disruptive technology improvements to transform the healthcare industry.
Edge Computing Regional Outlook
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile
The major players in the market are focusing on developing innovative collaboration software to attract a more extensive customer base and gain a competitive edge in the market.
Some of the prominent players in the global edge computing market include:
- Amazon Web Services (AWS), Inc.
- Aricent, Inc.
- Cisco Systems, Inc.
- General Electric Company
- Hewlett Packard Enterprise Development
- Honeywell International Inc.
- Huawei Technologies Co., Ltd.
- IBM Corporation
- Intel Corporation
- Microsoft Corporation
- Rockwell Automation, Inc.
- SAP SE
- Siemens AG
Order a free sample PDF of the Edge Computing Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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