Global 5G Edge Computing Market Size, Share & Trends Analysis Report By Solution (Software, Services), By End Use, By Regional Outlook and Forecast, 2024 - 2031

The Global 5G Edge Computing Market size is expected to reach $69.02 billion by 2031, rising at a market growth of 46.9% CAGR during the forecast period.

The North America segment recorded 38% revenue share in the market in 2023. This dominance is driven by the rapid adoption of 5G technology, strong investments in edge computing infrastructure, and the presence of key market players in the region. The U.S. and Canada have been at the forefront of deploying advanced telecom networks, AI-driven applications, and cloud-native solutions, significantly contributing to market growth.

The major strategies followed by the market participants are partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In February, 2025, Ericsson AB announced the partnership with Telstra, a telecommunications company to launch a programmable 5G Advanced network, using Open RAN hardware and AI-driven automation to enhance network performance. The upgrade offers improved capacity, energy efficiency, and tailored connectivity services, supporting the growth of Industry 4.0 and empowering developers with new opportunities through network APIs. Additionally, In November, 2024, Cisco Systems, Inc. announced the partnership with NTT DATA, an IT company to provide global enterprises with secure, cost-effective 5G connectivity solutions. By leveraging Cisco’s eSIM technology and NTT DATA’s Transatel network, businesses can easily activate and manage mobile networks, transforming digital services for industries such as retail, finance, and manufacturing.

KBV Cardinal Matrix - 5G Edge Computing Market Competition Analysis

Based on the Analysis presented in the KBV Cardinal matrix; Google LLC, Microsoft Corporation, and Amazon Web Services, Inc. are the forerunners in this Market. In February, 2025, Google LLC announced the partnership with Amdocs, a telecommunications company to optimize 5G network operations using AI. Amdocs' new Network AIOps solution, powered by Google Cloud's AI infrastructure, automates network tasks, enhances performance, and reduces downtime. It utilizes predictive analytics, machine learning, and closed-loop automation to improve service reliability and customer experience. Companies such as Huawei Technologies Co., Ltd., Cisco Systems, Inc., and IBM Corporation are some of the key innovators in 5G Edge Computing Market.

Source: KBV Reseaarch and Secondary Research Analysis

Driving and Restraining Factors

Drivers

Growing Adoption of Internet of Things (IoT) and Connected Devices

• Rising Demand for Ultra-Low Latency Applications Across Multiple Industries
• Increasing Deployment of 5G Networks to Enhance Edge Computing Capabilities

Restraints

High Initial Investment and Infrastructure Deployment Costs for 5G Edge Computing

• Complexity in Integration with Existing IT and Cloud Infrastructure

Opportunities

Advancements in Smart Manufacturing and Industry 4.0 Technologies

• Expansion of Smart Cities and Intelligent Infrastructure Enabled by 5G Edge Computing

Challenges

Concerns Over Data Privacy, Cybersecurity, and Compliance Issues

• High Energy Consumption and Sustainability Challenges in Edge Data Centers

Market Growth Factors

The Internet of Things (IoT) rapidly transforms industries by enabling devices to communicate, analyze data, and automate processes. With billions of connected devices expected to be deployed in sectors such as healthcare, retail, transportation, and manufacturing, there is a growing need for real-time data processing. Traditional cloud computing models struggle to handle the massive influx of data generated by IoT devices, leading to network congestion and increased latency. In conclusion, the growing adoption of the Internet of Things (IoT) and connected devices is propelling the growth of the market.

Additionally, Latency-sensitive applications, such as autonomous vehicles, virtual reality (VR), augmented reality (AR), financial trading, and industrial automation, require effective real-time data processing. Even a few milliseconds of delay can significantly impact outcomes in these industries. For instance, autonomous vehicles must instantly process vast amounts of sensor data to detect obstacles, interpret traffic signals, and make split-second driving decisions. Any lag in data transmission could lead to accidents, making low-latency computing critical. Therefore, rising demand for ultra-low latency applications across multiple industries propels the market's growth.

Market Restraining Factors

However, implementing 5G edge computing requires significant financial investment, making it a major barrier to adoption. Unlike traditional cloud computing, which relies on centralized data centers, edge computing decentralizes data processing, requiring businesses to set up micro-data centers, edge servers, and high-speed fiber-optic networks closer to end users. Therefore, high initial investment and infrastructure deployment costs for 5G edge computing impede the market's growth.

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.

Solution Outlook

Based on solution, the market is characterized by hardware, software, and services.The hardware segment procured 20% revenue share in the market in 2023. The demand for high-performance edge servers, routers, gateways, and processing units has increased due to the growing deployment of 5G networks worldwide. Enterprises and telecom providers are investing in specialized edge hardware to enable seamless data processing, reduce network congestion, and enhance the overall efficiency of edge computing infrastructure.

End Use Outlook

On the basis of end-use, the market is classified into IT & telecom, smart cities, smart homes & smart buildings, data centers, energy & utilities, automotive, healthcare, and others. The data centers segment recorded 17% revenue share in the market in 2023. The rising demand for decentralized data processing and storage solutions has led to an increased focus on edge data centers. These facilities enable faster data transmission, reduce network congestion, and improve service efficiency.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment witnessed 31% revenue share in the market in 2023. The increasing focus on digital transformation, smart city initiatives, and industrial automation has fuelled the adoption of 5G edge computing across the region. Countries such as Germany, the UK, and France actively invest in edge infrastructure to support applications in autonomous vehicles, smart manufacturing, and IoT.

Market Competition and Attributes

The 5G Edge Computing Market sees intensified competition among startups, telecom providers, and cloud service companies. Innovation accelerates as firms focus on cost-effective, low-latency solutions. Regional players and niche vendors gain traction, but the absence of industry leaders slows large-scale adoption, standardization, and investment, potentially hindering seamless ecosystem development and widespread enterprise deployment.

5G Edge Computing Market Coverage:

Report Attribute Details

Market size value in 2023 USD 3.27 Billion

Market size forecast in 2031 USD 69.02 Billion

Base Year 2023

Historical period 2020 to 2022

Forecast Period 2024 to 2031

Revenue Growth Rate CAGR of 46.9% from 2024 to 2031

Number of Pages 267

Tables 304

Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives

Segments Covered Solution, End Use, Region

Country Scope

North America (US, Canada, Mexico, and Rest of North America)

• Europe (Germany, UK, France, Russia, Spain, Italy, and Rest of Europe)
• Asia Pacific (Japan, China, India, South Korea, Australia, Malaysia, and Rest of Asia Pacific)
• LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA)

Companies Included Microsoft Corporation, Amazon Web Services, Inc. (Amazon.com, Inc.), Cisco Systems, Inc., Hewlett Packard Enterprise Company, Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Ericsson AB, IBM Corporation, Intel Corporation, Google LLC (Alphabet Inc.), and Dell Technologies, Inc.

Recent Strategies Deployed in the Market

• Feb-2025: Huawei Technologies Co., Ltd. unveiled 5G-Advanced (5G-A) innovations, integrating AI technologies to transform mobile networks. Key advancements include intelligent calling services, AI Home Hub for home services, network intelligence for user experience, and AI-driven O&M to improve operational efficiency. Huawei aims to advance the 5G-A intelligent core network globally.
• Jan-2025: Verizon Communications, Inc. unveiled AI Connect, leveraging its 5G network and edge computing infrastructure for AI inferencing workloads. With Google Cloud and Meta as key clients, Verizon aims to provide a hyperscale cloud platform for AI workloads. The company also plans partnerships with Nvidia and Vultr to enhance its AI offerings.
• Jan-2025: Ericsson AB teamed up with 4iG, an IT service management company to build a 5G network in Albania. The goal is to cover 85% of the population by 2030, starting with key areas like airports, ports, and industrial zones. This collaboration supports Albania’s digital transformation and the introduction of next-gen services.
• Dec-2024: Verizon Communications, Inc. announced the partnership with NVIDIA, a computer manufacturer corporation to integrate AI workloads into Verizon’s 5G private network with Mobile Edge Compute (MEC). This solution enhances real-time AI processing, security, and scalability, supporting Generative AI, AR/VR, IoT, and robotics. Verizon aims to drive enterprise AI adoption with ultra-low latency, high bandwidth, and edge computing innovation.
• Oct-2024: Cisco Systems, Inc. announced the partnership with NEC to offer an enterprise private 5G solution combining Cisco’s 5G SA Core and Cloud Control Centre with NEC’s radio network and integration services. The solution targets enterprise customers in Europe and the Middle East, with plans for global expansion, supporting digital transformation across various industries.

List of Key Companies Profiled

• Microsoft Corporation
• Amazon Web Services, Inc. (Amazon.com, Inc.)
• Cisco Systems, Inc.
• Hewlett Packard Enterprise Company
• Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
• Ericsson AB
• IBM Corporation
• Intel Corporation
• Google LLC (Alphabet Inc.)
• Dell Technologies, Inc.

Global 5G Edge Computing Market Report Segmentation

By Solution

• Software
• Services
• Hardware

By End Use

• IT & Telecom
• Datacenters
• Automotive
• Smart Cities, Smart Homes, & Smart Buildings
• Healthcare
• Energy & Utilities
• Other End Use

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA