Edge Computing Market by Component (Hardware, Platform, and Services), Application (Smart Cities, IIoT, Content Delivery, Remote Monitoring, AR and VR), Organization Size (SMEs and Large Enterprises), Vertical, and Region - Global Forecast to 2024
Rising focus of enterprises on increasing speed, ensuring resiliency and security, and eliminating outage issues in minimal time, to drive the growth of edge computing market
MarketsandMarkets projects the global edge computing market to grow from USD 2.8 billion in 2019 to USD 9.0 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 26.5% during the forecast period. The edge computing market is growing rapidly with the growing adoption of Internet of Things (IoT) across industries; rising demand for low-latency processing and real-time, automated decision-making solutions; and the need for surmounting exponentially increasing data volumes and network traffic. However, a reluctance among Small and Medium-sized Enterprises (SMEs) to adopt edge computing solutions owing to initial Capital Expenditure (CAPEX) for infrastructure is projected to limit the growth of the market.
Industrial Internet of Things application segment to grow at the highest CAGR during the forecast period
The implementation of IoT across industries has increased rapidly, which drives companies to implement solutions that could enhance IoT deployments through data processing closer to the source. By infusing edge computing in Industrial Internet of Things (IIoT) processes, companies could achieve an improved network communication and cooperative coordination with the cloud connected to the system. Further, it helps organizations to reduce workloads by facilitating lost-cost, low-power, and high bandwidth networks.
Manufacturing vertical to hold the largest market size during the forecast period
Edge computing facilitates localized processing which helps reduce latency issues and enables smart and intelligent manufacturing through predictive analytics. With the rise in IoT deployment, manufacturing companies have been rapidly adopting edge computing to improve interoperability among IoT devices, reduce unforeseen downtime issues, and improve production efficiency.
Edge computing market in Asia Pacific to grow at the highest CAGR during the forecast period
The high growth of the market in Asia Pacific (APAC) is attributed to the pervasive use of mobile devices, growing data volumes, and increasing assimilation of workload-centric Information Technology (IT) infrastructure in the region with the rising need of businesses to remain globally competitive. Furthermore, the inclination of countries across the region toward emerging technologies, such as cloud computing, IoT, 5G, and Artificial Intelligence (AI), is also expected to fuel the growth of the edge computing market. However, limited technology sophistication among SMEs, privacy issues, and limited technical expertise in advanced technologies remains the biggest hurdle in the edge computing adoption across APAC. Regional technological advances and increasing awareness of edge computing benefits to minimize infrastructure complexities and installation costs opens new avenues for the growth of edge computing market in the region.
Further, in-depth interviews were conducted with the Chief Executive Officers (CEOs), Chief Marketing Officers (CMO), Chief Technology Officers (CTOs), Chief Operating Officers (COOs), Vice Presidents (VPs), Managing Directors (MDs), technology and innovation directors, and related key executives from various key companies and organizations operating in the edge computing market.
By Company - Tier 1-33%, Tier 2-27%, and Tier 3-40%
By Designation - C-Level-48%, Director Level-22%, and Others-30%
By Region - North America-42%, Europe-28%, and APAC-25%, RoW - 5%
The edge computing market comprises major solution providers, such as Cisco (US), HPE (US), Huawei (China), IBM (US), Dell Technologies (US), Nokia (Finland), Litmus Automation (US), FogHorn Systems (US), SixSq (Switzerland), MachineShop (US), Saguna Networks (Israel), Vapor IO (US), ADLINK (Taiwan), Altran (France), and Axellio (US). The study includes an in-depth competitive analysis of these key players in the edge computing market with their company profiles, recent developments, and key market strategies.
The edge computing market revenue is primarily classified into revenues from hardware, platform, and services. Hardware revenue is associated with hardware offerings, such as local data centers, edge gateways, and edge devices, while platform revenue is associated with edge computing tools and software. Further, services’ revenue is associated with various support and maintenance, consulting and training, and integration services. The market is also segmented on the basis of application, organization size, vertical, and region.
Key benefits of the report
The report would help the market leaders/new entrants in this market with the information on the closest approximations of the revenue numbers for the overall edge computing market and the subsegments. This report would help stakeholders understand the competitive landscape and gain insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on the key market drivers, restraints, challenges, and opportunities.
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