Edge Computing Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Hardware, Software, and Services), Organization Size (SMEs and Large Enterprises), Application (Smart cities, Industrial Internet of Things (IIoT), Content delivery

Edge Computing Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Hardware, Software, and Services), Organization Size (SMEs and Large Enterprises), Application (Smart cities, Industrial Internet of Things (IIoT), Content delivery, Augmented Reality and Virtual Reality, and Others), and Industry (Manufacturing, Energy & Utility, Government, IT and Telecom, Healthcare, Retail and Consumer Goods, and Others) 

The edge computing market is expected to grow from US$ 40.84 million in 2022 to US$ 132.11 million by 2028; the market size is estimated to grow at a CAGR of 21.6% from 2022 to 2028.

The deployment of strong internet infrastructures, such as 5G and fiber optic cables, in developed countries, coupled with the rolling out of advanced infrastructures enable the establishment of new use cases, such as Fixed Wireless Access, Massive IoT, and Critical IoT. Such advancements in internet technology are driving individuals and businesses to harness the best out of the existing opportunities and maximize their revenue generation streams. As per Ericsson’s mobility report published in June 2022, broadband IoT (4G/5G) overtook 2G and 3G holding the largest share of all cellular IoT-connected devices. Massive IoT technologies (NB-IoT and Cat-M) increased by ~80% during 2021, reaching ~330 million connections. The number of IoT devices connected by these technologies is expected to overtake 2G/3G by 2023. Also, the penetration of smartphones and other consumer electronics is increasing among huge populations in India and China. Additionally, government initiatives toward the digitalization of economies are leading to the exponential growth of data traffic over the internet in various countries, as well as on a global scale..

Apart from individuals, businesses across the industries, such as automotive, agriculture, oil & gas, healthcare, and manufacturing, are aware of the importance of IoT, communications, and sensors, which encourages the integration of sensors into devices. Enterprises and service providers perceive IoT as a key enabler of digital transformation and improvements in operational efficiencies. Thus, edge computing plays a key role in IoT deployment across various industries, which drives the edge computing market growth.

5G connectivity is enabling an era of user-centric networks by bringing in the concept of network slicing and composable networking. Network service providers are ideally positioned to deliver intelligent traffic routing from the mobile network to the optimal location, escalating the need for faster network capability. However, the evolution of distributed cloud computing enables them to move beyond traditional connectivity-service models. Communication Service Providers (CSPs) are looking for new revenue sources to secure growth in their businesses. Thus, with the introduction of 5G and edge computing, the CSPs are now in a better position to provide new offerings. The 5G can enhance edge computing applications by reducing latency, improving application response times, and enhancing data collection and processing capabilities. Thus, the introduction of 5G with an edge messaging system accelerates the speed of connectivity services and delivers near-instant communication experiences. Therefore, the rising trend of the adoption of 5G networks is propelling the demand for edge computing market.

Edge computing works with a highly distributed network, which eliminates the round trip to the cloud, reducing latency and offering real-time responsiveness. Low latency enables instantaneous communications, allowing millions of connected devices to communicate 400-times faster than the blink of an eye. Acceleration in data transmission has become an important business goal. Many applications require low latency to improve the user experience and support customer satisfaction by helping applications run smoothly at elevated speeds. These applications include online meetings and mission-critical computation applications hosted on the cloud. Low latency indicates the reliability and robustness of connections, with reduced connection loss, delays, lags, and buffers, which significantly benefits healthcare, air traffic control, and combat situation, among other applications. It is critical for many businesses and industries that rely on real-time applications or live streaming, including banking, diagnostic imaging, navigation, stock trading, weather forecasting, collaboration, research, ticket sales, video broadcasting, and online gaming. Thus, low latency improves the operation speed at the edge, thereby favoring the edge computing market growth.

The edge computing market has been analyzed on the basis of the following segments: component, application, enterprise size, industry, and geography. Based on component, the market is further segmented into hardware, software, and services. The edge computing market, by application, is subsegmented into smart cities, Industrial Internet of Things (IIoT), content delivery, augmented reality and virtual reality, and others. The market, by enterprise size, is subsegmented into small and medium enterprises, and large enterprises. The edge computing market, based on industry, is further segmented into manufacturing, energy & utility, government, IT and telecom, healthcare, retail and consumer goods, and others. In terms of geography, the edge computing market is further segmented into five major regions—North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

The overall edge computing market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the edge computing market. The process also serves the purpose of obtaining an overview and forecast of the edge computing market with respect to all the segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the topic. The participants of this process include VPs, business development managers, market intelligence managers, national sales managers, and external consultants—such as valuation experts, research analysts, and key opinion leaders—specializing in the edge computing market. ADLINK Technology; Amazon Web Services, Inc.; Dell Technologies; EdgeConnex Inc.; FogHorn Systems; International Business Machine Corporation; Litmus Corporation; Microsoft Corporation; The Hewlett Packard Enterprise Company; and Vapor IO, Inc are among the major players in the edge computing market. To improve product offerings and sustain amid competition, these companies are capitalizing on strategies, including product developments, mergers, and acquisitions in the edge computing market.

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