July 16, 2024
Edge Computing Market
Ict

Edge Computing Market: Increasing Adoption of IoT Devices to Drive Market Growth

Market Overview:

Edge computing refers to the practice of processing and analyzing data at the edge of the network, closer to the point of generation. This market offers various advantages such as reduced latency, improved data security, and enhanced network efficiency. The increasing adoption of IoT devices across various industries is driving the demand for edge computing solutions. As IoT devices generate massive amounts of data, processing this data in real-time at the edge becomes crucial for efficient operations and decision making. Edge computing enables faster data analysis and reduced response time, thereby improving overall system performance. Thus, the need for edge computing products and services is growing rapidly in the market.

Market Key Trends:

One key trend in the edge computing market is the rising demand for edge-based artificial intelligence (AI) solutions. With the increasing volume of data generated at the edge, there is a need for AI capabilities to analyze and extract meaningful insights from this data. Edge-based AI solutions enable real-time, intelligent decision-making at the edge, eliminating the need to transfer data to the cloud for processing. This trend is driven by the need for faster response times, reduced network bandwidth requirements, and improved data privacy and security. By deploying AI algorithms at the edge, organizations can leverage the benefits of edge computing while harnessing the power of AI for advanced data analytics and decision support. This trend is expected to drive the growth of the edge computing market in the coming years.

Porter’s Analysis:

The Edge Computing market is expected to witness high growth over the forecast period, driven by various factors.

Threat of new entrants: The threat of new entrants is expected to be low in the Edge Computing market. This is due to the high barriers to entry, including significant capital requirements and the need for specialized knowledge and technology. Established players in the market have already built strong relationships with customers, making it difficult for new entrants to compete.

Bargaining power of buyers: The bargaining power of buyers in the Edge Computing market is moderate. While there are a few dominant players in the market, buyers still have some power to negotiate prices and terms. However, the increasing demand for Edge Computing and the limited number of suppliers may limit buyer power in the future.

Bargaining power of suppliers: The bargaining power of suppliers in the Edge Computing market is high. This is mainly due to the limited number of suppliers and the specialized nature of the technology and infrastructure required for Edge Computing. Suppliers have the ability to dictate terms and prices to customers, which may impact profitability for businesses.

Threat of new substitutes: The threat of new substitutes for Edge Computing is low. Edge Computing offers unique advantages in terms of lower latency, improved security, and real-time data processing, which traditional cloud computing cannot provide. As a result, there are limited alternatives for businesses seeking similar capabilities.

Competitive rivalry: The competitive rivalry in the Edge Computing market is intense. There are several major players in the market, including Microsoft Corporation, IBM Corporation, Cisco Systems Inc., Google Inc., and more. These companies are constantly innovating and offering new solutions to gain a competitive edge. The market is also witnessing collaborations and partnerships among key players to expand their market presence and offer comprehensive solutions to customers.

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.

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 demand for real-time data processing, the proliferation of IoT devices, and the need for low-latency applications across various industry verticals.

In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the Edge Computing market. The region has a well-established IT infrastructure, a high adoption rate of advanced technologies, and a large number of key players operating in the market. Additionally, the increasing demand for Edge Computing solutions in sectors such as healthcare, retail, and manufacturing is driving market growth in this region.

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 companies are focused on product innovation, strategic partnerships, and mergers and acquisitions to gain a competitive edge in the market.

In conclusion, the Edge Computing market presents significant growth opportunities, driven by increasing demand for real-time data processing and low-latency applications. However, the market is characterized by intense competition and high bargaining power of suppliers. Businesses operating in this market need to focus on innovation, strategic collaborations, and customer relationship management to stay ahead of the competition and capitalize on the growing market demand.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it