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The Edge Computing market is in high demand by increasing data volumes and need for lower latency processing. Edge computing is an innovative technology that processes data where it is produced rather than routing it through centralized data centers. It enables real-time responses and distributed intelligence by locating compute and storage resources closer to connected devices and sensors generating and acting on information.
Edge computing allows data to be processed locally to provide faster and more responsive services without sending large volumes of data to the cloud or centralized data centers. This reduces latency issues and network loads as data does not have to travel long distances to be processed. Edge computing is useful across many industries where real-time decision making such as autonomous cars, smart cities, industrial IoT, augmented reality require low latency connectivity.
The Global Edge Computing Market is estimated to be valued at US$ 111.3 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period from 2023 to 2030.
Key Takeaways
Key players: Key players operating in the Edge Computing market are Microsoft Corporation,,Google LLC,,IBM Corporation,,Huawei Technologies Co. Limited,,Cisco Systems Inc. These companies are focusing on partnerships, acquisitions, product innovations to strengthen their market presence.
Growing demand: Edge computing demand is growing due to rising data traffic, need for lower latency applications and resolving bandwidth and network congestion issues experienced with cloud computing. Industries like manufacturing, healthcare, transportation are increasingly adopting edge solutions.
Global expansion: Edge computing companies are expanding globally especially in Asia Pacific and Middle east regions to tap business opportunities. Many data centers are also being established globally near connected devices to support edge infrastructure and provide localized services.
Market key trends
5G enabling edge applications is a key trend as 5G will enable a broader scope of real-time and low-latency services. Its ultra-low latency, security, reliability will support mission critical applications. Another trend is adoption of edge computing in autonomous vehicles which generate massive data from multiple sensors in vehicles. Edge infrastructure will help process this data locally for real-time actions. Increased focus on edge-native applications that are specifically designed and optimized for edge infrastructure as opposed to migrated cloud-native apps is also a notable trend.
Porter’s Analysis
Threat of new entrants: High as edge computing is new and growing concept also technology and infra cost is high for new players.
Bargaining power of buyers: Moderate as buyers have option to choose between few large players in market.
Bargaining power of suppliers: Low as major suppliers are technology companies and telecom infrastructure providers with global presence.
Threat of new substitutes: Low as edge computing provides location based real-time service which is unique.
Competitive rivalry: High as market is growing with large global players competing.
North America accounted for largest share in edge computing market in terms of value in 2024 owing to strong technology adoption and large tech companies presence in US and Canada. Asia Pacific is expected to be fastest growing region during forecast period supported by growing infrastructure investment in 5G and edge data centers by china and other APAC countries
North America accounted for largest share in edge computing market in terms of value in 2024 owing to strong technology adoption and large tech companies presence in US and Canada. Countries like US and Canada are early technology adopters with strong digital infrastructure which supported large market share of North America region.
Fastest Growing Region
Asia Pacific is expected to be fastest growing region during forecast period supported by growing infrastructure investment in 5G and edge data centers by countries like china, India, Singapore and South Korea. High smartphone and internet penetration coupled with governments support for digital infrastructure upgradation is driving region’s growth in edge computing market. Growing digital services demand from industries and consumers will further accelerate future market opportunities.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
