July 21, 2024
Ict

Increasing Demand for Low Latency Processing to Drive Growth in the Edge Computing Market

Edge computing is a distributed computing paradigm that brings computation and data storage closer to the location where it is needed, to improve response times and save bandwidth. With edge computing, applications and services are delivered from edge servers placed at the edge of the network rather than a centralized core data center. This helps process inputs with very low latency and enables real-time response required by many emerging applications including robotics, industrial IoT, connected vehicles, remote healthcare monitoring, and AR/VR. By executing applications and processing data near IoT sensors and actuators, edge computing helps support applications that have stringent latency requirements.

The global Edge Computing Market is estimated to be valued at US$ 111.3 Bn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends in the edge computing market is the growing demand for low latency processing from industries adopting IoT and industrial automation technologies. Industries are increasingly adopting technologies such as robotics, VR/AR, autonomous vehicles and remote healthcare monitoring systems which have very stringent latency requirements. Edge computing provides latency in the range of below 20 milliseconds compared to traditional centralized cloud computing model with latency over 100 milliseconds, making it well suited for such applications. Another key trend is the increasing deployment of 5G networking infrastructure which is expected to accelerate the adoption of edge computing. 5G technology provides greater bandwidth and lower latency making it ideal for edge computing deployments. Major technology players are also focusing on developing edge specific semiconductor chips, servers and software platforms to better support the unique requirements of edge deployments.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as setting up edge computing infrastructure require high initial capital investments. However, increasing cloud service providers are entering the market that may intensify the competition.
Bargaining power of buyers: The bargaining power of buyers is medium as there are large number of established players providing edge computing solutions. However, buyers can negotiate on pricing and demand customization of solutions as per their specific requirements.
Bargaining power of suppliers: The bargaining power of suppliers is low to medium as edge computing requires technologies and hardware components from various suppliers. However, major players have established global supply chains to procure components.
Threat of new substitutes: The threat of new substitutes is low as edge computing is still evolving and there are limited substitutes available that can provide real-time processing and low latency as edge. However, 5G and other IoT technologies may emerge as substitutes.
Competitive rivalry: High as major players are capturing more market share by offering innovative edge computing platforms and solutions.

Key players operating in the Edge Computing market are Microsoft Corporation,,Google LLC,,IBM Corporation,,Huawei Technologies Co. Limited,,Cisco Systems Inc. Key players are focusing on partnerships, acquisitions and launching innovative edge solutions to strengthen their market position.

Key Takeaways
The global Edge Computing market is expected to witness high growth, exhibiting CAGR of 15% over the forecast period, due to increasing demand for real-time processing and low latency applications across various industry verticals.

Regional analysis: North America dominates the global edge computing market currently, owing to heavy investments in development of edge infrastructure. Asia Pacific expected to grow at the fastest pace during the forecast period mainly due to rapid digitalization and proliferation of IoT in countries like China and India.

*Note:

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