Edge Computing Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services, Edge-managed Platforms), By Application, By Industry Vertical, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global edge computing market size was valued at USD 11.24 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 37.9% from 2023 to 2030. Edge computing adds a layer of complexity to organizations by enabling a diverse set of stakeholders to maintain IT infrastructures, networking, software development, traffic distribution, and service management. Edge also combines software, hardware solutions, and networking architecture to cover various use cases in several businesses. Edge computing is currently in its early phases of development. Its deployment and operating models have yet to evolve; nonetheless, edge computing is expected to offer significant growth prospects for new entrants in the near future.

The COVID-19 outbreak has boosted the use of data centers and edge computing. Moreover, as more of these technologies are adopted, investment in them is expected to fall considerably in the months ahead. Businesses across many industry verticals are decreasing their expenditures or reducing their investments in enhancing servers and software to gain considerable cost reductions. There are a few outliers though, such as rising edge and IoT spending in the telecom and healthcare industries.

Businesses use possibilities to respond to the present situation by providing new services. The telecommunications industry is making rapid progress in video conferencing software like Microsoft Teams and Zoom and is creating new solutions to meet the growing demand. For example, in December 2020, SK Telecom and Amazon Web Services partnered to deliver 5G MEC-based edge cloud services.

Edge computing demand is expected to rise in the post-COVID-19 pandemic over the next couple of years due to the continued emphasis on developing communications infrastructure. Working from home is quickly becoming the new normal. In addition, as the healthcare system gains traction through online consultations, a network design requiring high security and low-latency connectivity is expected to develop. Telecom firms are expected to take advantage of the opportunity since the cost of adding extra switching capabilities or establishing full-sized data centers will outweigh the cost of edge facilities per unit. This cost advantage will aid telecom businesses in migrating to large-scale data center installations in the coming years.

Edge computing has grown into a solution-specific technology, with special tools and architectures designed for specific use cases. Some use cases where the edge is expected to acquire a considerable share throughout the predicted time include next-generation CDNs, network function, 5G virtualization, and game streaming. This is the first phase toward a future wherein the edge becomes broadly available.

Application Insights

The Industrial Internet of Things (IIoT) segment dominated the edge computing industry in terms of application. The segment captured a revenue share of over 29% in 2022. Edge computing has played an important role in allowing manufacturers to reach the goal of digitization of their facilities. A significant stake in edge computing is installed in the form of device edge in the manufacturing segment. The demand for edge infrastructure is projected to increase as service intricacy rises and edge infrastructure becomes more accessible.

Moreover, the Industry 4.0 initiative creates a framework for modernizing manufacturing concerning industry disruptions, preparing the path for edge deployment. Industry 4.0 encourages operational agility by using technologies that bring uniformity to the cyber and physical systems. Smart factories can use edge platforms to transmit only processed data to their cloud servers. The edge works as a path by analyzing data locally and sending summarized data to the cloud.

Component Insights

In terms of components, the hardware segment seized a revenue share of more than 44% in 2022. The demand for hardware is gaining steam in the managed services industry and is predicted to account for the most significant market share over the forecast timeline. As the number of IoT and IIoT devices grows quickly, the volume of data created by these devices is also increasing. Therefore, to deal with the volume of data created, enterprises are adopting edge computing gear to lessen the load on the cloud and data centers.

The hardware segment is further bifurcated into Edge Nodes/Gateways (Servers), Sensors/Routers, and others, wherein the Edge Nodes/Gateways (Servers) segment accounted for a significant market share in 2022. Moreover, the increasing number of data centers across various industries boosts the demand for edge routers, linking local and wide-area networks (WAN). Edge data centers must be well-equipped with flexible and powerful edge routers capable of handling a large volume of incoming traffic while maintaining low latency. The demand for secure and efficient data processing at the edge of the network is likely to boost the growth of the hardware segment during the forecast period.

Industry Vertical Insights

The energy and utility segment seized a revenue share of more than 14% in 2022. Smart grids, which depend on device edge infrastructure, are likely to contribute to revenue growth in the energy and utility segment. Environmental sustainability initiatives are fueling efforts to improve electrical utility service efficiencies worldwide, including the development of alternative renewable power sources like solar and wind. Smart grids are being installed worldwide to enable capabilities and enhance operational efficiencies, including real-time consumption control, incorporation with smart appliances, and microgrids to support generation from dispersed renewable sources.

Following the energy & utility segment, the healthcare segment seized a significant revenue share in 2022 and is likely to expand at a CAGR of approximately 38% during the forecast period. The healthcare industry has typically been conservative concerning the implementation of digital technologies, and the industry is closely regulated, where innovation is driven by consent instead of outright disruption.

However, as the healthcare industry becomes modern and digital, clinics and hospitals are increasingly implementing digital health strategies with varying degrees of success and maturity. Hospitals and clinics are adopting edge computing solutions across main use cases, including patient record management, continuous patient monitoring, remote patient care, and intervention to assist these strategies.

IoT in healthcare and life sciences applications of the edge is estimated to experience robust growth in the coming future. The Internet of Things (IoT) and edge computing have enabled disruptive technology improvements to transform the healthcare industry. Medical professionals can treat their patients faster and more efficiently by using patient data, software applications, diagnostic devices, and telemedicine programs.

Regional Insights

North America captured the largest revenue share of more than 40% in 2022. The convergence of IIoT with edge computing is forming favorable conditions for manufacturers in the U.S. to move toward connected factories. Several startups have also evolved to deliver platforms for developing edge-enabled solutions that are anticipated to boost the regional market's growth.

For instance, Telus Communications and MobiledgeX, Inc. collaborated to build the MobiledgeX Early Access Programme. The program has allowed developers to build, test, and analyze the efficacy of edge-enabled applications in a low-latency environment.

In 2022, Asia Pacific accounted for a considerable revenue share due to an increasing focus on strengthening networking technology in the region due to COVID-19. The region's significant development of the connected device ecosystem has resulted in a large amount of data being generated, demanding the need for a robust computational infrastructure. Google Inc. announced its Global Mobile Edge Cloud (GMEC) strategy, mainly aimed at the U.S. market. The announcement of Azure Edge Zones by Microsoft Corporation is projected to boost regional growth in the coming years.

Key Companies & Market Share Insights

The major players in the market are focusing on developing innovative collaboration software to attract a more extensive customer base and gain a competitive edge in the market. For instance, in February 2022, Asana, a work management platform provider, released Asana Flow, a complete range of solutions that businesses can use to build, run, and enhance their workflows. The increasing number of such new offerings is expected to favor the market's growth over the forecast period. Some prominent players in the global edge computing market include:

• ABB

• Amazon Web Services (AWS), Inc.

• Aricent, Inc.

• Atos

• Cisco Systems, Inc.

• General Electric Company

• Hewlett Packard Enterprise Development

• Honeywell International Inc.

• Huawei Technologies Co., Ltd.

• IBM Corporation

• Intel Corporation

• Microsoft Corporation

• Rockwell Automation, Inc

• SAP SE

• Siemens AG

Edge Computing Market Report Scope

Global Edge Computing Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global edge computing market report based on component, application, industry vertical, and region:

• Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Hardware

    • Hardware By Type

      • Edge Nodes/Gateways (Servers)
      • Sensors/Routers
      • Others

    • Hardware By End-Point Devices

      • Cameras

      • Drones

      • HMD

      • Robots

      • Others

  • Software

  • Services

  • Edge-managed Platforms

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • IIoT

  • Remote Monitoring

  • Content Delivery

  • Video Analytics

  • AR/VR

  • Others

• Industry Vertical Outlook (Revenue, USD Billion, 2018 - 2030)

  • Industrial

  • Energy & Utilities

  • Healthcare

  • Agriculture

  • Transportation & Logistics

  • Retail

  • Datacenters

  • Wearables

  • Smart Cities, Smart Homes, Smart Buildings

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa