The global edge computing market size was valued at USD 158.3 million in 2016. IoT data is continuously increasing due to introduction of smart devices such as smart glasses and smart watches. Edge computing helps in collecting, processing, and storing the IoT-generated data.
Additionally, rise in the number of internet users and rapid adoption of digital services have led to an exponential increase in the volume of sensitive data collected by organizations.This further increase in data is expected to accelerate the adoption of the edge computing.
Increasing emphasis on cost and time management, growing IoT data, soaring need for automation of businesses, and burgeoning competitive rivalry have significantly boosted the demand for edge computing. The technology helps enterprises in gaining real-time insights and improving the effectiveness of their decision-making process for maximizing profit.However, data privacy and security concerns can hinder the market growth.
The North America market has seen a broader adoption of edge computing solutions across all verticals in recent times. The region has been an early adopter of new innovative technologies coupled with presence of significant technology players. Moreover, availability of better technology infrastructure and reliable network connectivity across the region has encouraged the growth of the market.
Edge computing solutions are widely adopted across the manufacturing sector owing to surging adoption of IoT devices in factories and automotive industries. Manufacturing enterprises are opting for these solutions to lower capital investments since data is processed at the edge of the network. Additionally, the IT & telecom segment is anticipated to contribute toward the growth of the market. As the number of telecom subscribers is increasing, so is the use of edge computing solutions as they can help improve network efficiency and enhance service quality.
The healthcare & life sciences segment is anticipated to be the fastest-growing segment over the forecast period. Internet of Things (IoT) technologies have started penetrating the healthcare sector, which has enabled the development of smart healthcare solutions. Edge computing provides real-time screening of the patient and also avoids delays, thus driving the demand for the technology in the healthcare & life sciences segment.
The SMEs segment is estimated to expand at the highest CAGR over the forecast period owing to increasing need for cost optimization and automation in various sectors. Additionally, due to easy availability and declining costs of cloud-based technologies, SMEs are increasingly storing a large amount of data on cloud platforms. This, in turn, is poised to boost the demand for edge computing solutions among SMEs over the forecast period.
The large enterprises segment dominated the market in 2016 and the trend is estimated to continue over the forecast period. Large companies have many operating units and abundant capital to invest in various edge computing solutions as compared to other SME organizations.
The mobile edge computing segment dominated the market in 2016, a trend that is likely to continue over the forecast period. Technological innovations in the telecommunications sector have paved way for 5G network, which requires high bandwidth and low latency that are provided by edge computing solutions. Thus, the factor is contributing to the growth of the segment.
The fog computing segment is projected to register the highest CAGR owing to the spiraling usage of connected devices. Additionally, rising need for real-time computing, machine-to-machine communication, and IoT connectivity are some of the factors driving the edge computing market.
North America dominated the market in 2016 andis expected to lead until 2025. The region has many prominent technology companies such as Amazon Web Services, Inc. (AWS), Google, and Hewlett Packard Enterprise Development LP. The region will witness significant growth owing to high concentration of manufacturing and telecommunication industries that majorly adopt edge computing services and solutions. Additionally, proliferation of digital services and technological advancements coupled with early adoption of the latest technologies in various sectors such as healthcare & life sciences, transportation & logistics, consumer appliances are supplementing the growth of the region.
However, Asia Pacific is anticipated to be the most promising regional market with a CAGR of 46.7% over the forecast period. Government initiatives to promote digitization and advanced infrastructure are propelling the regional market. Besides this, rising adoption of smart devices and growing investments in cloud and IoT technologies are estimated to be the key factors stimulating growth of the region. Furthermore, countries such as China and Japan are poised to be the sights of high growth rates in APAC. Surging use of internet and social media in these countries is fueling the demand for edge computing in the region.
The market is highly competitive in nature. Some of the prominent companies operating in the market are Aricent, Inc.; Amazon Web Services, Inc. (AWS); Cisco Systems, Inc.; General Electric; Hewlett Packard Enterprise Development LP; Huawei Technologies Co.; Ltd.; International Business Machines (IBM); Intel Corporation; Microsoft; and SAP SE.
Players are adopting strategies such as product upgradation, new product development, expansion, mergers & acquisitions, and partnerships to expand their product portfolios and strengthen foothold in the market. For instance, in October 2016, Hewlett Packard Enterprise Development LP and PTC entered into a collaboration for facilitating the development of converged IoT solutions that were based on HPE Edgeline Systems and PTC ThingWorx software. They have increased their R&D spending to develop new and innovative solutions and differentiated products for the market.
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Attribute |
Details |
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Base year for estimation |
2016 |
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Forecast period |
2017 - 2025 |
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Market representation |
Revenue in USD Million & CAGR from 2017 to 2025 |
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Regional scope |
North America, EMEA, Asia Pacific, and Latin America |
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Country scope |
U.S., Canada, Germany, U.K., China, and Japan |
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Report coverage |
Revenue forecast, competitive landscape, growth factors, and trends |
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15% free customization scope (equivalent to 5 analysts working days) |
If you need specific market information that is not currently within the scope of the report, we will provide it to you as a part of the customization |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2016 to 2025. For this study, Grand View Research has segmented the global edge computing market report based on vertical, organization size, technology, and regions:
Vertical Outlook (Revenue, USD Million, 2016 - 2025)
Manufacturing
Energy & Utilities
IT & Telecom
Healthcare & Life Sciences
Consumer Appliances
Transportation & Logistics
Others
Organization Size Outlook (Revenue, USD Million, 2016 - 2025)
Small & Medium Enterprises (SMEs)
Large Enterprises
Technology Outlook (Revenue, USD Million, 2016 - 2025)
Mobile Edge Computing
Fog Computing
Regional Outlook (Revenue, USD Million, 2016 - 2025)
North America
U.S.
Canada
EMEA
U.K.
Germany
MEA
Asia Pacific
China
Japan
Latin America
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