Allied Market Research

Global Edge Computing Market Is Expected to Reach $16,556.6 Million By 2025


Report Code : A04894

quote The edge computing market in Asia-Pacific is projected to grow at a significant rate during the forecast period, owing to increase in internet penetration in countries such as India. In addition, the advent of 5G network is also expected to push the datacenter operators and enterprises to build more edge datacenters to cope with the advanced uptake of the internet of things (IoT). quote

Makarand Sinnarkar
Research Analyst, ICT at Allied Market Research

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According to a recent report published by Allied Market Research, titled,"Edge Computing Market by Component, Applications, Organization Size, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2018 - 2025,"the global edge computing market was valued at $ 1,734.8 million in 2017 and is projected to reach $ 16,556.6 million by 2025, growing at a CAGR of 32.8% from 2018 to 2025.
Global edge computing market trends include increase in latency problems in network and restrictions on bandwidth usage for storing the data on central cloud. In addition, increase in load on the cloud infrastructure globally and rise in number of intelligent applications are the major factors driving the growth of the edge computing market. Moreover, massive data generated by all these devices and applications thus, causes a huge burden on the cloud center. This burden further causes network congestion and latency issues while processing the data between devices and cloud, which drives the demand for edge computing. In addition, edge computing assists real-time applications in analyzing and processing collected data, which is also one of the crucial factors that drive the market demand. However, more local hardware and higher maintenance costs are expected to hinder the edge computing edge computing industry growth.

Furthermore, advent of the 5G Network, and numerous frameworks and languages for IoT solutions are the major factors expected to provide lucrative opportunities for the market growth in upcoming years. 5G network is expected to create a huge burden on physical data centers and result into higher demand for bandwidth and lower latency. Therefore, the operators will need to create more data centers, which is anticipated to be opportunistic for the market.

Based on component, the solution segment dominated the overall edge computing market size in 2017 and is expected to remain dominant during the forecast period. The growth of this segment is mainly attributed to increase in number of smart devices and to save the bandwidth on transporting the unnecessary data from data centers to the central cloud platforms.

North America dominated the overall edge computing market in 2017 and is expected to remain dominant during the forecast period, due to increasing trend of internet of things (IoT) and growth in IoT device connection in this region. Furthermore, Asia-Pacific is expected to exhibit highest growth rate throughout the forecast period. Increase in penetration of smartphones and rise in awareness among people about various Internet of Things (IoT) in this region is expected to drive the market growth in this region.

Key Findings of the Edge Computing Market:

  • Based on organization size, the large enterprises segment generated the highest revenue for edge computing market share in 2017, the influx of data in the form of intelligent vehicles, machines, and other internet of things (IoT) devices boost the growth of the market across large enterprises.
  • Based on industrial vertical, the IT & telecom sector dominated the overall e market in 2017 and is expected to generate highest revenue during the edge computing market forecast period. The adoption of edge computing in this sector is mainly attributed to the increase in need to deploy products faster to their customers. For instance, in February 2019, Verizon, a telecommunications giant in the U.S. deployed edge computing to reduce latency for its 5G testbed. Moreover, the retail sector is also expected to exhibit the highest growth rate during the forecast period.

Some of the key edge computing market players profiled in the report include Amazon Web Services (AWS), AT&T Inc., Cisco Systems Inc., Dell Inc., Fujitsu Limited, Huawei Technologies Co. Ltd., IBM Corporation, Hewlett Packard Enterprise (HPE), Microsoft Corporation, Nokia Corporation, and others.

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quote Edge Computing Market by Component (Services and Solution), Application (Connected Cars, Smart Grids, Critical Infrastructure Monitoring, Traffic Management, Environmental Monitoring, Augmented Reality, Assets Tracking, Security and Surveillance, and Others), Organization Size (Small & Medium Enterprises, and Large Enterprises), and Industry Vertical (Energy and Utilities, Government and Public Sector, Healthcare, Manufacturing, Media and Entertainment, Transportation, Retail, Telecom and IT, and Others): Global Opportunity Analysis And Industry Forecast, 2018–2025 quote

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