The latest report by IMARC Group, titled “Edge Computing Market Report by Component (Hardware, Software, Services), Organization Size (Small and Medium-sized Enterprises (SMEs), Large Enterprises), Vertical (Manufacturing, Energy and Utilities, Government and Defense, BFSI, Telecommunications, Media and Entertainment, Retail and Consumer Goods, Transportation and Logistics, Healthcare and Life Sciences, and Others), and Region 2024-2032“, offers a comprehensive analysis of the industry, which comprises insights on the global edge computing market trends. The global market size reached US$ 14.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 90.3 Billion by 2032, exhibiting a growth rate (CAGR) of 24.35% during 2024-2032.
Factors Affecting the Growth of the Global Edge Computing Industry:
- Increasing IoT Devices:
The proliferation of Internet of Things (IoT) devices is a primary driver of the edge computing market. As IoT devices generate massive amounts of data, processing this data locally at the edge, closer to where it is generated, becomes crucial to reduce latency and bandwidth usage. By 2025, it's projected that there will be over 75 billion IoT devices globally. These devices, ranging from smart home gadgets to industrial sensors, require real-time data processing to function effectively. Edge computing enables immediate data analysis and decision-making, which is essential for applications like autonomous vehicles, healthcare monitoring systems, and industrial automation. Furthermore, the ability to process data at the edge reduces the load on central data centers, leading to more efficient and cost-effective operations. This local processing capability ensures quicker response times and enhances the overall performance of IoT applications.
- Demand for Low Latency and Real Time Processing:
The increasing demand for low latency and real-time processing in various applications is significantly driving the edge computing market. Applications such as augmented reality (AR), virtual reality (VR), autonomous driving, and gaming require minimal latency to function effectively. For instance, in autonomous vehicles, decisions need to be made in milliseconds to ensure safety and efficiency, making edge computing indispensable. Traditional cloud computing models, where data needs to travel to and from centralized data centers, introduce unacceptable delays for these time-sensitive applications. Edge computing addresses this challenge by processing data closer to the source, thereby reducing latency and enabling real-time analytics.
- Rising Privacy Concerns:
Data security and privacy concerns are also pivotal in driving the adoption of edge computing. As data privacy regulations become stricter and cyber threats more sophisticated, organizations are increasingly looking for ways to secure their data closer to its source. Edge computing provides a solution by minimizing the amount of sensitive data transmitted to central data centers, thereby reducing the risk of data breaches during transmission. This is particularly beneficial for industries handling sensitive information, such as healthcare, finance, and government sectors. By processing data locally, edge computing enhances data security and ensures compliance with regulations like the General Data Protection Regulation (GDPR). Additionally, local data processing helps organizations to better manage data sovereignty issues, as data remains within local jurisdictions.
For an in-depth analysis, you can refer sample copy of the report: https://www.imarcgroup.com/edge-computing-market/requestsample
Competitive Landscape with Key Player:
- ABB Ltd.
- Amazon Web Services (AWS), Inc.
- Cisco Systems Inc.
- Digi International Inc.
- General Electric Company
- Hewlett Packard Enterprise Development LP
- Huawei Technologies Co. Ltd.
- IBM Corporation
- Intel Corporation
- Microsoft Corporation
- SAP SE
- Siemens AG
The report has segmented the market into the following categories:
Breakup by Component:
- Hardware
- Software
- Services
Hardware represents the largest segment, due to the foundational role of physical infrastructure in facilitating data processing at the edge, encompassing devices, sensors, and servers.
Breakup by Organization Size:
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
Large enterprises dominate the market as they possess the resources and scale to invest in edge computing infrastructure and capitalize on its potential for enhancing operational efficiency and innovation.
Breakup by Vertical:
- Manufacturing
- Energy and Utilities
- Government and Defense
- BFSI
- Telecommunications
- Media and Entertainment
- Retail and Consumer Goods
- Transportation and Logistics
- Healthcare and Life Sciences
- Others
Energy and utilities hold the largest market share, due to optimizing resource management, enhancing grid resilience, and integrating renewable energy sources, which necessitate robust edge computing capabilities.
Market Breakup by Region:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
North America’s dominance in the edge computing market is attributed to the early adoption, technological innovation, and a mature ecosystem fostering collaboration between industry players.
Global Edge Computing Market Trends:
The increasing adoption of Internet of Things (IoT) devices across various industries is a major driver for the edge computing market. IoT devices generate vast amounts of data that need to be processed quickly and efficiently. Edge computing allows for data processing closer to the source, reducing latency and bandwidth usage. Besides, applications requiring real-time data processing, such as augmented reality (AR), virtual reality (VR), gaming, and autonomous driving, are driving the need for edge computing. Traditional cloud computing models, where data needs to travel to centralized data centers, introduce unacceptable delays for these time-sensitive applications.
Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.
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