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“, The global edge computing 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 Edge Computing Industry:
- Increasing IoT Adoption and Device Proliferation:
One of the primary drivers behind the rapid growth of edge computing is the proliferation of Internet of Things (IoT) devices. With the advancement of technology, IoT devices have become increasingly prevalent in various sectors such as manufacturing, healthcare, transportation, and smart cities. These devices generate vast amounts of data at the edge of the network, closer to where it is generated and needed. Edge computing offers a solution to process this data locally, reducing latency and bandwidth requirements while enabling real-time decision-making. For instance, in manufacturing, edge computing allows for real-time monitoring and analysis of machine data, leading to predictive maintenance and improved operational efficiency. Similarly, in healthcare, edge computing facilitates remote patient monitoring and personalized healthcare services by processing data from wearable devices and medical sensors in real-time. As the adoption of IoT devices continues to grow across industries, the demand for edge computing solutions will also rise, driving market expansion.
- Growing Demand for Low-Latency Applications:
The increasing demand for low-latency applications is another significant factor driving the edge computing market. In the digital era, there is a growing need for real-time processing and analysis of data to support applications such as autonomous vehicles, augmented reality (AR), virtual reality (VR), online gaming, and video streaming. These latency-sensitive applications require immediate responses to user inputs or data inputs to provide seamless and immersive experiences. Edge computing addresses this need by bringing computation and data storage closer to the end-users or devices, minimizing the latency associated with transmitting data to centralized cloud servers. For instance, in autonomous vehicles, edge computing enables quick decision-making by processing sensor data locally, ensuring faster response times and enhancing safety. Similarly, in AR/VR applications, edge computing reduces latency, delivering smoother and more immersive experiences for users. As industries continue to adopt latency-sensitive applications, the demand for edge computing solutions will continue to escalate.
- Privacy and Security Concerns:
Privacy and security concerns are driving organizations to adopt edge computing solutions to mitigate risks associated with centralized data processing. Centralized cloud computing involves transmitting sensitive data to remote data centers, raising concerns about data privacy, security breaches, and regulatory compliance. Edge computing decentralizes data processing by distributing computational resources closer to the data source, thereby reducing the need to transmit sensitive data over long distances. This approach enhances data privacy and security by minimizing the exposure of data to potential cyber threats and unauthorized access. Additionally, edge computing enables organizations to implement stricter access controls, encryption mechanisms, and data anonymization techniques at the edge, further safeguarding sensitive information. As data privacy regulations become more stringent, and cyber threats continue to evolve, the adoption of edge computing as a security-enhancing measure is expected to grow across various industries, driving market expansion.
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 dominates the market due to the increasing demand for specialized edge computing devices such as servers, gateways, and sensors, necessary for processing and managing data at the edge efficiently.
Breakup by Organization Size:
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
Large enterprises hold maximum number of shares due to their extensive resources, complex infrastructures, and diverse operations, which necessitate sophisticated edge computing solutions to optimize efficiency and enhance performance across various departments and locations.
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 represent the largest segment due to its extensive deployment of edge computing for optimizing energy distribution, managing grid stability, and enabling predictive maintenance in critical infrastructure.
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 its advanced infrastructure, robust adoption of emerging technologies, and significant investments in edge computing across various industries.
Global Edge Computing Market Trends:
Regulatory compliance and data sovereignty concerns are significant drivers of the edge computing market, particularly in regions with stringent data protection regulations. Many countries and industries have implemented data sovereignty laws that mandate data must be stored and processed within the jurisdiction where it is generated. This presents challenges for organizations operating in global markets or utilizing centralized cloud services hosted in foreign jurisdictions. Edge computing addresses these challenges by enabling localized data processing and storage, ensuring compliance with regulatory requirements while maintaining data sovereignty. By distributing computing resources closer to data sources, edge computing minimizes the need to transmit sensitive data across borders, reducing regulatory risks and potential legal liabilities. As compliance with data protection regulations becomes increasingly critical for organizations worldwide, the adoption of edge computing as a means to achieve regulatory compliance and ensure data sovereignty will continue to drive market demand.
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