Edge Computing Market

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Global Edge Computing Market is valued at USD 7.1 Billion in 2021 and is projected to reach a value of USD 49.6 Billion by 2028 at a CAGR (Compound Annual Growth Rate) of 37.90% over the forecast period.

The increased implementation of edge platforms across various sectors is one of the key factors driving market growth. Edge Computing helps industries improve their productivity by applying current cost-cutting strategies. The Edge Computing market is expected to increase due to decreasing computation mediums and hardware components costs. Furthermore, Edge Computing plays a crucial role in organizations worldwide, with a significant rise in the number of work-from-home jobs due to the outbreak of coronavirus disease (COVID-19). The growth of industrial IoT and increased pressure on cloud infrastructure are driving the expansion of the Edge Computing market during the forecast period. Besides, high procurement and operational cost is expected to challenge the market growth during the forecast period. In addition, the Edge Computing market is expected to increase due to decreasing computation mediums and hardware components costs. One of the main pillars of economic progress has been advancements in communication technologies. The primary foundation of the many operations being digitalized daily across sectors is modern communications networks. The Edge Computing markets expansion is also driven by a shift in consumer preference for high-performance smartphone apps. In addition, the global Edge Computing market is expected to increase due to advancements in industry monitoring capabilities using edge computing, which enables quick responses to security issues. However, the professionals' high maintenance cost and lack of technical knowledge for adopting complex Edge Computing technology is estimated to hamper the market growth.

Market Segmentation

The Edge Computing market is segmented based on

Components, Applications, Organization Size, Verticals,

and

Region

. Based on the Components, the market is segmented as Hardware, Software and Services. Moreover, based on the Applications, the market is further divided into Smart Cities, Industrial Internet of Things (IIoT), Remote Monitoring, Content Delivery, Augmented Reality (AR) & Virtual Reality (VR) and Others (Autonomous Vehicles, Drones, & Gaming). In addition, based on the Organization Size: Large Enterprises and SMEs. Additionally, based on the Verticals: the market is further bifurcated into Manufacturing, Energy & Utilities, Government & Defense, Telecommunications, Media & Entertainment, Retail & Consumer Goods, Transportation & Logistics, Healthcare & Life Sciences and Other Verticals (BFSI & Education). Furthermore, based on the Region, the market is further divided into North America, Europe, Asia Pacific, Latin America, Middle East & Africa.

Based on Verticals

The Telecommunication category dominated the market in 2021

Based on Verticals, the market is segmented as manufacturing, energy and utilities, government and defense, telecommunications, media and entertainment, retail and consumer goods, transportation and logistics, healthcare and life sciences and others (BFSI) and education, and others. The telecom sector dominated the market for edge computing. The telecom edge will execute computing proximity to the telcos mini-data centers, which will be located on telco-owned land. Various telecom operators, including Telefonica and Telstra, are testing open-access networks with Edge Computing in pilot programs and prototypes. Moreover, Edge Computing benefits the telecom sector exclusively, yet telecom businesses risk being reduced to irrelevant edge providers.

Based on Components

The Hardware category dominated the market in 2021

Based on Components, the market is divided into hardware, software, and services. The hardware segment is expected to grow at the highest rate during the forecast period. Hardware is the most popular application mode. This is due to the growing popularity of cloud-based services, in which the server plays a crucial role as an invisible computational backbone for services that consumers rely on. As this technology becomes more widely adopted, demand for various types of servers is expected to drive the market forward. Furthermore, there is an increasing demand for hardware products in the market.

Based on Regional Analysis

North America is projected to grow at the highest CAGR forecast period.

The North American Edge Computing market grew rapidly. Start-ups and significant market players declare developed countries like the United States home. Consumer disposable income is rising, and edge computing-based products such as electric automobiles, fitness trackers, and smart home gadgets are becoming more popular. Similarly, in the coming years, the growth of the Edge Computing market is foretold to show a significant increase in the use of dietary products, such in North America and Europe.

Competitive Landscape

The key players in the Edge Computing market include- Cisco(US) and others.

Recent Development

· 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.

· In June 2021, Cisco announced its new portfolio of catalyst industrial routers to extend the capability of the enterprise networks to the edge with flexibility, scalability, and security with embedded 5G technology.

· In April 2021, Verizon and AWS launched its private mobile 5G Edge Computing to enterprises in the US through Verizons private 5G network and AWS outposts.

· In March 2021, the company announced the launch of next-generation data center and power supply solutions at the Digitally Transforming Energy Infrastructure online event. Data center solutions are for small and Edge Computing scenarios including FusionModule2000, FusionModule800, and FusionModule500 for different industrial purposes.

Segmentation of Edge Computing Market