Edge Computing Market Growth, Key Players and Demand Forecast Report 2024

MarketsandMarkets forecasts the global edge computing market to grow from USD 2.8 billion in 2019 to USD 9.0 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 26.5% during the forecast period. Factors driving the growth of the edge computing market are the growing adoption of Internet of Things (IoT) across industries; rising demand for low-latency processing and real-time, automated decision-making solutions; and a need for surmounting exponentially increasing data volumes and network traffic.

Increase in technological advancements has compelled organizations to adapt to the dynamic Information Technology (IT) infrastructure and to stay competitive in the market. With new trends and technologies, the use of cloud computing has grown rapidly across industries. However, with exponentially increasing data volumes, the need for high quality network services and faster processing is also rising. To assist real-time applications and provide faster response to critical applications, edge computing enables data processing and analysis at the edge of the network. As edge computing has eased data flow and quick processing, its application and developments have increased across regions. Many companies have formed consortiums to enable regional deployments of edge computing solutions in consideration to regional particularities. For instance, few companies in Europe formed the Edge Computing Consortium Europe (ECCE) to save Research and Development (R&D) efforts and increase the deployment rate of edge computing across various industries in Europe.

The manufacturing vertical is estimated to grow at the highest CAGR in the edge computing market during the forecast period. Rising IoT deployment across the manufacturing industry compels manufacturing companies to adopt edge computing to improve interoperability among IoT devices and production efficiency and reduce unforeseen downtime issues. Edge computing facilitates intelligent manufacturing through advanced analytics and localized processing in the lowest possible time.

The Smart Cities segment is projected to grow at the second highest CAGR in the edge computing market. Smart city involves wide-scale IoT deployments for the effective management of assets. Edge computing supports its development by facilitating localized processing, which enables rapid decision-making for smart city applications, such as policing, street light management, smart parking and automated ticketing, and IoT sensor monitoring for fault and disturbance recording. Furthermore, edge computing is useful for governments as it allows them to formulate contract management plans, devise effective strategies, and prevent losses through predictive maintenance and remote monitoring capabilities.

 The geographic analysis of the edge computing market is mainly segmented into 5 regions, namely, North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America. North America is expected to be the overall leader in the adoption and implementation of edge computing, followed by Europe and APAC. Increasing investments by North American companies in advanced technologies, growing number of alliances and partnerships among edge computing and other technology providers, and a presence of major edge computing providers in the region are expected to drive the market growth for North America and Europe. Moreover, increasing digitalization, need for implementing workloads-centric IT infrastructure, and rising awareness of the benefits of edge computing in the region are expected to drive the high growth of the edge computing market in APAC. Market players are also expanding their operations in this region to enhance their overall market share.

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