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Edge Computing allows processing of large volumes of data locally at the edge of the network, close to IoT devices and sensors. It helps reduce latency and network congestion by processing data locally before transmitting it to centralized cloud servers or data centers. Edge computing is used across industries for applications such as streaming media, industrial automation, smart cities, and autonomous vehicles among others. Processing data at the edge provides real-time insights and enables faster response times for critical applications.
The global Edge Computing Market is estimated to be valued at US$ 111.3 Bn in 2023 and is expected to exhibit a CAGR of 15.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Emergence of 5G Technology
The emergence of 5G technology is expected to significantly drive the growth of edge computing market over the forecast period. 5G networks will support massive connectivity of IoT devices and facilitate processing of real-time data at the edge. 5G technology enables ultra-low latency communication between IoT devices and edge nodes, beneficial for applications like autonomous vehicles, industrial IoT, and remote healthcare. In addition, 5G networks provide higher bandwidth for transmission of huge volumes of data from edge servers to centralized cloud data centers for storage and advanced analytics. Several telecom operators are leveraging 5G and edge computing to offer innovative services to enterprises across industries.
Segment Analysis
The Edge Computing market is segmented by component, application and end-user. The component segment is further divided into hardware, software, and services. The hardware segment dominates the component segment due to increased infrastructure requirement for edge solutions. The services segment is expected to grow at a higher CAGR during the forecast period due to growing adoption of edge computing technologies by enterprises for constant upgrade of hardware components.
PEST Analysis
Political: Governments across various countries are supporting industrial digitalization thus driving edge computing adoption. Economic: Organizations are investing in edge computing solutions to optimize costs by reducing need for cloud infrastructure. Social: Increasing IoT connectivity and data growth is raising demand for solutions that can process data locally for lower latency. Technological: Emergence of technologies such as AI, ML and 5G are augmenting need for real-time data processing capabilities of edge computing.
Key Takeaways
The global Edge Computing Market is expected to witness high growth. Regional analysis comprises Regional analysis related content
The global Edge Computing market is witnessing significant expansion opportunities in North America region due to large presence of edge technology providers and extensive adoption across various industries including manufacturing, energy & utilities, and automotive in the U.S and Canada.
Key players operating in the Edge Computing market are Microsoft Corporation,,Google LLC,,IBM Corporation,,Huawei Technologies Co. Limited,,Cisco Systems Inc. Key players are focusing on partnerships, collaborations, investments and new product launches to gain competitive advantage in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
