A new report by MarketsandMarkets™ reveals that the Global Edge Computing Market is projected to experience significant growth in the coming years. Specifically, the market size is expected to increase from $44.7 billion in 2022 to $101.3 billion by 2027, representing a Compound Annual Growth Rate (CAGR) of 17.8% during the forecast period. The report cites the growing adoption of automation and digitalization as one of the primary drivers behind this growth.
Edge Computing Solutions and Services Gain Rapid Acceptance
Hardware components are gaining traction and are expected to account for the largest market size during the forecast period. Due to the harsh environmental conditions in which they are often deployed, edge computing hardware must satisfy specific requirements. Edge computers are equipped with performance accelerators for real-time data processing to enable prompt decision-making.
Local data centers, edge gateways, and local devices make up the edge computing hardware. Additionally, edge computing devices are designed to execute specific tasks and are equipped with applications necessary to perform various functions, such as temperature sensors that monitor machine temperature.
Smart cities are expected to generate substantial revenues during the projected period. Across the world, most countries are embracing the smart cities concept by providing the essential infrastructure for leveraging technology. Smart cities entail the widespread deployment of IoT sensor networks to ensure the continuous flow of data for the effective management of assets and services including:
- Traffic management
- Air quality management
- Waste and water management
This constant stream of data necessitates continuous contact with cloud data centers, which leads to network overloading.
Expansion of Large Enterprises
Large enterprises are anticipating generating significant revenues over the reporting period. Factors include:
- High budget for IT infrastructure
- Skilled workforce
- large customer base
- Adoption of SaaS solutions and a cloud-first strategy
During the forecast period, the manufacturing vertical is expected to account for the largest market share. As the use of IoT sensors increases across factory floors, manufacturers are turning to automation and manufacturing efficiency. However, IoT-enabled devices require more maintenance of high-capacity data centers for the storage, processing, and analysis of voluminous data generated by sensors. Thus, businesses are rapidly adopting edge computing for smart manufacturing.
Asia Pacific to Witness Fastest Growth Rate
Asia Pacific is projected to record the fastest growth rate in the coming years. This region has witnessed advanced and dynamic adoption of new technologies and is projected to record the highest CAGR during the forecast period. Enterprises in the region are rapidly adopting edge computing software to provide an enhanced customer experience.
Additionally, government and defense, telecommunications, retail, and consumer goods industries are widely utilizing software to enhance their customer service activities and generate more leads.
Major Players in the Edge Computing Market
The major players in the Edge Computing Market include some of the most well-known vendors offering contact center solutions across the globe. These include AWS (US), Cisco (US), Dell Technologies (US), Google (US), HPE (US), Huawei (China), IBM (US), Intel (US), Microsoft (US), Nokia (Finland), Adlink (Taiwan), Axellio (US), Capgemini (France), ClearBlade (US), and Digi International (US), among others.