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Edge computing enables real-time processing of data near the point of generation before transmitting it to a centralized location or cloud. This reduces latency, bandwidth usage and enables innovations like industrial IoT, autonomous vehicles etc.
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 key trends: One of the major trends driving the growth of the Edge Computing market is the increasing adoption of 5G networks. 5G networks enable edge computing architectures by providing high-speed connectivity with ultra-low latency between devices located at the network edge and core. This is making edge computing a critical enabler for latency-sensitive 5G applications like augmented/virtual reality, autonomous vehicles etc. Furthermore, 5G networks also allow for edge resources and computing workloads to be dynamically provisioned based on real-time network demands, thereby optimizing performance and costs for enterprises.
Segment Analysis
Edge Computing Market is segmented into hardware, software, and services. The hardware segment dominated the market in 2022 due to the increasing deployment of edge nodes, edge servers, and gateways by telecom operators and enterprises across various industries for effective edge computing. The hardware segment is further segmented into edge nodes, edge servers, and gateways. The edge nodes sub-segment held the largest market share owing to the increasing installations of network switches, routers, and gateways to support edge computing infrastructure and applications.
Key players operating in the Edge Computing market are Microsoft Corporation,,Google LLC,,IBM Corporation,,Huawei Technologies Co. Limited,,Cisco Systems Inc. Microsoft Corporation leads the market owing to its robust edge computing platform, Azure Stack, and partnerships with telecom operators across the world for developing edge computing ecosystem. Google Cloud and IBM Cloud are also focusing on developing advanced edge solutions and services to gain competitive advantage in the market.
Key Takeaways
The global Edge Computing market is expected to witness high growth, exhibiting CAGR of 15% over the forecast period, due to increasing demand for solutions with low latency and real-time response.
Regional analysis: North America dominated the global Edge Computing market with around 40% market share in 2022 and is expected to continue its dominance over the forecast period. This is attributed to heavy investments in R&D of innovative edge solutions by technology companies and enterprises across industries in the region. The Asia Pacific region is expected to grow at the fastest CAGR due to increasing adoption of edge computing across industries such as manufacturing, healthcare, transportation etc. in emerging countries like China and India.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals.
