March 2, 2024

Edge Computing Market Propelled by accelerating IoT adoption and demand for low latency services

Edge computing enables deployment of computing and data storage resources closer to end-use devices, facilitating real-time processing of IoT data with low latency. This helps companies make faster operational decisions and offer innovative low-latency applications and services to customers.

The global Edge Computing Market is estimated to be valued at US$ 111.3 Bn in 2024 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: The accelerating adoption of IoT devices across industries is driving the need for processing IoT data with minimal latency near the source of data generation. With increasing connectivity of devices, there is a surge in real-time data generation that requires immediate processing. Edge computing fulfills this demand by enabling data processing at the network edges, closer to data sources and end users. This helps support applications such as autonomous vehicles, augmented/virtual reality, telemedicine, and smart cities that require real-time, low-latency data processing. The technology is therefore expected to gain further adoption across various sectors to support innovative latency-sensitive applications.

SWOT Analysis
Strength: Edge computing allows for reduced latency and enables real-time, data intensive, and immersive applications.It enhances organizations’ ability to leverage data generated at the edge by processing it near its source to provide instant insights.

Weakness: Security and privacy risks as organizations need to protect the devices and infrastructure operating at the edge from cyber threats and attacks.It also requires significant infrastructure investments.

Opportunity: Growing demand for low-latency applications such as autonomous vehicles, industrial automation, IoT, smart cities etc is driving the adoption of edge computing.Rising 5G adoption and deployments is also expected to fuel the edge computing market growth.

Threats: Interoperability issues as there is lack of common standards.Dominance of few tech giants like Microsoft, Google and Amazon who control majority of the edge infrastructure could pose threat. Lack of skilled workforce with expertise in edge computing.

Key Takeaways
The global Edge Computing Market is expected to witness high growth over the forecast period of 2023 to 2030.

Regional analysis: North America is currently the largest market for edge computing due to increasing adoption of edge infrastructure across sectors like manufacturing, transportation etc. APAC region is expected witness fastest growth on account of rising deployments of edge infrastructure to support increasing data workloads, especially in emerging economies of India and China.

Key players operating in the Edge Computing market are Microsoft Corporation,,Google LLC,,IBM Corporation,,Huawei Technologies Co. Limited,,Cisco Systems Inc. These companies are investing in developing edge-specific platforms and products to gain competitive advantage. They are also partnering with telecom operators and other organizations for deploying edge infrastructure globally.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it