April 20, 2024

Software Segment is the largest segment driving the growth of Edge Computing Market

Edge computing is a distributed computing architecture where data processing and applications are located closer to the end users or data sources rather than in centralized locations. This allows real-time data processing for IoT applications reducing latency and improving reliability.

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 in the edge computing market is edge-as-a-service. Edge-as-a-service is an on-demand delivery model where edge computing infrastructure and services are offered as cloud services to enterprises. It enables enterprises to deploy edge applications without investing in infrastructure and allows scaling according to business needs. Edge-as-a-service model is gaining traction as it provides enterprises agility, scalability, and enables them to focus on core operations rather than managing edge infrastructure.

SWOT Analysis

Strength: Edge computing has increased processing speed and reduced latency. It enables real-time decisions and actions by processing data close to the source of data generation.

Weakness: Security and privacy of data are major concerns with edge computing. Securing data stored on dispersed edge devices is a challenge. Initial infrastructure cost required for edge deployment is also high.

Opportunity: Rising need for low-latency applications across industries will boost the edge computing market. Growing adoption of IoT and increase in data volume provides scope for edge computing adoption.

Threats: Compatibility issues during integration of edge devices with existing infrastructure can limit the market growth. Lack of common standards for edge ecosystems poses a challenge.

Key players operating in the Edge Computing market are Microsoft Corporation,,Google LLC,,IBM Corporation,,Huawei Technologies Co. Limited,,Cisco Systems Inc. These leaders are focused on developing edge-specific hardware and platforms. Partnerships with telecom operators and cloud providers are helping them strengthen edge ecosystem and service offerings. Acquisitions are also allowing them to enhance edge capabilities and solutions portfolio.

Key Takeaways

The global Edge Computing market is expected to witness high growth, exhibiting CAGR of 15% over the forecast period, due to increasing adoption of IoT devices and applications across sectors. The volume of data generated by sensors, smart meters, vehicles and industrial equipment is growing exponentially which is propelling the need for edge computing platforms.

North America dominated the edge computing market in 2023 due to large-scale adoption of edge technologies across various industries including healthcare, transportation, manufacturing etc. Asia Pacific is anticipated to exhibit the fastest growth rate over the forecast period owing to government initiatives for smart city development in countries like China and India. Significant investments by key players are also boosting the edge computing deployments across APAC region.

*Note:

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