Edge Computing Market Size, Share & Growth | Forecast [2031]

Report Description

Edge Computing Market Outlook 2031

The global edge computing market size was valued at USD 8.88 billion in 2022 and is estimated to reach USD 163.30 billion by 2031, expanding at a CAGR of 38.2% during the forecast period, 2023–2031. The growth of the market is attributed to the evolution of smart technology into the industry.

Edge computing is a distributed computing paradigm in which data storage and computation are moved closer to the data sources, which increase response time while also conserving bandwidth. It also combines software and hardware solutions as well as networking architecture that suits a vast range of use cases across several industries.

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The impact of COVID-19 has been positive on the global edge computing market. Remote operations in several sectors such as energy, manufacturing, and transportation & logistics have been under significant pressure as a result of mandatory containment measures and health safety compliances.

Edge Computing Market Trends, Drivers, Restraints, and Opportunities

• Rising use of Bring Your Own Devices in modern business practices and demand for low-latency connectivity is one of the key factors driving the market growth.
• Increasing awareness for edge computing solutions among small & medium enterprises is expected to boost the market growth in the projected timeline.
• Issues concerning to security breaches at data centers presents a major restraining factor. This is anticipated to hamper the market expansion during the forecast period.
• Lack of skilled IT professionals to implement and manage a local edge network devices is a key challenge, which is likely to hinder the market growth in the coming years.
• An edge is projected to create significant growth opportunities for the market in the near future as the technology is in the early stage of development. 

Scope of Edge Computing Market Report

The report on the global edge computing market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Edge Computing Market Segment Insights

Industrial Internet of Things segment is expected to grow at a rapid pace

Based on applications, the global edge computing market is divided into video analytics, Industrial Internet of Things, remote monitoring, augmented reality/virtual reality, content delivery, and others. The Industrial Internet of Things segment is expected to grow at a rapid pace during the forecast period owing to the major portion of edge computing in the manufacturing sector deployed in the form of device edge, which is being accepted widely across the globe.

However, the remote monitoring segment is likely to register considerable CAGR during the forecast period due to rapid expansion in work from home module and profiles.

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Low-latency and secure data connection to drive the service segment

On the basis of components, the market is segregated into hardware, services, software, and edge-managed platforms. The hardware segment is further bifurcated into end point devices and types. The end point devices segment is sub-segregated into drones, robots, cameras, head mounted display, and others, while the types segment is further segmented into sensors/routers, edge nodes/gateways servers, and others.

The service segment is projected to expand at a considerable CAGR during the forecast period attributed to rise in secure data connectivity among end-users and low-latency. On the other hand, the edge- managed segment is anticipated to account for a major market share during the forecast period owing to rise in significant data centers in numbers across several industries.

Energy & utilities segment is anticipated to hold significant market share

Based on industry verticals, the global edge computing market is segmented into transportation & logistics, energy & utilities, industrial, healthcare, agriculture, retail, datacenters, wearables, and smart cities, smart homes, & smart buildings.

The energy & utilities segment is anticipated to hold significant market share attributed to implementation of advanced supply of electricity via smart grids, which helps in monitoring fluctuation in usage and adapt accordingly. However, the healthcare segment is expected to register a considerable CAGR during the forecast period due to digitization in healthcare industry, which is rapidly implementing digital health strategies with varied degrees of maturity and success.

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North America is anticipated to constitute a key market share

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the projected period as edge computing convergence is driving manufacturers especially in the U.S. to shift towards linked factories.

Additionally, several startups have emerged to provide platforms for developing edge-enabled solutions, which is projected to fuel the regional market growth. However, the market of Asia Pacific is anticipated to expand at a rapid pace during the forecast period attributed to the growing emphasis on improving networking technology across the region.

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