As per Intent Market Research, the global edge computing market accounted for USD 14.2 billion in 2023-e and is projected to reach USD 116.6 billion by 2030, growing at a CAGR of 35.1% from 2024 to 2030.

Edge computing is a decentralized computing architecture that positions enterprise applications in closer proximity to data sources, such as IoT devices or local edge servers. The proximity to data sources offers significant business advantages, including quicker insights, enhanced response times, and improved availability of bandwidth. The explosive growth of data generation across industries has faced the challenges of bandwidth and latency issues.

Edge computing significantly helps in reducing latency, addressing the delay in processing and transmitting data that can occur in traditional centralized computing architectures. It enables real-time processing and decision-making at the edge of the network, where data is generated. This is important for applications that require immediate responses, such as industrial automation, autonomous vehicles, and augmented reality.

Industry 4.0 Driving the Edge Computing Market

Industry 4.0 relies on the collection and analysis of vast amounts of data from sensors, machines, and production lines in real-time. Edge computing facilitates the processing of this data at the source, allowing for immediate insights and decision-making within manufacturing environments. Edge computing is a cornerstone of smart manufacturing, where connected devices, machines, and systems communicate and collaborate autonomously. Localized data processing at the edge enables real-time control, monitoring, and optimization of manufacturing processes.

Industry 4.0 emphasizes predictive maintenance to reduce downtime and enhance equipment reliability. Edge computing enables the analysis of sensor data locally, predicting potential equipment failures and allowing for timely maintenance interventions. The Industrial Internet of Things (IIoT) is a key component of Industry 4.0 and edge computing seamlessly integrates with IIoT devices, providing the necessary infrastructure for real-time data processing, analysis, and communication in industrial settings. The integration of edge computing into Industry 4.0 initiatives is pivotal for creating intelligent, connected, and efficient manufacturing environments.

Edge Computing Market Segment Insights

Real-time Decision Making Driving the Growth of IoT Edge Segment

IoT edge, which involves processing data closer to the source on IoT devices or gateways, is contributing significantly to the adoption and expansion of edge computing. IoT edge promotes the decentralization of data processing by enabling devices to perform local computation. This aligns with the fundamental principle of edge computing, which involves processing data closer to its source rather than relying solely on centralized cloud servers.

IoT edge enables real-time decision-making at the edge of the network, allowing devices to autonomously respond to local events and conditions. This is particularly important for applications such as predictive maintenance, where timely decisions can prevent equipment failures. The IoT edge segment is expected to show significant growth during the forecast period.

Source: Intent Market Research Analysis

Increasing Adoption of IoT Devices Promoting the Growth of Hardware Segment

The widespread adoption of IoT devices across various industries, including smart homes, industrial automation, healthcare, and smart cities, has led to a surge in the data volume generated at the edge. Edge computing hardware is essential for processing this data locally, reducing the need for centralized cloud processing.

Edge computing hardware caters to a diverse range of edge devices, including sensors, cameras, gateways, and industrial machines. The hardware is designed to accommodate the specific requirements of different devices, ensuring compatibility and efficient processing. The increasing adoption of IoT devices drives the edge computing hardware, thereby driving the market growth.

SMEs Poised to Adopt Edge Computing to Improve their Efficiency

Edge computing offers several benefits for small and medium-sized enterprises (SMEs) across various industries. While large enterprises often lead in the adoption of advanced technologies, SMEs can also leverage edge computing to enhance their operations, improve efficiency, and stay competitive. Edge computing brings processing capabilities closer to the data source, reducing the latency associated with transmitting data to centralized cloud servers. This is particularly beneficial for SMEs requiring real-time or near-real-time processing, such as in retail, manufacturing, and customer service.

Edge computing can lead to cost savings for SMEs by reducing the need for extensive cloud infrastructure and minimizing data transfer costs. Localized processing at the edge means less reliance on expensive centralized servers, making it a cost-effective solution.

Surveillance Application Segment to show Significant Growth Potential

Edge computing plays a crucial role in enhancing surveillance systems by bringing computational capabilities closer to the source of data generation. This is particularly valuable in video surveillance applications where real-time processing, reduced latency, and efficient handling of large amounts of data are essential. Edge computing reduces latency in surveillance systems by processing video data locally at the edge. This is critical for applications where quick response times are crucial, such as in security monitoring, crowd management, and critical infrastructure protection.

Focus on Automation is Expected to Drive Manufacturing Industry Share

Edge computing in manufacturing refers to the deployment of computing resources closer to the point of data generation and processing within manufacturing environments. This approach is integral to Industry 4.0 initiatives, aiming to make manufacturing processes smarter, more efficient, and more responsive.

Edge computing supports predictive maintenance by analyzing data from sensors on machinery and equipment locally. This allows manufacturers to anticipate potential equipment failures, schedule maintenance proactively, and minimize downtime. Edge computing is essential for the deployment of autonomous systems and robotics in manufacturing. Localized decision-making on the shop floor enhances the autonomy of robots, cobots (collaborative robots), and automated guided vehicles (AGVs).

By processing data closer to the source, manufacturers can unlock new capabilities that contribute to competitiveness, flexibility, and responsiveness in the Industry 4.0 era. The manufacturing segment is expected to show substantial growth during the forecast period.

Asia-Pacific to Grow Exponentially Over the Forecast Period with Increasing Adoption in Smart Cities

The region is experiencing rapid urbanization, leading to the development of smart cities. Edge computing is fundamental to the implementation of smart city technologies, including intelligent transportation systems, public safety, and energy management. The deployment of 5G networks in several Asia-Pacific countries is a significant driver for edge computing growth. The low latency and high bandwidth of 5G enhance the capabilities of edge computing, making it more feasible for applications that demand real-time processing.

The Asia-Pacific region, known for its manufacturing industries potential, is actively embracing Industry 4.0 concepts. Edge computing is integral to smart manufacturing, supporting real-time monitoring, predictive maintenance, and enhanced automation in factories. Considering the potential of the region, the edge computing market in Asia-Pacific is estimated to record a significant growth during the forecast period.

Source: Intent Market Research Analysis

Major industry players are enhancing their market positions by adopting several growth strategies

Major players operating in the global edge computing market are AWS, Cisco, Dell, Google, HP, IBM, Microsoft, Nokia, NVIDIA, and Siemens, among others. To tap the potential share of the market, major players have started adopting strategies such as new product launches, mergers & acquisition, partnerships & collaboration. Some of the significant developments are mentioned below:

• In November 2023, AWS announced the preview of AWS IoT SiteWise Edge on Siemens Industrial Edge to help simplify, accelerate, and reduce the cost of sending industrial equipment data to the AWS cloud.
• In October 2023, Cisco unveiled the next milestone of its ongoing work with NVIDIA to deliver AI-powered meetings for hybrid workers. Cisco announced the launch of Room Kit EQX, built on the NVIDIA Jetson edge AI platform.

Edge Computing Market Coverage

The report provides key insights into the edge computing market, and it focuses on technological developments, trends, and initiatives taken by the government and private players. It delves into market drivers, restraints, opportunities, and challenges that are impacting market growth. It analyses key players as well as the competitive landscape within the global market.

Report Scope: