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Edge Computing Market Growth & Analysis, 2027 | Industry Report

Edge Computing Market Analysis Report By Component, By Industry Vertical, By Region And Segment Forecasts From 2020 To 2027

Report ID: MN17616994  |  Published: September 2020  |  No of Pages: 175
Format: Electronic (PDF)  |  Industry: Computing & Technology  |  Publisher: Grand View Research

Industry Insights

The global edge computing market size was accounted for USD 3.5 billion in 2019 and expected to grow with a CAGR of 37% over the forecast period, from 2020 to 2027. The integration of IoT and edge computing technologies are reshaping the data computing and helping several corporates to boost the power of data analytics for developing solutions across several end-use industries. Moreover, to reduce these challenges like network latency and increasing need for immediate real-time data has led to the growth of multi-locational hybrid data architectures that save data at the edge.

IoT enabled edge computing is expected to gain traction for numerous IoT deployments. For example, several IT processors enable better automation at the edge which in turn has low latency for fast data processing. Companies like Amazon Web Services, Cisco Systems, Inc., and Marlabs Inc. are engaged in innovating IoT platforms along with this technology.

U.S. edge computing market

The on-device approach incurs lower dependency on the cloud and manages a huge amount of data generated through edge IoT products. For example, Nest Cam IQ security cameras for indoor application developed by Google Inc. enables on-device vision processing to recognize familiar faces, detect motion and send real-time alerts if any specific events occur.

Furthermore, edge computing is gaining popularity in video analytics for security & surveillance, and real-time traffic monitoring thereby helps in smart city projects. The integration of this technology with video analytics enables real-time tracking, anomaly detection and data insights. Factor such as decreasing costs of computation mediums and hardware components is expected to propel the growth of edge computing market. For example, Japan-based NTT Docomo Inc. tested a new video IoT solution for video analytics which leverages this technology. 

Components Insights

On the basis of components, the market is segmented into hardware, software, services, and edge-managed platform. In 2019, the hardware segment held the largest market share. This is due to increasing adoption of cloud-based services where server plays an important role and operates as an invisible computing backbone for services on which users are dependent. Increasing adoption of this technology is expected to drive the demand for several types of servers, which is expected to drive the segment growth.

In 2019, the routers segment gained around 22% market share due to the growing demand for edge data centers in several industry verticals where edge routers became important. Moreover, routers are also responsible for network security. Identify unauthorized access to user requests.

In 2019, the edge-managed platforms segment held significant market share due to growing demand from companies for leveraging stacked software and hardware capabilities. Further, organizations are increasing their budget for Information Technology/Operational Technology (IT/OT) solutions. These solutions help to remove barriers in data processing and transmission, thereby influencing the providers to offer better customer experience through predictive analysis. For example, Hewlett Packard Enterprise is offering IT/OT platforms and solutions for oil & gas, transportation and utilities.

Industry Vertical Insights

In 2019, the energy and utility segment accounted for the largest market share. The increasing need to fill the gap between the actual output and theoretical efficiency of energy grids is boosting the demand for edge computing in grid manufacturers. Further, a huge amount of data created by distributed energy generation stations need to be analyzed and processed to make important decisions. Factors such as grid automation, real-time analysis of power flows and Automatic Meter Reading (AMR) are expected to drive the edge computing market growth in this segment.

U.S. edge computing market

In 2019, the industrial segment gained significant market share in terms of revenue. Automation in the industrial sector owing to integration of edge computing with smart machines is helping manufactures to increase production efficiency and manufacture high-quality products. In addition, edge computing framework help to reduce complexity in interconnected systems and enables easy data analysis and collection. Several benefits associated with this technology are expected to augment the segment growth over the next few years.

Moreover, in smart manufacturing, edge computing enables factory machines to retrieve data and perform an action on real-time data. Integration of this technology with 5G is anticipated to provide new market growth opportunities in this segment.

Regional Insights

In 2019, North America held the largest edge computing market share of over 46% in terms of revenue. The integration of Industrial Internet of Things (IIoT) with edge computing has influenced U.S. manufacturers to shift towards automated factories. In addition, various start-ups offering platforms to develop an edge-enabled solution which is expected to drive the regional market growth. For example, telecom service providers in Canada including Telus Communications and MobiledgeX are working together in order to develop MobiledgeX Early Access Program. This program enables developers to build, experiment, test applications, and gauge the effect of edge-enabled applications at low latency.

Asia Pacific is projected to grow with the highest CAGR over the forecast period. In this region, enterprises and data centres operators are anticipated to form edge data centres for better-connected devices management as well as edge computing when 5G network will be in the place. Further, key players like Microsoft Corporation are playing a vital role in developing AI technology by forming lab India and China.

Impact of COVID-19

The market is gaining traction in recent years wherein the demand for this technology has increased during the outbreak of COVID-19. Due to this pandemic, most of the companies across several industries are shifting towards digitalization. As a result, industry players like Amazon Web Services (AWS) and Microsoft Azure are widely developing edge servers in the market. On the back of IoT technology and 5G network, the industry is expected to have enormous impact on this market.

Moreover, edge computing is booming in the manufacturing and healthcare sectors. Several countries like China are deploying drones and robots in hospitals for public safety. Real-time insights generated by edge AI helps in effective isolation, identification, and treatment of COVID-19 patients. Industry players such as Intel are working for these solutions. Thus, Intel collaborated with Udacity allows developers to work on Udacity's IoT technology along with Intel's Edge AI technology. This initiative is expected to boost market growth in this pandemic situation.

Edge Computing Market Share Insights

The major players operating in the market are General Electric Company; Hewlett Packard Enterprise Development LP; Intel Corporation; Amazon Web Services (AWS), Inc.; Cisco Systems, Inc.; Huawei Technologies Co. Ltd.; and Microsoft Corporation. The need to offer AI-enabled stack platforms is encouraging key players to design high functionality products by integrating with edge computing. Industry players are developing this technology to fulfill the needs of several industries like smart cities, healthcare, telecom, and manufacturing. For example, NVIDIA Corporation introduced the NVIDIA EGX Platform which helps to bring real-time AI for the edge to enhance the user’s experience. 

These service providers are adopting several strategies such as collaborations and partnerships to offer higher range of services to their customers. For example, Amazon Web Services, Inc. partnered with Verizon Communications, Inc. to offer 5G edge computing platform for their customers in order to develop new applications, empower IoT capabilities, and also foster innovations. In addition, Verizon Communications, Inc. has developed the ThingSpace platform which helps developers to launch and develop IoT devices and solutions for the edge.

Report Scope

Attribute

Details

Base year for estimation

2019

Actual/Historical data

2016 to 2018

Forecast period

2020 - 2027

Market representation

Market revenue in USD Billion, CAGR from 2020 to 2027

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, U.K., Germany, China, India, Japan, Brazil, Mexico

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to five analyst working days)

If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization


Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global edge computing market report on the basis of component, industry vertical and region.

• Component Outlook (Revenue, USD Billion, 2016 - 2027)
    • Hardware
        • Edge Nodes/Gateways (Servers)
        • Sensors/Routers
        • Others
    • Software
    • Services
    • Edge-Managed Platform

• Industry Vertical Outlook (Revenue, USD Billion, 2016 - 2027)
    • Industrial
    • Energy & Utilities
    • Healthcare
    • Agriculture
    • Transportation & Logistics
    • Retail
    • Datacenters
    • Wearables
    • Smart Cities, Smart Homes, Smart Buildings

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)
    • North America
        • U.S.
        • Canada
    • Europe
        • Germany
        • U.K.
    • Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • MEA

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