The global edge computing market size is expected to value at USD 3.24 billion by 2025 during the forecast period. The market is subject to witness a substantial growth in upcoming years due to the advent of intelligent devices, for example, smart glasses and smart watches. Edge computing performs various business processes such as accumulating, evaluating, and stacking real time data generated by the IoT devices. Moreover, growing web users and rising implementation of digital services are propelling the growth of the market in recent years. Higher consummation of data services is likely to spur edge computing industry expansion with increase in the adoption of edge computing as a service. Globally, the edge computing market is predicted to grow at CAGR of 41.0% in forecast period, providing numerous opportunity for market players to invest for research and development in this market.
Growing focus on the reduction of cost and timely delivery, surging IoT data, need for automating business processes, and escalating business competitiveness are majorly attributing towards growth of the edge computing industry. The adoption of the edge commuting in business process allows organizations in obtaining real-time insights to improve the efficiency of the decision-making algorithm to maximize profit margin. Though, data privacy and security issues are major deal breaker as they are hampering the market growth.
Edge computing helps users to process data generated by internet of things (IoT) devices rather than transmitting data across long distant data centers or cloud servers for processing. Adoption of such type of computing technique at close proximity of the network infrastructure allows organizations to analyze crucial data set in real time. Application of the edge commuting varies across different industry segments such as production, healthcare, telecommunications and finance.
Edge computing is termed as a mesh network consisting of micro data centers that are capable of processing vital data sets locally while transmitting rest of it to a centralized data center or cloud storage stations, which is located at a close proximity. The use of IoT technology in edge devices helps collection of vast set of data and transmission to the centralized to a data center for processing. Edge computing processes critical set of data eventually reducing the backhaul traffic from the centraldata center.
IoT devices transfers data to the micro data centers located nearby that are capable of performing set of operations such as computation, storage and provide network accessibility. Processed data is transmitted from micro data center to the central processing facility or storage repository in an Infrastructure as a service(IaaS) cloud. Edge computing are considered as standard choice of technology under a variety of circumstances. Common reasons for the use of edge computing technology is poor connectivity of IoT devices with a central clod unit and substantial the backhaul traffic from the central data center. Adoption of edge computing also solves issues related to the latency-sensitive processing of data.
Numerous benefits of edge computing include decline in the volumes of data, decrease in the resulting traffic, and the reducing need for transmission of excess of data. Alongside, other advantages such as reduction in transmission cost, lower bandwidth, high level of performance and improved standard of service or QoS. Edge computing completely diminishes the core computing atmosphere by removing a chief bottleneck or a possible single point of failure in the network.
The edge computing industry is divided into regional market segment such as North America, Europe, Asia-Pacific, Latin America and Africa. North America has shown major growth in the edge computing market over recent years owing to the rise implementation of latest technologies and existence well-established technology infrastructure. Asia-Pacific region is predicted to hold major market share in the edge computing industry with massive growth in forecast period. Countries such as India, China and Singapore are leading the Asia-Pacific market with number of government initiatives to encourage digitization need for advanced infrastructure and increase in investment by market players due to potential opportunities in the region.
The key players in edge computing market are Amazon Web Services (AWS) Inc., Cisco Systems Inc., General Electric SE, HP Enterprise, Huawei Technologies Corporations, and International Business Machines (IBM) Co.
Edge Computing Vertical Outlook (Revenue, USD Million, 2016 - 2025)
• Energy & Utilities
• IT & Telecom
• Healthcare & Life Sciences
• Consumer Appliances
• Transportation & Logistics
Edge Computing Organization Size Outlook (Revenue, USD Million, 2016 - 2025)
• Small & Medium Enterprises (SMEs)
• Large Enterprises
Edge Computing Technology Outlook (Revenue, USD Million, 2016 - 2025)
• Mobile Edge Computing
• Fog Computing
Edge Computing Regional Outlook (Revenue, USD Million, 2016 - 2025)
• North America
• Asia Pacific
• Latin America
Research Support Specialist, USA