Table of Contents
Introduction
According to Market.us, The global edge computing market is projected to reach approximately USD 206 billion by 2032, exhibiting a robust CAGR of 18.3% from 2023 to 2032.
Edge Computing is a transformative technology that processes data closer to where it is generated, rather than sending it across long routes to data centers or clouds. This method significantly speeds up the process, making it ideal for real-time applications like smart cities, healthcare, manufacturing, and autonomous vehicles.
The Edge Computing Market is witnessing rapid growth, with significant advancements and adoption across various industries. North America leads in market share, thanks to its advanced IT infrastructure and the presence of major technology players. However, the adoption of edge computing comes with its set of challenges. The cost of high-performing edge computing devices, security threats due to vulnerable nodes and IoT devices, and the lack of edge monitoring tools are notable hurdles. Despite these challenges, the advantages of edge computing over traditional cloud computing – such as speed, scalability, reliability, versatility, and lower management costs – make it a promising technology for the future.
Edge Computing Statistics
- Edge computing market is projected to reach approximately USD 206 billion by 2032, growing at a robust CAGR of 18.3%
- The IIOT segment dominated the market with the highest revenue share of 30%.
- The energy & utility segment held the largest revenue share, above 16%.
- The hardware segment accounted for the largest revenue share at 45%.
- North America dominates with a 42% revenue share, followed by significant growth in the Asia Pacific region due to strengthened networking technology and increased data generation.
- By 2024, a huge jump is expected with over 75% of data from businesses being processed at the edge, a big increase from 10% in 2021. The amount of power used by mobile users for edge computing is expected to hit 50% by 2028.
- There’s a 50% rise anticipated in the use of edge computing across various sectors for real-time analytics from 2022 to 2024. China is looking at having 26% of network edge sites by 2026. Meanwhile, about 60% of companies are gearing up to use edge computing for IoT by the end of 2024.
- Over 70% of cloud services are planning to include edge computing in their offerings by 2024. For manufacturers, using edge computing for checking on equipment and maintenance is likely to increase by 45% between 2022 and 2024.
- By 2024, more than 65% of edge computing setups are expected to use containers and microservices. Also, around 55% of organizations aim to blend edge computing with 5G networks to get faster connections and lower delays by the end of 2024.
- It’s forecasted that by 2024, above 70% of edge solutions will have AI and machine learning built in. The use for video and seeing through computers is set to go up by 40% from 2022 to 2024.
- More than 60% of edge deployments will likely involve virtual tech and software-defined networking by 2024. About 50% of businesses are looking at edge computing to beef up their cybersecurity and protect data by the end of 2024.
- For cars that drive themselves and connected vehicles, the use of edge computing is predicted to grow by 35% between 2022 and 2024. Finally, close to 40% of companies plan to use edge computing to get a clearer view of their supply chains and improve logistics by the end of 2024.
Use Cases in Production
Edge computing is significantly shaping various sectors by providing real-time data processing capabilities at the edge of the network, closest to where data is generated. Here’s a glance at the most anticipated use cases in production across different domains:
- Smart Cities: The deployment of edge computing in smart cities enhances civic operations, such as intelligent traffic control, by processing data from sensors on public infrastructure in real-time. This allows for efficient vehicle fleet management, traffic flow adjustments, and rapid emergency response by analyzing data on the spot, thereby reducing congestion and improving public safety.
- Industrial Automation: In manufacturing and industrial settings, edge computing plays a critical role in predictive maintenance, energy efficiency, and intelligent operations. By processing data from millions of IoT devices on production lines and equipment, edge computing facilitates real-time interventions, custom production runs, and smart manufacturing, leading to increased operational efficiency and reduced downtime.
- Healthcare: Edge computing is transforming healthcare delivery by enabling real-time data analysis from medical devices, including wearables and in-hospital equipment. It supports critical applications like robot-assisted surgery and remote monitoring by processing data on the edge, which is vital for emergency alerts and enhancing patient care.
- Retail: Retailers are leveraging edge computing for hyperpersonalized customer experiences and targeted advertising. It supports AR-enabled interactive shopping experiences by analyzing customer data in real-time, enhancing customer service, and offering personalized product recommendations.
- Transportation: In transportation, particularly with autonomous vehicles, edge computing ensures safety and efficiency by processing vast amounts of data from vehicle sensors in real-time. This capability is crucial for navigation, vehicle-to-vehicle communication, and integrating with smart city infrastructures to manage traffic flow and improve roadway safety.
Top Edge Computing Trends
- Artificial Intelligence (AI) at the Edge: As AI continues to advance, there will be an increasing focus on deploying AI algorithms and models directly at the edge devices. This trend will enable real-time decision-making and data processing without the need for extensive cloud connectivity, leading to faster response times and improved efficiency.
- Automation for Enhanced Efficiency: Automation technologies, such as robotic process automation (RPA) and autonomous systems, will play a significant role in edge computing. By automating tasks and processes at the edge, organizations can achieve higher operational efficiency, reduce human errors, and optimize resource utilization.
- Security and Privacy Take Centre Stage: With the proliferation of edge devices and the deployment of critical applications, security and privacy concerns become paramount. The industry will witness a greater emphasis on implementing robust security measures, encryption protocols, and privacy frameworks to protect data at the edge and ensure compliance with regulations.
- Edge Containers for Flexible Deployment: Edge containers, such as Docker and Kubernetes, will gain popularity as they offer a lightweight and flexible solution for deploying and managing applications at the edge. Containers enable modularization, scalability, and easier updates, allowing organizations to efficiently manage their edge computing infrastructure and applications.
- Increased Adoption of 5G for Low-Latency Connectivity: The widespread adoption of 5G networks will accelerate the deployment of edge computing solutions. With its high-speed and low-latency capabilities, 5G enables real-time data processing and analysis at the edge, supporting applications that require immediate response times, such as autonomous vehicles, augmented reality, and remote monitoring.
Major Challenges
- Infrastructure Challenges: The distributed nature of edge computing presents challenges such as sustainable management of edge assets across multiple locations and devices.
- Security Concerns: As edge computing devices proliferate, they become prime targets for hackers, leading to a heightened focus on implementing robust security measures.
- Privacy and Data Security: With the increasing use of edge devices, there’s a critical need for privacy-centric design principles and enhanced security practices to establish trust.
- Management of Edge Containers: While edge containers offer flexibility in deployment, their management in diverse edge environments can be complex.
Market Opportunities
- Edge-as-a-Service (EaaS): The evolution of edge computing into a service model presents opportunities for scaling resources without significant infrastructure investments.
- Cloud-Edge Integration: Integrating edge and cloud computing facilitates efficiency in data processing and analysis, supporting a range of applications from IoT to smart cities.
- Micro Data Centers: The popularity of micro data centers is growing, addressing the need for localized processing and storage to reduce latency and improve efficiency.
- Blockchain-Edge Solutions: The emergence of digital solutions leveraging blockchain technology and edge computing offers opportunities for data integrity and security within distributed edge environments.
Recent Developments
- Atos (June 2023): Launched a new suite of Edge Computing solutions for industrial applications, focusing on automation and data security.
- General Electric Company (October 2023): Announced a partnership with Microsoft to develop and deploy Industrial Edge Computing solutions for their manufacturing operations.
- Hewlett Packard Enterprise (HPE) (March 2023): Acquired a startup specializing in Edge Computing software, strengthening their HPE Edge Centrepoint platform.
- Cisco Systems (May 2023): Unveiled its latest Catalyst 8000 Series routers, specifically designed for enhanced Edge Computing capabilities.
- Honeywell International (September 2023): Partnered with a leading cloud provider to offer a comprehensive Edge Computing solution for building management and automation
- Intel Corporation (February 2023): Introduced its latest Xeon Scalable processors with built-in Edge Computing functionalities.
Conclusion
In conclusion, edge computing is a transformative technology that brings computational capabilities closer to the data source, enabling faster processing, lower latency, and improved system performance. The edge computing market is experiencing growth due to the increasing demand for real-time analytics, the proliferation of IoT devices, and the advent of 5G networks. With ongoing developments and advancements, edge computing has the potential to reshape industries and enable innovative applications that require low latency, high reliability, and localized data processing.
Discuss your needs with our analyst
Please share your requirements with more details so our analyst can check if they can solve your problem(s)
