Edge Computing Market SWOT and PEST Analysis 2021-2031
The Edge Computing market is projected to grow from US$ 49.62 billion in 2023 to US$ 272.27 billion by 2031; it is expected to expand at a CAGR of 23.7% from 2023 to 2031. The proliferation of the Internet of Things (IoT) and the emergence of connected car infrastructure are expected to be a key trend in the market.
Edge Computing Market Analysis
The rise of edge computing represents a significant shift in the way we process and manage data. Its potential to provide real-time computing, increased bandwidth efficiency, and improved security has far-reaching consequences for many industries. Edge computing's disruptive impact is evident in fields ranging from healthcare to smart cities and industry. Edge computing has developed into a key architecture that supports distributed computing and Edge AI. In other words, edge computing maintains computational data and storage close to the user, whether by network or geographical distance. Data processing can often be done on the device itself. Thus, the demand for edge computing is expected to grow during the forecast period.
Edge Computing Market Industry Overview
Edge computing is a new computing paradigm that refers to a set of networks and devices located at or near the user. Edge processing brings data closer to where it is generated, allowing for faster and larger processing rates and volumes, resulting in more actionable answers in real-time. Edge computing has certain distinct advantages over traditional models in which computer capacity is concentrated in an on-premise data center. Putting computation at the edge enables businesses to better how they manage and use physical assets while also creating new interactive, human experiences. Edge computing usage scenarios include self-driving cars, autonomous robots, and smart equipment data, among others.
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Edge Computing Market: Strategic Insights
Market Size Value in US$ 40.84 Billion in 2022 Market Size Value by US$ 132.11 Billion by 2028 Growth rate CAGR of 21.6% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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Edge Computing Market: Strategic Insights
| Market Size Value in | US$ 40.84 Billion in 2022 |
| Market Size Value by | US$ 132.11 Billion by 2028 |
| Growth rate | CAGR of 21.6% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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Edge Computing Market Driver and Opportunities
Integration of Artificial Intelligence (AI) and Machine Learning (ML) to Favor Market Growth
In recent years, the Internet of Things (IoT) has gained significant acceptance. IoT has significantly accelerated the development of artificial intelligence (AI) by supplying adequate data for model training and inference. With the continued development and widespread deployment of IoT, cloud computing has begun to disclose an increasing number of issues. For example, if data created by global terminal devices is computed and stored in a centralized cloud, it would cause a series of problems, such as low throughput, high latency, bandwidth bottlenecks, data privacy, centralized vulnerabilities, and additional costs. To solve the difficulties of cloud computing outlined above, a new computing paradigm known as edge computing (EC) has gained extensive interest. Expressed, the EC model's central notion is to move data processing, storage, and computing processes that were previously required by the cloud to the network's edge, near terminal devices. This reduces data transmission time and device response times, relieves network bandwidth pressure, lowers data transmission costs, and achieves decentralization. Thus, the integration of AI and ML is expected to boost the edge computing market growth during the forecast period.
Growing Adoption of Edge Computing
Edge computing is expected to have a big impact across industries. While some verticals have already seen the impact, others are more likely to be late adopters of edge computing. Over the last few years, firms from various industries have turned to Edge Computing to empower both operations technology (OT) and information technology (IT) teams, support mission essential applications and data, and cut costs. Edge Computing has recently acquired appeal due to its scalability, powerful analytics management, and ability to prevent downtime. Edge OTs are powerful computing devices that will fuel the smart factory by managing machines and equipment, focusing on advanced analytics, maintenance, and augmented reality. On the IT side, as these applications have become more sophisticated and essential, relying just on OT teams to manage them is insufficient. Because IT teams are specialists in data governance, management, and security, they guarantee that all of these variables occur at the edge and that scalable technologies are deployed to save money and reduce business risk.
Edge Computing Market Report Segmentation Analysis
The key segments that contributed to the derivation of the Edge Computing market analysis are component, application, enterprise size, and industry.
- Based on component, the market is segmented into hardware, software, and services. The hardware segment accounted for the largest share of the edge computing market in 2023, owing to the increasing adoption of IoT-based systems owing to the increase in the number of connected devices.
- The edge computing market, by application, is segmented into smart cities, Industrial Internet of Things (IIoT), content delivery, augmented reality and virtual reality, and others. The smart cities segment is projected to grow at a faster pace during the forecast period due to growing initiatives in the development of smart infrastructure.
- The market, by enterprise size, is segmented into small and medium enterprises, and large enterprises.
- The edge computing market, based on industry, is segmented into manufacturing, energy & utility, government, IT and telecom, healthcare, retail and consumer goods, and others.
Edge Computing Market Share Analysis By Geography
Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America.
Technology advancements such as the Industrial Internet of Things (IIoT), Industry 4.0, and 5G network services, as well as the expansion of the connected device ecosystem, have resulted in massive amounts of data being generated, necessitating the use of a powerful computational infrastructure. This, in turn, is anticipated to boost the growth of the edge computing market in the Asia Pacific region during the forecast period.
Edge Computing Market Report Scope
Edge Computing Market News and Recent Developments
The Edge Computing market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Edge Computing Market are listed below:
- Dell Technologies introduced Dell NativeEdge, an edge operations software platform designed to help businesses simplify and optimize secure edge deployments. With this, customers can streamline edge operations across thousands of devices and locations from the edge to core data centers and multiple clouds. (Source: Dell Technologies, Press Release, May 2023)
Edge Computing Market Report Coverage & Deliverables
The Edge Computing market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Edge Computing Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Edge Computing Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Edge Computing Market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Edge Computing Market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments in the Edge Computing Market
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Organization Size, Application, and Industry
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
Some of the customization options available based on the request are additional 3–5 company profiles and a country-specific analysis of 3–5 countries of your choice. Customizations are to be requested/discussed before making final order confirmation, as our team would review the same and check the feasibility.
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ADLINK Technology, Amazon Web Services, Inc., EdgeConnex Inc., Dell Technologies, FogHorn Systems, The Hewlett Packard Enterprise Company, Litmus Corporation, International Business Machine Corporation, Microsoft Corporation, and Vapor IO, Inc. are the major market players.
The proliferation of the Internet of Things (IoT) and the emergence of connected car infrastructure are the major trends in the market.
The global Edge Computing market was estimated to grow at a CAGR of 23.7% during 2023 - 2031.
Integration of Artificial Intelligence (AI) and Machine Learning (ML) and growing demand for low latency applications are the major factors that drive the global Edge Computing market.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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