Edge computing is a technology that enhances cloud computing systems by enabling computation at the edge of the network. It involves conducting services on downstream data instead of cloud services and upstream data instead of IoT services. Edge computing aligns data acquisition and handling functions, stores high-bandwidth content, and runs applications closer to end-users. It also facilitates effective data management by processing and filtering data at the network’s edge, providing cleaner data sets for cloud-based data analytics. The growth of the edge computing market is driven by factors such as the extensive use of the Internet of Things (IoT) in various industries, the demand for low-latency computing, and self-executing decision-making solutions.
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Edge Computing Market Scope
The scope of the Edge Computing Market analysis includes:
Component
- Hardware
- Platform
- Services
Application
- Smart Cities
- Location Services
- Analytics
- Environmental Monitoring
- Optimized Local Content
- Data Caching
- Augmented Reality
- Others
Organization Size
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
Verticals
- Manufacturing
- Healthcare
- Transportation
- Government
- Media and Entertainment
- Energy and Utilities
- Telecom & IT
- Retail
- Others
Geography
- North America
- Europe
- Asia Pacific
- Rest of the World
Key Market Insights
Component Dominance
In terms of components, hardware is expected to hold the largest market share in the forecast period. This is due to the extensive acquisition of hardware components for decentralized storage and computing operations, enabling comprehensive edge infrastructure deployment, and reducing network traffic. Organizations provide advanced edge computing hardware that serves as an initial data source, facilitates the entire network, or functions as a storage and local processing unit in the edge computing process.
Application Trends
Smart cities applications hold a significant share, enhancing building security, providing automated home facilities, and improving traffic management in smart cities to address heavy urban traffic.
Adoption in Large Enterprises
The adoption of edge computing solutions is high in large enterprises, driven by the increasing volume of data, widespread geographical presence, and the demand for employees to access computing solutions and applications securely and with proper data storage.
Regional Growth
North America leads the revenue generation, with the integration of edge computing and the Industrial Internet of Things (IIoT) leading to connected factories in the United States. The presence of startups offering edge-enabled solutions is also driving industry growth in this region.
Market Growth and Forecast
The Edge Computing Market is expected to grow at a CAGR of 37.5% during the forecast period, with a base value of $4.04 billion in 2020, reaching $26.62 billion in 2026. Factors driving this growth include the increasing use of IoT across sectors for seamless operations, the demand for automated decision-making solutions, and managing the significant growth in data.
Key Players in the Edge Computing Market
Major players in the Edge Computing Market include Cisco, HPE, Huawei, Unit4, Dell Technologies, Microsoft Corporation, Nokia, IBM, Foghorn Systems, and Machineshop.
Market Analysis
This report provides a comprehensive analysis of the market’s current drivers, opportunities, challenges, and trends. It also includes an analysis of the major players in the Edge Computing Market, assisting competitors in understanding significant market trends and user requirements.
Quantitative Analysis
The report quantitatively analyzes the Edge Computing Market, enabling users to understand market developments in all four geographical regions.
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