Edge Computing Market to Garner a CAGR of 16.6% During 2022-2026, Confirms GlobalData Plc
Nov 25, 2022
The latest market publication titled Edge Computing Market Analysis and Forecast by Region, IT Infrastructure, Application, Vertical and Employee Size Band, 2022-2026 has been added to the report store by GlobalData Plc. The edge computing market valuation was estimated at USD 9.7 billion in 2021 and the market is anticipated to witness an accelerating growth momentum at a CAGR of 16.6% during the forecast period. The edge computing market growth will be primarily driven by the increasing adoption of the Internet of Things (IoT) and the surging popularity of 5G technology.
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5G and edge computing are highly synergistic. While 5G inherently provides better speeds, higher throughput, and lower latency than previous cellular generations, businesses will be able to better leverage these performance gains when edge processing is added. Furthermore, factors including network modernization, data sovereignty, and disruptions caused by COVID-19 have also propelled the IoT market growth during the forecast period. However, challenges including the lack of policies and regulations and data privacy and security concerns might limit the IoT market growth.
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IoT Market Segment Highlights
By IT infrastructure
- Hardware: The hardware segment accounted for the largest market share in 2021 and is expected to continue to remain the largest segment over the forecast period. The large market share can be attributed to the fact that edge computing requires critical hardware that exchanges and process data.
- BFSI: The segment will account for the second-largest edge computing market revenue in 2021. The segment growth will be driven by the need for security measures.
- Information Technology
- IIoT: The IIoT application segment will lead the edge computing market share in 2021. The segment will continue to account for the highest application share throughout the forecast period.
- Smart cities
- Content Delivery Networks
- Remote Monitoring
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By Employee Size Band
- Very Large (5,000+): The very large employee size band segment accounted for the largest edge computing market revenue in 2021 and will continue to retain its dominance in the market.
- Large (1,001-4,999)
- Medium (251-1,000)
- Small (51-250)
- Micro (Less than 50)
- Asia Pacific: The Asia Pacific region emerged as the largest revenue-generating segment of the edge computing market in 2021. The regional growth can be attributed to the growing popularity of 5G technology and the rising adoption of IoT in the emerging economies of the region including China and India.
- Central & Eastern Europe
- Western Europe
- Middle East & Africa
- North America
- South & Central America
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Edge Computing Market Vendor Landscape
Vendor strategies, solutions, business models, and partnerships are still in the early stages of development and are likely to undergo significant transformation as the market for edge computing evolves and matures. The report classifies the market players in the edge computing market as IT infrastructure vendors, telecom infrastructure vendors, cloud service providers, communications services providers, and system integrators. Companies offering edge computing hardware, software, and services are launching innovative solutions and services to stay in the mainstream. Furthermore, they are engaging in strategic partnerships to strengthen their dominant positions in the market.
Top Edge Computing Market Players
- Microsoft Corp: The company offers a wide range of products and services including public, private, and hybrid server products. In September 2022, Microsoft Corp partnered with Palo Alto Networks to enable 5G Native Security Microsoft Azure private multi-access edge compute. In May 2022, the company began working on enabling Kubernetes for lightweight edge computing devices with Windows.
- International Business Machines Corp: IBM technology-based product line includes analytics, AI, automation, blockchain, cloud computing, IT infrastructure, IT management, cybersecurity, and software development products. In July 2021, Vantiq collaborated with IBM to deliver edge solutions at scale for enterprise clients enabling them to move data and applications seamlessly across hybrid cloud environments from private data centers to the edge.
- Hewlett Packard Enterprise Co: In March 2022, Aruba, an HPE company, announced significant advancements to Aruba ESP (Edge Services Platform), with new functionality in Aruba Central to enable organizations to keep pace with rapidly changing business requirements.
Other key players in the market include:
- Dell Technologies Inc
- Cisco Systems Inc
- Amazon Inc
- Intel Corp
- Huawei Technologies Co. Ltd
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