Global Edge Computing Market Growth From 2022-2027: Technavio

NEW YORK, Feb. 3, 2023 — According to Technavio, the global edge computing market size is estimated to grow by USD 9,928.42 million from 2022 to 2027. The market is estimated to grow at a CAGR of over 24.74% during the forecast period.  The report includes historic market data from 2017 to 2021. In 2017, the market was valued at USD 2454.66 million. North America will account for the largest share of the global market during the forecast period. For more insights, request a sample report.

Global edge computing market – Five Forces

The global edge computing market is fragmented, and the five forces analysis covers–

• Bargaining power of buyers
• The threat of new entrants
• Threat of rivalry
• Bargaining power of suppliers
• Threat of substitutes
• Interpretation of porter’s five models helps to strategize the business.

Global edge computing market – Customer Landscape

The report includes the market’s adoption lifecycle, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global edge computing market – Segmentation Assessment

Segment Overview

Technavio has segmented the market based on end-user (Industrial manufacturing, Telecom, Mobility, Government, and Others), and component (Hardware, Software, Services, and Edge-managed platforms).

• The industrial manufacturing segment will account for a significant share of the global market during the forecast period. Some of the end-users in the industrial manufacturing segment are focusing on creating agreements with the vendors operating in the market in focus to incorporate edge computing in their operations. Therefore, such strategic alliances between vendors and end-users can influence the growth of the market in focus during the forecast period.

Geography Overview

By geography, the global edge computing market is segmented into North America, Europe, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global edge computing market.

• North America is estimated to account for 42% of the growth of the global market during the forecast period. The edge computing market in North America is expected to witness considerable growth owing to the growing emphasis on improving efficiency in IT infrastructure within commercial and industrial environments and the increasing adoption of big data analytics and IoT by end-users. The US and Canada are two of the key markets for edge computing in North America. Enterprise customers in the US and Canada are keen on switching to edge computing, with many companies giving priority to switching from core-to-network edge systems in the next few years. Some of the vendors operating in the region are focusing on launching new edge computing platforms. These factors will drive the growth of the regional market during the forecast period.

Global edge computing market – Market Dynamics

Key factor driving market growth

• The rising demand for decentralized computing to reduce latency in decision-making is notably driving the edge computing market growth. 
• The need for low latency in computing or decision-making tasks is increasing the demand for decentralized edge computing solutions.
• Edge nodes are usually placed a single hop away from the device node, which can save considerable time in reducing the roundabout time between the device and the edge node.
• Many vendors have started to provide edge computing solutions that can operate independently, without the need for full-time internet access.
• This allows users to reduce decision-making time in critical applications. This type of computing environment also leads to the removal of a single point of failure or choke point for internet traffic. These factors are driving the growth of the global edge computing market.

Leading trends influencing the market 

• The deployment of Industry 4.0 infrastructure is a key trend influencing the edge computing market growth. 
• Industry 4.0 refers to the use of connected automation systems and technologies, such as cyber-physical systems, IoT devices, cloud computing, and cognitive computing, which can enable large-scale automation in factories.
• The adoption of these technologies is expected to influence the demand for edge computing. Industry 4.0-based manufacturing operations and facilities require several IoT sensors, actuators, and communication tools, which constantly generate data.
• Edge computing plays an important role in the analysis and implementation of this data in the immediate manufacturing environment in real-time.
• Hence, the demand for edge computing is expected to grow with the adoption of Industry 4.0 practices. These factors will support the growth of the market during the forecast period.

Major challenges hindering the market growth

• Competition from low-cost centralized and general-purpose computing infrastructure may impede the edge computing market growth.
• Centralized computing infrastructure includes cloud data centers, supercomputing facilities, and centralized data centers used by organizations to support their global operations. These facilities can be transformed to provide computing or processing capabilities as a service to anywhere in the world virtually.
• Many public/private cloud server operators offer low-cost computing and storage services on a pay-as-you-go basis, which poses a threat to the global edge computing market.
• Moreover, setting up edge computing infrastructure may require additional capital spending, network infrastructure, and skilled labor for maintenance and operation.
• Furthermore, some vendors provide software-based edge computing solutions. These factors will impede the growth of the market during the forecast period.

To read the full report, visit this link.

Source: Technavio