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San Francisco, 2 July 2019 – “Edge Computing Market Size, Share & Trends Analysis Report By Component (Services, Hardware, Software, Edge-Managed Platforms), By End Use (Transportation & Logistics, Retail, Datacenters, Wearables), And Segment Forecasts, [2019 – 2025]”

The global edge computing market size is expected to reach USD 28.84 billion by 2025 registering a CAGR of 54.0%, according to a new report by Grand View Research, Inc. Growing need to process large volumes of data being generated from the rise in Internet-of-Things (IoT) developments closer to the end user is expected to increase the demand for these solutions over the forecast period. Increasing emphasis on cost reduction and process automation coupled with intensified business competition is also expected to drive the market in the coming years. Organizations are endorsing this technology to enhance operations and gain real-time insights. Thus, the continued transition toward the adoption of edge computing is expected to influence the IT strategies of key companies over the forecast period.

Continued adoption of this technology for the data center application is also expected to propel the market growth. Its adoption is also expected to culminate in having micro data centers located closer to the existing infrastructure, which would help address the latency issues. Data Center Management-as-a-Service (DMaaS) is emerging as a low-cost way for data center management as it ensures effective use of the IT layer by monitoring data center’s infrastructure from the edge. DMaaS can also be utilized as a cost-efficient and flexible solution for companies willing to gain real-time insights. Stringent requirements of 5G standards, such as high reliability, ultra-low latency, and consistency in user experience, is expected to trigger the need for localized services based on Radio Access Networks (RAN).

U.S. edge computing market

As such, Mobile Edge Computing (MEC) is emerging as a promising computing architecture for telecom operators, IT platform providers, and system integrators. MEC adds virtualization and computing capabilities to a RAN. Prominent companies in the market include Microsoft Corp.; International Business Machines (IBM) Corp.; Cisco Systems, Inc.; Intel Corp.; and Amazon Web Services, Inc. These companies are actively developing innovative and unique solutions. For instance, Microsoft’s Azure IoT edge delivers cloud intelligence through the implementation of Azure services and Artificial Intelligence (AI) directly on cross-platform IoT devices. Similarly, IBM Corp. offers Watson IoT Platform Edge, which enables the end users to extend Watson IoT platform capabilities to edge devices.

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Further key findings from the study suggest:

  • High-performance applications in the edge network are expected to propel the growth of the software component segment over the forecast period
  • Data centers end-use segment is expected to witness the fastest CAGR over the forecast period owing to the rising need for reducing data center downtime
  • APAC is projected witness the highest CAGR of more than 60% from 2019 to 2025. Growing need for digital transformation to streamline and automate the operations is expected to drive the regional market
  • Intel Corp.; Aricent, Inc.; Amazon Web Service (AWS), Inc.; and Cisco Systems, Inc. are some of the prominent companies in the global edge computing market
  • These companies are collaborating with technology providers to deploy edge solutions on a broader scale for high-performance applications
  • Original Equipment Manufacturers (OEMs) are using this technology in their automation and predictive maintenance solutions and transforming their service model to enhance customer experience

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Grand View Research has segmented the global edge computing market on the basis of component, end use, and region:

Edge Computing Component Outlook (Revenue, USD Million, 2016 – 2025)

  • Hardware
  • Software
  • Services
  • Edge-Managed Platforms

Edge Computing End Use Outlook (Revenue, USD Million, 2016 – 2025)

  • Industrial
  • Energy & Utilities
  • Healthcare
  • Agriculture
  • Transportation & Logistics
  • Retail
  • Data Centers
  • Wearables
  • Smart Cities, Smart Homes, Smart Buildings

Edge Computing Regional Outlook (Revenue, USD Million, 2016 – 2025)

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

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About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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