The global Edge Computing Market size is expected to grow from USD 44.7 billion in 2022 to USD 101.3 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 17.8% during the forecast period, according to a new report by MarketsandMarkets.
Edge computing solutions and services are rapidly gaining acceptance globally by large enterprises as well as mid-sized enterprises and small enterprises due to various benefits, growing adoption of automation and digitalization. The presence of many edge computing providers has made the market competitive. Many emerging players providing niche and differentiated offerings for target customers have come to the forefront.
The hardware component of edge computing is gaining popularity in the marketing landscape and is expected to account for the largest market size during the forecast period. The edge computing hardware must meet the requirements as they are often deployed in tough environmental conditions. The edge computers are equipped with performance accelerators for real-time data processing for quick decision-making. The edge computing hardware includes local data centers, edge gateways, and local devices. Edge computing devices are designed to perform a specific task and are equipped with applications that are required to perform various tasks. For instance, sensors are utilized to monitor machine temperature. In this case, the sensor collects the temperature data from the machine and transfers this to the data center.
The smart cities application is likely to share large revenues in the estimated year. Most countries across the globe are striving for the concept of smart cities by providing basic infrastructure for harnessing technology. Moreover, smart cities involve the wide-scale deployment of IoT sensor networks to ensure constant data streaming for effective management of assets and services, such as traffic management, air quality management, waste and water management, and robust connectivity. This continuous flow of data requires constant contact with the cloud data centers that lead to network overloading.
The large enterprise is likely to share large revenues in the estimated year. The adoption of edge computing solutions in large enterprises is higher than SMEs. This is attributed to the high budget for IT infrastructure, skilled workforce, huge customer base, and the adoption of SaaS solutions and adopted a cloud-first strategy to enable organizations to leverage the edge computing solutions.
The manufacturing vertical accounts for the largest market share during the forecast period. As the usage of IoT sensors are increasing across factory floors, manufacturers have moved towards automation and manufacturing efficiency. However, IoT-enabled manufacturing, needs more maintenance of high-capacity data centers for storage, processing, and analysis of voluminous data generated by sensors. Thus, businesses are rapidly implementing edge computing with smart manufacturing.
Asia Pacific is projected to witness the fastest growth rate in the coming years. Asia Pacific has witnessed the advanced and dynamic adoption of new technologies and is projected to record the highest CAGR during the forecast period. The Edge Computing Market in Asia Pacific is growing at a fast pace, as enterprises in the region are rapidly adopting the edge computing software to provide an enhanced customer experience. Government and defense, telecommunications, retail, and consumer goods industries are widely adopting the edge computing software to enhance their customer service activities. Furthermore, the growing companies in this region are in need of edge computing software that can assist them in accelerating their edge computing solutions and generating more leads.