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Edge Computing Market Overview
Growing adoption of internet of things (IoT) across several industries, increasing number of smart applications, and rising need for data-driven decision marking are some of the key factors driving the growth of the edge computing market across the globe.
On the basis of component, the global edge computing market has been categorized into hardware, platform, and service. Among these, the hardware category held the largest share in the market in 2018. This is due to the increasing deployment of hardware components for decentralizing storage and computing operations and the reducing network traffic.
Based on enterprise size, the edge computing market has been bifurcated into large enterprise and small & medium enterprise (SME). Of these, the large enterprise category held larger share in the market in 2018. Due to the widespread geographical presence and customer base, large companies produced large amount of data daily. Thus, they are increasingly adopting edge computing technology to efficiently process the data and pull out valuable information.
On the basis of application, the edge computing market has been categorized into smart city, augmented reality and virtual reality, remote monitoring, industrial IoT, and others. Among these, the smart city category held the largest share in the market in 2018, owing to the increasing adoption of IoT for city surveillance, traffic management, and vehicle parking. Based on vertical, the market has been categorized into banking, financial services, and insurance (BFSI); information technology (IT) & telecommunication; retail; healthcare; transportation & logistics; government; media & entertainment; and others.
Based on geography, the North American edge computing market held the largest share in 2018. Technological advancement, higher cloud adoption, and increasing adoption of IoT across all industries are some of the key factors supporting the growth of the market in the region. Moreover, development of innovative concepts, such as autonomous car, is further projected to fuel the growth of the market. On the other hand, the market in the Asia-Pacific (APAC) region is expected to witness the fastest growth during the forecast period, owing to the economic developments and heavy investments in IoT and cloud technologies, primarily in China and India.
Edge Computing Market Dynamics
Growing adoption of IoT across several industries is primarily fueling the growth of the edge computing market. Worldwide IoT market generated revenue of around $650 billion in 2018 and it is further expected to surpass $1 trillion mark by 2022. Development of advanced wireless networking technology and growing demand for advanced data analytics are the key factors shaping the IoT market, globally. Increasing adoption of IoT devices is producing a large amount of data every day, pushing network bandwidth requirements to the limit. The traditional method of data processing and data storing in the cloud is becoming too slow to meet the requirements of end users. Edge computing solution allows for the data to be filtered and processed before it is sent to the cloud for storage, which reduces the network cost of data transmission. In addition, distributed architecture of edge computing reduces the latency and network load, leading to real-time automated decision-making. Hence, edge computing is becoming very essential for IoT to work effectively and realize its long-term potential.
Emergence of autonomous cars is offering immense growth opportunities to players of the edge computing market. Autonomous cars generate a large volume of data as these cars are equipped with various advanced technologies, such as multiple cameras, radar/lidar, time-of-flight, accelerometers, telemetry, and gyroscope sensors. During test, Intel Corporation estimated that one car generates terabytes of data in eight hours of operation. This huge data stream must be analyzed in order to perform the calculations and adjustments required to safely navigate a car in real time. Edge computing can efficiently process this large data in real time and can effectively pull out various critical information from raw data, which can further improve the performance of autonomous cars.
Edge Computing Market Competitive Landscape
With the presence of numerous prominent players, the edge computing market is fragmented and highly competitive in nature. Some of the market players have been focusing on mergers and acquisitions, partnerships, product launches, and geographical expansion to expand their market foothold. For instance, in July 2019, International Business Machines Corporation and AT&T Inc. announced a multi-year strategic alliance. Under the agreement, two companies will collaborate on edge computing platforms, which would help enterprise clients to capitalize the power of 5G network speeds and the internet-connected devices and sensors at the edge of the network.
Further, in June 2019, Hewlett Packard Enterprise (HPE) Company partnered with AT&T Inc. to enhance their respective edge computing offerings. The partnership has paired AT&T Multi-Access Edge Computing Services with HPE's Edgeline Converged Edge Systems to offer customers with 5G network deployments.
Some of the key players operating in the global edge computing market include Cisco Systems Inc., HPE Company, International Business Machines Corporation, AT&T Inc., Huawei Technologies Co. Ltd., Dell Technologies Inc., Nokia Corporation, Litmus Automation Inc., Altran Technologies S.A, Amazon Web Services (AWS) Inc., SAP SE, Axellio Inc., Saguna Networks Ltd., and FogHorn Systems Inc.
Edge Computing Market Segmentation
Market Segmentation by Component
. Market Segmentation by Enterprise Size
Market Segmentation by Application
Market Segmentation by Vertical
Market Segmentation by Region
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