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Edge Computing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Edge Computing Market was valued at USD 5242. 90 million in 2021, and it is expected to register a CAGR of 44. 90% over the forecast period. Key Highlights The increasing adoption of IoT is augmented by 5G operations, primarily driving the growth of the market studied.
New York, Sept. 05, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Edge Computing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06062848/?utm_source=GNW
Currently, a significant share of industrial IoT service providers and aggregators are offering 5G capable network offerings that are expected to adopt edge computing over the coming years for handling the sheer amount of data.
As enterprises are embracing these new technologies, the need to analyze important data in near real-time became more critical to take full benefit of the adopted technologies. The need became vital across many industries, including manufacturing, healthcare, telecommunications, and finance. Moreover, the explosion of data (according to SharesPost, more than 150 zettabytes (150 trillion gigabytes) of data is estimated to be generated by 2025) has been pushing the need further and making factors like network latency very critical.
Furthermore, the development of processing-intensive applications involving artificial intelligence, IoT, and machine learning (ML), which work on larger data sets and perform massive algorithmic parallelism on models (to improve business operations), has promoted the demand for localized computing, data storage, and network resources. Therefore, along with IoT and IIoT, the adoption of AI and ML is also driving the growth of edge computing.
Edge computing is being led by initiatives like OpenFog Consortium, which is an organization headed by vendors in the market studied, including Cisco, Intel, Microsoft, and Dell EMC, as well as academic institutions like Princeton University and Purdue University. The consortium aims at developing reference architectures for fog and edge computing deployments.
Edge computing is expected to play a vital role in the widespread adoption and working of technologies, such as AR/VR, autonomous vehicles, IoT, next-gen CDNs, next-gen cloud, and streaming games. Edge computing is vital in operating an autonomous vehicle network in the future, and this is influencing vendors to form a partnership to cater to the growing needs of these industries.
The COVID-19 pandemic positively impacted global edge computing. According to the IBM Institute for Business Value, a study of 1,500 executives globally found that a growing number of leaders already see the value of edge computing, with 91% of respondents expecting their organization to implement edge computing within five years.
Key Market Trends
Industrial Sector to Account for the Largest Market Share
One of the most prominent edge computing use cases is in the industrial manufacturing sector, where new technologies could potentially lead to massive productivity gains. Edge computing facilitates localized processing, which helps reduce latency issues and enables smart and intelligent manufacturing through predictive analytics. With the increase in IoT deployment, manufacturing companies have been rapidly adopting edge computing to enhance interoperability among IoT devices, reduce unforeseen downtime issues, and improve production efficiency.
The edge computing framework significantly reduces the complexity of interconnected systems, making it easier to collect and analyze data in real-time. It can also allow devices to gather critical information in remote sites where network connectivity is inconsistent or not cost-effective. Edge devices can be IoT-enabled machines, gateways, sensors, or single-board computers.
Data can be gathered and analyzed locally, with only critical information being transmitted back to the central network when connections are possible. The combination of edge computing and industrial IoT devices would make it easier to streamline industrial processes, optimize supply chains, and create the “smart” factory.
Edge computing forms the framework of the machine learning (ML) network that makes automatic manufacturing driven by robotics possible. According to IFR, the operational stock of industrial robots was around 3 million units in 2020. Considering an increase in the use of artificial intelligence, automation software will provide a way for companies to produce more products without increasing production costs or wages.
Robots gathering and transmitting data through an edge network using IoT devices can identify irregularities and eliminate inefficiencies much more quickly than they could through the cloud-based architecture. The distributed nature of such a system also makes it much more robust, ensuring better levels of uptime productivity.
Industrial manufacturing is witnessing a revolution, owing to the potential of edge computing. Combined with a new generation of smart IoT edge devices, edge computing applications would completely transform manufacturing in the coming decades to drive better efficiency and productivity while also controlling costs. This is expected to impact the market’s growth positively over the forecast period.
Asia Pacific is Expected to have Significant Market Share
China’s launch of 5G is fueling growth in emerging high-tech industries, including edge computing, through which data can be quickly processed closer to devices in real-time rather than relying on a cloud processor thousands of kilometers away.
According to a survey by GSMA, approximately 90% of mobile ecosystem players in China recognized edge computing as a significant revenue opportunity in the 5G era. The country’s edge computing deployments are majorly designed to serve the requirements of smart ports, smart campuses, and smart factories. As the 5G networks scale over the next few years, edge computing use cases, such as sporting events, gaming, and autonomous driving, will be made possible.
IIJ deployed MDC on the premises of Shiroi Data Center Campus (Shiroi DCC). The MDC, from Australian manufacturer Zella DC, was the first to be installed in Japan. It is equipped with the functions a data center needs, including a cooling unit, an uninterruptible power supply (UPS), environmental sensors, security cameras, and physical security, including a remote-controlled electronic lock.
Moreover, in October 2021, Blaize, an AI computing company involved in automotive and edge computing, and NEXTY Electronics Corp, a core member of the Toyota Tsusho Group, announced that it had made NEXTY a Blaize distribution partner serving automotive and industrial markets for AI edge computing in Japan. Focusing on innovation and anticipating customer needs across multiple industries will drive the adoption of edge AI applications enabled by Blaize’s low-power, low-latency, and compute-efficient AI inference accelerator products.
As part of the Digital India initiative, the Government of India planned to give IoT a push in the country. The government has allocated INR 7,000-crore funds to develop 100 smart cities powered by IoT devices. The government intends to control traffic, efficiently use water and power, and collect data using IoT sensors for healthcare and other services.
Competitive Landscape
The competitive rivalry in the Edge Computing Market among the existing players is high and increasing, considering the inflow of new entrants. Currently, the market is dominated by cloud-based IoT vendors, such as Dell, Microsoft, Amazon, and Google. Companies like GE, which have the expertise of delivering edge computing solutions across different industries, including aerospace or manufacturing, also have significant market positions. Acquisitions, partnerships with industry participants, and new product/service rollouts have been the key competitive strategies exhibited by the vendors in the market. Some of the recent developments in the market are:
March 2022 - FogHorn collaborated with IBM to provide a secured and open next-generation hybrid cloud platform with advanced, closed-loop system control capabilities and edge-powered artificial intelligence (AI). By bringing together edge and cloud capabilities, FogHorn and IBM plan to help customers rapidly process, deploy, analyze, store, and train critical data from the edge to the cloud and enhance their business processes.
February 2022 - Microsoft and AT&T collaborated on the development of AT&T Private 5G Edge. The companies aim to develop simple, smart, and flexible Private 5G Networks for schools, businesses, and organizations.
Additional Benefits:
The market estimate (ME) sheet in Excel format
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