Global Edge Computing Devices Market Size By Type (Edge nodes (server), Routers, and Others), Application (Smart Cities, IoT, Autonomous Vehicles, Remote Monitoring, AR & VR, Analytics, and Others), Organization Size (Small & Medium Enterprises and Large Enterprises), By Vertical (BFSI, IT & Telecommunication, Energy & Utilities, Government, Healthcare, Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030
Market Perspective
The global Edge Computing Devices Market size was worth around USD 8.80 billion in 2022 and is anticipated to grow to nearly USD 43.03 billion by 2030, recording a CAGR of about 22.35% between 2023 and 2030.
The market for edge computing devices is witnessing substantial growth, driven by a paradigm shift toward decentralized data processing. These devices, which comprise specialized hardware components and systems, are engineered to execute data processing tasks and computations near the data source. This shift from the conventional practice of transmitting data to centralized data centers or the cloud can be attributed to several factors.
One pivotal factor driving industry development is the growing adoption of IoT (Internet of Things) devices, which has propelled the demand for localized data processing capabilities. Moreover, the imperative for ultra-low latency has become paramount, particularly in applications such as autonomous vehicles and augmented reality, thereby fueling the uptake of edge computing technology. Additionally, the ongoing deployment of 5G networks has played a significant role in fueling market growth by enhancing the appeal of edge computing by facilitating high-speed, low-latency data transmission.
A notable trend in the market is the increasing convergence of artificial intelligence and machine learning near to the data generation sources. This integration is reshaping the industry landscape by empowering edge computing devices to autonomously analyze and derive insights from data. Another noteworthy development is the rise of edge-native applications, signifying a shift toward software solutions designed specifically for edge-computing environments. Furthermore, the emergence of edge data centers underscores the evolution of infrastructure to support decentralized processing.
Key Insights
- Based on type, the edge nodes (server) segment held the dominating position in 2022
- Based on application, the IoT segment acquired the largest market share in 2022
- Based on organization size, the large enterprises segment is expected to grow with the highest CAGR during the forecasted period
- On the basis of region, North America accounted for the largest market share in 2022
Proliferation of IoT Devices Drives Edge Computing Devices Market Development
The exponential growth in the number of IoT devices is a key factor propelling the growth of the edge computing devices market. This surge in IoT sensors and devices, numbering in the billions, has given rise to a critical demand for real-time data processing and quick response times with minimal latency. The importance of this requirement cannot be overemphasized, as organizations confront the immense quantities of data produced by these devices. As the adoption of IoT technologies continues its upward trajectory, the concomitant rising demand for edge computing devices is poised to witness a substantial surge. This complex interaction between IoT proliferation and the need for efficient data processing positions the integration of edge computing as an insignificant factor contributing to market development. This interdependent relationship is expected to foster further advancements, underscoring the integral role that edge computing devices play in reshaping the landscape of contemporary data processing and utilization.
Data Security and Privacy Concerns Hampers Edge Computing Devices Market Growth
A notable challenge in the global market revolves around the increasing concerns regarding data security and privacy. The processing of sensitive data at the edge introduces a complex set of challenges, particularly in safeguarding distributed systems and fortifying data against potential breaches. The decentralized architecture inherent in edge computing introduces complexities in implementing robust security measures, posing a distinct challenge when compared to the centralized fortifications offered by traditional data centers.
This increased vulnerability underscores the need for organizations, especially those handling highly sensitive information, to approach the adoption of edge computing solutions with caution. The imperative lies in overcoming these security reservations by deploying standardized protocols, advanced encryption techniques, and authentication mechanisms. These measures are pivotal not only in mitigating the identified restraint but also in unlocking the full potential of the edge computing devices market.
Recent Development
December 2023 (Expansion): Blaize, a leading global provider of AI solutions for edge computing, signed an agreement with BurTech Acquisition Corp. Blaize, known for its purpose-built, AI-enabled edge computing solutions, entered into a definitive agreement to merge with BurTech, a publicly traded special purpose acquisition company.
Segmentation Analysis
Based on type, the market is divided into edge nodes (servers), routers, and others. The eEdge nodes(servers) segment accounted for the largest share in 2022 and is estimated to continue its dominance over the forecast period. An increasing demand for low-latency processing, which edge nodes provide by bringing computing power closer to the data source is among the primary factors driving the segment’s growth. Additionally, the growing volume of data generated at the edge of the network is effectively handled by edge nodes, reducing the need for data transmission to centralized cloud servers. Furthermore, edge nodes offer enhanced security and privacy by processing sensitive data locally, reducing the risk of breaches. Moreover, edge nodes contribute to cost efficiency by minimizing data transmission and storage requirements, resulting in lower bandwidth and storage costs. The growing emphasis on advanced, adaptable solutions reflects the industry's response to evolving demands, establishing the edge nodes (servers) segment as a significant component in the dynamic global market.
Based on organization size, the market is bifurcated into small & medium enterprises and large enterprises. The large enterprises segment accounted for the largest share in 2022 owing to the increasing amount of data generated by large enterprises, which is further propelled by their widespread geographical customer base. The analysis of this vast amount of data, driven by the growing number of large organizations across various industry verticals, is playing a significant role in driving the growth of edge computing devices. As large enterprises continue to expand and generate substantial data, the demand for edge computing devices is expected to rise accordingly.
Based on application, the market is categorized into smart cities, IoT, autonomous vehicles, remote monitoring, AR and VR, analytics and others. The IoT segment dominated the market in 2022 due to the massive amount of data generated in high sensor-intensive environments where data is generated at the edge. The IoT is driving the development of real-time applications that leverage faster networking technologies, video processing and analytics, artificial intelligence, and smart robotics. For instance, in May 2020, IBM Corporation and Red Hat launched the edge application manager, which runs on Red Hat OpenShift, enabling enterprises to utilize data produced by connected devices through the deployment of IoT, AI, and analytics. This empowers the management of up to 10,000 edge nodes, facilitating the efficient utilization of data for various purposes. As the IoT continues to expand and drive the demand for real-time applications, the market for edge computing devices is expected to grow correspondingly.
North America to Lead the Edge Computing Revolution Due to the Presence of Robust Industry Scenarios
North America emerged as the dominating region in the edge computing devices market in 2022. North America has been at the forefront of IoT adoption, with industries such as manufacturing, healthcare, and logistics deploying IoT devices extensively. Additionally, the region boasts advanced telecommunications infrastructure, including the rollout of 5G networks, which further fuels the demand for edge computing devices to support low-latency applications. The presence of major tech companies and a robust startup ecosystem in North America contributes to innovation in edge computing technologies. With ongoing investments and collaborations, North America is poised to maintain its dominance in the global edge computing devices market over the forecast timeline.
Asia Pacific to Experience Rapid Growth, Driven by the Presence of Emerging Markets
Asia Pacific is projected to experience the highest CAGR over the forecast period on account of its dynamic tech landscape, rapidly emerging markets, and expanding IoT deployments. The region's growth is driven by factors such as the increasing adoption of IoT in manufacturing, agriculture, and smart cities. Moreover, Asia Pacific boasts some of the world's largest populations, creating substantial demand for edge computing solutions to support various applications, from healthcare to e-commerce. Additionally, the development and deployment of 5G networks across the region are facilitating ultra-low latency use cases, thereby propelling demand for edge computing devices. With its diverse and burgeoning markets, Asia Pacific is set to considerable growth in the global edge computing devices market in the forthcoming years.
Competitive Landscape
The global edge computing devices market is fragmented with key players such as Atos SE, IBM Corporation, Microsoft, Huawei Technologies Co., Ltd, Juniper Networks, Inc., Cisco, Kontron, Dell Inc., Intel Corporation, Telefonaktiebolaget LM Ericsson, and Amazon Web Services, Inc. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.
The Global Edge Computing Devices Market is segmented as follows:
By Type
- Edge nodes (server)
- Routers
- Others
By Application
- Smart Cities
- IoT
- Autonomous Vehicles
- Remote Monitoring
- AR and VR
- Analytics
- Others
By Organization Size
- Small & Medium Enterprises
- Large Enterprises
By Vertical
- BFSI
- IT & Telecommunication
- Energy & Utilities
- Government
- Healthcare
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- GCC
- South Africa
- North America
- Rest of Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Global Edge Computing Devices Market Size
- March-2024
- 140
- Global
- information-technology-communication-iot
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