PUBLISHER: The Business Research Company | PRODUCT CODE: 1849623
PUBLISHER: The Business Research Company | PRODUCT CODE: 1849623
Edge computing is a decentralized computing model that processes data closer to its source rather than depending on centralized data centers. This approach reduces latency, enhances real-time processing, and minimizes bandwidth consumption by limiting the amount of data transmitted to central servers. The main goal of edge computing is to improve response times, ensure data security, and support applications that require low latency and high processing capabilities.
The key components of edge computing include hardware, software, and services. Hardware refers to the physical devices and equipment that facilitate data processing near the data source. Technologies associated with edge computing include mobile edge computing and fog computing, which are provided by both small and medium-sized enterprises as well as large enterprises. Applications of edge computing span areas such as connected cars, smart grids, critical infrastructure monitoring, traffic management, environmental monitoring, augmented reality, asset tracking, and security and surveillance, serving industries such as finance, retail, healthcare, industrial, energy and utilities, telecommunications, and other sectors.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.
The edge computing market research report is one of a series of new reports from The Business Research Company that provides edge computing market statistics, including edge computing industry global market size, regional shares, competitors with a edge computing market share, detailed edge computing market segments, market trends and opportunities, and any further data you may need to thrive in the edge computing industry. This edge computing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The edge computing market size has grown exponentially in recent years. It will grow from $31.35 billion in 2024 to $45.14 billion in 2025 at a compound annual growth rate (CAGR) of 44.0%. The growth in the historic period can be attributed to growing IoT and connected devices, increasing demand for low-latency processing, increasing data generation and real-time analytics, rising smart cities and smart infrastructure, and growing need for decentralized computing.
The edge computing market size is expected to see exponential growth in the next few years. It will grow to $192.16 billion in 2029 at a compound annual growth rate (CAGR) of 43.6%. The growth in the forecast period can be attributed to rising demand for low-latency data processing, surging smart cities and smart infrastructure projects, increasing use of autonomous vehicles and connected cars, increasing applications in healthcare and remote patient monitoring, and expanding roles in financial services and real-time fraud detection. Major trends in the forecast period include the integration of IoT and edge computing, a shift towards hybrid cloud and edge computing architectures, advancements in energy-efficient edge computing solutions, the adoption of edge computing in healthcare for remote monitoring, and the adoption of networking technology.
The forecast of 43.6% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Higher import duties on modular data centers and high-speed connectivity gear are likely to affect the Edge Computing market by raising infrastructure deployment costs. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The growing adoption of the Internet of Things (IoT) is expected to drive the expansion of the edge computing market. IoT refers to the network of physical devices, vehicles, appliances, sensors, and other objects that are embedded with software, sensors, and connectivity, allowing them to collect, exchange, and interact with data over the Internet. The increasing adoption of IoT is driven by the demand for greater automation and data-driven decision-making. As industries and consumers look to improve operational efficiency and reduce human intervention, IoT facilitates the automation of various tasks by connecting devices and systems. IoT is closely integrated with edge computing, enabling real-time data processing and decision-making closer to the data source rather than relying on distant data centers. For example, according to the GSM Association, a UK-based non-profit industry organization, the number of IoT connections is projected to exceed 23.3 billion by 2025, up from 15.1 billion in 2021. This increasing adoption of IoT is fueling the growth of the edge computing market.
Companies in the edge computing market are focusing on creating innovative products, such as next-generation edge gateway devices, to enhance real-time data processing, improve network efficiency, and enable seamless connectivity. A next-gen edge gateway device is a modern hardware solution that facilitates fast data processing and smooth communication between edge devices and cloud platforms, reducing latency and improving network performance. For instance, in August 2022, Belden, a Germany-based supplier of specialty networking solutions, launched the OpEdge-8D, an industrial-grade edge gateway device designed for DIN rail mounting. Its integration of IT (Information Technology) and OT (Operational Technology) allows organizations to connect operational systems with information systems effectively. This edge gateway device supports the deployment of applications such as containers and virtual machines (VMs) at the network edge, enabling real-time data processing and the generation of actionable insights that help optimize operational efficiency and streamline data management.
In May 2022, Google LLC, a U.S.-based technology company, acquired MobiledgeX for an undisclosed amount. This acquisition aims to enhance Google Cloud Edge capabilities, providing improved edge computing solutions for telecom providers and developers. MobiledgeX, a U.S.-based orchestration company, specializes in edge computing solutions.
Major players in the edge computing market are Microsoft Corporation, Amazon Web Services Inc, Dell Inc, Siemens AG, Lenovo Group Limited, Intel Corporation, International Business Machines Corporation, Cisco Systems Inc, Schneider Electric, Google Cloud, Hewlett Packard Enterprise (HPE), NVIDIA Corporation, Eaton Corporation plc, WINSYSTEMS Inc, Rockwell Automation, Super Micro Computer Inc, Advantech Co Ltd, ADLINK Technology Inc, Stratus Technologies, Scale Computing, Foghorn Consulting, ClearBlade, GE Digital.
North America was the largest region in the edge computing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in edge computing report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the edge computing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The edge computing market consists of revenues earned by entities providing services such as real-time data processing, AI and machine learning at the edge, and IoT device management. The market value includes the value of related goods sold by the service provider or included within the service offering. The edge computing market also includes sales of edge servers and gateways, edge AI chips and processors, and IoT sensors and devices. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Edge Computing Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on edge computing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for edge computing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The edge computing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.