MENA Edge Computing Market: Current Analysis and Forecast (2023-2030)

Edge computing refers to processing data closer to its source, at the network's "edge," instead of relying solely on centralized cloud data centers. This distributed approach allows for faster processing, lower latency, and improved bandwidth utilization, particularly for applications requiring real-time response.

The MENA Edge Computing Market is expected to grow at a strong CAGR of 18.3% during the forecast period. Few of the major factors contributing towards the market growth are: the rising demand for low-latency processing and real-time data analytics, the increasing use of IoT devices and sensors, the need to reduce network bandwidth usage and cloud computing costs, the rollout of 5G networks which enable edge computing use cases, and the growing adoption of edge computing solutions across various industries such as manufacturing, energy, transportation, and retail in the MENA region.

On the basis of Component, the market is segmented into Hardware, Software, and Services. The hardware segment led the market in 2022 with the highest market share. This is attributed to the growing demand for edge servers, sensors, routers, gateways, and other associated infrastructure to enable localized computing and storage capabilities across industries. The rollout of 5G networks is also driving deployment of edge-capable equipment. Further enhancements in hardware capabilities for AI/ML workloads, network virtualization, and integration with legacy infrastructure will continue to drive hardware adoption.

On the basis of the end users, the edge computing market is segmented into Manufacturing, Energy & Utilities, BFSI, Transportation and Logistics, IT & Telecommunication, Healthcare & Life science, and Others. The IT & Telecommunication segment led the market with highest market share in 2022 due to the need for lower latency and real-time data processing in 5G networks, increasing use of IoT devices, and rising demand for enhanced network capabilities from telecom companies in the MENA region. For example, companies like Etisalat in the UAE have adopted edge computing solutions to enable innovative 5G and IoT applications like smart transportation, AR/VR, and autonomous vehicles that require real-time data processing at the edge to function effectively. The rollout of 5G networks across MENA has been a major driver of edge computing adoption by telecom operators to improve performance.

On the basis of application, the market is segmented into Smart Cities, Industrial IoT, Remote Monitoring, Content Delivery, Augmented Reality (AR) & Virtual Reality (VR), and Others. The smart cities segment continued to dominate the MENA edge computing market in 2022. With the growing need for advanced technologies and efficient infrastructure management in urban areas, smart cities have increasingly deployed edge computing solutions. These solutions enable real-time data processing, efficient resource allocation, and improved governance systems.

For a better understanding of the market adoption of the Edge Computing industry, the MENA market is analyzed based on its worldwide presence in countries such as UAE, Saudi Arabia, Egypt, Iran, and the Rest of MENA. Saudi Arabia led the market in 2022 due to favorable government initiatives to achieve digitization goals under Saudi Vision 2030 which is driving investment in advanced technologies like edge computing, as well as the rapid development of smart city infrastructure in major cities like Riyadh and Neom.

Some of the major players operating in the market include ADLINK Technology Inc, Amazon Web Services, Cisco system, Dell Technologies, EdgeConnex Inc., Google, Hewlett Packard Enterprise Development LP (HPE), IBM Corporation, Microsoft Corporation, and SAP.