Global Edge Computing Market Size By Component, By Deployment Mode, By Application, By End-User Industry, By Geographic Scope And Forecast

Edge Computing Market Size And Forecast

Edge Computing Market size was valued at USD 6.24 Billion in 2024 and is projected to reach USD 34.81 Billion by 2032, growing at a CAGR of 23.97% from 2026 to 2032.

• Edge computing is a distributed computing technology that processes data closer to the source, reducing latency and bandwidth consumption by eliminating the need to transport data to centralized data centers. This approach is especially useful for applications that require real-time processing, such as Internet of Things (IoT) devices, driverless vehicles, and augmented reality.
• Furthermore, edge computing improves responsiveness and operational efficiency by processing computations at or near the data source-for example, sensors in a factory or cameras in a security system. Smart cities require real-time traffic control, and healthcare relies on fast data analysis to improve patient care outcomes.

Edge Computing Market Dynamics

The key market dynamics that are shaping the Edge Computing Market include:

Key Market Drivers

• Proliferation of Internet of Things (IoT) devices: The rapid proliferation of IoT devices is fueling the demand for edge computing, which processes data closer to its source. According to the International Data Corporation (IDC), the number of IoT devices worldwide is expected to reach 41.6 billion by 2025, creating 79.4 zettabytes of data. This vast amount of data necessitates real-time processing capabilities, which edge computing can deliver, accelerating market growth.
• Growing Demand for Low-latency Applications: Edge computing is gaining popularity as more applications require real-time data processing and low latency. According to Cisco's Annual Internet Report (2018-2023), the number of devices linked to IP networks will exceed three times the world population by 2023. The report also estimates that by 2023, 50% of all networked devices and communications will be machine-to-machine, with many of them requiring the low-latency capabilities provided by edge computing.
• Increasing Adoption of 5G Technology: The deployment of 5G networks is accelerating the development of edge computing. According to the Global System for Mobile Communications Association (GSMA), 5G connections are estimated to total 1.8 billion by 2025, accounting for 21% of all mobile connections. This high-speed, low-latency network architecture enhances edge computing capabilities, allowing for faster data processing and increased performance across a wide range of applications.

Key Challenges:

• Security Concerns: The distributed nature of edge settings expands the attack surface, making them more vulnerable to cyber assaults. Protecting sensitive data at the edge necessitates the implementation of strong security mechanisms such as encryption and intrusion detection. Furthermore, companies must emphasize ongoing monitoring and quick upgrades to address emerging risks. Failure to effectively manage security risks leads to major data breaches and a loss of consumer trust.
• Limited Computational Resources: Limited computational resources pose a big obstacle to the Edge Computing Market. Edge devices have limited processing power, memory, and storage, preventing the deployment of complicated applications and services. To address this constraint, lightweight methods and effective data filtering must be used to optimize performance. Without enough computational resources, firms struggle to fully realize the potential of edge computing, resulting in inefficiencies and increasing operating expenses.

Key Trends:

• Increased Adoption of IoT & 5G Technologies: The integration of IoT and 5G is propelling the Edge Computing Market. As more devices become interconnected, the demand for low-latency processing increases, allowing for real-time data analysis and decision-making. This trend enables the deployment of edge computing solutions capable of efficiently handling massive volumes of data generated by IoT devices, hence improving operational efficiency in industries such as manufacturing, healthcare, and transportation.
• Growth in Hardware Investments: The hardware component of the Edge Computing Market is expected to expand swiftly as businesses invest in optimized devices capable of enabling distributed computing. This comprises edge servers, gateways, and specialized chips for real-time data processing. As companies grasp the value of efficient hardware in lowering latency and enhancing performance, expenditures in advanced edge infrastructure are likely to skyrocket, propelling overall market growth.

Global Edge Computing Market Regional Analysis

Here is a more detailed regional analysis of the Edge Computing Market:

North America:

• According to Verified Market Research, North America is estimated to dominate the market during the forecast period. North America is at the forefront of 5G technology deployment, which is inextricably linked to edge computing expansion. According to the CTIA (Cellular Telecommunications Industry Association), by the end of 2020, there were over 50 million 5G connections in the United States alone. The CTIA also claims that US mobile carriers are investing $275 billion in 5G networks, building a strong infrastructure that supports edge computing applications and boosting regional market development.
• Furthermore, North America is home to a large number of data centers and major cloud service providers, making edge computing more widely adopted. According to the US Department of Energy, data centers in the United States consumed around 73 billion kilowatt-hours of electricity in 2020, accounting for almost 2% of overall electricity consumption. This substantial data center infrastructure lays a solid foundation for edge computing adoption, as these facilities can be used to bring computation resources closer to end users.

Asia Pacific:

• The Asia Pacific region is estimated to exhibit the highest growth within the market during the forecast period. The Asia Pacific region is experiencing a spike in IoT device adoption, which is fueling the demand for edge computing solutions. According to the GSM Association (GSMA), the Asia-Pacific region is predicted to have 11 billion IoT connections by 2025, accounting for around 40% of worldwide IoT connections. This accelerated growth in connected devices generates large amounts of data that require real-time processing, driving up demand for edge computing solutions in the region.
• Furthermore, the deployment of 5G networks across the Asia Pacific is accelerating edge computing usage. According to the GSMA, by 2025, Asia Pacific will have 1.2 billion 5G connections, accounting for 65% of the global total. Countries such as South Korea are leading the way, with the Ministry of Science and ICT estimating that as of December 2021, the country has 20.92 million 5G customers, accounting for almost 30% of total mobile subscriptions. This enhanced network architecture lays the groundwork for edge computing applications, accelerating market growth.

Global Edge Computing Market: Segmentation Analysis

The Edge Computing Market is segmented on the basis of Component, Deployment Mode, Application, and End-use Industry.

Edge Computing Market, By Component

• Hardware
• Solutions
• Services
• Platforms

Based on Component, the market is segmented into Hardware, Solutions, Services, and Platforms. The hardware segment is estimated to dominate the Edge Computing Market owing to the growing demand for devices that enable dispersed computing closer to data sources. This segment includes several critical components, such as edge servers, routers, and specialized processors, all of which are required for real-time data processing and analytics. As industries continue to use edge computing solutions to improve operational efficiency and reduce latency, the hardware segment is likely to experience further development and innovation, cementing its market leadership.

Edge Computing Market, By Deployment Mode

• Cloud
• On-Premises

Based on Deployment Mode, the Edge Computing Market is segmented into Cloud and On-Premises. The cloud segment is estimated to dominate the market over the forecast period due to its scalability and flexibility, which enable enterprises to use massive computational capabilities without requiring expensive on-premises infrastructure. Cloud solutions simplify the management and integration of edge applications, allowing for faster deployment and upgrades. As organizations seek to improve performance and minimize latency, the cloud's ability to serve a wide range of edge computing applications makes it a popular choice among many enterprises.

Edge Computing Market, By Application

• Smart Cities
• Analytics
• Location Services
• Data Caching
• Augmented Reality
• Optimized Local Content
• Environmental Monitoring
• Others

Based on the Application, the market is divided into Smart Cities, Analytics, Location Services, Data Caching, Augmented Reality, Optimized Local Content, Environmental Monitoring, and Others. The smart cities segment is estimated to dominate the global market. This dominance is fueled by the growing demand for real-time data processing and analytics to improve urban infrastructure and services. Smart city efforts use edge computing to improve traffic management, energy consumption, and public safety by collecting and analyzing data from various IoT devices efficiently. As cities strive to improve sustainability and livability, investments in edge computing technology for smart city applications are likely to skyrocket, cementing their market dominance.

Edge Computing Market, By End-User Industry

• Manufacturing
• Transportation
• Healthcare
• Media and Entertainment
• IT and Telecom
• Government and Public
• Energy and Utilities
• Retail
• Others

Based on the End-User Industry, the market is segmented into Manufacturing, Transportation, Healthcare, Media & Entertainment, IT & Telecom, Government & Public, Energy & Utilities, Retail, and Others. The manufacturing segment is estimated to lead this segment in the forecast period. This dominance is being driven by rising demand for real-time monitoring and predictive maintenance, which improve operational efficiency and productivity. Edge computing allows manufacturers to analyze data locally, which reduces latency and improves decision-making skills. As industries implement Industry 4.0 technologies, the integration of edge solutions in manufacturing is likely to expand, cementing its market leadership.

Key Players

• The "Edge Computing Market" study report will provide valuable insight with an emphasis on the global market. The major players in the market are Amazon Web Services, Inc., Cisco Systems, Inc., Dell Technologies, Inc., Huawei Technologies Co. Ltd., IBM Corporation, Microsoft Corporation, Nokia Corporation, Google LLC, Intel Corporation, and Hewlett Packard Enterprise (HPE) Company.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

• Edge Computing Market Recent Developments
• In January 2024, IBM and American Tower established a collaboration to accelerate the use of edge computing. The alliance aims to speed the adoption of a hybrid cloud computing platform at the edge, bringing business applications closer to key data sources.
• In December 2023, McDonald's Corporation announced a partnership with Google to use the Google Cloud platform in thousands of locations worldwide. McDonald's will employ Google Cloud's edge computing to power new platforms, including data storage and high-performance computing in individual restaurants.