Edge Computing Market Analysis and Forecast by Region, IT Infrastructure (Hardware, Software and Services), Application, Vertical and Employee Size Band, 2021-2026
Edge Computing Market Overview
The edge computing market size was valued at $9.7 billion in 2021. The market is expected to grow at a CAGR of 16.6% during the forecast period (2022-2026). The increasing adoption of the internet of things (IoT) and 5G technology is expected to bode well for market growth over the forecast period. Furthermore, investments by telecom companies for the modernization of networks are anticipated to drive market growth over the next few years.
Edge Computing Market Overview, 2021-2026 ($ billion)
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Edge computing has applications in many use cases such as smart grids, self-driving cars, AI, machine learning, augmented reality, virtual reality, video conferencing, cloud gaming and others. These use cases are emerging in nature and have immense potential for growth and hence are expected to contribute to the growth of edge computing market.
The COVID-19 disruptions have accelerated the adoption of edge computing across industries. For example, a large proportion of the global population now relies on online and video conferencing technologies for homeworking, remote schooling, shopping, entertainment, and staying in contact with others. This has increased the pressure on network infrastructure and created a demand for edge computing. Also, the need to automate processes in manufacturing, retail, and other industries contributed to market growth.
The edge computing market research report provides an executive-level overview of the current edge computing market worldwide, with detailed forecasts of key indicators up to 2026. Published annually, the report provides a detailed analysis of the near-term opportunities, competitive dynamics, and evolution of demand by product/service type and verticals across the large enterprise and micro, small & medium enterprise (MSME) markets, as well as a review of key market and technology trends.
Edge Computing Market Segmentation by IT Infrastructure
Based on IT infrastructure, the market has been categorized into hardware, software, and services. The hardware segment is expected to be the fastest-growing segment with a CAGR of over 20% over the forecast period. The market is driven by an increase in demand for edge computing products/solutions that offer benefits such as improved performance, low latency, cost savings, real-time data processing, and others.
Edge Computing Market Share by IT Infrastructure, 2021 (%)
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Furthermore, the hardware segment accounted for over 50% market share in 2021 and is expected to dominate the edge computing market over the forecast period. The large market share can be attributed to investments by companies in edge computing hardware as they look to improve data processing, enhance data security, and reduce costs.
The volume of data generated by enterprises is increasing rapidly and there is a need for local processing of data to reduce burden on data centers and cloud. As a result, companies are investing heavily in edge computing hardware.
Edge Computing Market Segmentation by Hardware
The hardware market has been categorized into edge data centers, telco edge solutions, edge gateway hardware, enterprise edge hardware, and device edge. The edge data centers segment is expected to be the fastest-growing segment with a CAGR of over 20% over the forecast period. The increasing need for businesses to transfer data from private servers to the cloud is expected to drive this growth.
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Furthermore, the edge data centers segment accounted for around 70% market share in 2021 and is expected to dominate the hardware market over the forecast period. This can be attributed to the widespread use of edge data centers in many applications such as manufacturing, BFSI and others.
With increasing demand, companies are increasingly investmenting in new edge data centers. For example, in March 2022, DE-CIX partnered with EdgeConnex to expand its edge data center presence in the USA and Spain. Also, in 2021, EdgeConnex aanounced the opening of a new edge data center in Santiago, Chile.
Edge Computing Market Segmentation by Software
The software market has been categorized into edge software (others), edge software/platforms, edge aggregation & orchestration. The edge software (others) segment is expected to be the fastest-growing segment with a CAGR exceeding 15% over the forecast period. Edge software (others) includes offerings such as analytics and API software, operating system, edge security application software and others which are critical to the operation of edge networks and need continuous development.
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The edge software (others) segment is followed by the edge software/platforms segment with a market share of over 30%. This segment is expected to grow at a CAGR of over 10% over the forecast period. This growth is expected to be driven mainly by applications such as industrial IoT, industry 4.0 and other digital initiatives.
Edge Computing Market Segmentation by Service
The services market has been categorized into edge integration services, managed edge services, and IoT edge/edge gateways connectivity. The managed edge services segment is expected to be the fastest-growing segment with a CAGR exceeding 10%. Managed edge services enable edge computing customers to focus on core business operations instead of having to spend huge capital and resources in managing edge infrastructure.
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However, edge integration services was the largest segment accounting for over 40% market share in 2021. The market share of edge integration services is high as edge computing is a relatively new technology and companies looking to adopt this technology would need assistance in terms of advisory, deployment, procurement, and post deployment services.
Edge Computing Market Segmentation by Employee Size Band
The Very Large segment encapsulates those enterprises whose workforce strength is over 5,000 headcounts. The segment captures over 25% of the market and continues to dominate the market over the forecast period. Rapid digital transformation in business operations and high financial capabilities to upgrade network infrastructure to streamline business functions are anticipated to drive the market over the forecast period.
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The Micro segment is expected to grow slightly faster than the remaining segments at a CAGR exceeding 15% over the forecast period. However, considering the current scenario, low seed funding from investors to startups owing to a high degree of uncertainty over the global recession is expected to be one of the bottlenecks for market growth over the forecast period.
Edge Computing Market Segmentation by Vertical
Based on the vertical, the edge computing market has been categorized into BFSI, manufacturing, information technology, communication, government, and others. Among these, BFSI, manufacturing, information technology, communication and government accounted for more than 45% market share in 2021.
The BFSI segment captured over 10% market share in 2021. Large-scale adoption of edge computing to improve data processing and data security in retail banking, financial markets, and the insurance sector are the factors that favor market growth over the forecast period. Furthermore, the need for businesses to reduce costs in terms of network consumption and cloud storage is further expected to accelerate market growth over the forecast period.
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The manufacturing segment is also one of the lucrative markets for edge computing. The application areas include interconnected sensors on factory floors, remote monitoring of equipment, predictive maintenance, and others. The COVID-19 disruptions have further resulted in manufacturing companies adopting edge computing to tackle challenges faced during the pandemic. For example, edge computing enabled companies to work with a reduced workforce as governments imposed strict social distancing rules.
Edge Computing Market Segmentation by Application
Based on application, the edge computing market has been categorized into smart cities, AR/VR, content delivery networks, IIoT, remote monitoring, and others. The Industrial Internet of Things (IIoT) segment captured over 25% market share in 2021. The large market share is due to the large-scale adoption of edge computing to improve performance and latency, and reduce costs in the internet of things (IoT) applications.
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The AR/VR segment is expected to be the fastest-growing segment with a CAGR of over 20% in the forecast period. This growth can be attributed to increasing investments in the development of augmented reality and virtual reality applications. Large companies such as Meta and Microsoft are actively working within the Metaverse space which is a virtual world that can be accessed using AR and VR technologies.
Edge Computing Market - Competitive Landscape
The edge computing landscape is a moderately fragmented market with globally recognized players such as Microsoft Corporation, IBM Corporation, Hewlett Packard Enterprise Co, Dell Technologies Inc, and Cisco Systems Inc, among others. Strategies and business models are still in the early stages of development and are likely to undergo significant transformation as the market for edge computing evolves and matures. The market witnessed an increase in deals and partnerships over the last two years. For instance, in February 2022, Akamai Technologies announced plans to acquire Linode, an infrastructure-as-a-service (IaaS) provider. In February 2022, IBM partnered with AT&T to develop solutions for enterprise clients using 5G wireless networking and edge computing.
Leading Players in the Edge Computing Market
- Microsoft Corporation
- IBM Corporation
- Hewlett Packard Enterprise Co
- Dell Technologies Inc
- Cisco Systems Inc
- Amazon
- Intel Corporation
- Huawei Technologies Co. Ltd
- Telefonaktiebolaget Lm Ericsson
- EdgeConnex
Other Edge Computing companies include
Nvidia Corp, Alibaba Group Holding Ltd, Oracle Corp, Verizon Communications Inc, AT&T Inc, Vmware Inc, Hitachi Ltd, Capgemini, Telstra Corp Ltd, Nokia Corp, Fujitsu Ltd, and others.
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Edge Computing Market Research Overview
| Market Size 2021 | $9.7 billion |
| CAGR (2022-2026) | 16.6% |
| Forecast Period | 2022-2026 |
| IT Infrastructure Segment | Hardware, Software, and Services |
| Hardware Segment | Edge Data Centers, Telco Edge Solutions, Edge Gateway Hardware, Enterprise Edge Hardware, Device Edge |
| Software Segment | Edge Software (Others), Edge Software/Platforms, Edge Aggregation & Orchestration |
| Services Segment | Edge Integration Services, Managed Edge Services, IoT Edge/Edge Gateways Connectivity |
| Vertical Segments | BFSI, Manufacturing, Information Technology, Communication, Government, and Others. |
| Application Segments | Smart Cities, AR/VR, Content Delivery Networks, IIoT, Remote Monitoring, Others |
| Employee Size Band Segments | Micro (Less than 50), Small (51-250), Medium (251-1000), Large (1001-4999), Very Large (5000+) |
| Leading Companies | Microsoft Corporation, IBM Corporation, Hewlett Packard Enterprise Co, Dell Technologies Inc, Cisco Systems Inc, Amazon, Intel Corporation, Huawei Technologies Co. Ltd, Telefonaktiebolaget Lm Ericsson, EdgeConnex |
Edge Computing Market Scope
GlobalData Plc has segmented the edge computing market report by IT infrastructure, hardware, software, services, vertical, application, enterprise size band, and region:
Edge Computing Market – Revenue Opportunity Forecast, by IT Infrastructure segments 2019-2026 (US$ million)
- Hardware
- Software
- Services
Edge Computing Market – Revenue Opportunity Forecast, by Hardware segments 2019-2026 (US$ million)
- Edge Data Centers
- Telco Edge Solutions
- Edge Gateway Hardware
- Enterprise Edge Hardware
- Device Edge
Edge Computing Market – Revenue Opportunity Forecast, by Software segments 2019-2026 (US$ million)
- Edge Software (Others)
- Edge Software/Platforms
- Edge Aggregation & Orchestration
Edge Computing Market – Revenue Opportunity Forecast, by Services segments 2019-2026 (US$ million)
- Edge Integration Services
- Managed Edge Services
- IoT Edge/Edge Gateways Connectivity
Edge Computing Market – Revenue Opportunity Forecast by Vertical Industry Segments, 2019-2026 (US$ million)
- BFSI
- Manufacturing
- Information Technology
- Communication
- Government
- Others
Edge Computing Market – Revenue Opportunity Forecast by Application Segments, 2019-2026 (US$ million)
- Smart cities
- AR/VR
- Content Delivery Networks
- IIoT
- Remote Monitoring
- Others
Edge Computing Market – Revenue Opportunity Forecast by employee size band, 2019-2026
- Micro (Less than 50)
- Small (51-250)
- Medium (251-1000)
- Large (1001-4999)
- Very Large (5000+)
Edge Computing Market – Revenue Opportunity Forecast by Regions, 2019-2026 (US$ million)
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia Pacific
- North America
- US
- Canada
- South & Central America
- Brazil
- Mexico
- Argentina
- Chile
- Colombia
- Rest of South & Central America
- Western Europe
- Germany
- United Kingdom
- France
- Italy
- Netherlands
- Rest of Western Europe
- Central & Eastern Europe
- Russia
- Turkey
- Rest of Central & Eastern Europe
- Middle East & Africa
- United Arab Emirates
- South Africa
- Saudi Arabia
- Kuwait
- Qatar
- Rest of Middle East & Africa
The market intelligence report provides an in-depth analysis of the following –
- Edge computing market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the hardware, software, and services.
- Edge computing market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the key vertical industry segments.
- Edge computing market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the key application segments.
- Edge computing market outlook: analysis as well as historical figures and forecasts of revenue opportunities by employee size band.
- Company snapshots: snapshots of leading companies in the edge computing market.
- Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.
Reasons to Buy
- This market intelligence report offers a thorough, forward-looking analysis of the edge computing market and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
- Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in global edge computing markets.
- The report also highlights key IT infrastructure segments (Hardware: Edge Data Centers, Telco Edge Solutions, Edge Gateway Hardware, Enterprise Edge Hardware, Device Edge; Software: Edge Software (Others), Edge Software/Platforms, Edge Aggregation & Orchestration; Services: Edge Integration Services, Managed Edge Services, IoT Edge/Edge Gateways Connectivity), vertical industries (BFSI, Manufacturing, Information Technology, Communication, Government, Others), application (Smart cities, AR/VR, Content Delivery Networks, IIoT, Remote Monitoring, Others) and employee size band (Micro, small, medium, large, and very large)
- With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
- The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in edge computing markets.
- The broad perspective of the report coupled with comprehensive, actionable detail will help edge computing hardware & software vendors, service providers, and other players succeed in the growing edge computing market globally.
Key Players
Table of Contents
List of Tables
List of Figures
Frequently Asked Questions
The edge computing market size was valued at $9.7 billion in 2021.
The edge computing market is expected to grow at a CAGR of 16.6% during the forecast period 2022-2026.
A significant increase in the adoption of the internet of things (IoT), investments in network modernization, and the introduction of 5G technology are stimulating the edge computing market growth.
IT Infrastructure Segment: Hardware, Software, and Services
Hardware Segment: Edge Data Centers, Telco Edge Solutions, Edge Gateway Hardware, Enterprise Edge Hardware, Device Edge
Software Segment: Edge Software (Others), Edge Software/Platforms, Edge Aggregation & Orchestration
Services Segment: Edge Integration Services, Managed Edge Services, IoT Edge/Edge Gateways Connectivity
Vertical Segments: BFSI, Manufacturing, Information Technology, Communication, Government, and Others.
Application Segment: Smart cities, AR/VR, Content Delivery Networks, IIoT, Remote Monitoring, Others
Employee Size Band Segment: Micro (Less than 50), Small (51-250), Medium (251-1000), Large (1001-4999), Very Large (5000+)
The leading companies in the edge computing market are Microsoft Corporation, IBM Corporation, Hewlett Packard Enterprise Co, Dell Technologies Inc, Cisco Systems Inc, Amazon, Intel Corporation, Huawei Technologies Co. Ltd, Telefonaktiebolaget Lm Ericsson, and EdgeConnex.
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