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The global edge computing market size was accounted for USD 7.43 billion in 2021 and register a CAGR of 38.9% from 2022 to 2030. The demand for advanced connectivity technology, including 5G and 6G is set to drive investment in edge computing. The adaption of 5G technology is anticipated to take shape in the electronics sector in the near future, thus, solving issues such as system lags and poor network connectivity.
The demand for AI-based devices is one of the prominent factors driving the edge computing market. A variety of endpoint devices, such as cameras, smartphones, sensors, smartwatches, and other IoT devices are employing AI. Furthermore, the market for the Internet of Things (IoT) has grown significantly over the past few years and is expected to continue expanding in the forthcoming years.
As the number of internet-connected devices keeps growing, they will unceasingly produce an enormous amount of data. This creates a need to handle and analyze this data more quickly and efficiently. Although cloud computing is essential to the growth of the Internet of Things, it does not always meet the need for faster data processing. Moreover, maintaining and retrieving large amounts of data via the cloud is expensive. This is driving the demand for the edge computing market.
In today’s business scenario, minimizing service access latency has become the top priority. Low latency refers to faster data transmission. Several applications such as remote monitoring of gas and oil fields and content delivery demand efficient computing in real-time. Edge computing facilitates improved application performance and outcome and reduces operational costs, thus, eliminating unnecessary transmission and centralized storage costs.
In terms of component type, the hardware segment captured the maximum revenue share in 2021. The segment is booming in popularity and is attributed to the increasing number of IoT and IIoT devices. The hardware segment is further categorized into sensors/routers, edge nodes/gateways (servers), and others, wherein the edge nodes/gateways (servers) sub-segment held the largest market share.
Asia Pacific is anticipated to experience considerable growth from 2022 to 2030 as a result of the COVID-19 pandemic. The crisis mandated a greater emphasis on improving communications technology in the region. Robust computer architecture is required due to the region's rapid growth of the connected device ecosystem, which generates a large amount of data. The Global Mobile Edge Cloud (GMEC) concept, which is primarily targeted at the US market, was unveiled by Google Inc. The introduction of Azure Edge Zones by Microsoft Corporation is anticipated to spur growth in the area during the following years.
Research Support Specialist, USA