Edge Computing Market Growth & Trends
The global edge computing market size is anticipated to reach USD 61.14 billion by 2028, exhibiting a CAGR of 38.4% over the forecast period, according to a new report by Grand View Research, Inc. The amalgamation of Artificial Intelligence (AI) into the edge ecosystem is expected to drive market growth. An edge AI system is expected to help enterprises make real-time decisions in a matter of milliseconds. The need to eliminate the privacy issues associated with transmitting large amounts of data and issues related to latency and bandwidth, which reduce the data transmission capacity of an organization, are expected to drive the market growth over the next few years.
Precision monitoring and machinery control are some use cases that would be well suited to be using AI in the edge. The latency requirement at a fast operating production line must be kept minimal, which can be achieved by deploying the edge. Processing data closer to the manufacturing plant can prove to be highly valuable, which can be achieved by deploying AI. AI-based edge devices such as chips can be used in multiple endpoint devices such as smartphones, cameras, sensors, and other IoT devices.
Furthermore, the telecom edge is expected to grow exponentially over the forecast period. The telecom edge shall perform computing close to the mini-data centers, which are owned and operated by the telco on a telco-owned property. Various telecom providers such as Telefonica and Telstra are engaging in pilot projects and prototypes of an open-access network incorporated with edge computing. Edge will spearhead the telecom sector once the 5G is entirely rolled out. The telecom sector is in an exclusive position to benefit from edge computing, but telecom companies risk being relegated to irrelevant edge providers if they do not move up the value chain.
Currently, edge computing use cases have exceeded initial infrastructure deployments and are expected to provide an impetus to emerging edge computing use cases and infrastructure investments. Over the forecast period, edge computing is expected to become pervasive and transition toward platform-centric solutions. With this transition, edge platforms could reduce the infrastructure complexity using sophisticated management and orchestration software and develop user-friendly environments for developers to deploy innovative edge applications and services with relative ease.
Edge Computing Market Report Highlights
- The edge server is expected to emerge as the fastest-growing hardware segment over the forecast period. The promising growth prospects of the segment can be attributed to the rising demand for edge servers across various industry verticals
- In terms of application, the AR/VR segment is expected to expand at a significant CAGR owing to the growing cellular network, which has created growth opportunities for edge computing. For instance, Ericsson has optimized its 5G core and radio infrastructure to offer a high-quality VR experience
- In terms of industry vertical, the datacenters segment is envisioned to witness the highest CAGR over the forecast period. This can be attributed to the fact that edge datacenters overcome intermittent connections and store and compute data close to the end user
- The Asia-Pacific region is expected to register the highest CAGR over the forecast period owing to the rising number of IoT integrated devices and the advent of 5G in the region. The rollout of 5G networks is expected to contribute towards the development of telco edge infrastructure for supporting 5G-enabled applications
- Some of the key market players are Cisco Systems, Inc.; Moxa Inc.; Sierra Wireless; and Belden Inc.