Global edge computing market projected to hit $15.7 billion US by 2025
August 26, 2020
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August 26, 2020 – The global edge computing market is projected to grow from $3.6 billion US in 2020 to $15.7 billion US by 2025, at a compound annual growth rate (CAGR) of 34.1% during the forecast period.
Edge computing is a distributed, open IT architecture that features decentralized processing power, enabling mobile computing and internet of things (IoT) technologies. In edge computing, data is processed by the device itself or by a local computer or server, rather than being transmitted to a data centre. — HP Enterprise
According to a report by Reportlinker, the adoption of IoT (internet of things) across industries is driving this growth. Specifically, “rising demand for low-latency processing and real-time, automated decision-making solutions, and the need for surmounting exponentially increasing data volumes and network traffic”.
However, a reluctance among small- and medium-sized enterprises (SMEs) to adopt edge computing solutions owing to initial capital expenditure (CAPEX) for infrastructure is projected to limit market growth.
The implementation of IoT across the industrial landscape has increased rapidly; driving companies to implement solutions that could enhance IoT deployments through data processing closer to the source.
By infusing edge computing in industrial internet of things (IIoT) processes, companies could achieve an improved network communication and cooperative coordination with the cloud connected to the system. Further, it helps organizations reduce workloads by facilitating lost-cost/-power, and high-bandwidth networks.
With the rise in IoT deployment, manufacturing companies have been adopting edge computing to improve interoperability among IoT devices, reduce unforeseen downtime issues, and improve production efficiency.
Edge computing market revenue is primarily classified into revenues from hardware, platform, and services. Hardware revenue is associated with offerings such as local data centres, and edge gateways and devices. Platform revenue is associated with edge computing tools and software.
Services’ revenue is associated with various support and maintenance, consulting and training, and integration services. The market is also segmented on the basis of application, organization size, vertical, and region.
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According to Reportlinker, the edge computing market comprises solution providers such as Cisco (U.S.); HPE (U.S.); Huawei (China); IBM (U.S.); Dell Technologies (U.S.), Nokia (Finland); Litmus Automation (U.S.); AWS (U.S.); FogHorn Systems (U.S.); SixSq (Switzerland); MachineShop (U.S.); Saguna Networks (Israel); Vapor IO (U.S.), ADLINK (Taiwan); Altran (France); Axellio (U.S.); GE Digital (U.S.); Moxa (Taiwan); Sierra Wireless (Canada); Digi International (U.S.); Juniper Networks (U.S.); Clearblade (U.S.); EdgeConneX (U.S.); Edge Intelligence (U.S.); and Edgeworx (U.S.).