The global edge computing market is gaining from the challenges arising from the overuse of traditional centralised cloud computing architecture. Edge computing is a means of utilising cloud computing by scrutinising and processing the data at the periphery of the network, in close proximity to the source where it is created. Mobile computing, decreasing cost of computer components, and the large number of networked devices involved in Internet of Things (IoT) architecture are some of the key factors that are pushing the adoption of edge computing architecture.
One of the key factors driving the edge computing market is the proliferation of Internet of Things. Edge computing enables data generated by Internet of Things (IoT) devices to be processed as close to the source where it is created, eliminating the need to send it to data centres or clouds. Today, IoT has revolutionised the operating capability of humans, wherein IoT devices such as smartphones, virtual technology, and digital wearables among others have changed a person’s routine life and increased the frequency of routine tasks. IoT offers advantages of ubiquitous network, process optimisation, connected devices, sensor-driven decision analytics, and marketing automation for enterprises that are driving its adoption across several industries. As a result, the significant increase in load on cloud-
impacting its functionality and response speed, has posed the need to process or store critical data locally.
Edge computing deployments are ideally suited in a number of situations. One is when IoT devices have insufficient connectivity and it is not feasible for IoT devices to be seamlessly connected to a central cloud. High latency, low spectral efficiency, and non-adaptive machine type of communication are some of the serious challenges of cloud computing framework that is leading to a shift to computing to the edge devices of the network.
Edge computing offers economic benefits for organisations. This is because carrying out computing closer to the edge of the network helps organisations analyse crucial data in real-time. Edge computing is useful for organisations across many industries such as manufacturing, telecommunications, healthcare, and finance among others.
A report by Transparency Market Research (TMR) estimates the global edge computing market will be evaluated at US$8,024.5 mn in 2017 and further reach US$13,313.7 mn by the end of 2022 clocking a 10.7 percent CAGR therein.
Here are some key insights about developments in the global edge computing market in the forthcoming years:
Among the key segments based on component, hardware is the leading segment that is anticipated to represent 54.3 percent of the market in 2017. Progressing at a CAGR of 10 percent over the forecast period, the global edge computing market is likely to represent 52.8 percent of the global edge computing market.
From a geographical standpoint, North America is estimated to dominate the global edge computing market vis-à-vis revenue in 2017, and the trend is anticipated to continue over the forecast period.
Japan is a key market for edge computing. Expanding at an outstanding 16.4 percent CAGR between 2017 and 2022, the market’s valuation is likely to touch US$1,763.5 mn by 2022 end.
