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Edge Computing Market

Edge Computing Market

The market for Edge Computing was estimated at $64.6 billion in 2024; it is anticipated to increase to $285 billion by 2030, with projections indicating growth to around $985 billion by 2035.

Report ID:DS1102010
Author:Ranjana Pant - Research Analyst
Published Date:January 2025
Datatree
Information Technology
Software & Platforms
Edge Computing
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Report Summary
Table of Contents
Methodology
Market Data

Global Edge Computing Market Outlook

Revenue, 2024

$64.6B

Forecast, 2034

$768B

CAGR, 2024 - 2034

28.1%
The Edge Computing industry revenue is expected to be around $82.8 billion in 2025 and expected to showcase growth with 28.1% CAGR between 2025 and 2034. Its shifting us away, from the cloud setups to a digital spacethat'smore responsive and easy to access and is causing quite a buzz with its potential to transform technology in big ways.

Edge Computing is the term used to describe the technology that allows data to be processed close to where its generated in the network rather than in a centralized location. This helps reduce delays, in processing data and speeds up how quickly systems can respond to requests. It also improves the quality of services provided which leads to better customer experiences and more efficient operations.

Edge Computing market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034

Market Key Insights

  • The Edge Computing market is projected to grow from $64.6 billion in 2024 to $769 billion in 2034. This represents a CAGR of 28.1%, reflecting rising demand across Internet of Things (IoT) Devices, Content Delivery Networks (CDNs) and Predictive Maintenance.
  • IBM Corporation together with Amazon Web Services Inc and Microsoft Corporation lead the market as its main influential companies.
  • U.S. and China are the top markets within the Edge Computing market and are expected to observe the growth CAGR of 27.0% to 39.3% between 2024 and 2030.
  • Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 21.1% to 29.2%.
  • The market for Edge Computing will experience $104.3 billion in growth through 2030 because of the transition toward decentralization.
  • The Edge Computing market is set to add $704 billion between 2024 and 2034, with service providers targeting Data Caching & Data Analytics Application Area projected to gain a larger market share.
  • With Rise in iot devices and data generation, and Advancements in ai and ml, Edge Computing market to expand 1090% between 2024 and 2034.
edge computing market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032

Opportunities in the Edge Computing

The advancement of vehicles heavily relies on edge computing to handle the vast amount of real time data for making crucial split second decisions that can mean life or death situations; this sector is still largely unexplored and holds significant potential, for growth.

Growth Opportunities in North America and Europe

North America Outlook

The Edge Computing market in North America is booming thanks to its tech infrastructure and the prevalence of cloud based businesses and IoT applications in the region. Global tech leaders based there are playing a role in pushing forward edge computing innovations. The market landscape is shaped by competition among these companies vying to provide top notch edge solutions. The demand stems from the growing necessity for fast data processing, autonomy and privacy and ongoing advancements, in AI and IoT technologies.

Europe Outlook

Europe's Edge Computing industry is making strides with a focus on sectors such as healthcare and automotive driving its growth momentum alongside North America's competitive landscape in cutting edge solutions development is also noteworthy in Europe. To comply with GDPR rules edge computing emerges as a chance to improve data protection while advancements in AI and IoT technologies offer room for expansion, across diverse industries.

Market Dynamics and Supply Chain

01

Driver: Rise in IoT devices and data generation, and Need for Reduced Operational Costs

The rise in edge computing is also fueled by the growing presence of IOT devices that are also constantly producing an amount of data each second. Edge computing aids, in handling and storing this data on a level to minimize delays and enhance overall effectiveness and productivity. Businesses are also always looking for ways to cut down expenses and edge computing presents a viable solution, for this challenge. By handling data at the networks edge of centralized servers companies can also lower data transfer expenses and enhance data security.
The fast progress, in AI and ML tech is also giving computational capacity to edge gadgets nowadays. These advancements are also being utilized more and more to analyze data instantly at the edge which is also leading to the growth of edge computing.
02

Restraint: Latency Issues

One of the issues faced in the edge computing industry is the delay in processing data which can impact system efficiency in areas, like self driving cars and live gaming where real time analysis is crucial despite efforts to speed up processing by handling data locally rather than sending it to the cloud.
03

Opportunity: Revolutionizing IoT Devices and Transforming Remote Healthcare

In our lives today there are more IoT devices than ever before; however we are not fully utilizing their capabilities yet. One way to boost the performance of devices is through edge computing which involves processing data closer, to where it originates from to enhance speed and ensure better reliability and security measures in place.
The increasing demand for examining and securing volumes of patient health information quickly and safely has arisen alongside the rise of wearable technology and telemedicine services in the healthcare industry. Edge computing emerges as a yet underexplored solution in this realm by facilitating immediate patient tracking and swift responses to emergencies, in real time scenarios.
04

Challenge: Security Concerns

One of the challenges hindering the expansion of the edge computing sector is the insufficient strength of security measures in place. The distributed structure characteristic of edge computing exposes security weaknesses due, to data being spread out among multiple devices.

Supply Chain Landscape

1
Hardware Fabrication

Intel

ARM Holdings

Nvidia

2
Edge Software Development

Microsoft

IBM

Amazon

3
Network Connectivity

AT&T

Verizon

Cisco

4
End-User Applications

Google

Apple

Netflix

*The illustration highlights the key stakeholders within the supply chain ecosystem.

Applications of Edge Computing in Internet of Things (IoT) Devices, Content Delivery Networks (CDNs) & Predictive Maintenance

Internet of Things (IoT) Devices

Edge computing significantly improves the capabilities of IOT gadgets by allowing data processing at the edge of the network near the data source itself. This helps in decreasing delays and offering responses crucial for IoT devices. Key players such as Siemens and Cisco are spearheading this advancement with offerings tailored to optimize the advantages of edge computing, in scenarios.

Predictive Maintenance

Edge computing empowers companies to conduct maintenance by examining data where it originates and producing immediate insights in real time. This forward thinking strategy minimizes operational interruptions boosts efficiency. Enhances cost effectiveness. Leading organizations like GE Digital and IBM are spearheading this innovation, with cutting edge offerings.

Content Delivery Networks (CDNs)

CDNs leverage edge computing to provide video streaming with reduced delays by sending content to servers positioned near users for a better browsing experience Akamai and Cloudflare are well known players, in this field that utilize edge computing to enhance their CDN services.

Recent Developments

December 2024

IBM unveiled edge solutions aimed at speeding up the implementation of AI in telecommunications, retail and healthcare industries. This move signifies a pivot towards sectors characterized by widespread operations, with abundant data.

October 2024

Microsoft has extended its Azure Edge Zones to 50 cities globally in a move to improve data processing localization and boost application performance.

July 2024

Amazon Web Services introduced EC3 UltraWarm for Amazon OpenSearch Service as an option, for storing data efficiently on its edge computing platform.

Lately in the market scenario of Edge Computing there has been a surge in global uptake due to the rising demand for quicker processing and instant data analysis as the driving force behind it all. One notable trend in this field is the merging of IOT and Edge Computing which allows companies to handle data closer to its origin point and alleviate strain, on networks.

Impact of Industry Transitions on the Edge Computing Market

As a core segment of the Software & Platforms industry, the Edge Computing market develops in line with broader industry shifts. Over recent years, transitions such as Shift Towards Decentralization and Increased Security Measures have redefined priorities across the Software & Platforms sector, influencing how the Edge Computing market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Shift Towards Decentralization

Edge computing involves shifting computing processes and data storage to where data originates on the networks edge. This concentrates computational power in localized locations leading to decreased latency and reduced dependence on cloud services. By decentralizing infrastructure real time data processing becomes possible— a necessity for applications, like vehicles IoT devices and local weather data analysis. This industry transition is expected to add $104.3 billion in the industry revenue between 2024 and 2030.
02

Increased Security Measures

The decentralized aspect of edge computing brings forth an array of issues concerning data security. Given that datas handled at the networks periphery now requires security protocols to be dispersed accordingly. This notable shift calls for an increased focus on detecting threats. Emphasizes the importance of cybersecurity firms, for businesses that depend on edge computing.

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