The report, "Edge Computing Market Size, Share & Trends Analysis Report by Component (Hardware, Software, Services, Edge-managed Platforms), by Industry Vertical (Healthcare, Agriculture), by Region, and Segment Forecasts, 2020-2027", has been added to the offering of ResearchAndMarkets.com (Dublin, Ireland).
The global edge computing market size is anticipated to reach USD $43.4 billion by 2027, exhibiting a CAGR of 37.4% over the forecast period. The report's summary states that 5G technology is expected to act as a catalyst for market growth. Applications using 5G technology are expected to change traffic demand patterns, enabling technology growth avenues for telecom providers.
"Cloud leaders see this as a threat and have started investing in the edge ecosystem by engaging in partnerships with telecom companies," adds the report's summary. "It's quite evident that 5G and its probable benefits have the potential to create a powerful network based on the technology that is expected to reorganize the industry architecture," continues the analyst.
The rise in the adoption of edge computing technology by telecom companies is expected to foster new opportunities in the Multi-access Edge Computing (MEC) market space. MEC allows companies to mitigate network congestion and ensure higher application performance by bringing processing tasks and running applications closer to the cellular customer, observes Research and Markets. Further, the implementation of MEC at mobile base stations or edge nodes is expected to facilitate the rapid and flexible deployment of new services and applications for customers, which promises healthy market growth.
The analyst adds that "there has been an anticipated wave of micro Edge Data Center (EDC) capacity that differs from the large centralized data centers to support the centralization of hyperscale computing. These data centers are expected to range from small clusters of the edge cloud resources located on a streetlight to a few racks located in a shelter at the base of a cell tower or inside buildings."
"Additionally, the 5G networks use EDC to provide efficient local data services, which enables the EDCs to redirect edge traffic away from the carrier networks to local public internet networks. Also, various start-ups such as EdgeMicro is in the process of deploying commercial mini data centers for IT computing stack, redundant cooling, fire suspension, and biometric security," continues the report's summary.
Research and Markets adds that the development of edge Artificial Intelligence (AI) is continually expanding due to the increase in the number of connected devices globally, which is expected to propel edge computing market growth over the next few years. Edge AI is expected to allow real-time operations, including data creation, reducing power consumption, and reduce the costs for data communications for wearable devices and self-driving cars.
The report notes that various companies such as NVIDIA Corporation, Google Inc., and Intel Corporation are developing processors specifically designed for the computing technology to accelerate the inferencing process. For instance, Atos SE launched AI-enabled high-performing server based on the technology to manage data. Elsewhere, the installed BullSequana Edge Server steadily processes and manages IoT data, close to the source where it is generated.
The research finds that North America dominated the edge computing market in 2019 and accounted for largest share in terms of revenue; the growth is attributed to rising adoption of the technology among manufacturers in U.S. Increasing number of startups developing advanced business solutions based on the technology is reportedly driving the market in the region.
Asia-Pacific is anticipated to witness highest CAGR over the forecast period. The Asia-Pacific region is expected to emerge as the fastest-growing regional market owing to the advent of 5G in the region and rising uptake of IoT-backed applications.
Further key findings from the report suggest that the software segment is envisioned to witness the fastest growth, due to large scale deployment of edge computing-based software stack platforms. For its part, the data center segment is expected to grow the fastest over the forecast period, owing to the growing trend to shift from a centralized cloud server to edge server on account of reduced latency.
Key players in the edge computing market are identified as follows: Amazon Web Services (AWS), Inc., Belden Inc., Cisco Systems, Inc., Digi International Inc., Hewlett Packard Enterprise Development LP, Intel Corporation, Microsoft Corporation, and IBM Corporation.