Product Code: 66305
The global edge computing market was valued at USD 1,756.5 million in 2019, and it is expected to reach a value of USD 8,294.5 million by 2025, registering a CAGR of 29.4% over the forecast period.Enterprises across industries are beginning to drive new levels of performance and productivity by deploying different technological innovations, like sensors and other data-producing and collecting devices, along with analysis tools. Traditionally, data management and analysis are performed in the cloud or data centres. However, the scenario seems to be changing with the increasing penetration of network-related technologies and initiatives, such as smart manufacturing and smart cities.
- Although the adoption is presently not common, over the forecast period, some large enterprises, especially across industries, such as telecom and manufacturing, are expected to use edge computing, especially in relation to IoT. With more than 50 billion connected devices, Huawei predicts that, by 2020, over 50% of data may be analyzed, processed, and stored in the network edge.
- Furthermore, the development of processing-intensive applications involving artificial intelligence, IoT, and machine learning (ML), which work on larger data sets and perform massive algorithmic parallelism on models (in order to improve business operations), has promoted the demand for localized compute, data storage, and network resources. Therefore, along with IoT and IIoT, the adoption of AI and ML is also driving the growth of edge computing.
- Edge computing is being led by initiatives, like OpenFog Consortium, which is an organization headed by vendors in the market, including Cisco, Intel, Microsoft, and Dell EMC, as well as academic institutions, like Princeton University and Purdue University. The consortium aims at developing reference architectures for fog and edge computing deployments.
- Edge computing is expected to play a vital role in the widespread adoption and working of technologies, such as AR/VR, autonomous vehicles, IoT, next-gen CDNs, next-gen cloud, and streaming games. For instance, edge computing is vital in operating an autonomous vehicle network in the future, and this is influencing vendors to form a partnership to cater to the growing needs of these industries. For example, in July 2019, IBM Japan joined the Automotive Edge Computing Consortium (AECC), driving the best practices for the coming vehicles and computing convergence.
- The outbreak of COVID-19 is expected to influence global industrial spending significantly over the coming years, due to the non-operational status of various industries.
Key Market Trends
BFSI to be the Prominent Industry to Adopt Edge Computing Solutions
- The financial and banking industry is expected to show a significant adoption of edge computing solutions owing to the increasing adoption of digital and mobile banking initiatives. Also, the adoption of blockchain technology in the industry and mobile payments are certain factors further fueling the demand for edge computing in the industry.
- Effortless and seamless digital payment methods with maximum security and processing speeds act as key elements for enhancing the digital banking experience. As a result, several banks are deploying payment apps and services compatible with smart mobile devices.For instance, the Barclays bank has adopted several technology advancements by supporting payment through smartwatches, such as Apple Watch and Fitbit, through its bPay.
- Mobile applications and mobile payments are other great sources of demand for edge computing in the financial and banking industry. Increasing support from third-party applications and a wide choice of banking applications that engage several customers through loyalty management programs are increasing mobile payment traffic in the urban regions.
- Furthermore, widespread adoption of blockchain has considerable potential to drive the consumption of edge computing services. Since the blockchain technology required high computing, it is expected to exhibit the fastest adoption of the edge computing technology in the industry. For instance, in August 2019, Tech Mahindra and financial technology firm Adjoint collaborated to provide blockchain solution for secure enterprise financial management and insurance services.
Asia-Pacific to Witness Highest Growth Rate
- The market for edge-computing in the China is anticipated to benefit from the investments from telecoms to roll out new technology. Owing to the rapid growth of mobile services and the increase of operation cost pressure, the telecom industry in the country has taken measures to improve user experience, increase profits, optimize network operation, and enhance resource utilization efficiency by introducing new technologies and products.
- The manufacturers in the Japan are trying to deploy edge computing technologies at their facilities, in order to improve production efficiency by utilizing IoT, or IoT devices. Mitsubishi Electric Corporation and Fanuc Corporation, a machine tool maker, have formed consortiums respectively to develop products for edge computing and unify standards, thereby make up for shortcomings of cloud computing.
- Over the last few years, Australia has been witnessing increasing optimism around emerging technologies, as businesses based out of country benefit from AI, edge computing, and the IoT, owing to the potent mix of government advocacy, manufacturing roots, and R&D know-how.
- As part of the Digital India initiative, the Government of India planned to give IoT a push in the country. The government has allocated an INR 7,000-crore funds for the development of 100 smart cities powered by the IoT devices. The government intends to control traffic, efficiently use water and power, and collect data using IoT sensors for healthcare and other services. According to NASSCOM, the Indian IoT market is expected to reach USD 15 billion by 2020 and constitute 5% of the global market.
The competitive rivalry in the edge computing market among the existing players is faintly high and increasing, considering the inflow of new entrants into the market. Currently, the market is dominated by cloud-based IoT vendors, such as Amazon, Microsoft, and Google. Companies, like GE, which have the expertise of delivering edge computing solutions across different industries, including aerospace or manufacturing, also have a significant market position. Acquisitions, partnerships with industry participants, and new product/service rollouts have been key competitive strategies exhibited by the vendors in the market.Some of the key developments in the market are:
- March 2020 - Google Cloud and AT&T announced a collaboration to help enterprises take advantage of Google Cloud's technologies and capabilities using AT&T network connectivity at the edge, including 5G. These edge computing solutions will be powered by AT&T's network and will utilize Google Cloud's core capabilities in Kubernetes, Artificial Intelligence (AI) and machine learning (ML). By bringing Google Cloud compute and capabilities to the edge, businesses can achieve the goal of proximity to the customers.
- March 2020 - Microsoft announced the acquisition of Affirmed Networks, which is a Startup that offers fully virtualized cloud-native mobile network solutions. Microsoft wants to integrate Affirmed Networks' technology into Microsoft Azure to let the telecommunications industry deploy and maintain 5G networks via Azure Edge Zones, which is a newly developed solution based on edge computing.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Widespread Adoption and Growth of Latency-specific Applications
- 4.2.2 Evolving Network Technologies
- 4.3 Market Restraints
- 4.3.1 Security Concerns in Edge Computing
- 4.4 Value Chain Analysis
- 4.5 Industry Attractiveness - Porter's Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Assessment of Impact of Covid-19 on the Edge Computing Market
5 MARKET SEGMENTATION
- 5.1 Component
- 5.1.1 Hardware
- 5.1.2 Software
- 5.1.3 Services
- 5.2 End User
- 5.2.1 Financial and Banking Industry
- 5.2.2 Retail
- 5.2.3 Healthcare and Life Sciences
- 5.2.4 Industrial
- 5.2.5 Energy and Utilities
- 5.2.6 Telecommunications
- 5.2.7 Other End Users
- 5.3 Geography
- 5.3.1 North America
- 188.8.131.52 United States
- 184.108.40.206 Canada
- 5.3.2 Europe
- 220.127.116.11 United Kingdom
- 18.104.22.168 Germany
- 22.214.171.124 France
- 126.96.36.199 Rest of Europe
- 5.3.3 Asia-Pacific
- 188.8.131.52 China
- 184.108.40.206 Japan
- 220.127.116.11 Australia
- 18.104.22.168 Rest of Asia-Pacific
- 5.3.4 Latin America
- 22.214.171.124 Mexico
- 126.96.36.199 Brazil
- 188.8.131.52 Rest of Latin America
- 5.3.5 Middle East and Africa
- 184.108.40.206 United Arab Emirates
- 220.127.116.11 Saudi Arabia
- 18.104.22.168 Rest of Middle East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Microsoft Corporation
- 6.1.2 Google LLC (Coral)
- 6.1.3 Foghorn Systems
- 6.1.4 Huawei Technologies Co. Limited
- 6.1.5 Cisco Systems Inc
- 6.1.6 Hewlett Packard Enterprise Company
- 6.1.7 Juniper Networks
- 6.1.8 Dell EMC
- 6.1.9 Altran Group (Aricent)
- 6.1.10 EdgeIQ (MachineShop Inc.)
- 6.1.11 ADLINK Technology Inc.
- 6.1.12 General Electric Company
- 6.1.13 Amazon Web Services Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS