Edge computing is a distributed computing paradigm which provides real-time data analysis and decreases the cost related to data management & operations. It is a network of data centers that store & process data locally before sending them to cloud or centers. It optimizes computing to avoid interruptions in sending or receiving data. It brings data processing nearer to Internet of Things (IoT) sensors to improve efficiency and reduce latency. IoT and IIoT are examples of edge computing. IoT includes home appliances, traffic lights, mobile devices, motor vehicles (trucks & cars), thermostats and smart streetlights. Additionally, IIoT includes smart power grid technology, automated industrial machines, magnetic resonance (MR) scanner, wind turbine and undersea blowout preventers.
The key characteristics are real-time interactions, scalable, geographically distributed, autonomous & distributed, heterogeneous and contextual & low latency. Some of the benefits are included cost-effective, secure, faster response and reliable operations.
According to study, “North America Edge Computing Market (2018-2023)” the key companies operating in the North America edge computing market are Cisco Systems Inc., IBM Corp., Microsoft Corporation, Google Inc., Amazon. Key players are gradually taking initiatives for technological advancements. The launch of advanced technology is anticipated to fuel growth of the market and aid players to gain higher revenue.
Based on component type, edge computing market is segmented into edge computing hardware, edge computing services and edge computing platform. Hardware components include routers and gateways. Hardware segment holds major share in market owing to enabling comprehensive edge infrastructure deployment, large-scale deployment of components for decentralizing storage & computing operations, and reducing network traffic. Based on application, market is segmented into smart cities, connected healthcare, smart factories, smart grids, connected vehicles, and others. In addition, based on end-use industries, market is segmented into manufacturing sector, IT & telecommunication, healthcare & life sciences, energy and utility sector, and consumer appliances.
The edge computing market is driven by growth in adoption of IoT across industries, followed by increase in data volumes & network traffic, surge in end-use industries, increase in development of innovative concepts for instance autonomous cars, presence of large number of edge computing vendors, increase in technology adoption, rise in gaming & e-commerce industries, increase in average number of digital devices and rise in demand for low-latency processing & real-time. The IoT is driven by large volumes of data generated from various activities in our day-to-day lives. However, problem with standardization & implementation of the network and lack of skill & understanding may impact the market. Moreover, lightweight frameworks & systems to increase efficiency of edge computing solutions and emergence of autonomous vehicles & connected car infrastructure are key opportunities for market.
Based on regions, North America edge computing market is segmented into the Canada and United States. USA holds major share in market owing to rise in utilization of digital infrastructure and limitation of cloud-based analytics systems in the country. It is anticipated that future of the market will be bright due to presence of connectivity networks over the forecast period. It is expected that market will be reached at US $ 2.43 billion by 2023, expanding at a CAGR of 28.7%.
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Ankur Gupta, Head Marketing & Communications