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Edge Computing Market - Proliferation of Internet of Things

Edge Computing Market - Proliferation of Internet of Things

The global edge computing market is gaining from the challenges arising from the overuse of traditional centralized cloud computing architecture. Edge computing is a means of utilizing cloud computing by scrutinizing 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.

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One of the key factors driving the edge computing market is the proliferation of Inter 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 which eliminates the need to send it to data centers or clouds. Today, IoT has revolutionized the operating capability of humans, wherein IoT devices such as smartphones, virtual technology, and digital wearable among others have changed person’s routine life and increased the frequency of routine tasks. IoT offers advantages of ubiquitous network, process optimization, 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.

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Edge computing offers economic benefits for organizations. This is because carrying out computing closer to the edge of the network helps organizations analyze crucial data in real-time. Edge computing is useful for organizations across many industries such as manufacturing, telecommunications, healthcare, and finance among others.

Among the key segments based on component, hardware is the leading segment that is anticipated to represent 54.3% of the market in 2017. Progressing at a CAGR of 10% over the forecast period, the global edge computing market is likely to represent 52.8% 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% CAGR between 2017 and 2022, the market’s valuation is likely to touch US$1,763.5 mn by 2022 end.

Transparency Market Research (TMR) is a next-generation provider of syndicated research, customized research, and consulting services. TMR’s global and regional market intelligence coverage includes industries such as pharmaceutical, chemicals and materials, technology and media, food and beverages, and consumer goods, among others. Each TMR research report provides clients with a 360-degree view of the market with statistical forecasts, competitive landscape, detailed segmentation, key trends, and strategic recommendations

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