Global Edge Computing Industry Outlook 2025-2029: Market Set to Cross $192.16 Billion Milestone

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Edge Computing Market Size Growth Forecast: What to Expect by 2025?
The market size for edge computing has seen significant growth in the recent past. Its valuation is expected to rise from $31.35 billion in 2024 to $45.14 billion in 2025, marking a compound annual growth rate (CAGR) of 44.0%. Factors contributing to the historical growth include the increase in IoT and connected devices, a preference for rapid latency processing, escalating data production and real-time analytics, progression in smart cities and intelligent infrastructure, along with a heightened demand for distributed computing.

How Will the Edge Computing Market Size Evolve and Grow by 2029?
Expectations are high for the edge computing market size to see a remarkable rise in the coming years. This sector is projected to reach $192.16 billion in 2029, with a compound annual growth rate (CAGR) of 43.6%. The anticipated growth in the forecast period is due to factors such as the increasing need for low-latency data processing, the surge in projects related to smart cities and infrastructures, the growing utilization of autonomous vehicles and connected cars, the escalating applications in the healthcare sector such as remote patient monitoring, and its growing importance in financial services, particularly in fraud detection in real-time. Major trends that are expected to govern the forecast period encompass the merger of IoT and edge computing, a shift towards a blend of cloud and edge computing architectures, advancements in energy-saving edge computing solutions, healthcare's adoption of edge computing for remote patient monitoring and the uptake of networking technology.

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What Drivers Are Propelling the Growth of Edge Computing Market Forward?
The edge computing market is likely to experience growth propelled by the expanding utilization of the Internet of Things (IoT). IoT refers to the integration of bodily devices, vehicles, home appliances, sensors, and other objects with embedded software that lets them gather, exchange, and interface with data using internet connectivity. This rise in IoT usage comes from the escalating demand for automation efficiency and data-driven decision-making processes. IoT facilitates the automation of numerous tasks by linking devices and systems as industries and consumers strive to enhance operational efficiency and minimize human involvement. The Internet of Things (IoT), when integrated with edge computing, enables prompt data processing and decision-making at or close to the source of data creation, rather than depending on remote data centers. For example, in January 2022, the GSM Association, a non-profit organization based in the UK, estimates that the total number of IoT connections will surpass 23.3 billion by 2025, a significant increase from 2021's 15.1 billion connections. Thus, the rising adoption of the Internet of Things (IoT) is propelling the growth of the edge computing market.

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Which Emerging Trends Are Transforming the Edge Computing Market in 2025?
Leading businesses in the edge computing market are concentrating on producing inventive products such as next-gen edge gateway devices. These devices are designed to boost real-time data processing, enhance network efficiency, and support uninterrupted connectivity. A next-gen edge gateway device is a state-of-the-art hardware solution that ensures rapid data processing and flawless communication between edge devices and cloud platforms. They mitigate network latency and boost performance. For example, Belden, a prominent provider of specialty networking solutions in Germany, introduced the OpEdge-8D in August 2022. This industrial-grade edge gateway device is built for DIN rail mounting, and its smooth integration of Information Technology (IT) and Operational Technology (OT) fosters effective connections between operational systems and information systems. Supporting the deployment of applications like containers and virtual machines (VMs) on the network edge, this next-gen edge gateway device facilitates real-time data processing and generates actionable insights. This helps businesses optimize operational efficiency and streamline data management.

What Are the Key Segments in the Edge Computing Market?
The edge computingmarket covered in this report is segmented -

1) By Component: Hardware, Software, Services
2) By Technology: Mobile Edge Computing, Fog Computing
3) By Organization Size: Small And Medium-Sized Enterprises, Large Enterprises
4) By Application: Connected Cars, Smart Grids, Critical Infrastructure Monitoring, Traffic Management, Environmental Monitoring, Augmented Reality, Assets Tracking, Security And Surveillance
5) By End-User: Financial And Banking Industry, Retail, Healthcare And Life Sciences, Industrial, Energy And Utilities, Telecommunications, Other End-Users

Subsegments:
1) By Hardware: Edge Servers, Gateways, Routers, Processors: Sensors And Actuators, Networking Equipment
2) By Software: Edge AI Platforms, Edge Data Management Platforms, Edge Security Software, Network Management Software, Application Deployment And Orchestration Platforms
3) By Services: Professional Services, Managed Services

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Who Are the Key Players Shaping the Edge Computing Market's Competitive Landscape?
Major companies operating in the edge computing market are Microsoft Corporation, Amazon Web Services Inc, Dell Inc, Siemens AG, Lenovo Group Limited, Intel Corporation, International Business Machines Corporation, Cisco Systems Inc, Schneider Electric, Google Cloud, Hewlett Packard Enterprise (HPE), NVIDIA Corporation, Eaton Corporation plc, WINSYSTEMS Inc, Rockwell Automation, Super Micro Computer Inc, Advantech Co Ltd, ADLINK Technology Inc, Stratus Technologies, Scale Computing, Foghorn Consulting, ClearBlade, GE Digital

What Geographic Markets Are Powering Growth in the Edge Computing Market?
North America was the largest region in the edge computing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the edge computing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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