Hyperscale Edge Computing Market Opportunities and Strategies to 2033

This report describes and explains the hyperscale edge computing market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global hyperscale edge computing market reached a value of nearly $3.4 billion in 2023, having grown at a compound annual growth rate (CAGR) of 30.84% since 2018. The market is expected to grow from $3.4 billion in 2023 to $14.68 billion in 2028 at a rate of 33.92%. The market is then expected to grow at a CAGR of 28.67% from 2028 and reach $51.79 billion in 2033.

Growth in the historic period resulted from growth in the adoption of cloud computing, increased use of the telehealth and remote monitoring applications, expansion of gaming and virtual reality industries and increase in focus on big data analytics. Factors that negatively affected growth in the historic period include high initial investment costs, complexity of integrating edge computing with existing IT systems.

Going forward, the rising adoption of IoT (Internet of Things) devices, increasing number of edge data centers, increasing adoption of 5G networks, escalating use of AI and machine learning and favorable government support will drive the market. Factors that could hinder the growth of the hyperscale edge computing market in the future include limited availability of skilled personnel and technical expertise, growing concerns about data security.

The hyperscale edge computing market is segmented by component into hardware, software and service. The hardware market was the largest segment of the hyperscale edge computing market segmented by component, accounting for 47.94% or $1.63 billion of the total in 2023. Going forward, the software segment is expected to be the fastest growing segment in the hyperscale edge computing market segmented by component, at a CAGR of 37.99% during 2023-2028.

The hyperscale edge computing market is segmented by enterprise size into small and medium enterprises (SMEs) and large enterprises. The large enterprises market was the largest segment of the hyperscale edge computing market segmented by enterprise size, accounting for 70.43% or $2.4 billion of the total in 2023. Going forward, the small and medium size enterprises (SMEs) segment is expected to be the fastest growing segment in the hyperscale edge computing market segmented by enterprise size, at a CAGR of 35.31% during 2023-2028.

The hyperscale edge computing market is segmented by application into industrial IoT, content delivery, AR /VR, remote monitoring and other applications. The industrial IoT market was the largest segment of the hyperscale edge computing market segmented by application, accounting for 31.54% or $1.07 billion of the total in 2023. Going forward, the AR/VR segment is expected to be the fastest growing segment in the hyperscale edge computing market segmented by application, at a CAGR of 36.28% during 2023-2028.

The hyperscale edge computing market is segmented by end-user into IT and telecom, government, healthcare, BFSI, retail, utility, manufacturing and other end-users. The IT and telecom market was the largest segment of the hyperscale edge computing market segmented by end-user, accounting for 28.27% or $963.74 million of the total in 2023. Going forward, the healthcare segment is expected to be the fastest growing segment in the hyperscale edge computing market segmented by end-user, at a CAGR of 39.47% during 2023-2028.

North America was the largest region in the hyperscale edge computing market, accounting for 35.07% or $1.19 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the hyperscale edge computing market will be Asia-Pacific and the Middle East, where growth will be at CAGRs of 36.03% and 34.73% respectively. These will be followed by South America and Eastern Europe, where the markets are expected to grow at CAGRs of 34.14% and 33.73% respectively.

The global hyperscale edge computing market is fragmented, with a large number of small players in the market. The top ten competitors in the market make up 9.67% of the total market in 2023. The market fragmentation can be attributed to the presence of small players in different geographies. Microsoft Corporation was the largest competitor with a 2.78% share of the market, followed by AMAZON.COM, INC. with 2.00%, Intel Corporation with 1.52%, Alphabet Inc. (Google LLC) with 0.97%, International Business Machines Corporation. with 0.85%, Digi International Inc. with 0.51%, Siemens AG with 0.35%, ClearBlade Inc. with 0.25%, Capgemini SE with 0.22% and Hewlett Packard Enterprise Company with 0.22%.

The top opportunities in the hyperscale edge computing market segmented by component will arise in the software segment, which will gain $4.69 billion of global annual sales by 2028. The top opportunities in the hyperscale edge computing market segmented by enterprise size will arise in the large enterprises segment, which will gain $7.71 billion of global annual sales by 2028. The top opportunities in the hyperscale edge computing market segmented by application will arise in the industrial IoT segment, which will gain $3.72 billion of global annual sales by 2028. The top opportunities in the hyperscale edge computing market segmented by end-user industry will arise in the IT and telecom segment, which will gain $3.4 billion of global annual sales by 2028. The hyperscale edge computing market size will gain the most in the USA at $3.13 billion.

Market-trend-based strategies for the hyperscale edge computing market include focusing on advanced digital ecosystem management with the deployment of air-gapped cloud appliances, introducing advanced edge computing platforms, actively pursuing strategic partnerships and acquisitions, expanding data center portfolios with new builds and increased strategic investments in hyperscale cloud computing and AI (artificial intelligence) infrastructure.

Player-adopted strategies in the hyperscale edge computing market include focus on enhancing operational capabilities through the launch of new products and strengthening market position through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the hyperscale edge computing companies to focus on enhancing digital ecosystem management with secure air-gapped solutions, focus on deploying modular edge computing platforms for low-latency data processing, focus on expanding data center capacity to meet growing demand, focus on hardware solutions, expand in emerging markets, focus on strategic partnerships and acquisitions for market expansion, focus on strategic investments in hyperscale cloud and AI infrastructure, focus on expanding distribution channels for hyperscale edge computing, focus on optimizing pricing strategies for hyperscale edge computing, participate in trade shows and events, continue to use B2B promotions, focus on small and medium size enterprises (SMEs), focus on augmented and virtual reality (AR/VR) segment and focus on healthcare segment.