Edge Computing Market Overview, 2024-29

The global edge computing market is rapidly evolving as businesses and industries look to optimize data processing by bringing computing power closer to where the data is generated. Unlike traditional cloud computing, where data must travel long distances to centralized servers, edge computing processes data at or near the source, significantly reducing latency and improving real-time decision-making. This innovation plays a crucial role in sectors such as healthcare, manufacturing, automotive, and telecommunications, where real-time data analysis is essential.

As the volume of data generated by IoT devices, sensors, and smart technologies grows exponentially, the need for faster, more efficient data processing solutions is becoming increasingly important. With the continuous rise in the adoption of IoT devices and 5G technology, edge computing is gaining traction as a solution to handle the enormous amounts of data these technologies generate. By enabling quicker data analysis and local decision-making, edge computing not only boosts operational efficiency but also enhances user experiences by reducing delays.

Additionally, the decentralized nature of edge computing ensures better security and privacy control, as sensitive data does not need to travel long distances to centralized data centers. As more organizations embrace digital transformation, the global edge computing market is poised for significant growth, driven by the demand for real-time data processing and the increasing reliance on IoT and smart devices.

According to the research report, “Global Edge Computing Market Overview, 2024-29” published by Bonafide Research, the market is anticipated to cross USD 48 Billion by 2029, increasing from USD 14.05 Billion in 2023. The market is expected to grow with a 23.45% CAGR from 2024 to 2029. The global edge computing market is witnessing several notable trends. One major trend is the increasing adoption of 5G networks, which enable faster data transmission and better connectivity for edge computing solutions. As 5G infrastructure expands, more industries are exploring the potential of edge computing to support low-latency, high-speed applications like autonomous vehicles and smart cities.

Governments across various regions are also becoming more involved, with policies designed to promote innovation in the tech sector. In particular, many countries are focusing on enhancing their digital infrastructure, which includes expanding 5G networks and supporting the development of edge computing solutions to drive technological advancements and economic growth. (AI) and machine learning (ML) are being integrated into edge computing systems to enable smarter data processing and decision-making at the edge. These technologies help optimize the performance of edge devices, allowing them to autonomously make decisions without relying on central data centers.

While no single company dominates the market, key players in the edge computing space include giants like Amazon Web Services (AWS), Microsoft, and Google, who are all investing heavily in edge computing technologies. These companies offer edge computing solutions that cater to a wide range of industries, including retail, healthcare, and manufacturing, and continue to expand their market presence through strategic partnerships and acquisitions. The competitive landscape is highly dynamic, with new startups and tech firms continually emerging to offer innovative edge solutions.

Market Drivers

• Increased Adoption of IoT Devices: The growing adoption of IoT devices across industries is one of the primary drivers of the global edge computing market. With IoT devices generating vast amounts of real-time data, traditional cloud computing solutions often struggle to process this data quickly enough. Edge computing allows data to be processed closer to its source, reducing latency and improving decision-making in real time. This is particularly important in sectors such as manufacturing, healthcare, and automotive, where immediate data analysis is crucial. As IoT adoption continues to rise, the demand for edge computing solutions is expected to grow exponentially.

Market Challenges

• Complex Implementation and Integration: : One of the key challenges in the global edge computing market is the complexity of implementation and integration with existing IT infrastructure. Organizations must overcome technical barriers when deploying edge computing solutions, including hardware compatibility, network integration, and data management. The deployment of edge computing often requires significant changes to legacy systems and processes, which can be costly and time-consuming. Additionally, ensuring that edge devices and systems are properly integrated with cloud and on-premises environments poses challenges for businesses seeking a smooth transition to edge computing.
• Limited Standardization and Interoperability: : The lack of standardization and interoperability in edge computing technologies presents a significant challenge. With a variety of devices, platforms, and communication protocols involved in edge computing ecosystems, ensuring compatibility between different systems and manufacturers can be difficult. This fragmentation can hinder widespread adoption, as businesses may be hesitant to adopt solutions that are not easily integrated into their existing systems. Without common standards and protocols, edge computing solutions may struggle to deliver seamless performance, limiting their potential for growth and adoption across industries.

Market Trends

• Rise of AI and Machine Learning at the Edge: One of the most significant trends in the edge computing market is the growing integration of AI and machine learning (ML) technologies. These advanced technologies enable edge devices to process and analyze data autonomously without relying on centralized cloud systems. By embedding AI and ML algorithms at the edge, businesses can improve decision-making, optimize performance, and reduce dependency on cloud infrastructure. As the demand for smarter, more efficient edge devices increases, AI and ML are expected to become integral components of edge computing solutions, driving innovation and expanding the market.
• Growth of Edge-Cloud Hybrid Solutions: Edge-cloud hybrid solutions are becoming increasingly popular as businesses seek to leverage the benefits of both edge computing and traditional cloud services. By combining edge and cloud computing, organizations can process critical data locally while still maintaining access to the cloud for more intensive processing tasks. This hybrid approach provides a balance between low-latency performance and scalability, offering businesses the flexibility to choose the most appropriate solution for their specific needs. As businesses continue to embrace digital transformation, hybrid solutions are likely to play a major role in the global edge computing market.

The hardware segment is one of the leading components in the global edge computing market.

The hardware segment is one of the leading components in the global edge computing market. This includes various physical devices like sensors, edge servers, routers, and gateways that are essential for collecting and processing data at the edge of the network. With the increasing deployment of Industrial IoT (IIoT) solutions, hardware plays a critical role in enabling real-time data analysis in sectors such as manufacturing, energy, and healthcare. The need for more efficient, robust, and scalable hardware solutions to support edge computing applications is driving the growth of this segment.

Industrial IoT, which is an integral part of the edge computing market, is transforming industries by enabling devices to communicate and share data without human intervention. By leveraging edge computing, IIoT systems can process and analyze data locally, reducing the dependency on cloud infrastructure and providing faster insights. This capability is particularly beneficial in industries like manufacturing, where predictive maintenance and process optimization are key. As more industries adopt IIoT solutions, the demand for advanced hardware to support edge computing will continue to grow, making it one of the most dominant segments in the global market.

Large organizations are increasingly adopting edge computing solutions to improve operational efficiency, reduce latency.

The large enterprise segment is driving significant growth in the global edge computing market. Large organizations are increasingly adopting edge computing solutions to improve operational efficiency, reduce latency, and enhance customer experiences. These enterprises, particularly those in industries such as telecommunications, IT, and manufacturing, require high-performance computing infrastructure to handle large volumes of real-time data. The ability to process data locally, close to its source, allows these enterprises to make faster, data-driven decisions, optimizing their operations and maintaining a competitive edge in the market. Telecommunications and IT companies are at the forefront of edge computing adoption.

With the rollout of 5G networks, telecom providers are deploying edge computing solutions to enable low-latency applications such as video streaming, autonomous vehicles, and real-time analytics. Telecom companies are also using edge computing to offload data processing from centralized cloud systems, ensuring better performance and reliability for their customers. As the demand for faster, more efficient services grows, the adoption of edge computing by telecom and IT companies will continue to expand, positioning this segment as one of the most leading contributors to the market.
North America stands out as the leading region in the global edge computing market due to several factors, including its advanced technological infrastructure, robust adoption of IoT devices.

North America stands out as the leading region in the global edge computing market due to several factors, including its advanced technological infrastructure, robust adoption of IoT devices, and the rapid rollout of 5G networks. The region is home to some of the world’s most technologically advanced countries, such as the United States and Canada, which have made significant investments in digital transformation. North American businesses, particularly in industries like manufacturing, healthcare, and telecommunications, are increasingly adopting edge computing to handle the growing volumes of data generated by IoT devices and sensors.

The presence of major tech players in the region, including Amazon, Microsoft, Google, and IBM, has also propelled the growth of edge computing. These companies offer comprehensive edge computing solutions, driving innovation and facilitating the widespread adoption of the technology across various industries. Additionally, the region's well-established cloud infrastructure provides a strong foundation for the integration of edge computing, as businesses can combine the benefits of both cloud and edge technologies for optimal performance. North America benefits from the early deployment of 5G technology, which complements edge computing by enabling faster data transmission and reducing latency.

The integration of 5G networks with edge computing is unlocking new opportunities for real-time data processing in critical applications, such as autonomous vehicles, smart cities, and industrial automation. The region’s focus on developing smart infrastructure and supporting digital ecosystems through government policies and initiatives has further fueled the growth of edge computing. North America is leading the charge in edge computing innovation and adoption, positioning itself as a key player in the global market. The combination of technological advancements, industry demand, and strong infrastructure makes North America the most dominant region in the edge computing market.

Considered in this report

• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Edge Computing Market with its value and forecast along with its segments
• Region & country wise Edge Computing market analysis
• Application wise Edge Computing distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Component

• Hardware
• Software
• Service

By Application

• Industrial IoT
• Remote monitoring
• Content delivery
• AR/VR
• Others

By Enterprise Size

• Large enterprises
• SME

By End User

• Telecom & IT
• Industrial
• Retail
• Healthcare
• Others

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.


This product will be delivered within 2 business days.