Edge computing is a distributed computing infrastructure where data is processed at the edge of the network, as close to its source/capture as possible, rather than in a centralized location. Major use cases of edge computing include IoT, analytics, augmented and virtual reality, content delivery networks and more.

The global edge computing market is estimated to be valued at US$ 111.3 Bn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Edge computing facilitates real-time data processing and response which fuels the demand for edge computing solutions. Additionally, increasing IoT adoption across various industries is propelling the demand for edge computing devices as it enables processing IoT data closer to the source of capture. According to a study by Gartner, global IoT connections are expected to grow from 8.74 billion in 2020 to 25 billion by 2030. This rising IoT connectivity is estimated to generate large volumes of data which cannot be transmitted to centralized cloud for processing. Edge computing provides a feasible solution to analyze such geographically distributed IoT data in real-time. Furthermore, rising demand for low latency applications such as autonomous vehicles, augmented/virtual reality and telemedicine is boosting the edge computing market growth over the forecast period.

SWOT Analysis
Strength: Edge computing deploys application processing and data storage closer to the devices where it is needed, which greatly improves response times and saves bandwidth. By shifting from cloud to edge, it allows offloading of non-critical data processing and storage to the edge nodes, minimizing latency and improving performance for users. Edge computing also helps gain efficiencies in connectivity costs and augments data privacy and security through localized processing.
Weakness: Edge devices have limited processing power and storage capacity compared to cloud data centers. This constraint can limit the types and complexity of applications that can be deployed and executed at the edge. Also, edge infrastructure needs to be deployed widely in various network environments to realize the full benefits of edge computing, requiring significant upfront investment.
Opportunity: Edge computing is poised to drive new application and experience development across industries like manufacturing, transportation, healthcare, retail, and smart cities. Its low-latency benefits can open up new markets for mission-critical 5G applications like autonomous driving, telemedicine, augmented reality, and Industry 4.0. Edge infrastructure also provides an opportunity to support hybrid cloud models by extending compute and storage capabilities closer to IoT devices and mobile users.
Threats: Security and privacy risks are heightened at the edge due to the decentralized nature of edge infrastructure and devices being deployed in less controlled environments. However, with proper access controls and data encryption measures, these risks can be mitigated. But it still remains a challenge compared to centralized cloud environment. Standardization of edge infrastructure and technologies is still evolving, resulting in technology silos and lock-in with certain vendors.

Key Takeaways
The global edge computing market is expected to witness high growth over the forecast period supported by exponential growth in networked IoT devices and rising demand for low-latency applications. By 2030, over 75% of enterprise-generated data is expected to be created and processed outside of traditional centralized data centers at the network edge. Edge adoption is also expected to accelerate with widescale 5G commercialization globally. The global edge computing market is estimated to be valued at US$ 111.3 Bn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030.

Regional analysis related content comprises
North America is currently the largest market for edge computing driven by rapid technology adoption across sectors in the US and Canada.However, Asia Pacific is poised to be the fastest growing regional market with China and other countries aggressively developing smart infrastructure backed by edge computing. Countries like India, Japan and South Korea are also ramping up investments in edge infrastructure to realize benefits for their digital economies.

Key players related content comprises
Key players operating in the edge computing market are Microsoft Corporation, Google LLC, IBM Corporation, Huawei Technologies Co. Limited, Cisco Systems Inc. These companies are investing heavily in building edge computing platforms and solutions. They are also partnering with telecom operators and various industries for joint deployments of edge infrastructure globally.