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Edge Computing Revenue will Reach $28.84 Billion

Advances in semiconductor technology enable apps at the edge of networks, creating new uses cases. The global edge computing market was valued at $1.47 billion in 2018 and is forecast to reach $28.84 billion by 2025 at a CAGR of 54 percent, according to the latest worldwide market study by Grand View Research.

The growing need to process large volumes of data generated from the Internet-of-Things (IoT) applications that are closer to the end-user will drive demand for these solutions. Increasing emphasis on cost reduction and process automation will also motivate more adoptors.

Edge Computing Market Development

Organizations are already applying edge computing technology to enhance operations and gain real-time insights from their IoT data. Thus, the continued transition toward edge computing is expected to influence the IT strategies of more CIOs and CTOs at forward-thinking companies.

Continued adoption of edge computing for data center applications is also expected to propel the market growth. Its adoption will culminate in 'micro' data centers located closer to the existing on-premises infrastructure, which would help address network latency issues.


Data Center Management-as-a-Service (DMaaS) is also emerging as a low-cost way to ensure effective use of the IT layer by monitoring the data center’s infrastructure from the edge. DMaaS can also be utilized as a cost-efficient and flexible solution for real-time data analysis.

Stringent requirements of 5G wireless communication network standards -- such as high reliability, ultra-low latency, and consistency in user experience -- will likely trigger the need for localized services based on Radio Access Network (RAN) technology.

Mobile Edge Computing (MEC) is emerging as a promising computing architecture for telecom network operators, IT platform providers, and system integrators. MEC adds virtualization and computing capabilities to a 5G RAN deployment.

Additional market study findings include:
  • High-performance applications in the edge network are expected to propel the growth of the software component segment over the forecast period.
  • Data centers' end-use segment is expected to witness the fastest CAGR, owing to the rising need for reducing data center downtime.
  • The APAC region will experience the highest CAGR, 60+ percent from 2019 to 2025. The need for digital transformation to streamline operations is expected to drive the market.
  • Original Equipment Manufacturers (OEMs) are using this edge computing in their automation and predictive maintenance solutions to transform their service model.
Outlook for Edge Computing Applications Growth

North America accounted for the largest market share of more than 45 percent in 2018 and is projected to maintain dominance throughout the forecast period, as the consumer and business sectors in the region rely on more IoT devices.

Higher cloud computing adoption in the region is contributing to the ongoing market transition. The development of innovative concepts, such as autonomous cars, within North America is also expected to propel the regional market growth in the years to come.

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