Edge computing market to provide ‘lucrative opportunities’
Allied Market Research recently published a report (Edge Computing Market: Global Opportunity Analysis and Industry Forecast 2018-2025) that yielded some interesting findings.
The market generated US$1.73 billion in 2017 and is expected to attain $16.55 billion by 2025, registering a compound annual growth rate (CAGR) of 32.8% during the forecast period, 2018-2025.
Allied Market Research says the rise in number of intelligent applications, increasing load on cloud infrastructure, and the demand of assistance for real-time applications are all driving the growth of the global edge computing market.
Furthermore, the advent of 5G networks and the development of numerous frameworks and languages for IoT solutions is set to provide lucrative opportunities for emerging market players in the near future.
Despite this, Allied Market Research says the market growth is being significantly hampered by the lack of availability of local hardware and the overall higher maintenance costs.
By components, the solutions segment occupied almost 90% of the overall market share in 2017 and is expected to maintain its dominance through 2025. The software in edge computing solutions allows users to run local compute, messaging and data caching in a secure way for connected devices.
However, the services segment is poised to grow at the highest CAGR of 35.6% during the forecast period, owing to a growing need to manage analytical data throughout its lifespan.
The connected car segment is poised to grow at the fastest rate over the forecast period with a 35.9% CAGR – largely due to the increasing need to deliver real time infotainment and other services in cars.
However, the security and surveillance segment is expected to continue its stronghold over the industry and generate almost one-fifth of the global revenue by 2025 as demand remains for being able to utilise real time threat detection and reduced network latency.
Geographically, Asia Pacific is forecast to register the highest CAGR worldwide with 35.1% over the forecast period. This is said to be due to the strong penetration of mobile devices and cellular technologies in emerging economies such as China and India. However, North America was the largest market in 2017, capturing almost two-fifths of the market share and is expected to dominate the market through 2025.
Finally, there are several key vendors in the market but Allied Market Research says the most noteworthy ones are Amazon Web Services (AWS), AT&T, Cisco, Dell, Fujitsu, Huawei, IBM, Hewlett Packard Enterprise (HPE), Microsoft, and Nokia, among others.
They have adopted different strategies including mergers and acquisitions, collaborations, joint ventures, partnerships, and expansions to gain a strong position in the industry.