This research study on the edge computing market involved extensive secondary sources, directories, IEEE Communication-Efficient: Algorithms and Systems, International Journal of Innovation and Technology Management, and paid databases. Primary sources were mainly industry experts from the core and related industries, preferred edge computing providers, third-party service providers, consulting service providers, end users, and other commercial enterprises. In-depth interviews with primary respondents, including key industry participants and subject matter experts, were conducted to obtain and verify critical qualitative and quantitative information and assess the market’s prospects.
Secondary Research
In the secondary research process, various sources were referred to identify and collect information for this study. Secondary sources included annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases. The data was also collected from other secondary sources, such as journals, government websites, blogs, and vendors’ websites. Additionally, the edge computing spending of various countries was extracted from the respective sources.
Primary Research
In the primary research process, various sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, such as Chief Experience Officers (CXOs), Vice Presidents (VPs), and directors specializing in business development, marketing, and edge computing providers. It also included key executives from edge computing vendors, system integrators (SIs), professional service providers, industry associations, and other key opinion leaders.
Notes: Tier 1 companies’ revenues are more than USD 10 billion; tier 2 companies’ revenues range between
USD 1 and 10 billion; and tier 3 companies’ revenues range between USD 500 million and USD 1 billion.
Other designations include sales managers, marketing managers, and product managers.
Source: Industry Experts
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Multiple approaches were adopted to estimate and forecast the edge computing market. The first approach involved estimating the market size by companies’ revenue generated through the sale of edge computing services.
Market Size Estimation Methodology- Top-down approach
The top-down approach prepared an exhaustive list of all the vendors offering products in the edge computing market. The revenue contribution of the market vendors was estimated through annual reports, press releases, funding, investor presentations, paid databases, and primary interviews. Each vendor’s offerings were evaluated based on platform, degree of customization, type, application, end user, and region. The markets were triangulated through primary and secondary research. The primary procedure included extensive interviews for key insights from industry leaders, such as CIOs, CEOs, VPs, directors, and marketing executives. The market numbers were further triangulated with the existing MarketsandMarkets’ repository for validation.
Market Size Estimation Methodology-Bottom-up approach
The bottom-up approach identified the adoption rate of edge computing services among different verticals in key countries, considering their regions contributing the most to the market share. For cross-validation, the adoption of edge computing services among enterprises and other use cases for their regions was identified and extrapolated. Use cases identified in different areas were weighed for the market size calculation.
Based on the market numbers, the regional split was determined by primary and secondary sources. The procedure included an analysis of the edge computing market’s regional penetration. Based on secondary research, the regional spending on Information and Communications Technology (ICT), socioeconomic analysis of each country, strategic vendor analysis of major edge computing service providers, and organic and inorganic business development activities of regional and global players were estimated.
Edge Computing Market : Top-Down and Bottom-Up Approach
Data Triangulation
After determining the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. Data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.
Market Definition
Edge computing is a distributed computing paradigm that processes and stores data closer to its source, rather than relying solely on centralized cloud servers. By bringing computation and analysis to the network’s edge, such as IoT devices, sensors, or local servers, edge computing minimizes latency, reduces bandwidth usage, and enhances data privacy. This approach enables real-time decision-making and supports applications that demand immediate responsiveness, such as autonomous vehicles, industrial automation, smart cities, and immersive media. Edge computing is vital in managing the explosion of data generated by connected devices, facilitating faster insights, increased security, and improved reliability across diverse industries.
Stakeholders
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Training and consulting service providers
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Information Technology (IT) infrastructure providers
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Component providers
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System Integrators (SI)
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Support service providers
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Cloud Service Providers (CSPs)
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Government organizations and standardization bodies
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Datacenter providers
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Regional associations
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Independent hardware and software vendors
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Value-added resellers and distributors
Report Objectives
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To define, describe, and forecast the edge computing market based on component {edge hardware (edge servers, edge gateways, edge sensors, edge devices), edge software (data management, device management, application management, network management) and services (professional services, and managed services)}, by application {real-time processing & control, edge-AI & inference, IoT & industrial automation, content delivery & media, immersive & interactive experiences, and other applications (security & access control, healthcare & telemedicine, consumer & smart living)}, by organization size (large enterprises, small & medium sized enterprises), by deployment mode (cloud edge, on-premises edge, device edge), by vertical {manufacturing/industrial, energy & utilities, software & IT services, telecommunications, automotive, media & entertainment, retail & consumer goods, transportation & logistics, healthcare & life sciences, and other verticals (education, government & public sector, BFSI)} and region.
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To forecast the market size of five major regional segments: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
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To strategically analyze the market subsegments with respect to individual growth trends, prospects, and contributions to the total market.
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To provide detailed information related to the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges).
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To strategically analyze macro and micro markets with respect to growth trends, prospects, and their contributions to the overall market.
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To analyze industry trends, patents and innovations, and pricing data related to the market.
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To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for major players.
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To analyze the impact of AI/generative AI on the market.
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To profile key players in the market and comprehensively analyze their market share/ranking and core competencies.
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To track and analyze competitive developments such as mergers & acquisitions, product launches, and partnerships & collaborations in the market.
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Product Analysis
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The product matrix provides a detailed comparison of the product portfolio of each company.
Geographic Analysis as per Feasibility
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Further breakup of the North American edge computing market
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Further breakup of the European edge computing market
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Further breakup of the Asia Pacific edge computing market
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Further breakup of the Middle East & African edge computing market
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Further breakup of the Latin American edge computing market
Company Information
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Detailed analysis and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Edge Computing Market