Mobile computing, decreasing cost of computer components, and the large number of networked devices involved in Internet of Things (IoT) architecture are some of the key factors that are pushing the adoption of edge computing architecture, according to a new report published by Transparency Market Research.
The Transparency Market Research report estimates that the global edge computing market will be evaluated at $8,024.5 Million in 2017 and further reach $13,313.7 Million by the end of 2022 clocking a 10.7% CAGR therein.
One of the key factors driving the edge computing market is the proliferation of Internet of Things, according to the report. Edge computing enables data generated by Internet of Things (IoT) devices to be processed as close to the source where it is created which eliminates the need to send it to data centers or clouds.
The global edge computing market is gaining from the challenges arising from the overuse of traditional centralized cloud computing architecture, according to the report. As a result of IoT adoption, a significant increase in load on cloud impacting its functionality and response speed has posed the need to process or store critical data locally.
About Edge Computing
Edge computing would offer economic benefits for organizations. This is because carrying out computing closer to the edge of the network helps organizations analyze crucial data in real-time. Edge computing would be useful for organizations across many industries such as manufacturing, telecommunications, healthcare, and finance among others.
Edge computing deployments are ideally suited in a number of situations, according to Transparency Market Research. One is when IoT devices have insufficient connectivity and it is not feasible for IoT devices to be seamlessly connected to a central cloud. High latency, low spectral efficiency, and non-adaptive machine type of communication are some of the serious challenges of a cloud computing framework that is leading to a shift to computing to the edge devices of the network.
Edge Computing Forecast
Here are some key insights about developments in the global edge computing market in the forthcoming years:
Among the key segments based on component, hardware is the leading segment that is anticipated to represent 54.3% of the market in 2017. Progressing at a CAGR of 10% over the forecast period, the global edge computing market is likely to represent 52.8% of the global edge computing market.
From a geographical standpoint, North America is estimated to dominate the global edge computing market vis-à-vis revenue in 2017, and the trend is anticipated to continue over the forecast period.
Japan is a key market for edge computing. Expanding at an outstanding 16.4% CAGR between 2017 and 2022, the market’s valuation is likely to touch $1,763.5 Million by 2022 end.