Edge computing is described as a distributed cloud computing architecture, which is used to bring computing and data storage closer to the user location. Unlike the traditional cloud architectures, where the storage and processing are directed towards a centralized entity. Market research states that the edge computing paradigm transfers the processing to dedicated devices known as edge devices. According to market database, edge data centers have been a huge help for the computing world as these facilities are small and located close to the end-user base. Market research tools suggest that this has helped in achieving convenient delivery of cloud computing resources and cached content whenever and wherever they need it the most. The value chain for edge computing and its increased application in the global market can be studied using Global Market Database. The cloud based market research tool studies the shift in line with changing market trends.
According to market database, major industry verticals include manufacturing, energy & utilities, government & defense, telecommunications, media & entertainment, retail, transportation & logistics, healthcare, banking, and others.
Market research suggests that the convergence of edge computing and the Industrial Internet of Things (IIOT) has allowed organizations to tap the power of edge computing resources. A greater shift towards digitalization due to COVID-19 has led to advancements in this market according to market research tools. The edge computing technology offers various advantages such as reduced storage costs, low latency processing, and enhanced performance.
Classification of Edge Computing Based on Components:
Market database suggests that the components that provide a holistic picture of edge computing include hardware, platform, and services components. According to market research tools, the hardware vertical has experienced a greater share in the market. As hardware components are required to deploy the decentralized architecture of edge computing at scale. Advancements in hardware components are expected to provide faster data transmission, reduce network traffic, and minimize costs by the use of lightweight frameworks. The prominent growth segments in the components market can be studied through Global Market Database. The market research tool provides free market data across 600+ markets. Such a mix of factors has contributed towards an optimistic market outlook for hardware components.
According to market database, hardware components are further divided into edge devices, gateways & servers, local data centers, and routers. Market research states that edge devices act as the initial point of data source which can any internet-enabled device. The data from these devices are routed to the dedicated gateways & servers which facilitate the operation of the entire distributed network. According to market research, local data centers are dedicated facilities that are small in size and used for data storage and processing. Market research suggests that edge routers are regarded as crucial elements as they handle the security of the network by screening out unauthorized access requests.
According to the market database, based on the platform, the edge computing technology can be deployed on-premise, cloud-based, and hybrid. Market research tools state that the on-premise deployment type makes use of smaller data servers that can be installed in the organizational building and act as a medium to access edge computing resources. Market research also states that this type of deployment offers the best performance in terms of transmission and processing. Cloud-based platforms offer different services via virtual environments and save the cost to install a physical device on the premises. The segment wise revenue generated by this market and its value chain can be studied through free market data. Relevant market information can be procured through market intelligence platforms like Global Market Database.
According to the market database, the services offered by the edge computing technology can be divided into Information Technology (IT) based, Operational Technology (OT), and hybrid (IT/OT). Market research states that the ICT module-based services offer the basic and advanced amenities to house the entire capacity of organization IT on the cloud. The OT service type is limited to a specific solution, processing, and restricted storage. The hybrid service model unlocks the true potential edge computing technology as it is highly efficient. According to market research tools, this service type has provided a superior user experience via personalized and predictive analytics capabilities. Such a mix of factors has contributed towards a positive market outlook for this service type.
Varied Applications of Edge Computing:
Market database states that edge computing technology is versatile and is used in different applications which are dependent on the type of industry vertical. According to market research tools, based on the global market and its applications for edge computing, the market is divided into smart cities, industrial internet of things (IIOT), remote monitoring, content delivery, augmented reality (AR), virtual reality (VR), autonomous vehicles, and others. According to market research tools, the industrial internet of things (IIOT) has commanded a greater share in the edge computing market. Market research states that this is due to an increase in the number of connected devices for industry operations which make use of a huge volume of data and require faster processing.
Market research suggests that the smart city vertical is expected to be the fastest-growing for edge computing services. According to the market database, the deployment of smart cities requires the processing of a huge volume of data from multiple sources and make use of advanced analytical abilities to make decisions in real-time. Market research tools state that smart cities are expected to require edge computing for different applications such as real-time traffic monitoring, security & surveillance, smart power grids, and much more. Autonomous vehicles are another significant contributor to the edge computing global market. Market database states that as the number of connected vehicles has increased, they are expected to require robust solutions for faster communication and processing at different locations. Automotive Edge Computing Consortium (AECC) is an organization that has started to provide the best practices for autonomous vehicles and drive computing convergence in the industry.
Market research tools state that the increased adoption of IoT devices is expected to drive the demand for low latency processing and access. According to the market database, as big data is the new norm to generate insights, there is a great need for hyper-localized data centers which have the desired storage capacity. Market research states that the demand for the efficient analytical solution offered via virtual environments for automated decision-making is expected to fuel the demand for edge computing technology.
COVID-19 accelerated the migration towards cloud architecture. The change in market outlook and the fast paced business recovery associated with the pandemic can be studied through Global Market Database. The market research tool provides a detailed analysis of the drivers, restraints, and challenges of a sector.
According to the market database, cloud frameworks have become the new imperative to drive business recovery. Market Analysis states that streaming service providers witnessed huge business growth and made use of edge computing to optimize the network traffic and deliver content in an optimum fashion. In the healthcare module, the trend of telemedicine and remote patient monitoring experienced sharp growth. Market database also suggests that edge computing helped to deliver these services with ease and allowed faster processing of electronic health records.
According to the market database, the introduction of 5G is expected to widen the scope of connected devices and enhance the communication between these devices. Market research tools suggest that edge computing is expected to act as the crucial medium to connect these devices in different regions and provide improved processing capabilities. Advancements in cybersecurity have allowed us to cover the vulnerabilities in the edge computing architecture. Improvement in cybersecurity services has allowed to curb data leaks and provide better data integrity for the users.
The U.S Market Perspective:
According to the market database, the region has experienced a greater share in the edge computing market. Market research suggests that this is due to the presence of major players in the country. U.S was one of the early adopters of edge computing technologies and drove the convergence of IIOT services. According to the market database, the presence of next-generation startups and conducive government policies have contributed to the demand for edge computing in this region.
Market research indicates that enhanced research capacity coupled with improved collaboration has helped to drive innovation in this market. For instance, in 2020, Purdue university partnered with an edge computing solution provider to enhance their research capacity. Market research reports suggest that this partnership led to gather, collate, process, and transmit large volumes of data across multiple sensors. This helped the university to save time and money by increasing the speed and accuracy of their research and hence aiding the positive market outlook. Other partnerships include, in Feb 2019, a major player in the U.S partnered with an American telecommunications company to provide solutions tailored for network slicing and mobile edge computing by leveraging the power of 5G.