The global Edge Computing Market size reached USD 18.3 Billion in 2024. It is projected to reach USD 114.4 Billion by 2033, growing at a CAGR of 22.40% during 2025-2033. Market growth is driven by increasing demand for low-latency computing, advanced technologies, and concerns about security and compliance risks in centralized data centers.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Edge Computing Market Key Takeaways

• Current Market Size: USD 18.3 Billion in 2024
• CAGR: 22.40% (2025-2033)
• Forecast Period: 2025-2033
• North America held the largest market share by revenue in 2024.
• Hardware segment accounted for the highest market share by component.
• Large enterprises represent the dominant organization size segment.
• Energy and utilities emerged as the top-performing vertical.

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Market Growth Factors

The edge computing market is driven primarily by the growing demand for low-latency computing. This facilitates real-time decision-making and enhances performance across industries such as telecom, manufacturing, and healthcare. The rapid adoption of technologies like IoT, AI, and the expansion of high-speed 5G internet connectivity acts as a catalyst. Additionally, the rising volume of data-intensive applications in sectors including healthcare, finance, and retail further propels this growth.

Another core growth factor is the increasing digital transformation initiatives. Businesses are modernizing processes and leveraging IoT devices that require real-time data processing at the network edge. Edge computing's ability to handle data closer to its source improves operational efficiency and enhances customer experiences. Organizations are realizing edge computing as a vital enabler for their digital evolution across various verticals.

The market growth is also markedly influenced by security and compliance concerns associated with centralized data centers. Organizations are shifting towards decentralized solutions to mitigate risks. This momentum is bolstered by the need to reduce data transfer and storage costs while optimizing cloud resources efficiently. As a result, the adoption of hybrid cloud environments integrating cloud infrastructure with edge computing increases, leading to overall market expansion.

Market Segmentation

Breakup by Component:

• Hardware: Dominates the market; specialized devices with optimized processors, memory, and real-time analytics capabilities. Handles data processing closer to the source, reduces latency, and enhances system performance.
• Software: Not detailed separately in the text but included as a key component in edge computing solutions.
• Services: Not detailed separately in the text but part of the overall market offering.

Breakup by Organization Size:

• Small and Medium-sized Enterprises (SMEs): Segment considered but second to large enterprises in market size.
• Large Enterprises: Represents the largest segment; leverage edge computing for operational efficiency, real-time insights, and scalability, especially in data-heavy industries.

Breakup by Vertical:

• Manufacturing: Involves data processing for smart factories and automation.
• Energy and Utilities: Largest vertical; uses edge computing for real-time monitoring, predictive maintenance, and power optimization.
• Government and Defense: Not detailed separately.
• BFSI: Not detailed separately.
• Telecommunications: Not detailed separately.
• Media and Entertainment: Not detailed separately.
• Retail and Consumer Goods: Not detailed separately.
• Transportation and Logistics: Not detailed separately.
• Healthcare and Life Sciences: Not detailed separately.
• Others: Includes additional industry applications.

Regional Insights

North America dominates the edge computing market as of 2024, driven by strong investments in 5G, widespread cloud adoption, and advanced IT infrastructure. The region's focus on minimizing latency and optimizing decision-making processes across sectors like manufacturing, healthcare, finance, and transportation underpins its leadership position. This dominance shapes the global edge computing market landscape and encourages innovation.

Recent Developments & News

In January 2025, ZEDEDA reported doubling revenue and edge nodes managed in 2024, reflecting strong enterprise demand for scalable edge computing, especially in energy, transportation, manufacturing, retail, and agriculture. In June 2024, AAEON showcased edge AI solutions powered by NVIDIA Jetson modules at NVIDIA GTC Paris, emphasizing smart city applications via real-time video analytics. In July 2023, ABB and Microsoft collaborated to integrate generative AI into industrial digital solutions. Also in July 2023, AWS launched AWS HealthScribe, automating clinical documentation with generative AI. In August 2023, Cisco introduced automated ransomware recovery with Extended Detection and Response (XDR), enhancing cybersecurity.

Key Players

• ABB Ltd.
• Amazon Web Services (AWS), Inc.
• Cisco Systems Inc.
• Digi International Inc.
• General Electric Company
• Hewlett Packard Enterprise Development LP
• Huawei Technologies Co. Ltd.
• IBM Corporation
• Intel Corporation
• Microsoft Corporation
• SAP SE
• Siemens AG

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