The global Edge computing market size reached USD 18.3 Billion in 2024. It is projected to grow to USD 114.4 Billion by 2033, with a compound annual growth rate (CAGR) of 22.40% from 2025 to 2033. This growth is driven by increasing demand for low-latency computing, advanced technologies adoption, data-intensive applications proliferation, and concerns about security risks of centralized data centers.

Study Assumption Years

• Base Year: 2024

• Historical Period: 2019-2024

• Forecast Period: 2025-2033

Edge Computing Market Key Takeaways

• Current Market Size: USD 18.3 Billion in 2024

• CAGR: 22.40% during 2025-2033

• Forecast Period: 2025-2033

• North America held the largest market share in revenue in 2024.

• Hardware accounted for the highest market share among components.

• Large enterprises dominated the organization size segment.

• The energy and utilities sector emerged as the leading vertical.

• Increasing deployment in telecom, manufacturing, and healthcare sectors fuels growth.

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Market Growth Factors

The growing need for real-time data processing is a major growth factor for the edge computing market. Industries such as manufacturing, healthcare, transportation, and BFSI rely on instant data analysis to support time-critical operations. Edge computing processes data closer to the source, reducing latency and improving response times compared to centralized cloud systems. This is especially important for applications like smart factories, autonomous vehicles, video surveillance, and remote patient monitoring. Enterprises benefit from faster decision-making, improved system reliability, and uninterrupted operations. For SMEs, edge computing enables cost-efficient deployment of real-time applications without heavy cloud dependency. As digital transformation accelerates, organizations increasingly adopt edge solutions to handle large data volumes quickly and efficiently.

The rapid adoption of Internet of Things (IoT) devices is strongly driving the edge computing market growth. Sectors such as retail, energy and utilities, healthcare, and logistics are deploying millions of connected sensors, cameras, and smart devices. These devices generate massive data volumes that are difficult to process centrally. Edge computing helps analyze data locally, reducing network congestion and bandwidth costs. For large enterprises, this ensures a scalable and secure IoT infrastructure, while SMEs gain affordable access to smart automation technologies. Edge computing also improves data reliability in remote or low-connectivity areas. As smart cities, smart grids, and industrial IoT projects expand globally, the demand for edge computing solutions continues to rise steadily.

The global rollout of 5G networks is significantly boosting the edge computing market. High-speed connectivity, ultra-low latency, and improved network reliability make edge computing more effective across multiple verticals. Telecommunications, media and entertainment, transportation, and industrial processing sectors benefit from seamless real-time applications such as AR/VR streaming, smart traffic systems, and automated manufacturing. Edge computing complements 5G by processing data locally, ensuring faster service delivery and reduced network load. For enterprises, this combination enables next-generation digital services and improved customer experiences. SMEs can also leverage 5G-enabled edge platforms to deploy advanced applications without high infrastructure costs, supporting broader market adoption.

Market Segmentation

Breakup by Component:

• Hardware: Includes edge servers, gateways, sensors, and edge devices with optimized processors and memory. These components are designed for low-latency processing and real-time analytics, enhancing performance at the network edge.

• Software: Not explicitly detailed in the source but categorized separately.

• Services: Not explicitly detailed in the source but categorized separately.

Breakup by Organization Size:

• Small and Medium-sized Enterprises (SMEs): Not detailed separately but part of overall segmentation.

• Large Enterprises: Represent the dominant segment, utilizing edge computing to optimize operations, reduce latency, and improve decision-making across data-intensive industries.

Breakup by Vertical:

• Manufacturing

• Energy and Utilities: The largest vertical segment, leveraging edge computing for real-time energy distribution monitoring, predictive maintenance, and power optimization.

• Government and Defense

• BFSI

• Telecommunications

• Media and Entertainment

• Retail and Consumer Goods

• Transportation and Logistics

• Healthcare and Life Sciences

• Others

Each vertical benefits distinctly from edge computing for enhanced real-time data processing, operational efficiency, and cost-efficiency tailored to sector-specific needs.

Regional Insights

North America dominated the edge computing market in 2024, driven by strong investments in 5G technology, widespread cloud adoption, and an established data center infrastructure. The region's focus on IoT deployment and real-time analytics across sectors such as manufacturing, healthcare, finance, and transportation supports the rising demand. This dominance positions North America as the largest market geographically, influencing global market trends and innovation.

Recent Developments & News

• In January 2025, ZEDEDA reported doubled revenue and edge nodes managed in 2024, indicating rising enterprise demand across energy, transportation, manufacturing, retail, and agriculture.

• In June 2024, AAEON showcased edge AI solutions powered by NVIDIA Jetson modules at NVIDIA GTC Paris, including smart city applications.

• In July 2023, ABB and Microsoft collaborated to introduce generative AI to industrial digital solutions.

• Also in July 2023, Amazon Web Services (AWS) launched AWS HealthScribe, a generative AI service for automating clinical documentation.

• In August 2023, Cisco Systems introduced automated ransomware recovery features through its Extended Detection and Response (XDR) platform.

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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