Market Overview

The global Edge Computing Market reached a value of USD 18.3 Billion in 2024. It is expected to grow significantly at a CAGR of 22.40% over the forecast period from 2025 to 2033, reaching USD 114.4 Billion. This growth is driven by rising demand for low-latency computing, increasing adoption of advanced technologies, expansive use of data-intensive applications, and concerns over security in centralized data centers.

Study Assumption Years

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

Edge Computing Market Key Takeaways

• Market Size in 2024: USD 18.3 Billion
• CAGR (2025-2033): 22.40%
• Forecast Period: 2025-2033
• North America held the largest market share by revenue in 2024.
• Hardware accounted for the highest market share by component.
• Large enterprises represented the dominant organization size segment.
• Energy and utilities emerged as the top-performing vertical.
• North America is driven by strong 5G investment, widespread cloud adoption, and established data center infrastructure.

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Market Growth Factors

The global edge computing market is really taking off, driven by the growing need for low-latency computing that supports real-time decision-making and boosts performance. This growth is largely due to the rapid rise of IoT, advancements in AI technologies, and the expansion of high-speed 5G connectivity. Industries like healthcare, finance, and retail are seeing a surge in data-heavy applications, which is fueling market growth. Plus, companies are eager to cut down on data processing times, which only adds to the demand.

Digital transformation efforts are also playing a big role in this market as businesses modernize their operations and adopt data-driven decision-making. Edge computing is a perfect fit for industries that are evolving with these changes, as it allows for data to be processed closer to where it’s generated. With the increasing number of IoT devices, there’s a pressing need for quick and efficient data processing, which is pushing the deployment of edge computing infrastructure across various sectors.

The momentum in the market is further bolstered by concerns about security and compliance risks associated with centralized data centers. Companies are looking for decentralized solutions for data handling and storage to address these issues. Additionally, there’s a growing demand for integration between cloud infrastructure and edge computing in hybrid environments, which helps optimize cloud resource usage and manage data transfer costs. All these factors are contributing to the global rise in edge computing adoption.

Market Segmentation

By Component:

• Hardware: Dominates the market due to growing demand for specialized hardware capable of real-time analytics and low latency processing at the network edge. Innovations include edge servers, gateways, sensors, and devices with optimized processors.
• Software
• Services

By Organization Size:

• Large Enterprises: Represent the largest segment. Their extensive operations require scalable and customized edge computing solutions for optimized data processing and faster decision-making across industries like manufacturing, healthcare, and logistics.
• Small and Medium-sized Enterprises (SMEs)

By Vertical:

• Energy and Utilities: The sector leads due to its need for rapid decision-making and efficient operations by integrating IoT and real-time analytics. Edge computing enables real-time monitoring, predictive maintenance, and optimization of power generation and consumption.
• Manufacturing
• Government and Defense
• BFSI
• Telecommunications
• Media and Entertainment
• Retail and Consumer Goods
• Transportation and Logistics
• Healthcare and Life Sciences
• Others

Regional Insights

North America dominates the edge computing market, holding the largest share by revenue in 2024. This leadership is driven by strong investments in 5G technology, widespread cloud adoption, and a robust IT infrastructure. North America extensively leverages edge computing to enhance sectors like manufacturing, healthcare, finance, and transportation. The region’s advanced data center setups and early IoT deployment facilitate minimizing latency and improving decision-making processes.

Recent Developments & News

• January 2025: ZEDEDA doubled its revenue and edge nodes under management in 2024, reflecting strong enterprise demand across sectors including energy, transportation, manufacturing, retail, and agriculture. CEO Said Ouissal emphasized the market’s shift from pilot phases to full deployment.
• June 2024: AAEON presented edge AI solutions powered by NVIDIA Jetson modules at NVIDIA GTC Paris, demonstrating smart city applications like crowd density analysis. They also launched the NV8600-Nano AI Developer Kit featuring the Jetson Orin Nano.
• July 2023: ABB and Microsoft collaborated to integrate generative AI into industrial digital solutions, enhancing safety, intelligence, and sustainability.
• July 2023: Amazon Web Services (AWS) introduced AWS HealthScribe, a generative AI-based service for automating clinical documentation creation.
• August 2023: Cisco Systems launched automated ransomware recovery via its Extended Detection and Response (XDR), enabling autonomous recovery from ransomware attacks.

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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