Edge Computing Market by Component, By Vertical & By Region

You may have heard the term “edge computing” bandied about lately, but what does it actually mean? Put simply, edge computing describes a decentralized IT architecture in which data and workloads are pushed out to the edge of the network, closer to the end user.

Introduction of the Edge Computing Market

You might be wondering what edge computing is and why it’s such a big deal. Simply put, edge computing is the distribution of resources and services away from the traditional centralized data centers.

This brings those resources and services closer to the users, which in turn improves performance and efficiency.This is a relatively new market, but it’s growing quickly.

Key Players of the Market

Samsung, IBM, and Microsoft are some of the top players in the edge computing market. Each of these companies has its own strengths and weaknesses, which are worth taking into account if you’re looking to invest in this market.

Samsung is a leader in hardware development and has a strong presence in the telecom and consumer electronics sectors. IBM is a powerhouse in the cloud computing market and has years of experience in developing and deploying enterprise-level edge solutions. Microsoft is a major player in the software industry, with a long history of developing cutting-edge cloud and edge technologies.

Component Segment Analysis

We all know that technology components are essential for edge computing. It is no wonder then, that the component segment is one of the most important in the edge computing market.

So what components do we need to look at when assessing the edge computing market? Well, hardware components like processors and memory are key, but software and communication infrastructure components such as middleware, operating systems, and network technologies are just as important.

On top of this, the component segment also includes security solutions such as authentication, encryption and firewall services. All of these solutions can help ensure data privacy and security in an increasingly connected world. And finally, services like analytics and consulting can help organizations make sense of their data ecosystem.

Analyzing each of these components is essential for understanding how the edge computing market is evolving and what companies should be looking out for in order to remain competitive in such a rapidly-paced market.

Vertical Segment Drivers

The Edge Computing market is driven by various verticals such as banking, financial services and insurance (BFSI), healthcare, media and entertainment, retail, automotive, oil & gas and others. As for the BFSI vertical, the increase in digital banking services has augmented the demand for edge computing solutions. This is mainly to reduce latency in transactions which can be critical during peak hours.

For the healthcare vertical, edge computing helps monitor patient health and manage medical records. The healthcare sector has been using this technology for quite some time now and it’s slowly becoming an industry standard.

High demand for data storage is observed in the media & entertainment industry due to an ever-increasing content offerings. Edge computing technologies help store large amounts of data in a secure manner with low latency which has made them a popular choice amongst this vertical.

In contrast to these stable markets, automotive industry is also making rapid advancements in edge computing technology thanks to autonomous vehicles development which requires massive security & data processing power. All these factors are helping boost the growth of Edge Computing market across various verticals.

Organization Size Segment Drivers

You’ll find that the size of a company is a key factor when it comes to edge computing market adoption. Large corporations are more likely to invest in edge computing as they have larger budgets and more resources to adopt the technology. Additionally, these types of organizations tend to have more complex systems, meaning there’s a greater need for an edge computing solution.

On the other hand, you’ll find that small- and medium-sized businesses (SMBs) can benefit from this type of technology too since it can help them reduce costs and benefit from improved efficiencies.

A key point here is that companies of all sizes should consider taking advantage of the edge computing market if they wish to improve their operations while reducing costs.

Regional Drivers

When it comes to the edge computing market, regional drivers play an important role too. Depending on where you’re located, these regional drivers can take different forms.

In North America, for example, high investments in technology and the presence of major data center operators are key factors driving market growth in the region. On the other hand, in Europe—governments are investing heavily in data centers and edge computing solutions which has resulted in a surge in demand.

This is likely due to rising disposable income, increased access to digital technologies, and increased demand for cloud-based services.

Edge Computing Market Segmentation

Now that you have a better understanding of edge computing, let’s look into the markets that are using edge computing.

When looking at components, there are multiple pieces that need to work together for successful edge computing: storage devices, networking equipment, processors and microcontrollers. By looking at these different facets individually, it makes understanding the size of the market easier.

When discussing the verticals involved in edge computing, the most common are manufacturing, BFSI and telecom. However, it doesn’t stop there—retail, automotive and logistics also has a presence in this sector.

Finally, regionally speaking, North America currently dominates the edge computing market due to high technology adoption rate and early innovation in this space. In addition, other countries such as China and Japan are investing heavily in this field which will further propel growth both within their respective regions as well as globally.

Segmentation by Component

When it comes to edge computing, there are four main components to consider: hardware, software, services and platforms. Let’s take a closer look at each one.

Hardware is the physical infrastructure layer that makes up the edge computing architecture. It includes IoT devices, sensors and gateways which collect data from various sources and carry out computations. It also includes the storage needed for storing data collected from integrated systems.

Software refers to the applications and tools used for building programs which control devices connected to edge networks. This includes middleware and operating systems that make it possible for edge computing technologies to process data quickly in real-time.

Services provide managed cloud services for setting up and running applications as well as software updates related to edge computing technologies. They also provide maintenance, security and analytics related services including support for software debugging or troubleshooting on-site if needed.

They provide comprehensive development frameworks such as APIs and SDKs to help developers build sophisticated applications faster.

Segmentation by Application

Edge computing applications can be segmented into industrial automation and control, healthcare, automotive, agriculture, retail and marketing, media & entertainment, and others (including robotics and cloud gaming).

Let’s take a closer look at each of these applications. Industrial automation and control use edge computing to manage processes in industrial equipment across different settings. Healthcare uses the technology to revolutionize patient care by providing real-time insights. The automotive industry is using edge computing for autonomous vehicles.

The agriculture industry is using the technology for yield optimization and automated irrigation systems. Retailers are using it for customer experience improvement through personalized recommendations or advertising. Media & entertainment companies are leveraging edge computing for immersive content experiences that would have otherwise been limited due to latency issues.

Segmentation by Organization Size

Generally speaking, these can be broken down into four distinct segments: small & medium enterprises, large enterprises, government/public institutions, and academic/research institutions.

The small & medium enterprise (SME) segment is expected to experience the strongest growth in the Edge Computing market over the forecast period.

Governments and public institutions are also playing a key role in driving market growth due to their increasing focus on deploying edge computing technologies for security reasons.


In short, the edge computing market is still in its early stages, but it is growing rapidly. The main drivers of this growth are the need for low-latency and high-bandwidth applications, the increasing adoption of IoT devices, and the growing need for real-time data processing.

The major restraints on the growth of the edge computing market are the high initial investment costs and the lack of standardization.

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