Edge Infrastructure Market Overview
The edge infrastructure Market size is projected to grow from USD 74.25 billion in 2024 to USD 672.61 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 37.00% during the forecast period (2024 - 2032). Additionally, the market size for edge infrastructure was valued at USD 54.2 billion in 2023.
A significant market driver propelling the growth of the edge infrastructure market is 5G operations, which complement the growing use of IoT.
Figure1: Edge Infrastructure Market, 2018 - 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Edge Infrastructure Market Trends
Rapid surge in Industry 4.0 is driving the market growth
The market CAGR is being stimulated by the rise of Industry 4.0. Manufacturing and operations are being transformed by this industrial revolution, which is defined by the convergence of digital technology, automation, and data interchange. The integration of artificial intelligence, IoT, big data analytics, and smart devices improves productivity, efficiency, and connectedness. The need for edge infrastructure is growing as more businesses adopt Industry 4.0 concepts. The capacity of edge infrastructure to process data at or close to its source fits very well with Industry 4.0's real-time demands. By enabling local data analysis, factories, and industrial facilities may cut down on latency and make quick decisions. Edge infrastructure is crucial for Industry 4.0 in order to utilize the massive volumes of data produced by networked equipment and gadgets. Moreover, extracting actionable insights at the edge helps enterprises optimize workflows and allow predictive maintenance. Thus, as companies look to realize the full potential of this industrial revolution, Industry 4.0's development is driving edge infrastructure adoption.
The market is being supported by the increased focus on research and development (R&D) efforts. Institutions and organizations are devoting more and more funds to investigating new technology, improving current procedures, and creating creative answers to challenging problems. The market for edge infrastructure is directly impacted by this increased emphasis on R&D since it promotes the development of edge-related technologies. Better hardware, better software frameworks, and better data processing techniques are the results of the ongoing investigation and improvement of edge infrastructure capabilities. These advancements address the changing needs of companies looking for flexible and quick data processing solutions. Beyond simple technological advancement, edge infrastructure and expanding R&D efforts complement one another. Furthermore, it includes developing customized software, tools, and tactics that make use of edge infrastructure's advantages. The adoption of edge infrastructure becomes more feasible, efficient, and in line with the various needs of sectors as R&D activities propel its evolution. Thus driving the edge infrastructure market revenue.
Edge Infrastructure Market Segment Insights
Edge Infrastructure Component Insights
The edge infrastructure market segmentation, based on component, includes Hardware, Software, and Services. In 2023, the hardware segment dominated the market. There is a rising need for specialized hardware that can process and manage data at the network edge in an effective manner as more and more enterprises implement edge infrastructure solutions. Hardware components designed to meet edge infrastructure's specific requirements—like real-time analytics and low-latency processing—are being developed.
Figure 2: Edge Infrastructure Market, by Component, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Edge Infrastructure Application Insights
The edge infrastructure market segmentation, based on application, includes Smart Cities, Industrial Internet of Things (IloT), Remote Monitoring, Content Delivery, Augmented Reality (AR) & Virtual Reality (VR), and Others. The Industrial Internet of Things (IloT) category generated the most income in 2023, spurred by manufacturers' adoption of edge infrastructure as a result of Industry 4.0. Data from various remote sensors, controllers, and servers is used in industry data processing processes; this data must be thoroughly examined before it can be used to support real-time decision-making.
Edge Infrastructure Organization Size Insights
The edge infrastructure market segmentation, based on organization size, includes Large Enterprises and SMEs. The large enterprises category generated the most income in 2023. Large businesses have a range of requirements, and the flexibility and scalability of edge infrastructure make it ideal. Modern technology like real-time data analytics and the Internet of Things (IoT) must be incorporated because this business is going digital. Because the energy and utility sectors need to make decisions quickly and run their businesses efficiently, edge infrastructure's capacity to handle data at the point of generation is ideal.
Edge Infrastructure Verticals Insights
The edge infrastructure market segmentation, based on verticals, includes Manufacturing, Energy & Utilities, Government & Defense, Telecommunications, Media & Entertainment, Retail & Consumer Goods, Transportation & Logistics, Healthcare & Life Sciences, and Other Verticals. The energy & utilities category generated the most income in 2023. These companies, with their extensive resources and complex operational needs, are gradually putting edge infrastructure solutions into place to enhance data processing and increase operational efficiency.
Edge Infrastructure Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American area will dominate this edge infrastructure market. North America, a center for digital transformation and technical innovation, is embracing edge infrastructure solutions quickly in a number of industries. The region's concentration on real-time data analytics, growing IoT device deployment, and sophisticated IT infrastructure all contribute to the surge in demand for edge infrastructure.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: EDGE INFRASTRUCTURE MARKET SHARE, BY REGION 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's edge infrastructure market accounts for the second-largest market share because the area is placing more and more focus on advancing networking technologies. In addition, the advent of Industry 4.0, IIoT, 5G network services, and other technological advancements have increased the volume of data created by connected devices and made a robust computing infrastructure necessary. Further, the German edge infrastructure market held the largest market share, and the UK edge infrastructure market was the fastest-growing market in the European region.
The Asia-Pacific Edge Infrastructure Market is expected to grow at the fastest CAGR from 2024 to 2032 because of the rapid digitization, technological innovation, and proliferation of connected devices in developing countries like South Korea, Japan, China, and India. Furthermore, the existence of significant telecom companies and rising IT expenditures for edge infrastructure deployment promote regional expansion. Moreover, China’s edge infrastructure market held the largest market share, and the Indian edge infrastructure market was the fastest-growing market in the Asia-Pacific region.
Edge Infrastructure Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the edge infrastructure market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the edge infrastructure industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the edge infrastructure industry to benefit clients and increase the market sector. In recent years, the edge infrastructure industry has offered some of the most significant advantages to medicine. Major players in the edge infrastructure market are attempting to increase market demand by investing in research and development operations, including ABB Ltd., Amazon Web Services (AWS), Inc., Hewlett Packard Enterprise Development LP, Cisco Systems Inc., SAP SE, Digi International Inc., Huawei Technologies Co. Ltd., IBM Corporation, General Electric Company, Intel Corporation, Microsoft Corporation, and Siemens AG.
The company Hewlett Packard Enterprise Co. (HPE) offers cloud-based services and intelligent solutions. The company offers converged systems, software, servers, storage devices, networking equipment, cloud service-based products, and bespoke financial solutions. Additionally, it offers services for education and training, IT support, and IT consultancy. HPE provides services to small and medium-sized organizations, the financial services, healthcare, manufacturing, and telecommunications sectors, as well as big enterprise groups in the public and commercial sectors.
Digi International Inc. (Digi) offers products, services, and solutions for the Internet of Things connectivity. The company sells industrial and enterprise routers, wireless and embedded modules, communication sub-assemblies, and completed goods. In addition, it offers condition-based monitoring, employee task management, wireless temperature, and professional services. Under the brand names Rabbit, Digi, Connect, Digi XBee, Digi Remote Manager, and OpenGear, Digi International sells its products. It provides services to the transportation, energy, industrial, and medical sectors.
Key Companies in the Edge Infrastructure Market Include
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ABB Ltd.
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Amazon Web Services (AWS), Inc.
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Hewlett Packard Enterprise Development LP
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Cisco Systems Inc.
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SAP SE
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Digi International Inc.
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Huawei Technologies Co. Ltd.
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IBM Corporation
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General Electric Company
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Intel Corporation
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Microsoft Corporation
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Siemens AG
Edge Infrastructure Market Segmentation
Edge Infrastructure Component Outlook
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Hardware
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Software
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Services
Edge Infrastructure Application Outlook
Edge Infrastructure Organization Size Outlook
Edge Infrastructure Verticals Outlook
Edge Infrastructure Regional Outlook
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North America
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 54.2 Billion |
| Market Size 2024 |
USD 74.25 Billion |
| Market Size 2032 |
USD 672.61 Billion |
| Compound Annual Growth Rate (CAGR) |
37.00% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019-2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Component, Application, Organization Size, Verticals, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
ABB Ltd., Amazon Web Services (AWS), Inc., Hewlett Packard Enterprise Development LP, Cisco Systems Inc., SAP SE, Digi International Inc., Huawei Technologies Co. Ltd., IBM Corporation, General Electric Company, Intel Corporation, Microsoft Corporation, and Siemens AG |
| Key Market Opportunities |
Expanding research and development (R&D) initiations |
| Key Market Dynamics |
Growth of Industry 4.0 Growing proposals for digital transformation |
Frequently Asked Questions (FAQ) :
The edge infrastructure market size was valued at USD 54.2 Billion in 2023.
The market is projected to grow at a CAGR of 37.00% during the forecast period, 2024-2032.
North America had the largest share of the market
The key players in the market are ABB Ltd., Amazon Web Services (AWS), Inc., Hewlett Packard Enterprise Development LP, Cisco Systems Inc., SAP SE, Digi International Inc., Huawei Technologies Co. Ltd., IBM Corporation, General Electric Company, Intel Corporation, Microsoft Corporation, and Siemens AG.
The hardware category dominated the market in 2023.
The large enterprises category had the largest share of the market.
