5G Edge Computing Market Overview
As per MRFR analysis, the 5G Edge Computing Market Size was estimated at 27.12 (USD Billion) in 2022. The 5G Edge Computing Market Industry is expected to grow from 30.86(USD Billion) in 2023 to 98.75 (USD Billion) by 2032. The 5G Edge Computing Market CAGR (growth rate) is expected to be around 13.8% during the forecast period (2024 - 2032).
Key 5G Edge Computing Market Trends Highlighted
The major trends augmenting the market supply for 5G edge computing include expanding requirements for low latency apps and services, as well as the ever-growing number of IoT devices and the increased need for data to be processed efficiently and instantly. As the needs of consumers change there will also be expansion in the deployment of new edge devices as well as application of AI and machine learning.
Some of the recent patterns in 5G edge computing focus on applications, including increased use of hybrid cloud and edge models, the emergence of new cloud computing paradigms, and increased utilization of edge computing for non-relenting business applications. You can anticipate that these trends will only be important in the foreseeable future.
Key market drivers for 5G edge computing include increasing demand for low latency applications, growing adoption of IoT devices, and need for real-time data processing. Opportunities for growth lie in the development of new edge computing devices and services, as well as the integration of edge computing with other technologies such as AI and machine learning. Recent trends in the 5G edge computing market include the increasing adoption of cloud and edge hybrid models, the development of new edge computing platforms, and the growing use of edge computing for mission-critical applications. These trends are expected to continue in the future, leading to further growth in the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Edge Computing Market Drivers
Increasing demand for real-time applications and services
The increasing demand for real-time applications and services is a major driver of the growth of the 5G Edge Computing Market Industry. These applications and services require low latency and high bandwidth, which can be provided by edge computing. Edge computing brings the cloud closer to the user, reducing latency and improving performance. This makes edge computing ideal for applications such as online gaming, augmented reality, and virtual reality. As the demand for these applications and services continues to grow, so too will the demand for edge computing.
Growing adoption of 5G networks
The growing adoption of 5G networks is another major driver of the growth of the 5G Edge Computing Market Industry. 5G networks offer significantly faster speeds and lower latency than previous generations of wireless technology. This makes 5G ideal for edge computing, as it can provide the high bandwidth and low latency required by edge applications. As the adoption of 5G networks continues to grow, so too will the demand for edge computing.
Government initiatives to support the development of edge computing
Government initiatives to support the development of edge computing are also driving the growth of the 5G Edge Computing Market Industry. Governments around the world are recognizing the potential of edge computing to transform industries and improve the lives of citizens. As a result, many governments are providing funding and support for the development of edge computing technologies and applications.
5G Edge Computing Market Segment Insights
5G Edge Computing Market Component Insights
The 5G Edge Computing Market is segmented into hardware, software, and services. Among these segments, hardware is expected to hold the largest market share during the forecast period. The growth of this segment can be attributed to the increasing deployment of 5G networks and the need for specialized hardware to support edge computing applications. The hardware segment includes various components such as servers, storage devices, and network equipment. The demand for these components is driven by the increasing need for high-performance computing and low-latency data processing at the edge of the network.
As 5G networks become more widespread, the need for edge computing hardware will continue to grow. The software segment is also expected to witness significant growth in the coming years. This segment includes operating systems, middleware, and applications specifically designed for edge computing environments. The growth of this segment can be attributed to the increasing adoption of cloud-native applications and the need for specialized software to manage and orchestrate edge computing resources. The services segment includes managed services, professional services, and support services.
The growth of this segment can be attributed to the increasing demand for managed services from enterprises that lack the expertise or resources to manage their own edge computing infrastructure. Professional services, such as consulting and implementation services, are also expected to witness strong growth as enterprises seek assistance in deploying and managing their edge computing solutions. Overall, the 5G Edge Computing Market is expected to experience significant growth in the coming years. The increasing deployment of 5G networks, the growing adoption of edge computing applications, and the need for specialized hardware, software, and services are the key factors driving the growth of this market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Edge Computing Market Deployment Model Insights
The 5G Edge Computing Market is segmented by deployment modelThe deployment model segments the 5G Edge Computing Market into on-premises, cloud, and hybrid. Among these, the cloud segment is expected to hold the largest market share in 2023, accounting for over 40% of the 5G Edge Computing Market revenue. This growth is attributed to the increasing adoption of cloud-based services by enterprises, as well as the growing popularity of edge computing as a way to reduce latency and improve performance. The on-premises segment is expected to grow at a slower pace, but will still account for a significant share of the market. The hybrid segment is expected to experience the fastest growth, as enterprises look for ways to combine the benefits of both on-premises and cloud-based deployments.. Overall, the 5G Edge Computing Market is expected to grow at a CAGR of over 13% from 2023 to 2032.
5G Edge Computing Market Vertical Insights
The manufacturing vertical is projected to dominate the 5G Edge Computing Market segmentation by 2024, owing to the increasing adoption of smart manufacturing and industrial automation. The healthcare vertical is also expected to exhibit significant growth, driven by the rising demand for remote patient monitoring and telemedicine services. The transportation vertical is projected to witness a rise in demand for connected and autonomous vehicles, leading to increased adoption of 5G edge computing solutions. The retail vertical is expected to grow due to the increasing adoption of omnichannel retailing and personalized customer experiences. The utilities vertical is projected to show growth, driven by the need for smart grid management and distribution automation.
5G Edge Computing Market Enterprise Size Insights
The 5G Edge Computing Market is segmented by enterprise size into Small and Medium Enterprises (SMEs) and Large Enterprises. SMEs are expected to hold a significant market share in the coming years due to the increasing adoption of 5G technology by small and medium-sized businesses to improve their operational efficiency and customer experience. Large enterprises are also expected to contribute significantly to the market growth as they invest in 5G edge computing solutions to enhance their competitiveness and innovation capabilities.
5G Edge Computing Market Application Insights
The 5G Edge Computing Market is segmented by Application into Autonomous Vehicles, Augmented Reality/Virtual Reality (AR/VR), Industrial Automation, Smart Cities, and Video Analytics. The Smart Cities segment is expected to hold the largest market share in 2023, owing to the increasing adoption of smart city initiatives by governments and enterprises. The Video Analytics segment is expected to grow at the highest CAGR during the forecast period, due to the increasing demand for video analytics solutions for security and surveillance applications.
Autonomous Vehicles: The growth of the autonomous vehicle segment is being driven by the increasing adoption of autonomous vehicles by various industries, such as automotive, transportation, and logistics. Augmented Reality/Virtual Reality (AR/VR): The AR/VR segment is growing due to the increasing popularity of AR/VR applications in various industries, such as gaming, entertainment, and retail. Industrial Automation: The Industrial Automation segment is growing due to the increasing adoption of industrial automation solutions by various industries, such as manufacturing, energy, and utilities.Smart Cities: The Smart Cities segment is growing due to the increasing adoption of smart city initiatives by governments and enterprises. Smart city initiatives are aimed at improving the efficiency and sustainability of cities by using technology. Video Analytics: The Video Analytics segment is growing due to the increasing demand for video analytics solutions for security and surveillance applications. Video analytics solutions can help organizations to identify and track objects, detect suspicious activities, and generate alerts.
5G Edge Computing Market Regional Insights
The 5G Edge Computing Market is segmented into North America, Europe, APAC, South America, and MEA. North America is expected to hold the largest market share in 2023, due to the presence of a large number of technology companies and the early adoption of 5G technology. APAC is expected to be the fastest-growing region, due to the increasing demand for mobile data and the growing number of smartphone users. Europe is expected to have a significant market share, due to the presence of a large number of automotive and industrial companies. South America and MEA are expected to have a smaller market share, due to the lower adoption rate of 5G technology.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Edge Computing Market Key Players And Competitive Insights
Major players in 5G Edge Computing Market are continuously striving to gain competitive advantage by expanding their product portfolio, establishing strategic alliances, and making significant investments in research & development. The 5G Edge Computing Market industry is highly dynamic, with new entrants and smaller players emerging to challenge the established players. Leading 5G Edge Computing Market players are focused on developing innovative solutions that cater to the evolving needs of end-users.
A prominent leader in the 5G Edge Computing Market, Nokia, has been recognized for its comprehensive portfolio of 5G edge computing products and services. The company has established strategic partnerships with leading telecom operators and cloud providers to enhance its market reach. Nokia's focus on developing end-to-end solutions, including hardware, software, and services, has contributed to its strong market position.
Another key player in the 5G Edge Computing Market is Ericsson. The company's strength lies in its extensive experience in mobile networking and its ability to offer integrated solutions that encompass 5G edge computing, cloud, and network optimization. Ericsson has partnered with leading technology providers to develop innovative edge computing platforms and applications. The company is actively involved in driving the 5G Edge Computing Market development through its participation in industry forums and its commitment to open standards.
Key Companies in the 5G Edge Computing Market Include
5G Edge Computing Market Industry Developments
The 5G Edge Computing Market is projected to reach USD 98.75 billion by 2032, exhibiting a CAGR of 13.8% during the forecast period (2024-2032). The market growth is attributed to the increasing adoption of 5G networks, growing demand for real-time applications, and the need for low latency and high bandwidth. Recent developments in the market include the launch of new 5G edge computing platforms and solutions, partnerships and collaborations among key players, and government initiatives to promote the adoption of 5G edge computing. For instance, in 2023, Nokia and Microsoft announced a partnership to develop and deploy a 5G edge computing platform that will enable enterprises to deliver low-latency applications and services.
5G Edge Computing Market Segmentation Insights
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Report Attribute/Metric
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Details
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Market Size 2022
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27.12(USD Billion)
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Market Size 2023
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30.86(USD Billion)
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Market Size 2032
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98.75(USD Billion)
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Compound Annual Growth Rate (CAGR)
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13.8% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2023 2022
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Ericsson, Huawei Technologies, Intel Corporation, Microsoft Corporation, Qualcomm Technologies, Verizon Communications, VMware, Inc., Dell Technologies, Telefonaktiebolaget LM Ericsson, IBM Corporation, AT, Nokia Corporation, Cisco Systems, Samsung Electronics
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Segments Covered
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Component, Deployment Model, Vertical, Enterprise Size, Application, Regional
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Key Market Opportunities
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Low-latency applications in industrial automationEnhanced mobile broadband in crowded urban areasPersonalized and location-aware services in retailRealtime monitoring and control in smart citiesImmersive augmented and virtual reality experiences
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Key Market Dynamics
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Increased bandwidth reduced latency, autonomous operations enhanced security, improved customer experience.
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The 5G Edge Computing Market is expected to reached USD 30.86 billion in 2023 and is projected to grow atregister a CAGR of 13.8% to reach USD 98.75 billion by 2032.
North America and Europe are expected to dominate the market throughout the forecast period, with Asia Asia-Pacific experiencing the fastest growth due to the increasing adoption of 5G technology in the region.
5G Edge Computing has a diverse range of applications, including autonomous vehicles, smart cities, industrial automation, healthcare, and gaming.
Major players in the market include Nokia, Ericsson, Huawei, Cisco Systems, and IBM.
Key trends driving the market growth include the increasing demand for low low-latency applications, the proliferation of IoT devices, and the growing adoption of cloud and edge computing.
Challenges faced by the market include concerns over data privacy and security, the need for robust network infrastructure, and the lack of skilled professionals.
Growth opportunities for the market lie in the expansion of 5G networks, the development of new applications, and the increasing adoption of edge computing in various industries.
The 5G Edge Computing Market is projected to reach USD 54.84 billion by 2025, growing at a CAGR of 13.8% during the forecast period.
The 5G Edge Computing Market is expected to reach USD 78.92 billion by 2028, continuing to grow at a steady pace.
The 5G Edge Computing Market is projected to reach USD 92.36 billion by 2030, nearing the end of the forecast period.
