Distributed Edge Cloud Market Overview
The Distributed Edge Cloud Market size is projected to grow from USD 1.58 billion in 2024 to USD 6.380 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 22.00% during the forecast period (2024 - 2032). Additionally, the market size for Distributed Edge Cloud was valued at USD 1.3 billion in 2023.
The market's growth may be ascribed to market drivers like the rising need for distributed edge clouds that are owned by manufacturing, energy, transportation and logistics, utilities, and other applications on a scale.
Figure1: Distributed Edge Cloud Market, 2018 - 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Distributed Edge Cloud Market Trends
Advancements in 5G networks are driving the market growth
Market CAGR for the distributed edge cloud is being driven by advancements in 5G networks. With edge locations serving as a network connecting physical sites, centralized data centers, base stations, remote locations, and on-premises, distributed edge cloud infrastructure combines edge computing with cloud computing concepts. Numerous micro data centers maintained by enterprises and service providers will be necessary due to the spread of distributed edge cloud sites. Strong and reasonably priced network connectivity that can handle and offer the network slicing offered by the 5G network will be necessary. The software has the potential to significantly contribute to the development of the 5G network and provide innovative network solutions that save costs while enhancing speed and security. For instance, in 2020, in response to the deployment of 5G, Microsoft stated that it would acquire Affirmed Networks in order to create new prospects. With the transition to 5G network operations, Microsoft aimed to revolutionize the telecom sector. As a result, 5G will be crucial for the spread of distributed edge cloud architecture across many regions.
The growing use of IoT is credited with driving the market expansion. In order to create intelligent communication environments like intelligent healthcare, intelligent transportation, intelligent shopping, and intelligent housing, IoT is crucial. Smart gadgets leverage distributed edge clouds to deliver real-time data interpretation and lower latency. For instance, in November 2022, the distributed edge cloud service VMware Cloud on Equinix Metal was made available by Equinix, Inc., an IT infrastructure provider, as part of an expanded cooperation with VMware, Inc., a cloud computing vendor. Enterprise applications would be supported by a secure and affordable solution thanks to the new distributed edge cloud service. For a range of use cases utilizing machine learning and IoT inference, including retail point of sale (POS), retail analytics, smart cities, game creation, and real-time financial market trading, VMware Cloud on Equinix Metal will be the best option.
The expanding distributed edge cloud market is mostly driven by the increased focus on improving user experience. User experience is becoming more and more important to businesses as a crucial component of their digital transformation plans. Faster data processing and lower latency are made possible by distributed edge cloud architecture, which enhances user experience. By carefully placing cloud resources closer to end users, organizations may reduce latency and response time and speed up access to services and applications. Through the ability to interact with cloud-based applications in real-time, this reduced latency significantly improves the overall user experience. Thus driving the distributed edge cloud market revenue.
Distributed Edge Cloud Market Segment Insights
Distributed Edge Service Insights
The distributed edge cloud market segmentation, based on service, includes Data Security, Data Storage, Networking, and Others. In 2023, the data storage segment dominated the market. By distributing user data over a network, the distributed edge cloud lowers network congestion and the risk of data loss by putting data closer to end users and speeding up transfer times. Distributed edge clouds are also a greener storage solution because they don't require centralized data centers or energy-intensive server cooling systems. Therefore, it is anticipated that these distributed edge cloud attributes will help explain why they will become more and more popular as a data storage option in the coming years.
Distributed Edge Cloud Enterprise Size Insights
The distributed edge cloud market segmentation, based on enterprise size, includes SMEs and Large Enterprises. The large enterprises category generated the most income in 2023. Proactive product creation between tech corporations is propelling significant expansion for major players in the sector. Through these collaborations, advanced distributed edge cloud solutions are produced by combining the strengths of multiple companies.
Figure 2: Distributed Edge Cloud Market, by Enterprise Size, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Distributed Edge Cloud End-Use Insights
The distributed edge cloud market segmentation, based on end-use, includes BFSI, Healthcare, Retail & E-Commerce, Manufacturing, IT & Telecom, Energy & Utilities, Media & Entertainment, Government & Defense, and Others. The BFSI category generated the most income in 2023 driven by several key elements, including the need for real-time transactions to have low-latency access to financial data, the ability to scale to meet changing customer demands and workloads, enhanced disaster recovery capabilities, and stringent regulatory requirements for data residency and security. Owing to distributed edge cloud technologies, the BFSI sector now possesses the flexibility and compliance required to effectively traverse the evolving environment of digital financial services.
Distributed Edge Cloud 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 distributed edge cloud market area will dominate this market due to the area's extensive attempts to undergo a digital transition. This change has an impact on several industries and promotes the adoption of distributed edge cloud solutions for modernizing IT infrastructure and incorporating new technologies. Additionally, the proliferation of loT devices and the increasing adoption of edge computing are driving the demand for distributed edge cloud architectures.
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: DISTRIBUTED EDGE CLOUD MARKET SHARE, BY REGION 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's distributed edge cloud market accounts for the second-largest market share, driven by a robust IT infrastructure, a propensity to adopt new technology, and the availability of several cloud computing providers. Furthermore, the need for increased data security and storage, the existence of significant players, and digitization have all fueled the expansion of distributed edge cloud services in Europe. Further, the German distributed edge cloud market held the largest market share, and the UK distributed edge cloud market was the fastest-growing market in the European region.
The Asia-Pacific Distributed Edge Cloud Market is expected to grow at the fastest CAGR from 2024 to 2032 because a large number of SMEs in the area are expanding their digital infrastructure in developing countries like Singapore and India at a reduced cost by deploying distributed edge clouds. Furthermore, the market is expanding as a result of the growing necessity for digital transformation, the adoption of various strategies, and the sizeable investments made by regional businesses in cloud computing and distributed edge cloud solutions. Moreover, China’s distributed edge cloud market held the largest market share, and the Indian distributed edge cloud market was the fastest-growing market in the Asia-Pacific region.
Distributed Edge Cloud 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 distributed edge cloud 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 distributed edge cloud industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the distributed edge cloud industry to benefit clients and increase the market sector. In recent years, the distributed edge cloud industry has offered some of the most significant advantages to medicine. Major players in the distributed edge cloud market are attempting to increase market demand by investing in research and development operations, including Fujitsu, Microsoft, IBM, Cisco, Dell, HPE, Huawei, Nokia, Amazon, Gigabyte Technology, GE, Lenovo, ADLINK, Advantech, and Atos.
Providing smart gadgets and information and communication technology (ICT) infrastructure, Huawei Technologies Co Ltd (Huawei) is a subsidiary of Huawei Investment & Holding Co Ltd. The company's product line consists of networking products, cloud and computing goods, tablets, smartphones, wearables, headphones, enterprise wireless products, and enterprise optical transmission and access products. Together with smart services for businesses, it also provides software and services for carrier networks. Public safety, retail, oil and gas, finance, healthcare, education, smart cities, smart grids, manufacturing, and transportation are among the industries that Huawei serves.
ADLINK Technology, Inc. (ADLINK) is a producer and creator of embedded computer and measurement systems. Advanced TCA, small PCI, MEC servers, GPIB, medical panels, tablets and monitors, network appliances, and microRNA are some of its products. Additionally, the company sells network security appliances, industrial PCs, industrial motherboards and SBCs, industrial IoT, and mobile computers. ADLINK provides its products to the following industries: power and energy, telecom, edge computing, mobile, medical, intelligent systems, military, aerospace, and transportation.
Key Companies in the Distributed Edge Cloud Market Include
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Fujitsu
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Microsoft
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IBM
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Cisco
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Dell
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HPE
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Huawei
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Nokia
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Amazon
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Gigabyte Technology
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GE
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Lenovo
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ADLINK
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Advantech
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Atos
Distributed Edge Cloud Industry Developments
November 2022: Equinix and VMware have extended their partnership to provide innovative multi-cloud services and digital infrastructure. Additionally, they unveiled VMware Cloud, a brand-new distributed edge cloud service that is accessible on Equinix Metal. This service is intended to provide cloud solutions that are safe, economical, and high-performing, specifically suited to satisfy the needs of enterprise applications.
Distributed Edge Cloud Market Segmentation
Distributed Edge Cloud Service Outlook
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Data Security
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Data Storage
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Networking
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Others
Distributed Edge Cloud Enterprise Size Outlook
Distributed Edge Cloud End-Use Outlook
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BFSI
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Healthcare
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Retail & E-Commerce
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Manufacturing
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IT & Telecom
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Energy & Utilities
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Media & Entertainment
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Government & Defense
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Others
Distributed Edge Cloud 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 1.3 Billion |
| Market Size 2024 |
USD 1.58 Billion |
| Market Size 2032 |
USD 6.380 Billion |
| Compound Annual Growth Rate (CAGR) |
22.00% (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 |
Service, Enterprise Size, End-Use, 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 |
Fujitsu, Microsoft, IBM, Cisco, Dell, HPE, Huawei, Nokia, Amazon, Gigabyte Technology, GE, Lenovo, ADLINK, Advantech, and Atos |
| Key Market Opportunities |
Emergence of 5G technology and the requirement for data processing in real-time |
| Key Market Dynamics |
Growing need for edge computing solutions and sophisticated technology infrastructure Escalating need across industries for data-intensive services and apps |
Frequently Asked Questions (FAQ) :
The distributed edge cloud market size was valued at USD 1.3 Billion in 2023.
The market is projected to grow at a CAGR of 22.00% during the forecast period, 2024-2032.
North America had the largest share of the market
The key players in the market are Fujitsu, Microsoft, IBM, Cisco, Dell, HPE, Huawei, Nokia, Amazon, Gigabyte Technology, GE, Lenovo, ADLINK, Advantech, and Atos.
The large enterprises category dominated the market in 2023.
The BFSI category had the largest share in the market.
