Edge Computing Market

The expansion of 5G networks significantly impacts the Global Edge Computing Market Industry, as it enables faster data transmission and lower latency. This technological advancement facilitates the deployment of edge computing solutions, allowing organizations to process data in real-time and respond to market demands swiftly. Industries such as autonomous vehicles and augmented reality benefit from the enhanced capabilities of 5G, which require instantaneous data processing. As 5G networks continue to proliferate globally, the synergy between edge computing and 5G is expected to drive substantial market growth, further solidifying the relevance of edge computing in various applications.

The Global Edge Computing Market Industry is poised for substantial growth, with projections indicating a market value of 19.4 USD Billion in 2024 and an anticipated increase to 151.6 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate (CAGR) of 20.56% from 2025 to 2035. The increasing reliance on edge computing solutions across various sectors, driven by the need for real-time data processing and enhanced security, underpins this positive outlook. As organizations continue to embrace digital transformation, the edge computing market is likely to evolve, presenting new opportunities and challenges for stakeholders.

The Global Edge Computing Market Industry is significantly influenced by the rapid adoption of IoT devices across various sectors. With billions of connected devices generating vast amounts of data, the need for efficient data processing solutions becomes paramount. Edge computing facilitates the management of this data influx by enabling localized processing, which minimizes bandwidth usage and enhances response times. For example, smart cities utilize edge computing to analyze traffic patterns in real-time, improving urban mobility. This trend is expected to propel the market towards a valuation of 151.6 USD Billion by 2035, reflecting a robust CAGR of 20.56% from 2025 to 2035.

Security and privacy concerns play a pivotal role in shaping the Global Edge Computing Market Industry. As data breaches and cyber threats become increasingly sophisticated, organizations seek solutions that enhance data protection. Edge computing addresses these concerns by processing sensitive data locally, thereby reducing the risk of exposure during transmission. For instance, financial institutions implement edge computing to secure customer data while ensuring compliance with regulations. This heightened focus on security is likely to drive the adoption of edge computing solutions, as businesses prioritize safeguarding their information assets in an evolving threat landscape.

The Global Edge Computing Market Industry experiences a surge in demand for real-time data processing, driven by the proliferation of IoT devices and applications. As organizations increasingly rely on instantaneous data analysis for decision-making, edge computing emerges as a viable solution. For instance, industries such as manufacturing and healthcare leverage edge computing to process data locally, reducing latency and enhancing operational efficiency. This trend is expected to contribute to the market's growth, with projections indicating a market value of 19.4 USD Billion in 2024. The ability to process data closer to the source is likely to become a critical factor in maintaining competitive advantage.

The emergence of smart cities and advanced infrastructure significantly influences the Global Edge Computing Market Industry. As urban areas evolve into smart ecosystems, the demand for efficient data processing solutions escalates. Edge computing supports the integration of various technologies, such as smart traffic management and energy-efficient systems, by enabling localized data analysis. For example, smart lighting systems utilize edge computing to adjust brightness based on real-time conditions, optimizing energy consumption. This trend is anticipated to contribute to the market's expansion, as cities worldwide invest in smart technologies to enhance livability and sustainability.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In terms of revenue, North America held the largest share of 38.3% in the Edge Computing market in 2022 and is expected to maintain its dominance during the forecast period. The North American edge computing market has been segmented, by country, into the US, Canada, and Mexico. The regional market is expected to dominate the Edge Computing Market during the forecast period.

Growth of the edge computing market in North America is driven due to the increasing adoption of IoT technology across various industry vertical, growing demand for instantaneous processing, and rising adoption of the cloud platform. Furthermore, the region witnesses the presence of major players in the market such as Amazon Web Services, Inc., Microsoft Corporation, IBM Corporation, Intel Corporation, and Google LLC.

These players are investing heavily in research and development of edge computing products and solutions to cater to various applications. Furthermore, the region also has a high penetration of 4G/LTE and is expected to dominate in terms of the adoption of the 5G technology in the coming years, which is further expected to drive the growth of edge computing market in North America. Verizon and AWS teamed in January 2022 to bring mobile edge computing to 30% additional metro area cities in the United States, with the inclusion of Charlotte, Detroit, Los Angeles, and Minneapolis.

The combination reduces the latency and network hops needed to connect from a platform-hosted application to the end user's device. Ball's contract with AWS will be extended in April 2022. This project seeks to develop Canada's first public multi-access edge computing (MEC) service with AWS Wavelength. The 5G network is projected to open up new potential for growth in the edge computing business.

The US is a major market for edge computing due to the presence of several key players such as Amazon Web Services, Inc., Intel Corporation, IBM Corporation, and Microsoft Corporation who are investing significantly in developing solutions for various applications. Technology adoption trends globally are introduced in and have a substantial impact on the US markets before any other, due to which the adoption and developments in edge computing are expected to be high. The cloud computing market is at the maturity stage, owing to which, the industry demands to move outside the core data center.

Edge computing is capable of handling high volumes of data traffic, with reduced latency and the reliability of network which is expected to drive the growth of the market. Well established digital infrastructure and government supporting major telecom operators such as AT&T and Verizon Communications Ltd for testing and deployment of the 5G network to offer seamless network connectivity with reduced latency and bandwidth requirement are some of the factors further driving the growth of US edge computing market.

Furthermore, the high adoption of IIoT across manufacturing industries in the region to automate and optimize the operational performance helps in the growth of edge computing market in the country.

The Canadian edge computing market is expected to witness a significant growth owing to increasing adoption of smartphones and high demand for streaming services requiring low latency and bandwidth. Growing initiatives from the Canadian government supporting the development of smart cities and increasing adoption of cloud computing and IIoT are driving the adoption of edge computing in Canada. Furthermore, the growing demand for edge analytics to offer optimized and enhanced operational performance across the utility sector are propelling the market growth in Canada.

Furthermore, the high adoption of the cloud platform to obtain scalability, flexibility, mobility, and cost-effective operations also contributes significantly to the market growth. However, integration issues due to complex infrastructure is the major restraining factor hampering the market growth in Canada.

The market in Mexico is witnessing slow growth in the Edge Computing Market. Increasing internet penetration and demand for high-speed Internet connectivity are the primary factors driving the growth of the edge computing market in Mexico. The growing adoption of IIoT across manufacturing, BFSI, transportation, utilities, and other industry vertical is further helping the market growth in the country. Government initiatives for increasing the adoption of Industry 4.0 and the growing connected car market are the reasons propelling the growth of edge computing market in the country.

Also, the increasing adoption of edge analytics among business organizations to obtain a competitive advantage and generate new revenue streams increases the demand for edge computing. However, low awareness and data security concerns are hampering the growth of edge computing market in Mexico.

Figure 3: EDGE COMPUTING MARKET SIZE BY REGION 2022 & 2032

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

The European edge computing market is divided into Germany, the UK, France, and the rest of Europe. The UK is expected to be the leading market due to increasing demand for smart devices and rising internet penetration. Germany has a well-established network infrastructure and government regulations support 5G network testing and deployment, while France sees increased adoption of cloud platforms and IoT across various industry verticals. Energy and utilities are major sectors in France, and there is high adoption of cloud platforms and IoT across various industry verticals in the rest of Europe.

The growth of the edge computing market in the Asia-Pacific region is driven by the increasing adoption of IoT and IIoT across organizations in the region. China has made a promising start in 5G and edge computing, and multinational firms like Meta, Apple, Netflix, and Google influence the future of edge computing-powered surveillance technology. Japanese companies like Blaize distribute AI edge computing, and the Chinese edge computing market is dominated by tech giants like Baidu, Inc. and Alibaba Group Holding Limited.

The Middle East and Africa have seen the evolution of data center infrastructure and applications, leading to an increasing number of data centers and the adoption of IoT and IIoT devices. Edge computing is used to process this data in real-time across industries, and the market is expected to grow at a high rate during the forecast period. The growth of smart factories and the increasing demand for e-commerce and gaming will drive the adoption of edge computing.

Over 50% of the South American population is connected to the Internet, and companies are increasingly switching to edge computing due to its benefits in reducing latency and increasing data security. There has been an increase in IoT and IIoT projects in countries like Brazil, Argentina, Chile, and Colombia, fueling the growth of the edge computing market. The market is dominated by companies like Amazon, Google, Microsoft, and IBM.

Edge computing optimizes Internet devices and web applications by bringing computing closer to the source of the data. This minimizes the need for long distance communications between client and server, which reduces latency and bandwidth usage. It offers some unique advantages over traditional models, where computing power is centralized at an on-premises data centre. Putting compute at the edge allows companies to improve how they manage and use physical assets and create new interactive, human experiences. Some examples of edge use cases include self-driving cars, autonomous robots, smart equipment data and automated retail.

Moreover, Edge has a role to play in the evolution of AI and generative AI for businesses. It enables data analysis in real- or near-real time, making training AI models a simpler task and improving the performance of AI-driven applications.

Not surprisingly, edge is becoming an integral part of the digital core, which leverages the power of cloud, data, and AI through an interoperable set of systems across the enterprise that allows for rapid innovation. thus, for many businesses Edge is set to become a ubiquitous lever of scale and reinvention—especially as AI becomes more pervasive. this shows Edge computing is bending the innovation curve by dramatically improving the performance of production and service applications that run business.

It moves computing to the edge of the enterprise network where it is closest to users and devices — and most critically, where the data is created.

MRFR has analysed some of the major players in the Edge Computing Market who have contributed to the market growth. These include SAP SE, ABB, Amazon Web Services (AWS), Inc., Aricent, Inc., Atos, Cisco Systems, Inc., General Electric Company, Hewlett Packard Enterprise Development, Honeywell International Inc., Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Aspeed, Fintek, Advantech, Kontron, ITE Tech and others. Among these, Microsoft, Amazon Web Services (AWS), Inc, Cisco Systems, Inc, IBM Corporation, Intel Corporation, Dell, are among the top players in Edge Computing market.

These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer.

Microsoft’s key strategies in the edge computing market revolve around leveraging its cloud infrastructure (Azure) to extend computing capabilities closer to devices and users. The company focuses on offering a comprehensive edge computing platform, empowering businesses to process data at the edge efficiently. Their strategy includes enabling seamless integration between cloud and edge environments, fostering an ecosystem of edge-compatible solutions, emphasizing security and compliance, investing in AI-driven edge analytics, and collaborating with industry partners to develop scalable and diverse edge computing applications.

Microsoft’s approach aims to enable customers to harness the power of edge computing while ensuring interoperability, security, and scalability across their ecosystem. Likewise, numerous companies are seeking to well-position to capitalize on the growing edge computing market.

Additionally, these players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the Edge Computing market.