As per MRFR analysis, the US Retail Edge Computing Market Size was estimated at 1.29 (USD Billion) in 2023. The US Retail Edge Computing Market Industry is expected to grow from 1.56(USD Billion) in 2024 to 10.21 (USD Billion) by 2035. The US Retail Edge Computing Market CAGR (growth rate) is expected to be around 18.626% during the forecast period (2025 - 2035).
The US Retail Edge Computing Market is witnessing several important trends driven by the increasing need for faster data processing and improved customer experiences. One key market driver is the growing adoption of IoT devices in retail, allowing for real-time data collection and analysis at the edge. Retailers are seeking to enhance their operational efficiency and make informed decisions quickly, which is fueling the demand for edge computing solutions. Additionally, as online shopping continues to rise, there is a pressing need for retailers to offer seamless and personalized experiences. This trend is compelling retailers in the US to leverage edge computing to optimize inventory management, enhance supply chain operations, and improve customer engagement.
There are also significant opportunities to be explored in integrating edge computing with artificial intelligence and machine learning technologies. This combination can provide valuable insights into consumer behavior and promote predictive analytics, leading to more effective marketing strategies. Moreover, as the need for enhanced security grows due to increasing cybersecurity threats, edge computing offers a way to process sensitive data locally, thus minimizing risks related to data breaches. In recent times, retailers are prioritizing sustainability and energy efficiency, with edge computing solutions offering the potential to reduce energy consumption by processing data closer to the source.
This trend aligns with various government initiatives aimed at promoting sustainable practices in the retail sector. Overall, the US Retail Edge Computing Market is evolving rapidly, driven by advancements in technology and changing consumer expectations, making it an exciting area for innovation and investment.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US Retail Edge Computing Market Industry is experiencing significant growth driven by the need for real-time data processing capabilities in retail operations. As per the National Retail Federation (NRF), 76% of retailers indicate that responding to customer needs in real time is crucial for enhancing customer experience. This signifies a strong shift towards edge computing solutions that can analyze data locally and provide immediate insights, enabling retailers to optimize inventory management and personalize customer interactions.
Furthermore, the reliance on cloud solutions alone can lead to latency issues, which edge computing can effectively mitigate. Established organizations like Walmart have initiated projects that leverage edge computing for supply chain optimization and customer service enhancements, demonstrating the practical applicability of such technology. As retailers intensify their digitization efforts, the convergence of Internet of Things (IoT) devices and edge computing is likely to evolve, further facilitating this trend across the US retail landscape.
The proliferation of Internet of Things devices is a key driver of the US Retail Edge Computing Market Industry. According to the Consumer Technology Association (CTA), there are expected to be over 75 billion connected devices globally by 2025, with a significant portion being utilized within the retail sector for inventory tracking and customer engagement. Major retailers like Target are implementing IoT solutions that require edge computing for effective data processing and real-time analytics.
This creates a significant pressure on retail businesses to adopt edge computing technologies, thereby enabling them to handle increased data traffic more efficiently and improving service delivery to customers.
The advancements in network connectivity, particularly the rollout of 5G technology across the United States, are acting as a catalyst for the US Retail Edge Computing Market Industry. According to the Federal Communications Commission (FCC), 5G networks are expected to enhance the speed and reliability of wireless networks significantly, with some estimates suggesting speeds up to 100 times faster than current 4G networks. This technological leap is crucial for retailers looking to implement real-time analytics and customer-centric services that edge computing can facilitate.
Established telecommunications companies, such as Verizon and AT&T, are investing heavily in 5G infrastructure, pushing forward the adoption rates of edge computing in retail. As retailers benefit from improved connectivity, they are better positioned to respond to market demands and customer preferences nearly instantaneously.
The US Retail Edge Computing Market is witnessing significant growth driven by the increasing demand for real-time data processing and enhanced customer experiences. Within the Component segment, the focus is primarily on Hardware, Software, and Services, each playing a crucial role in the overall ecosystem. Hardware components are essential as they provide the physical infrastructure, such as servers and edge devices, that enable efficient data processing at the edge of the network, reducing latency and improving operational efficiency for retail businesses. Software solutions facilitate data management, analytics, and application deployment, allowing retailers to derive actionable insights and streamline operations. Services provide the necessary support, implementation, and maintenance required for these technologies to function effectively. The ongoing digital transformation in the retail sector is propelling companies to adopt edge computing solutions that can handle the rising volume of internet-connected devices and the increasing demand for personalized shopping experiences.
Additionally, the growing usage of advanced technologies, such as artificial intelligence and the Internet of Things, is expected to further energize the market. Meanwhile, challenges such as integration with legacy systems and data security concerns remain critical considerations for stakeholders. Retailers in the US are leveraging edge computing for various applications, including inventory management, customer engagement, and supply chain optimization, enabling them to respond quickly to market demands. Collectively, the Hardware, Software, and Services within the US Retail Edge Computing Market contribute to the enhancement of efficiency and customer satisfaction, aligning with broader trends in consumer behavior and technology adoption. As organizations continue to recognize the value of immediate data processing and localized responses, these components will play a significant role in shaping the retail landscape in the years to come.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Application segment of the US Retail Edge Computing Market is crucial as it encompasses a variety of functions that enhance data processing at the edge of the network. Among these applications, Smart Cities are increasingly gaining traction, leveraging edge computing to optimize traffic flow and energy management through real-time data analytics. The Industrial Internet of Things (IoT) plays a significant role by connecting devices to streamline operations and enhance productivity. Remote Monitoring has become essential in sectors like retail, allowing businesses to track performance and inventory in real time, which directly influences decision-making.
Content Delivery is also vital, as it reduces latency and improves user experience by providing local data access for faster service. Moreover, Augmented Reality (AR) and Virtual Reality (VR) applications are revolutionizing customer interaction, offering immersive experiences that foster engagement and drive sales, particularly in retail environments. The combination of these applications presents a robust landscape for the US Retail Edge Computing Market, driven by increasing demand for efficiency and enhanced customer experiences across various industries.As the market continues to grow, these applications will likely expand, offering new opportunities and challenging existing norms.
The US Retail Edge Computing Market is increasingly categorized by Organization Size, reflecting diverse needs and technological capabilities among businesses. Large Enterprises significantly drive the market, given their expansive operations and the urgent demand for real-time data processing to enhance customer experiences. The scale and resources of these organizations enable substantial investments in advanced edge computing solutions, optimizing supply chains and improving operational efficiency. On the other hand, SMEs represent a vital aspect of the market, as they embrace edge computing to compete with larger firms.
Their increasing adoption of these technologies is largely influenced by cost-effective solutions and the need for agility in a rapidly changing retail landscape. As the US continues to prioritize digital transformation within its retail sector, the segmentation by Organization Size highlights varying challenges and opportunities, including the need for scalable solutions and resources dedicated to effective implementation that cater to differing organizational capabilities. This dynamic leads to distinct strategies aimed at leveraging edges computing for improved service delivery, ultimately shaping the evolving landscape of the US Retail Edge Computing Market.
The US Retail Edge Computing Market is experiencing a transformative period driven by the growing demand for real-time data processing, improved customer experiences, and enhanced operational efficiencies. Companies are increasingly recognizing the potential of edge computing to deliver low-latency services that empower retail businesses to respond quickly to consumer needs. With the rise of IoT devices, mobile applications, and the growing influence of artificial intelligence, retailers are leveraging edge computing to enhance their operational frameworks. As competition escalates in this market, businesses are compelled to integrate innovative technologies that allow them to process data at the edge rather than relying solely on centralized cloud infrastructures. This shift not only leads to performance enhancements but also enables retailers to leverage analytics for more informed decision-making.
Mavenir has established a noteworthy presence in the US Retail Edge Computing Market by offering solutions that streamline network operations and enhance application enablement at the edge. The company's strengths lie in its ability to provide a fully virtualized solution that simplifies operations, facilitates faster deployment, and increases flexibility for retail environments. With a focus on rich, high-speed customer experiences, Mavenir capitalizes on advanced analytics and automation, enabling retailers to optimize their operations effectively. The company’s edge computing offerings cater to the specific needs of the retail sector, ensuring that businesses can respond adeptly to customer demands while also managing substantial data flows with efficiency and reliability.
Dell Technologies further amplifies its position in the US Retail Edge Computing Market through its comprehensive portfolio of products and services designed for various retail applications. Their strengths include robust infrastructure solutions that support data management and connectivity at the edge, allowing retailers to process information locally. Dell Technologies' suite of offerings includes servers, storage solutions, and networking systems tailored for edge deployments, which enable effective data aggregation and analytics. The company's proactive M&A strategy has bolstered its market presence, enabling it to integrate cutting-edge technologies and expand its capabilities in edge computing. By understanding the unique demands of retail environments, Dell Technologies demonstrates its commitment to providing enhanced performance and adaptability for retailers looking to leverage edge computing for competitive advantages in the US market.
The US Retail Edge Computing Market has recently seen significant advancements, particularly in the deployment of edge computing solutions to enhance customer experiences and operational efficiency. Companies like Dell Technologies, Supermicro, and IBM are leading this charge, as retailers increasingly adopt localized data processing to reduce latency and improve response times. In October 2023, Mavenir announced a strategic partnership with EdgeConneX to expand edge computing infrastructure, targeting retail environments that require robust telecommunications support. Furthermore, Microsoft and NVIDIA are enhancing their edge AI offerings to empower retailers with real-time analytics capabilities. On the mergers and acquisitions front, in September 2023, ClearBlade was acquired by Aviat Networks to strengthen IoT edge computing solutions for retail, aligning both companies' focus on delivering high-performance data solutions. Polarized by rapid technological advancements, the retail sector's demand for edge computing is reflected in an increase in market valuations, showcasing a progressive shift towards integrated IT and telecommunications strategies. Overall, investment in edge computing has risen markedly, indicating a transformative period for the US Retail sector, with innovations and collaborations shaping the market landscape significantly.
Retail Edge Computing Market Organization Size Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 1.29(USD Billion) |
| MARKET SIZE 2024 | 1.56(USD Billion) |
| MARKET SIZE 2035 | 10.21(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 18.626% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Mavenir, Dell Technologies, Aviat Networks, Supermicro, EdgeConneX, FogHorn Systems, Furukawa Electric, IBM, Alepo, Microsoft, ClearBlade, NVIDIA, Cisco Systems, Amazon, Hewlett Packard Enterprise |
| SEGMENTS COVERED | Component, Application, Organization Size |
| KEY MARKET OPPORTUNITIES | Real-time analytics integration, Enhanced customer experience personalization, Improved supply chain efficiency, Edge AI for inventory management, Secure data processing compliance |
| KEY MARKET DYNAMICS | increased data processing efficiency, low latency requirements, growing IoT adoption, enhanced customer experience, cost optimization strategies |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Retail Edge Computing Market is projected to be valued at approximately 1.56 billion USD in 2024.
By 2035, the US Retail Edge Computing Market is expected to reach a value of about 10.21 billion USD.
The US Retail Edge Computing Market is anticipated to grow at a CAGR of 18.626% from 2025 to 2035.
The Hardware segment is projected to be the highest valued segment in 2035 at around 4.55 billion USD.
Key players in the market include Mavenir, Dell Technologies, Microsoft, IBM, and Cisco Systems among others.
The Software segment is forecasted to reach approximately 3.25 billion USD by 2035.
Key growth drivers include the increasing demand for real-time data processing and enhanced customer experience in retail.
Challenges may include data security concerns and the complexity of systems integration within retail environments.
The Services segment is projected to have a market value of around 2.41 billion USD in 2035.
Technological advancements are expected to drive innovation and boost adoption rates across retail operations in the market.
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