The global Edge computing market size reached USD 18.3 Billion in 2024. It is projected to grow to USD 114.4 Billion by 2033, with a compound annual growth rate (CAGR) of 22.40% from 2025 to 2033. This growth is driven by increasing demand for low-latency computing, advanced technologies adoption, data-intensive applications proliferation, and concerns about security risks of centralized data centers. Study Assumption Years

• Base Year: 2024
• Historical Period: 2019-2024
• Forecast Period: 2025-2033

Edge Computing Market Key Takeaways

• Current Market Size: USD 18.3 Billion in 2024
• CAGR: 22.40% during 2025-2033
• Forecast Period: 2025-2033
• North America held the largest market share in revenue in 2024.
• Hardware accounted for the highest market share among components.
• Large enterprises dominated the organization size segment.
• The energy and utilities sector emerged as the leading vertical.
• Increasing deployment in telecom, manufacturing, and healthcare sectors fuels growth.

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Market Growth Factors

The edge computing market is primarily propelled by the increasing demand for low-latency computing, which enables real-time decision-making and enhances performance across various industries. This demand is further accelerated by the rapid adoption of transformative technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and the expansion of high-speed 5G connectivity. Organizations in sectors like healthcare, finance, and retail face an upsurge in data-intensive applications, driving the need for processing data closer to the source to reduce latency and improve responsiveness.

Another significant factor is the rising adoption of cloud computing, leading to hybrid cloud environments that integrate cloud infrastructure with edge computing capabilities. Concerns related to data security and compliance risks associated with storing sensitive information in centralized data centers are encouraging organisations to opt for decentralized edge computing solutions. This shift mitigates risks and supports regulatory compliance, particularly crucial for industries handling confidential or sensitive data.

Moreover, edge computing contributes to reducing data transfer and storage costs by optimizing cloud resource utilization. With an increasing number of internet-connected devices demanding real-time processing capabilities, edge computing creates cost efficiencies and operational enhancements. These factors collectively enhance enterprise strategies towards distributed computing and push the market towards rapid expansion.

The market also benefits from increasing digital transformation initiatives where businesses modernize operations and leverage edge computing to manage the growing proliferation of IoT devices and data-driven decision-making. Additionally, Industry 4.0 adoption accelerates demand, with smart factories relying on edge computing for local data processing, predictive maintenance, and process optimization. Lastly, ongoing research and development efforts continuously improve hardware and software technologies, making edge computing solutions more efficient and viable across diverse industry verticals.

Market Segmentation

Breakup by Component:

• Hardware: Includes edge servers, gateways, sensors, and edge devices with optimized processors and memory. These components are designed for low-latency processing and real-time analytics, enhancing performance at the network edge.
• Software: Not explicitly detailed in the source but categorized separately.
• Services: Not explicitly detailed in the source but categorized separately.

Breakup by Organization Size:

• Small and Medium-sized Enterprises (SMEs): Not detailed separately but part of overall segmentation.
• Large Enterprises: Represent the dominant segment, utilizing edge computing to optimize operations, reduce latency, and improve decision-making across data-intensive industries.

Breakup by Vertical:

• Manufacturing
• Energy and Utilities: The largest vertical segment, leveraging edge computing for real-time energy distribution monitoring, predictive maintenance, and power optimization.
• Government and Defense
• BFSI
• Telecommunications
• Media and Entertainment
• Retail and Consumer Goods
• Transportation and Logistics
• Healthcare and Life Sciences
• Others

Each vertical benefits distinctly from edge computing for enhanced real-time data processing, operational efficiency, and cost-efficiency tailored to sector-specific needs.

Regional Insights

North America dominated the edge computing market in 2024, driven by strong investments in 5G technology, widespread cloud adoption, and an established data center infrastructure. The region's focus on IoT deployment and real-time analytics across sectors such as manufacturing, healthcare, finance, and transportation supports the rising demand. This dominance positions North America as the largest market geographically, influencing global market trends and innovation.

Recent Developments & News

• In January 2025, ZEDEDA reported doubled revenue and edge nodes managed in 2024, indicating rising enterprise demand across energy, transportation, manufacturing, retail, and agriculture.
• In June 2024, AAEON showcased edge AI solutions powered by NVIDIA Jetson modules at NVIDIA GTC Paris, including smart city applications.
• In July 2023, ABB and Microsoft collaborated to introduce generative AI to industrial digital solutions.
• Also in July 2023, Amazon Web Services (AWS) launched AWS HealthScribe, a generative AI service for automating clinical documentation.
• In August 2023, Cisco Systems introduced automated ransomware recovery features through its Extended Detection and Response (XDR) platform.

Key Players

• ABB Ltd.
• Amazon Web Services (AWS), Inc.
• Cisco Systems Inc.
• Digi International Inc.
• General Electric Company
• Hewlett Packard Enterprise Development LP
• Huawei Technologies Co. Ltd.
• IBM Corporation
• Intel Corporation
• Microsoft Corporation
• SAP SE
• Siemens AG

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