5G Edge Computing Market Size (2023 – 2030)

The 5G Edge Computing Market was valued at USD 10 billion in 2022 and is projected to reach USD 41.59 billion by 2030. The market is anticipated to expand at a CAGR of 19.5% over the forecast period.

INDUSTRY OVERVIEW:

5G edge computing is a networking technique that minimises the number of operations that are operating in the cloud and transfers them to local devices, such as the user's PC, an IoT device, or an edge server. Reduced long-distance communication between the client and server reduces latency and increases process effectiveness. As a result, many businesses are using 5G edge computing since it conserves server resources while reducing bandwidth use and related expenses.

The Internet of Things (IoT) and related gadgets' rapid expansion is the main reason spurring growth. Market vendors are combining IoT-enabled devices with 5G edge computing solutions to boost internet access for transferring data to and from the cloud. In addition, telecom firms' adoption of multi-access 5G edge computing (MEC) has improved application performance and reduced network congestion. By lowering the quantity of data that has to be processed in a centralised or cloud-based location by processing it locally, 5G edge computing also helps businesses to save money. Additionally, the advancement of quicker networking technologies, such as 5G wireless, enables 5G edge computing systems to handle real-time applications, such as video processing and analytics, self-driving cars, artificial intelligence (AI), and robotics. Additionally, the coronavirus illness breakout has led to a large increase in the number of work-from-home employment, and 5G edge computing is playing a critical role in enterprises throughout the world (COVID-19). Additionally, it has enhanced the performance of streaming services whose customer bases have grown as a result of the epidemic.

COVD-19 IMPACT ON THE 5G EDGE COMPUTING MARKET:

During the Covid-19 pandemic breakout, the 5G edge computing business is anticipated to expand. This is a result of the expanding usage of "Edge AI," or edge computing in artificial intelligence, which is utilised to deliver precise and immediate insights with isolation, accurate identification, and treatment of Covid-19 patients. Since 5G edge computing boosts network speeds, reduces bandwidth requirements, and addresses security issues—all of which are crucial in the present workplace—demand for it is predicted to soar during the Covid-19 epidemic.

MARKET DRIVERS: 

The market is expanding due to the increasing use of IoT across sectors:

Because of the tremendous rise in data generated by the IoT, businesses are increasingly turning to centralised cloud computing and storage solutions. The market for IoT products and services is anticipated to grow by a double-digit CAGR of 14.9% between 2022 and 2030. However, a research report predicts that by 2025, there will be 31 billion active IoT devices. In addition, Accenture estimates that by 2030, IIoT would have increased the global economy by 14.2 trillion USD. There are challenges with latency and financial viability when moving the complete IT infrastructure to the cloud. As a result, businesses utilising IoT actuators, sensors, and other devices are rapidly searching for 5G edge computing options including edge nodes, devices, and hyper-localized data centres. By bringing data processing closer to the data source, 5G edge computing complements the current cloud model and enables businesses to make decisions more quickly.

The primary driver of market expansion is the advent of autonomous vehicles and connected vehicle technology:

Infrastructure for autonomous and connected vehicles is becoming more and more common as a result of increasing customer expectations and numerous technological breakthroughs. To navigate, control, and drive, autonomous cars transmit data on the weather, light, and road conditions. There are several prospects for 5G edge computing to promote the development of autonomous cars since it brings processing closer to the data source and faster. Although it is still in its infancy, several businesses have begun to reimagine the cloud with 5G edge computing to enable autonomous and connected automobile technologies. Autonomous vehicles using 5G edge computing may be able to use the data gathered more quickly and accurately, allowing edge data centres to offload less-important data while keeping crucial information on board. When used in conjunction with artificial intelligence (AI) and machine learning (ML), 5G edge computing may also hasten the processing of the vast amounts of data generated by autonomous vehicles by supplying local processing capacity. This cautious driving can efficiently avoid traffic bottlenecks and help prevent traffic accidents. Due to edge computing's advantages, more autonomous vehicle manufacturers are anticipated to invest in the technology in the years to come, which is anticipated to support the growth of the 5G edge

MARKET RESTRAINTS:

The initial cost of setting up the infrastructure is high which is impeding the market growth:

By implementing emerging technology to effectively automate and expedite their business operations, enterprises are quickly moving toward modernization. Through localised processing, 5G edge computing potentially lower data transmission and storage costs, but investing in edge infrastructure still enhances businesses' CAPEX. A significant investment in edge nodes, other edge devices, and edge data centres would be necessary for businesses hoping for full 5G edge computing solutions. Additionally, they would have to spend more money securing all of the network's devices. The expense of the edge infrastructure is a barrier to the development of the 5G edge computing business, but with advances and ongoing R&D, this barrier could soon disappear.

Integration difficulty with current cloud architecture is impeding business expansion:

To fully grasp the capabilities of edge computing, edge computing platforms and applications for 5G networks must be integrated with the current cloud architecture. A well-equipped infrastructure is needed between the edge and the cloud due to the limited storage and computational power of edge nodes. It will be difficult to set up a dependable edge network to handle the network traffic from numerous nodes as multi-cloud infrastructures are increasingly being adopted within the enterprise. The majority of IT managers are having trouble locating a good solution and cloud providers who can handle the high bandwidth needs and redundant data reporting.

5G EDGE COMPUTING MARKET REPORT COVERAGE:

This research report on the 5G Edge Computing Market has been segmented and sub-segmented based on Component, By Organisation Size, Application, Vertical and By Region.

5G EDGE COMPUTING MARKET – BY COMPONENT

• Hardware

• Software

• Services

Based on the component, the 5G Edge Computing Market is segmented into Hardware, Software and Services. During the projected period, the hardware is anticipated to account for the biggest market share due to its rising popularity in the field service environment. The amount of data produced by IoT and IIoT devices is rising quickly along with their numbers. 5G edge computing technology is used to lessen the workload on the cloud and data centres to handle the quantity of data being created. The gear for 5G edge computing must be durable, small, and equipped with enough power, connection, and storage. As they are frequently deployed in challenging environmental circumstances, the 5G edge computing gear must match the criteria. The edge computers include performance accelerators for processing data in real-time so that decisions may be made quickly. Local data centres, edge gateways, and local hardware are all part of the 5G edge computing infrastructure.

5G EDGE COMPUTING MARKET – BY ORGANISATION SIZE

• Large Enterprises

• SMEs

Based on the organization size, the 5G Edge Computing Market is segmented into Large Enterprises and SMEs. During the anticipated period, the large enterprise sector is anticipated to contribute more to the growth of the 5G edge computing market. Large businesses have been quicker to implement 5G edge computing, and this pattern is anticipated to hold throughout the projection period. This is because of their capacity for adaptation and their ability to make use of the advantages of cutting-edge technology like edge computing. Businesses also have offices spread out throughout different geographies. The aforementioned elements enable businesses to offer a solution by giving employees real-time access to data. The use of 5G edge computing solutions by large firms is rising as a means of improving their overall operational efficiency. Significant technical changes are taking place in the 5G edge computing sector, including improvements in big data, social media, real-time solutions, tailored marketing, and the usage of analytics and machine learning (ML). All these innovations are warmly embraced and widely used by most consumers.

5G EDGE COMPUTING MARKET – BY APPLICATION

• Smart Cities

• Industrial Internet of Things (IIoT)

• Remote Monitoring

• Content Delivery

• Augmented Reality (AR) and Virtual Reality (VR)

• Others 

Based on the application, the 5G Edge Computing Market is segmented into Smart Cities, Industrial Internet of Things (IIoT), Remote Monitoring, Content Delivery, Augmented Reality (AR) and Virtual Reality (VR) and Others. During the anticipated period, the smart cities application sector is anticipated to have a greater impact on the market for 5G edge computing. As it involves the extensive deployment of IoT sensor networks to ensure continuous data streaming for proper management of resources and infrastructure, such as traffic control, air quality management, sewage and waste management, and reliable communication, the smart cities application is likely to generate significant revenues in the anticipated year. Due to the frequent communication with cloud data centres required by this continuous data flow, network congestion results. Edge intelligence with machine learning skills is playing a crucial part in the movement toward smart city efforts. In addition to helping customers achieve low power consumption and cost, 5G edge computing offers apparent operational benefits such as computational offload, local data processing and analysis, parallel computation, and decreased latency time.

5G EDGE COMPUTING MARKET - BY VERTICAL

• Manufacturing

• Energy and Utilities

• Government and Defense

• Telecommunications

• Media and Entertainment

• Retail and Consumer Goods

• Transportation and Logistics

• Healthcare and Life Sciences

• Others 

Based on the vertical, the 5G Edge Computing Market is segmented into Manufacturing, Energy and Utilities, Government and Defense, Telecommunications, Media and Entertainment, Retail and Consumer Goods, Transportation and Logistics, Healthcare and Life Sciences, and Others. Manufacturing will have a greater impact on the growth of the 5G edge computing market throughout the forecast period than other verticals. During the projected period, the manufacturing sector will have the biggest market share. Manufacturers have begun attaining industrial automation and manufacturing efficiency with the growing number of IoT sensors on factory floors. However, the construction and upkeep of large data centres are necessary for the storing, processing, and analysis of the vast amounts of data produced by sensors in IoT-enabled manufacturing. Organizations are quickly integrating 5G edge computing with smart manufacturing to address these problems. Localized processing provided by 5G edge computing also enables remote monitoring and strengthens disaster recovery plans affordably. Additionally, 5G edge computing makes it possible to gather data and perform analytics closer to the sensing and acting points, helping businesses lower unexpected downtime problems and increase production efficiency. Low latency and immediate analysis are also guaranteed by 5G edge computing in cases of intermittent or weak connectivity.

5G EDGE COMPUTING MARKET - BY REGION

• North America

• Europe

• The Asia Pacific

• Latin America

• The Middle East

• Africa

By region, the 5G edge computing Market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East and Africa. The region with the fastest growth rate is predicted to be APAC. APAC is predicted to experience the fastest CAGR throughout the forecast period due to its advanced and dynamic adoption of new technologies. Additionally, firms in the area are rapidly expanding their IT investment, which is anticipated to accelerate the adoption of 5G edge computing. The fact that many international telecommunications and edge network businesses, such as Huawei, Telstra, Vodafone, Optus, China Telecom, and Vodafone have their headquarters in APAC contributes to the market's expansion for 5G edge computing. However, compared to North America and Europe, APAC has a lower adoption rate of 5G edge computing. This results from a lack of knowledge among numerous small and medium-sized businesses in the area (according to a survey by Vertiv, a cloud computing technology provider). The poll also showed that due to a movement among Asian retail and BFSI enterprises toward edge technology, the adoption of 5G edge computing is projected to expand significantly in the area over the next 3 to 5 years.

5G EDGE COMPUTING MARKET - BY COMPANIES

Some of the major players operating in the 5G edge computing Market include:

• AMAZON WEB SERVICES (AWS)
• AT&T Inc.
• CISCO SYSTEMS INC.
• DELL INC.
• FUJITSU LIMITED
• HUAWEI TECHNOLOGIES CO. LTD.
• IBM CORPORATION
• HEWLETT PACKARD ENTERPRISE (HPE)
• MICROSOFT CORPORATION
• NOKIA CORPORATION

NOTABLE HAPPENING IN THE 5G EDGE COMPUTING MARKET

• PRODUCT LAUNCH- In June 2021, Cisco unveiled its new line-up of catalyst industrial routers, which will let businesses expand their networks to the edge while maintaining security, scalability, and flexibility thanks to embedded 5G technology
• PRODUCT LAUNCH- Verizon and AWS introduced their private mobile 5G edge computing service to corporations in the US in April 2021 utilising Verizon's private 5G network and AWS outposts.
• PRODUCT LAUNCH- Nokia introduced an edge automation solution in March 2021 to automate the management of various cloud data centres and reduce management complexity.
• EXPANSION- In February 2021, HPE confirmed that it is accelerating its space research with its HPE Spaceborne Computer-2 (SBC-2), a powerful commercial 5G edge computing solution that enables real-time processing in space.
• COLLABORATION- In January 2021, Dell Technologies said that it is collaborating with VMware and SK Telecom to create a single multi-edge compute offering for private 5G that would enable businesses to take advantage of mobility and 5G edge computing capabilities.
•