Edge computing involves processing of data close to the place where it is generated as against processing it at a centralized data center. Edge computing helps in reducing latency issues and delivers faster insights from IoT data. IoT connects both physical objects and virtual objects through the internet which allows data exchange and communication for various applications. Edge computing plays a vital role in IoT solutions by enabling seamless analysis of data at the edge nodes instead of transmitting it to a centralized cloud. This reduces network congestion while improving response times for applications or services requiring low latency. Increasing use of IoT devices across various industries and connectivity through 5G networks is driving the demand for edge computing infrastructure that can analyze real-time data from IoT deployed on the edge. The global edge computing market is estimated to be valued at US$ 111.3 Bn or Mn in 2023 and is expected to exhibit a CAGR of 15.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The increasing adoption of internet of things (IoT) devices is one of the major drivers boosting the growth of edge computing market. Large amount of data is generated from the growing deployment of IoT devices across sectors. With edge computing, this real-time data can be processed near the device and insights can be delivered without delay, which benefits various IoT applications requiring low latency. Additionally, edge computing minimizes network congestion preventing bottlenecks as data transfer is reduced with local processing and storage at edge nodes. Edge computing also enhances resiliency of applications and services by keeping data processing capability closer to the data source which results in better availability of application during disruptions. These benefits are fueling the adoption of edge solutions to support various IoT use cases.

SWOT Analysis
Strength: Edge computing provides lower latency by moving computing and data storage closer to the source of data generation like IoT devices. With edge computing, the analytical processing and data storage happen locally which reduces latency significantly. Organizations can gain real-time insights into business-critical data that opens up new avenues of innovation.

Weakness: Securing data and applications at the edge might prove challenging due to the distributed nature of edge infrastructure. Edge devices are also more prone to physical threats which compromises data security. Developing and managing edge applications require specialized skillsets which organizations may lack.

Opportunity: The growing popularity of IoT, AR/VR, and autonomous vehicles will drive the adoption of edge computing at an immense scale. Edge infrastructure can support mission-critical applications in industries like manufacturing, transportation and healthcare by offering near real-time analytics and low-latency processing. Edge computing also reduces network bandwidth usage and lowers operational costs for organizations.

Threats: Maintaining service level agreements due to unpredictable network connectivity issues at the edge poses challenges. Technological changes in edge infrastructure might lead to additional investments and operational disruptions. Data sovereignty laws in different countries could hamper cross-border data flows that edge applications rely upon. Increased complexities in updates, patches and troubleshooting of distributed edge infrastructure also introduce risks.

Key Takeaways
The global edge computing market is expected to witness high growth over the forecast period driven by burgeoning data volumes from IoT deployments.

North America dominated the market in 2023 owing to large-scale adoption of edge solutions across industries. The presence of leading technology companies offering comprehensive edge infrastructure is spurring growth. Key verticals driving edge computing adoption in the region are manufacturing, transportation, healthcare and retail.

Key players operating in the Edge Computing market are Microsoft Corporation, Google LLC, IBM Corporation, Huawei Technologies Co. Limited, Cisco Systems Inc. Strategic partnerships and acquisitions have enabled these companies to offer end-to-end edge solutions. They are ramping up investments to expand edge capabilities regionally and lay the foundation for a decentralized computing model powered by edge.