(MENAFN- GlobeNewsWire - Nasdaq) Dublin, Sept. 15, 2023 (GLOBE NEWSWIRE) -- The "Edge Computing Market by Component (Hardware, Software, and Services), Application (Smart Cities, Remote Monitoring, loT, AR and VR, Content Delivery), Organization Size (Large Enterprises and SMEs), Vertical and Region - Global Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.
The edge computing market is poised for significant expansion, with projected growth from USD 53.6 billion in 2023 to an impressive USD 111.3 billion by 2028, showcasing a robust Compound Annual Growth Rate (CAGR) of 15.7%
This transformative approach to network architecture, known as edge computing, addresses the limitations of conventional cloud computing. The widespread deployment of the Inteof Things (IoT) across variindustries and the pervasive use of mobile devices have compelled organizations to fortify their IT infrastructure through edge computing.
This evolution allows enterprises to harness the burgeoning data and machine-to-machine capabilities of IoT. Edge computing operates by enabling devices equipped with sensors, actuators, and controllers to autonomously collect and analyze data or transmit it to nearby data centers and computing devices. By facilitating data processing and analysis at the network's edge, close to the data source, edge computing effectively mitigates network congestion risks and latency challenges.
The imperative need for companies to collect and analyze data at its point of origin, the growth of IoT networks, increased bandwidth, cost-effectiveness, and the emergence of edge-native cloud platforms collectively drive the adoption and utilization of edge computing technologies. In Latin America, companies are intensifying their foon delivering superior services and establishing stronger customer connections.
As a result, many enterprises in the region have embraced cloud computing technology due to its cost-effectiveness, adaptability, multitenancy, and high degree of abstraction. However, as data volumes continue to surge, Latin American firms are expected to integrate edge computing solutions to eliminate network congestion issues and mitigate data loss risks.
While cloud computing addresses inefficiencies by optimizing data centers and managing peak loads, edge computing complements these advantages by providing low-latency connectivity and high-bandwidth data transmission capabilities. The proliferation of 5G technology further fuels the demand for real-time data access among data-driven enterprises in the region, driving the expected growth of edge computing technologies.
By component, the services segment is to exhibit significant growth during the forecast period.
The services segment plays a crucial role in the edge computing market, providing a range of essential functions and support to ensure the successful implementation and operation of edge computing solutions. Services in the edge computing market encompass a variety of offerings that cater to the unique requirements and complexities of edge deployments.
Consulting and advisory services form a significant part of the services segment. These services assist organizations in understanding the potential benefits of edge computing, assessing their specific needs, and devising an appropriate strategy for implementation. Consultants guide businesses in identifying the optimal edge infrastructure, network architecture, and edge device placement to achieve their desired outcomes.
Next, the integration and deployment services are also vital in the edge computing ecosystem. These services aid organizations in seamlessly integrating edge computing solutions into their existing IT infrastructure. They involve activities such as hardware and software installation, configuration, testing, and system integration. By leveraging these services, businesses can effectively bridge the gap between their current infrastructure and the edge environment.
Furthermore, managed services play a significant role in ensuring the ongoing smooth operation of edge computing deployments. These services encompass monitoring, maintenance, and support for the edge infrastructure, as well as managing software updates, security patches, and performance optimization.
Managed services relieve organizations of the complexities associated with managing distributed edge environments and enable them to foon their core competencies. And then the training and education services contribute to the growth of the edge computing market.
These services provide organizations with the knowledge and skills required to operate and manage edge computing solutions effectively. Training programs may cover topics such as edge architecture, edge analytics, security practices, and data governance, empowering businesses to derive maximum value from their edge deployments.
Summarily, the services segment in the edge computing market is vital for supporting organizations throughout their edge computing journey, encompassing consulting, integration, deployment, managed services, and training. These services enable businesses to overcome implementation challenges, optimize performance, and achieve the desired business outcomes from their edge computing initiatives.
By application, AR & VR segment is to exhibit decent growth during the forecast period.
AR is more common and has more practical applications. The technology behind AR requires devices to process visual data and represent visual elements in real-time. Without the edge technology, these visual elements need to send back to the centralized data centers, where these elements can be added before sending it back to that device.
This arrangement will offer significant latency. Edge technology will enable IoT devices to integrate AR displays instantly, enabling users to look at and take in new AR details without much loading time. AR devices have applications beyond entertaining applications, such as retail, where it is being utilized to display product information. Thus, edge architecture will play a vital role in providing these applications with minimal latency. AR is an extremely complex technology.
The device must understand data from multiple sensors to react in a real-time environment. Edge infrastructure enables these devices to react in real-time immediately, without delay in data transfer speed. Thus, edge technology will introduce speed and accuracy to make these devices more accurate across applications.
By vertical, government and defense verticals are to grow significantly during the forecast period.
Growing expectations from citizens and dropping budgets during the global financial crisis are limiting the ability of policymakers, administrators, and key decision-makers to meet the citizens' needs. To aptly serve the needs of citizens, government agencies must advance and expand the deployment of advanced technologies for the development of infrastructure for smart cities, such as traffic monitoring, parking management, and waste management.
Government agencies are increasingly infusing edge computing in their IT infrastructure to gain greater data visibility in far-flung locations and achieve faster data analysis. This enables them to identify assets at greater risk and explore new mission scenarios for minimizing loss and optimizing efficiency.
For instance, theAir Force deployed Dell and Microsoft's cloud and edge computing solutions and saved USD 1 million in weekly tanker refueling costs.Marines and other special forces also use such applications to achieve situational awareness.