Edge Computing Market 2030: Asia Pacific’s Response to Data Explosion

Posted on 2024-11-13 by researchinsights in Technology // 0 Comments

The global edge computing market was valued at USD 16.45 billion in 2023 and is anticipated to experience robust growth, with a projected compound annual growth rate (CAGR) of 36.9% from 2024 to 2030. Edge computing introduces a layer of complexity for organizations by enabling a wide range of stakeholders to manage IT infrastructures, networking, software development, traffic distribution, and service management. Additionally, it integrates software, hardware, and networking solutions to address various use cases across different industries. Although edge computing is still in its nascent stages of development, with its deployment models and operational frameworks still evolving, it is expected to present significant growth opportunities for new market entrants in the near future.

The COVID-19 pandemic has accelerated the adoption of data centers and edge computing technologies. As these technologies become more widespread, investments in them are expected to decrease substantially in the upcoming months. Many businesses across various sectors are scaling back their expenditures or reducing investments in upgrading servers and software, as they look for ways to cut costs. However, there are notable exceptions, particularly in sectors like telecommunications and healthcare, where spending on edge computing and the Internet of Things (IoT) is increasing.

Companies are leveraging new opportunities to adapt to the current environment by offering innovative services. The telecommunications sector, for example, has made significant strides in the development of video conferencing platforms such as Microsoft Teams and Zoom. Additionally, the industry is working on new solutions to meet the surging demand for remote communication and collaboration tools.

Gather more insights about the market drivers, restrains and growth of the Edge Computing Market

Regional Insights

North America held the largest share of the global edge computing market in 2023, capturing nearly 40% of the total revenue. This dominance can be attributed to the convergence of the Industrial Internet of Things (IIoT) with edge computing, creating favorable conditions for manufacturers in the U.S. to transition toward connected factories. Furthermore, several startups are emerging to develop platforms designed to enable edge solutions, which is expected to accelerate the regional market’s growth. For example, Telus Communications and MobiledgeX, Inc. teamed up to launch the MobiledgeX Early Access Programme. This initiative allows developers to build, test, and analyze edge-enabled applications in low-latency environments, further pushing the growth of edge computing in the region.

U.S. Edge Computing Market Trends

In the U.S., the edge computing market is projected to grow at a CAGR of over 31% from 2024 to 2030. This growth is driven by the strong presence of major vendors such as Amazon Web Services (AWS), General Electric, Hewlett Packard Enterprise, and SAP, all of which are actively developing innovative edge computing solutions. The increasing demand for edge computing in wireless communication devices, as well as the need for high-speed communication networks, is expected to be a significant driver for the market’s expansion in the country.

Europe Edge Computing Trends

The edge computing market in Europe is expected to grow at a notable CAGR of around 35% from 2024 to 2030, driven primarily by the rapid proliferation of the Internet of Things (IoT) and the resulting surge in data generation. Key sectors across the region—such as IT & telecom, healthcare, retail, transportation & logistics, and energy & utilities—are generating lucrative opportunities for edge computing solutions. Additionally, the ongoing expansion of internet infrastructure across Europe is anticipated to further accelerate market growth.

In particular, the U.K. accounted for more than 35% of the European market revenue in 2023. The widespread adoption of IoT technologies across sectors like manufacturing, residential services, healthcare, and finance is propelling the market forward.

In Germany, the edge computing market is expected to grow at a CAGR of over 36% from 2024 to 2030. This growth is primarily attributed to substantial investments and supportive government initiatives aimed at advancing internet infrastructure, which is a key enabler of edge computing solutions.

Meanwhile, France is also expected to experience significant growth, with the market projected to grow at a CAGR of over 35% from 2024 to 2030. The expansion of key solution providers in France, coupled with the rising demand for IoT technologies, is anticipated to contribute to the country’s edge computing market growth.

Asia Pacific Edge Computing Trends

The Asia Pacific region is expected to witness the highest growth rate in the edge computing market, with a projected CAGR of around 43% from 2024 to 2030. This growth is driven by an increasing focus on advancing networking technologies, as well as key technology trends such as the Industrial Internet of Things (IIoT), Industry 4.0, and the rollout of 5G networks. These trends, alongside the growing ecosystem of connected devices, are generating vast amounts of data that require robust computational infrastructure. This presents significant opportunities for companies to expand their presence in developing countries such as India, Thailand, the Philippines, Malaysia, and Indonesia. For example, Google’s Global Mobile Edge Cloud (GMEC) strategy and Microsoft’s Azure Edge Zones are expected to significantly boost regional growth.

In India, the edge computing market is estimated to experience a notable growth rate of 47% from 2024 to 2030. This is driven by the rising penetration of internet and smartphones, combined with the rapid expansion of 5G networks, which are creating new growth opportunities in the edge computing space.

In China, the market is expected to grow at a CAGR of over 38% from 2024 to 2030. The demand for edge computing solutions is increasing rapidly due to the country’s fast-paced technological developments and the growing adoption of IoT technologies across various industries.

Japan is also expected to see strong growth, with a projected CAGR of 43% from 2024 to 2030. This growth is largely attributed to the rising number of internet users and the ongoing digital transformation taking place across multiple industries in the country.

Middle East & Africa (MEA) Edge Computing Trends

In the Middle East and Africa (MEA) region, the edge computing market is forecasted to grow at a CAGR of over 37% from 2024 to 2030. This growth is primarily driven by organizations’ increasing need to reduce network latency and optimize costs, coupled with rising investments in smart city projects by government authorities. These developments are opening up new avenues for edge computing growth in the region.

Saudi Arabia is expected to be a key player in the region, with a substantial revenue share in 2023. The country’s growing investment in leading solution providers and the expanding applications of IoT technologies across various industries are driving the growth of the edge computing market in Saudi Arabia and the broader MEA region.

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Key Edge Computing Companies:

The following are the leading companies in the edge computing market. These companies collectively hold the largest market share and dictate industry trends.

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