The number of interconnected devices and the consumption of data is growing at staggering rates. According to IDC forecasts, we can expect 55.7 billion interconnected devices by 2025 worldwide, out of which 75% would be connected to an IoT platform. Moreover, the data generated from linked IoT devices would reach 73.1 ZB by 2025. The processing of this whopping amount of data is clogging centralized networks and will further overwhelm them in the future.
Edge capabilities will help enterprises avoid network, storage, and bandwidth issues. They help analyze and act on the data where it’s generated, which triggers instant decisions, avoiding the time and lag limitations. Edge solutions are already being used across industries – healthcare solutions, retail, agriculture, transport logistics, and industrial operations like oil and gas and mining. The unpredictability and complexity of the real world demand disruptive solutions to start at the edge.
Organizations can seize valuable opportunities by applying the logic of edge computing to operating models. It will help businesses innovate faster, run more efficiently, get more value from ecosystem partnerships, effectively manage risks with fragmenting markets, and enable faster response to changing local preferences. Apart from being uncertain, customer preferences are also changing differently in different markets. Pushing decision-making authority to the edge will empower organizations to handle such ongoing changes with ease.
Maturing technologies like Cloud and 5G are the enablers for edge, and integrating all of them provides opportunities to deliver powerful use-cases. Microsoft, Amazon, IBM, Intel, Cisco, and Google are key players in the edge market. Huawei, Dell, GE, and Hewlett Packard Enterprise are some other important players.
Major Growth Drivers
The global edge computing market which was valued at 2.94 billion U.S. dollars in 2019 is forecasted to reach a value of 68.71 billion U.S. dollars by 2030 and is expected to grow at a CAGR greater than 35% (Source: Statista). Some of the major growth drivers are:
Edge Computing Market by Region
North America is the largest market for edge computing, accounting for 46% share of the total market value, and it will continue to grow significantly. However, the Asia Pacific market is expected to witness the fastest growth in edge compared to the rest of the regions with the highest CAGR values during 2022-2028. This skyrocketing growth can be attributed to the evolution of smart cities, the development of 5G network infrastructure, untapped market opportunities, and increasing investments in emerging economies.
Source: Grand View Research
Major benefits of edge
Applications in different industry segments
Edge computing in healthcare can go a long way in saving lives and decreasing mortality rates. It is making access to quality care easier by helping doctors provide care to areas with poor connectivity and healthcare facilities. Enabling remote patient monitoring, telehealth services, and drone delivery of lab supplies are some of the applications.
Retail, warehousing, and logistics
Edge-enabled intelligent stores can help retailers make smart real-time decisions through video analytics to drive a state-of-art frictionless customer experience. AI-powered edge solutions help eliminate stockout, improve operations and optimize merchandising through rich insights generated about in-store customer behavior. Point-of-sale systems (POS) are being transformed by retailers and fast-food restaurants with edge computing.
Banking and Financial Services
Edge solutions offer a range of opportunities to financial institutions to maximize revenue generation and reduce costs. Edge helps banks use real-time analytics to understand their customers better, thus enabling them to deliver world-class customer experiences.
Edge has applications in almost every other industry segment as well- energy and utilities, agriculture, manufacturing, gaming, and others where we expect to see many more interesting use-cases in the upcoming years.
In the emerging landscape of edge, along with key technologies like 5G, AI is a game-changing convergence opportunity. This seismic breakthrough will help organizations optimize their operations, improve customer satisfaction, redefine employee experiences and create differentiated business models. If utilized rightly, the impact on innovation, productivity, and user experience could be profound. While barriers to adoption remain, rapid innovations in edge security, governance, standards, and framework are a few ways to overcome challenges. Identifying clear use cases, ensuring security, building internal skills, and cost-benefit analysis will help move forward.
Currently working as a Business Consultant for Product and Platform Engineering division at Brillio, Monalisa works with multiple business and internal stakeholders to deliver digital transformation projects to clients across verticals. Over the last one year with Brillio, she has worked with executives and leaders on various strategic initiatives within the organization.
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