Skyrocketing number of IoT devices fueling 'phenomenal' edge computing growth
Edge computing continues to gain momentum, in part because of the growth of the Internet of Things, and the desire by organizations to perform data processing at the edge of the network, near the source of the data.
The global edge computing market is projected to reach 3.24 billion by 2025, expanding at a “phenomenal” compound annual growth rate (CAGR) of 41 percent between 2016 and 2018, according to a recent study conducted by Grand View Research Inc. The firm said the market size was valued at $158.3 million in 2016.
The vast amount of data created by IoT devices might cause delays and latency, the study said, and edge computing tools help enhance the data processing power. That can help in avoiding delays.
“Data processing takes place closest to the source of the data, thus enabling the provision of real-time insights,” the report said.
The presence of a high-connectivity network in regions such as North America has facilitated the widespread adoption of edge computing systems, Grand View said. As a result, the North American market is expected to see substantial growth over the forecast period.
In addition, presence of prominent players such as Cisco Systems, Inc.; General Electric; Hewlett Packard Enterprise Development LP; International Business Machines (IBM); Microsoft; and SAP SE is anticipated to boost the growth of the regional market.
The healthcare and life sciences segment is expected to see the highest CAGR between 2017 and 2025. That’s due to the storage capabilities and real-time computing offered by edge computing products, which enable the delivery of reliable healthcare services in less time, according to the report.