Edge Analytics Market Size - By Component (Solution, Services), Business Application (Marketing, Sales, Finance, Operations, Human Resource), Type (Predictive, Prescriptive, Descriptive, Diagnostic), Deployment Model, Industry Vertical & Forecast, 2024 – 2032

Edge Analytics Market Size

Edge Analytics Market size was valued at USD 11.1 billion in 2023 and is projected to register a CAGR of over 25% between 2023 and 2032. The market is driven by the significant growth in the adoption of IoT devices worldwide. Further, the rapid expansion of the IoT landscape, majorly driven by the increasing internet penetration, has led to a proliferation of connected devices generating massive volumes of data at the network edge.
 

According to the International Telecommunication Union, as of 2023, around 5.4 billion people have internet access across the globe. The number of internet users has grown by around 4.7% since 2022.
 

Edge analytics empowers real-time data processing and insights directly at the data source, eliminating the need to transmit all data to central cloud servers. This approach provides swift data processing and enables organizations to extract real-time insights. This is considered crucial for time-sensitive applications such as industrial automation, autonomous cars, and remote monitoring, driving the growth of the edge analytics market.
 

Further, the growing demand for autonomous systems across several end-use verticals is playing a significant role in fueling the edge analytics business globally. The technology is crucial for powering autonomous systems, such as autonomous vehicles and drones, by enabling quick decision-making and reducing dependencies on cloud connectivity for critical operations.
 

The major factor hindering the growth of the market is the limited computational resources of edge devices as compared to cloud servers which reduces the ability to scale analytics workloads. Also, the integration of a significant number of edge devices and ensuring they work smoothly together is complex and costly. Furthermore, edge devices are vulnerable to cyberattacks due to their weaker security measures as compared to centralized data centers.
 

Edge Analytics Market Trends

The emergence of Industry 4.0 and smart manufacturing techniques is expected to create a healthy growth trajectory for the edge analytics industry. In Industry 4.0, edge analytics plays a vital role in optimizing manufacturing processes, predictive maintenance, and improving overall operational efficiency. Companies are using edge analytics to enhance their production lines. Additionally, the growing adoption of edge computing as a paradigm for processing data at the network edge naturally drives the demand for edge analytics solutions.
 

Improvements in edge computing technologies provide the required computational power to perform complex analytics directly at the data source, lowering latency and bandwidth usage. Various companies are focused on strategic partnerships to provide the required infrastructure to support the demand for AI applications at the edge.
 

For instance, in February 2024, NTT Data, an IT infrastructure and services partnered with Schneider Electric to launch a co-innovation that helps enterprises utilize the power of edge computing. The strategy introduced a solution that integrates Edge, private 5G, IoT, and Modular Data Centers, offering unmatched connectivity and supporting the computational needs of Generative AI applications deployed at the edge.
 

Edge Analytics Market Analysis

Based on component, the market is segmented into solution, and services. The solution segment held a market share of over 70% in 2023 and is expected to reach over USD 55 billion by 2032. The growth for edge analytics solutions is primarily fueled by the demand for real-time data processing, propelled by the surge in data from IoT devices. These solutions enable data processing and analysis at the network's edge, enhancing response times and cutting down on latency.
 

Additionally, organizations are shifting towards edge analytics to bolster efficiency and drive cost savings. By identifying inefficiencies and areas for enhancement, edge analytics allows companies to streamline operations and cut down on expenses, thus driving the market among its end-users.
 

Based on industry vertical, the edge analytics market is segmented into BFSI, IT & telecom, healthcare & life science, manufacturing, retail, Government, energy & utilities, transportation & logistics and others. The IT & telecom segment held a market share of 22% in 2023, owing to the rising demand for edge analytics driven by network complexity, the push for real-time monitoring, and the surge in data from connected devices.
 

By allowing telecom firms to analyze data at the network's edge, edge analytics minimizes latency and enhances network performance. For instance, edge analytics can help monitor network traffic in real-time to identify anomalies and potential security threats promptly, improving overall network efficiency and reliability.
 

North America edge analytics market held a market share of over 35% in 2023. The region has witnessed a surge in the adoption of edge analytics solutions and services, due to their capacity to deliver immediate insights and faster decision-making processes. With the advent of the IoT, there is a growing demand for processing data at the edge, closer to the source of data generation. This approach minimizes latency, helping businesses to act on real-time insights.
 

Moreover, the increase in data from IoT devices, sensors, and digital platforms is a major driver for the market in the U.S. and Canada. Further, organizations need advanced analytics solutions to process and analyze this data at the edge, reducing delays and improving decision-making, thus shifting the focus on these solutions.
 

European telecom companies are focused on upgrading their infrastructure to support 5G. This upgrade process helps enterprises deploy edge computing nodes that perform analytics near the data source, thereby reducing delays and improving efficiency. This is expected to drive the growth of the market in Europe.
 

Countries such as China, India, and Singapore are investing in smart city projects that rely on IoT and edge analytics to manage urban infrastructure, traffic, and public services efficiently. These projects drive the need for advanced edge analytics in the Asia-Pacific region.
 

The energy sector, especially oil and gas, is a major part of the economy in the Middle East and Africa (MEA). Companies in this sector are using edge analytics to improve efficiency, safety, and predictive maintenance. Real-time data analysis at the edge helps better monitor and manage energy assets. This is expected to create lucrative opportunities for the MEA region.
 

Edge Analytics Market Share

IBM Corporation and Amazon Web Services accounted for a market share of around 10% in the market in 2023. IBM is combining its cloud infrastructure with edge computing solutions, to enable businesses to process data locally while maintaining seamless integration with the cloud. This helps industries requiring low-latency data processing and real-time analytics, such as telecommunications and retail?. This is helping the company maintain a high market presence.
 

AWS is expanding its edge analytics capabilities through high investments in AI and machine ML. These technologies are embedded in AWS's edge services, enabling predictive maintenance, real-time analytics, and advanced data processing at the edge. AWS’s focus on AI and ML provides customers with powerful tools to analyze data and make quick and better-informed decisions.
 

Edge Analytics Market Companies

Major players operating in the digital education industry are:

• Amazon Web Services Inc.
• Cisco Systems Inc.
• Dell
• Hewlett Packard Enterprise
• IBM Corporation
• Intel Corporation
• Google LLC
• Microsoft Corporation
• Oracle Corporation
• SAS Institute Inc.
   

Edge Analytics Industry News

• In July 2023, Cognizant launched Cognizant Neuro Edge, a new platform in the Cognizant Neuro suite that helps businesses across various industries to use AI and generative AI at the edge. The platform powers the entire value chain of edge AI including chips, devices, applications, and business solution deployment.
   
• In April 2022, Cisco and NetApp partnered to launch FlexPod XCS, an automated platform for modern applications, data, and hybrid cloud environments. This solution is designed to help organizations move their data and applications smoothly across hybrid cloud environments, from private data centers to the edge.
   

The edge analytics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Component

• Solution
• Service
  • Managed
  • Professional

Market, By Business Application

• Marketing
• Sales
• Operations
• Finance
• Human resources

Market, By Deployment Model

• Cloud
• On-premises

Market, By Type

• Predictive analytics
• Descriptive analytics
• Prescriptive analytics
• Diagnostic analytics

Market, By Industry Vertical

• IT & telecom
• BFSI
• Manufacturing
• Healthcare and life science
• Retail
• Transportation and logistics
• Government
• Energy and utilities
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • South Africa
  • UAE
  • Saudi Arabia
  • Rest of MEA