U.S. Edge Computing Market (By Component: Hardware, Software, Services; By Application: Remote Monitoring, Content Delivery; By Industry Vertical) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The U.S. edge computing market was estimated at USD 6.09 billion in 2023 and it is expected to surpass around USD 92.39 billion by 2033, poised to grow at a CAGR of 31.25% from 2024 to 2033. The U.S. edge computing market is driven by the demand for ultra-low latency, advent of 5g networks, decentralized computing power, and digital transformation across industries.

Key Pointers

• By Component, the hardware segment held the largest revenue share of 44% in 2023.
• By Industry Vertical, the industrial sector secured a substantial market share in 2023.
• By Application, the market was dominated by the Industrial Internet of Things (IIoT) segment in 2023.

U.S. Edge Computing Market Overview

The U.S. Edge Computing market has emerged as a dynamic and pivotal force in the technology, redefining how data is processed and delivered. This overview aims to shed light on the key aspects shaping the landscape of edge computing, providing a comprehensive understanding of its current state and future potential.

U.S. Edge Computing Market Growth

The growth of the U.S. Edge Computing market is propelled by various factors contributing to its dynamic expansion. One key driver is the proliferation of Internet of Things (IoT) devices, which has surged in recent years. The increasing adoption of IoT across industries necessitates real-time data processing capabilities, a demand effectively met by edge computing. Additionally, the pursuit of ultra-low latency in critical applications, such as autonomous vehicles and augmented reality, further accelerates the market's growth. The advent of 5G networks is also a significant contributor, as it enhances the speed and connectivity required for seamless edge computing operations. Furthermore, the rising need for decentralized computing power, coupled with the ongoing digital transformation across sectors, positions edge computing as a strategic solution to optimize data processing, making it a key player in the technological landscape.

U.S. Edge Computing Market Trends:

• Integration of AI and Machine Learning: A prominent trend in the U.S. Edge Computing market is the integration of artificial intelligence (AI) and machine learning (ML) at the edge. This synergy empowers devices to process and analyze data locally, enhancing real-time decision-making capabilities and reducing the reliance on centralized cloud resources.
• Rise of 5G Networks: The deployment and expansion of 5G networks play a pivotal role in shaping the landscape of edge computing. The increased speed and bandwidth offered by 5G facilitate seamless communication between devices, enabling more efficient and responsive edge computing operations.
• Development of Edge-Native Applications: A growing trend involves the development of applications specifically designed for edge computing environments. These edge-native applications capitalize on the proximity to data sources, optimizing performance and unlocking new possibilities for industries ranging from healthcare to manufacturing.
• Edge Computing in Hybrid Cloud Architectures: A trend gaining traction is the integration of edge computing into hybrid cloud architectures. This approach leverages both edge and cloud resources, offering a flexible and scalable solution for businesses seeking to balance the advantages of local processing with the broader capabilities of cloud infrastructure.
• Edge Computing in Edge-to-Cloud Continuum: The market is witnessing a shift towards a more holistic approach, viewing edge computing as part of a continuum extending from edge to cloud. This trend emphasizes seamless interoperability and data flow between edge devices and centralized cloud resources, ensuring a cohesive and integrated computing ecosystem.
• Edge Orchestration and Management: Efficient orchestration and management of edge devices are emerging as critical trends. Companies are investing in solutions that streamline the deployment, monitoring, and maintenance of edge infrastructure, ensuring seamless integration into existing IT ecosystems.

Component Insights

In 2023, the hardware segment dominated the market, holding a significant share of over 44%. This notable presence can be attributed to the increasing preference for hardware within the managed services industry. The surge in IoT and IIoT device applications has led to a substantial increase in data generation. Consequently, businesses are adopting hardware components, including edge computing gear, to alleviate the burden on cloud infrastructure and data centers.

Within the hardware segment, there are distinct categories, including Edge Nodes/Gateways (Servers), Sensors/Routers, and others. The escalating number of data centers is driving the demand for edge routers that establish connections between local and wide-area networks. To efficiently manage high incoming traffic while maintaining low latency, edge data centers require well-equipped and flexible edge routers. The growing need for secure and streamlined data processing at the network's edge is anticipated to propel the hardware segment's growth throughout the forecast period

Industry Vertical Insights

In 2023, the industrial sector secured a substantial market share, driven by the significant impact of real-time monitoring on enhancing operational efficiency and productivity in manufacturing. Edge computing emerges as the optimal solution for remote sites experiencing unstable cloud connectivity, with remote oil fields widely embracing this technology.

Furthermore, in industries where data sensitivity and strict compliance regulations prevail, edge computing serves as an effective solution for data processing. The convergence of Industrial Internet of Things (IIoT) with edge computing is fostering the adoption of connected factories among U.S. manufacturers. This trend has given rise to several startups specializing in platforms for developing edge-enabled solutions, poised to contribute significantly to the regional industry's growth

Application Insights

In 2023, the market was dominated by the Industrial Internet of Things (IIoT) segment, underlining the pivotal role of edge computing in facilitating organizations' digital transformation of their facilities. The demand for edge infrastructure is expected to rise in tandem with increasing service intricacy and improved accessibility to infrastructure edges. Edge computing proves instrumental in aiding manufacturers in achieving the digitization of their facilities.

The Industry 4.0 initiative further provides a framework for modernizing manufacturing processes in response to industry disruptions, paving the way for widespread edge deployment. This initiative promotes operational agility by leveraging technologies that bring uniformity to both cyber and physical systems. Smart factories, as part of this initiative, can utilize edge platforms to transmit only processed data to their cloud servers, consequently fueling the market for AI edge computing. The edge serves as a conduit by locally analyzing data and sending condensed information to the cloud

U.S. Edge Computing Market Key Companies

• ABB Ltd.
• Amazon Web Services (AWS), Inc.
• Atos SE
• Capgemini
• Cisco Systems, Inc.
• General Electric Company
• Hewlett Packard Enterprise Development
• Honeywell International Inc.
• IBM Corporation
• Intel Corporation
• Microsoft Corporation
• Rockwell Automation, Inc
• SAP SE
• Siemens AG

U.S. Edge Computing Market Segmentations:

By Component

• Hardware
  • Hardware by Type
    • Edge Nodes/Gateways (Servers)
    • Sensors/Routers
    • Others
  • Hardware by End-Point Devices
    • Cameras
    • Drones
    • HMD
    • Robots
    • Others
• Software
• Services
• Edge-Managed Platform

By Application

• Industrial Internet of Things (IIoT)
• Remote Monitoring
• Content Delivery
• Video Analytics
• AR/VR
• Connected Cars
• Smart Grids
• Critical Infrastructure Monitoring
• Traffic Management
• Assets Tracking
• Security & Surveillance
• Smart Cities
• Others

By Industry Vertical

• Industrial
• Energy & Utilities
• Healthcare
• Agriculture
• Transportation & Logistics
• Retail
• Data Centers
• Wearables
• Government & Public Sector
• Media & Entertainment
• Manufacturing
• Telecom & IT
• Others