The edge computing market is expected to grow from US$36.5 billion in 2021 to US$87.3 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 19.0% during the forecast period. The COVID-19 pandemic has boosted edge computing service adoption across industry verticals as the users move to leverage field service solutions advantages, such as expansions and less cost. This article lists the top attributes of the current edge computing market.
This is the era where quotidian activities are dependent on technologies that need to deliver instant results. When it comes to CDN or 5G, they are designed in a way to process closer to the user to minimize latency. The most intense way to do it would be to process it on the device, like Apple’s Face ID. When the data from these devices is sent to the cloud and back it causes a delay or latency. The cloud has to download the information for every request, process it, and send it back. This latency is anticipated to come down with the adoption of 5G, but the time factor cannot be eliminated until the data processing is brought closer to the end-user. To achieve the desired result of near-zero latency processing and storage need to be closer to the end-user, which is exactly what edge computing does.
People’s dependence on new-gen technologies and devices has not just proliferated the devices being used, but it has exploded the amount of data being generated and processed. To send this data over the network would require a much larger bandwidth than currently available. Edge computing solves these bandwidth constraints, as the data will be processed at the edge and will not need to be transferred.
Higher Computing Capacity
More devices and more data will mean more computing. This requirement of higher computing cannot be met by central data centers due to its sheer volume. The need of the hour is decentralization, for computing and storage. Therefore, edge computing provides intelligent processing near the population centers.
The data sent to the cloud can be of two types- personal data of users (messages from my mobile or my heart rate from my smartwatch) or data of an organization that can be sensitive and confidential (my organization’s client list or leads). For obvious reasons we want to keep this data private and sending it to the cloud is a matter of concern. Storing this data locally will go a long way in keeping this data secure. The data that goes to the cloud is exposed to two types of risk firstly, from hackers who target data under transmit where it is prone, and secondly, from trading of this data which is very common with the cloud. Edge computing completely counters this problem and makes situations transparent and permission-based.
Below are certain factors that are driving the edge computing market growth.
Partnerships and Acquisitions
The edge computing ecosystem is still nascent with players from different ecosystems coming together: service providers from networks, cloud and data center providers, traditional enterprise IT and industrial applications and systems, and so on.
Hyperscalers have a strong established presence in the cloud already and have made movements towards the edge via new solutions such as Azure Stack, AWS Outposts, and their IoT offerings. Start-ups including MobiledgeX, Mutable, SWIM.AI have also emerged to help provide a PaaS to help manage edge applications. Acquisitions and partnerships have been the main competitive strategies utilized by vendors in this market to gain market share and expertise.
The financial and banking industry is showing a significant adoption of edge computing solutions, owing to the increasing adoption of digital and mobile banking initiatives. Also, the adoption of blockchain technology in the industry and mobile payments are certain factors further fueling the demand for edge computing in the industry.
Effortless and seamless digital payment methods with maximum security and processing speeds act as key elements for enhancing the digital banking experience. As a result, several banks are deploying payment apps and services compatible with smart mobile devices. For instance, Barclays Bank adopted several technological advancements by supporting payment through smartwatches, such as Apple Watch and Fitbit, through its bPay.
Mobile applications and mobile payments are other great sources of demand for edge computing in the financial and banking industry. Increasing support from third-party applications and a wide choice of banking applications that engage several customers through loyalty management programs are increasing the mobile payment traffic in urban regions.
The widespread adoption of blockchain has considerable potential to drive the consumption of edge computing services. Since blockchain technology requires high computing, it is expected to exhibit the fastest adoption of edge computing technology in the industry. For instance, in August 2019, Tech Mahindra and the financial technology firm, Adjoint, collaborated to provide blockchain solutions for secure enterprise financial management and insurance services.