Edge Analytics Market Size, Share, Opportunities, And Trends By Component (Sensors, Switch, Others), By Devices (IoT Devices, Camera, Drones, Smartphones, Others), By End-User (Retail, Power & Energy, Manufacturing, Logistics, Military And Defense, Others), And By Geography - Forecasts From 2023 To 2028

The edge analytics market is evaluated at US$346.207 million for the year 2021 growing at a CAGR of 31.47% reaching the market size of US$2,350.296 million by the year 2028.

Edge analytics refers to the technique of processing and extracting valuable insights from data directly at the point of its collection, such as smart devices like drones, IoT devices, smartphones, cameras, and many others. The edge analytics market is experiencing robust growth, driven by the integration of AI and ML, the rapid increase in the number of IoT and connected devices, and supportive government initiatives.

An increasing number of IoT and connected devices bolster the edge analytics market.

The proliferation of the Internet of Things (IoT) and connected devices continues to become more prevalent across various industries, they generate a massive volume of data, presenting both a challenge and an opportunity. Edge analytics addresses this by enabling the processing and analysis of this data directly on the devices where it's collected, rather than requiring it to be sent back to a central server or the cloud. This also allows for real-time insights, which can be crucial for making timely decisions and improving operational performance. The rise in IoT and connected devices is increasing the demand for edge analytics. According to the Cisco report, the average number of devices and connections per person increased from 2.4 in 2018 to 3.6 in 2023.

Government initiatives drive the edge analytics market expansion.

Governments around the world are increasingly recognizing the potential of advanced technologies such as IoT, AI, and edge computing in improving public services, infrastructure, and security. As a result, they are launching various initiatives and providing funding to promote their adoption and development. Such financial and policy support from governments can therefore create a conducive environment for the growth of the edge analytics industry. For instance, in January 2022, RailTel, under the Central Government, announced plans to establish 'edge data centers' within railway properties across 102 locations. These locations primarily include Tier-2 and Tier-3 towns throughout the country.

Integration of AI and ML boosts the edge analytics market size.

The integration of Artificial Intelligence (AI) and Machine Learning (ML) is driving the growth of the edge analytics industry by significantly enhancing the capabilities of edge devices which has improved decision-making by accelerating the analysis of sophisticated data. AI and ML algorithms integrated into edge devices can process and analyze data locally. This results in lower latency and real-time insights, making edge analytics more effective for time-sensitive applications. For instance, in June 2020, Olea Edge Analytics launched EdgeWorks Platform 2.0, a cutting-edge solution for water meter monitoring. This platform leverages a potent combination of blockchain technology, artificial intelligence (AI), and machine learning to deliver the industry's most advanced solution for water billing, delivery, and conservation.

North America is projected to dominate the edge analytics market.

North America will be the leader owing to the strategic initiatives undertaken by major players in the region which include substantial investments, acquisitions, collaborations, and partnerships. This is contributing to the development and adoption of edge analytics in North America. For instance, in November 2021, Jacobs formed an agreement for the acquisition of BlackLynx, a provider of software-enabled cloud and edge analytics solutions. Also, in 2021, Olea Edge Analytics secured $35 million in a Series C funding round, led by Insight Partners. The funds will be utilized to enhance the development of their platform that integrates cloud, edge computing, sensors, and AI software.

Complexity may restrain the edge analytics market growth.

The decentralized nature of edge computing, which underpins the concept of edge analytics, may impose certain constraints on the growth of the edge analytics industry. In a decentralized system, data processing takes place on various edge devices located at multiple geographical points, rather than in a centralized server or cloud system. This model introduces complexity in terms of system management. Furthermore, maintaining these systems which could involve tasks like updating software, managing device health, and securing devices from potential threats can be resource-intensive. The need for such resources, coupled with the complexity involved in managing and maintaining a sprawling network of devices, might deter some organizations from adopting edge analytics.

Key Developments

• November 2022: Fastly, Inc. announced the release of a new product line dedicated to Edge Observability. This launch broadens its offerings by bolstering the provision of advanced visibility, analytics, and more at both the edge and origin. The new product line also extends the existing capabilities for real-time logging and metrics, thus enhancing Fastly's ability to provide timely and insightful data to its customers.
• April 2022: The Local Data Company Group announced its acquisition of Edge Analytics, a business specializing in demographic data analysis. This strategic move brings together the complementary capabilities of the two companies. With Edge Analytics' proficiency in geography, data science, and forecasting methods, combined with The Local Data Company's in-depth knowledge of data and insights specific to the physical retail market, the acquisition promises to create a powerful synergy that can greatly enhance its offerings in the market.

Company Products

• HPE Intelligent Edge gateways: Hewlett Packard Enterprise (HPE) offers Intelligent Edge gateways that empower organizations to swiftly capture, analyze, and respond to real-time data during collection, which can also be stored for more in-depth analysis at a later time. By facilitating computation and analytics near the data source, or the 'edge', these gateways enhance the speed at which decisions are made, minimizing the risk of overlooking valuable opportunities or failing to notice critical warnings.
• Edge Services: Amazon Web Services (AWS) offers edge services designed to facilitate data processing, analysis, and storage close to endpoints. This allows for the deployment of APIs and tools outside traditional AWS data centers. By creating high-performance applications capable of processing and storing data near its source, these services ensure ultra-low latency, fostering intelligent and immediate responses.
• Azure IoT Edge: Azure IoT Edge, a service offered by Microsoft Corporation, is designed to streamline the development process and improve the functionality of IoT systems. It provides the ability to operate even when offline or when connectivity is intermittent, ensuring consistent performance under varying network conditions. In addition, Azure IoT Edge helps reduce the overall costs of implementing IoT solutions. Furthermore, it allows for remote monitoring of devices on a large scale, making device management more efficient and effective.

Segmentation

• By Component
  • Sensors
  • Switch
  • Others
• By Devices
  • IoT Devices
  • Camera
  • Drones
  • Smartphones
  • Others
• By End-User
  • Retail
  • Power & Energy
  • Manufacturing
  • Logistics
  • Military and Defense
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Others