Global 5G Edge Computing Market Size, Share, Opportunities, And Trends By Component (Hardware, Software, Services), By Organization Size (Small And Medium, Large), By Application (Smart Cities, Remote Monitoring, Industrial IoT, AR/VR, Others), And By Geography - Forecasts From 2024 To 2029

The 5G edge computing market is projected to grow from US$11.182 billion in 2022 to US$156.017 billion in 2029, at a CAGR of 45.72%.

GROWTH DRIVERS

• Growing demand for high-speed network coverage has bolstered the overall market growth.

In comparison to 4G the 5G technology significantly improves the application performance and response timing and edge computing forms an integral part of the 5G network as it reduces the distance of data traveling by bringing the compute capabilities in a network closer to end-user, devices, or data sources. Hence, the low latency offered by edge computing makes it ideal for data-intensive 5G applications such as gaming, AI, cloud, and autonomous drones among others.

Then booming high-speed bandwidth demand globally has provided a major boom to the 5G consumption both by residential and commercial users which has paved the way for future market expansion for 5G edge computing. As per GMS’s “State of 5G 2024”, the global 5G connection in 2023 reached 1.5 billion thereby making it the fastest mobile-broadband growing technology. Likewise, according to Ericsson’s “Mobility Report June 2023”, 5G penetration reached 38% in Northeast Asia by the end of February 2023 and accounted for 78% of the total mobile data traffic.

Edge computing has provided a new prospect for 5G applications which will be supported by high data transmission, low latency, excessive network coverage, and high throughput. Strategic investments and implementation of digitalization plans by the governing authorities globally have further bolstered the overall market demand.

• Bolstering growth in end-user applications is set to drive the market expansion.

Data-driven applications require high-speed networks to support data transmission and edge computing’s ability to reduce latency thereby providing a good user experience has made it an integral of 5G technology. Applications such as cloud and AI are witnessing a significant boom as technological adoption in commercial and industrial units is growing. According to the white paper issued by Rackspace Technology in June 2023, private cloud adoption by companies in the next three years is expected to grow from 35% to 41%, whereas public cloud adoption is set to grow from 41% to 48%.

Likewise, other applications where 5G technology is witnessing significant growth are gaming and media & entertainment. Rapid progression in gamers' strength followed by the adoption of a modern approach in live streaming has provided a major boom to 5G demand. For instance, according to the 2023 research report by the Entertainment Software Association, nearly 212.6 million as a part of their daily routine play video games. The same source stated that 54% used consoles for playing video games, followed by tablet users with 24%.

EMERGING OPPORTUNITIES IN THE GLOBAL 5G EDGE COMPUTING MARKET

• SOFTWARE AND SERVICES

The 5G edge computing market, based on components is analyzed into hardware, software, and services where the software and services are anticipated to account for a considerable market share fuelled by the growing demand for real-time data processing and analytics by enterprises and data-driven organizations. Likewise, the ongoing progression supporting augmented and virtual reality, followed by investments in smart cities, and autonomous vehicles is further driving the market growth.

Various strategic collaborations and product development & launches are taking place in the market which is expected to positively impact the market growth.

• In February 2024, Digi International Inc. launched its 5G edge computing industrial IoT router product “Digi IX40” which is specifically designed to support “Industry 4.0” cases like predictive maintenance, smart manufacturing, industrial automation, advanced robotics, and asset monitoring. The product can be integrated with “Digi Remote Manager” which further improves its scalability and security while ensuring speed reliance.
• In March 2023,  Tata Consultancy Services launched its 5G product “TCS Cognitive Plant Operations Adviser” which would be used by Microsoft’s Azure Private Mobile Edge Computing” for assisting oil & gas, manufacturing, healthcare, consumer packaged goods, and pharmaceuticals sector for harnessing machine learning and AI technologies.

GEOGRAPHICAL PRESENCE

Based on geography, the 5G edge computing market is analyzed in the Americas, EMEA, and Asia Pacific. Major countries namely the United States, China, Japan, the United Kingdom, and Germany are experiencing significant growth in their industrial productivity and technological innovations which has expanded the 5G scope in such countries.

Moreover, the well-established presence of major players namely IBM, Huawei, AWS, Dell, and Intel in such countries will augment the overall market expansion. Various new launches, partnerships, and developments are taking place, for instance,

• In February 2024, Nokia in collaboration with AI Austria and Microsoft deployed its 5G edge cloud which integrates Noia’s 5G edge slicing with Microsoft’s managed edge computing on AI’s live commercial network. The deployment would enable mobile users in Austria to reach enterprise cloud applications at high capacity and low latency.
• In February 2023,  Capgemini established a “5G Solution Center” in San Francisco which would assist the organization in the development and innovation of 5G and edge computing technologies. The end-to-end 5G products featuring edge computing will enable communication service providers, network equipment providers, and enterprises to deploy next-generation 5G services.  

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include Cisco, Microsoft, Dell Technologies, and Digi International, among others. The product offerings of the major corporation include the following:

COMPANY NAME	PRODUCT NAME	DESCRIPTION
Cisco	Cisco+ Hybrid Cloud	Cisco+ Hybrid Cloud offers flexible consumption thereby optimizing workloads on on-premises infrastructure such as data centers, co-location facilities, and labs. The solution is also ideal for high-growth businesses as it allows capacity additions as per business changes.
HPE	Edgeline e920t Server Blade	HPE’s “Edgline e920t Server Blade” is a multi-workload edge compute platform offering high scalability and throughput. It is specifically designed to perform even in rugged environments backed up by persistent memory support.
Microsoft	Azure Private MEC	The “Azure Private MEC” combines network functions inclusive of 4G & 5G applications and provides ultra-low-latency solutions that can meet dynamic business needs.

 

Segmentation:

• By Component
  • Hardware
  • Software
  • Services
• By Organization Size
  • Small and Medium
  • Large
• By Application
  • Smart Cities
  • Remote Monitoring
  • Industrial IoT
  • AR/VR
  • Others
• By Geography
  • Americas
    • United States
    • Others
  • Europe, Middle East, and Africa
    • Germany
    • UK
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Others

---

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Market Segmentation

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Bandwidth Availability

4.4. Number of Users

5. GOVERNMENT REGULATIONS/POLICIES

6. 5G EDGE COMPUTING MARKET, BY COMPONENT

6.1. Introduction

6.2. Hardware

6.3. Software

6.4. Services

7. 5G EDGE COMPUTING MARKET, BY ORGANIZATION SIZE

7.1. Introduction

7.2. Small and Medium

7.3. Large

8. 5G EDGE COMPUTING MARKET, BY APPLICATION

8.1. Introduction

8.2. Smart Cities

8.3. Remote Monitoring

8.4. Industrial IoT

8.5. AR/VR

8.6. Others

9. 5G EDGE COMPUTING MARKET, BY GEOGRAPHY

9.1. Introduction

9.2. Americas

9.2.1. United States

9.2.2. Others

9.3. Europe, Middle East and Africa

9.3.1. Germany

9.3.2. UK

9.3.3. Others

9.4. Asia Pacific

9.4.1. China

9.4.2. Japan

9.4.3. South Korea

9.4.4. Others

10. RECENT DEVELOPMENT AND INVESTMENTS

11. COMPETITIVE ENVIRONMENT AND ANALYSIS

11.1. Major Players and Strategy Analysis

11.2. Vendor Competitiveness Matrix

12. COMPANY PROFILES

12.1. AWS

12.2. Cisco

12.3. Dell Technologies

12.4. Google

12.5. HPE

12.6. Huawei Technologies

12.7. IBM

12.8. Intel

12.9. Microsoft

12.10. Digi International

AWS

Cisco

Dell Technologies

Google

HPE

Huawei Technologies

IBM

Intel

Microsoft

Digi International