How Edge Computing Will Open Up New Global Possibilities
The evolution of the internet is a phenomenon in itself, but to compare it with emerging technologies like edge computing opens an even bigger world of possibilities. Intelligent applications are the wave of the future and it is vital that companies monitor the now high-volume data streams that are continuously growing. But, what is the most efficient way to manage massive data traffic between your end users and devices?
The Boom in Big Data
Edge computing combines hardware and software solutions in networking architecture that addresses the vast number of use cases pursued across several industry verticals. With the big boom in data, that means governments and companies need to take extra measures to secure critical data. Many governments have been concerned about switching from on premise to cloud computing for years. How would a state like Nevada secure encrypted data at Southwest Gas Corporation, which supplies the entire state with an essential service, and keep that data close to home?
Oracle has preached for years that cloud computing is the future wave. However, edge computing looks to bypass the source to cloud computing and bring it closer to the consumer. As the technology is still in the early stages of development, and its implementation and operational models are yet to mature, edge computing is likely to create vast growth opportunities for new entrants in the near future.
However, companies and governments should consider edge computing as something other than a competitor to cloud solutions; instead, it should be seen as a way to partner with existing market heroes like Azure, Google, AWS, etc., to adopt more global solutions. STL Insights states, “Cloud computing is a catalyst for industrial transformation, edge computing should be a key part of the Industrial Internet of Things (IIoT) planning to enable and accelerate digital transformation.”
The Benefits of Edge Computing
Edge computing simply opens up more roads in technology for markets such as artificial intelligence and data analysis. As one of the largest emerging sectors in technology, edge computing offers many benefits. According to Forbes, “By cutting or eliminating the distance between where data is collected and where its processed, edge computing alleviates latency problems, improving the performance of edge networks and devices.” As governments and companies expand globally into new market opportunities, edge computing helps limit data exposure. Organizations can then develop cross-market strategies that prevent sensitive data from being exposed. Combined with the current calculations for edge computing, this market is on trend to grow at an exponential rate.
Edge Computing Market Calculations
Edge computing introduces a great level of business complexity, as it requires an extensive range of stakeholders for IT infrastructure, connectivity, application development, traffic delivery and service management. Research has found that the global edge computing market size was valued at $4.68 billion in 2020 and was expected to expand at a compound annual growth rate (CAGR) of 38.4% from 2021 to 2028. Again, another industry that has tremendous computational density.
Yahoo News estimates that “From 2031, edge computing will grow at a 37.3% CAGR and sit at $161 billion by the end of the forecast period, mirroring the conclusions reached by Research and Markets. Transparency Market Research believes that the internet of things (IoT) industry will aid this growth, with connected devices providing more data and requiring the need to place the computing centers closer to the end user.” With edge computing sitting at a current $6 billion industry–that is a tenfold increase in just six years.
Want to stay up-to-date on the latest market trends and semiconductor news? Grab your weekly updates from PCX.