The US Edge Computing market is expected to reach US$ 43.59 billion in 2029 from US$ 24.17 billion in 2024, at a CAGR of 12.5% during the forecast period, according to a new report by MarketsandMarkets.
The report finds the market is expanding as organizations seek faster data processing, lower latency and enhanced security.
Growing adoption of 5G, cloud-edge integration and autonomous systems drives demand, enabling businesses to process data closer to the source and reduce reliance on centralized data centers.
Major cloud providers such as AWS, Microsoft Azure and Google Cloud have, the report says, expanded their edge hardware offerings with specialized servers and edge nodes for low-latency computing, such as AWS Outposts and Azure Stack Edge, which bring cloud capabilities closer to end users.
Government initiatives, such as the CHIPS and Science Act, signed in 2022, are said to be supporting domestic semiconductor manufacturing and innovation, fostering the development of edge AI chips that enable real-time processing, reduce latency and enhance data privacy in the edge computing space.
Companies across sectors, including retail, energy and transportation, are investing in edge hardware to reduce reliance on centralized cloud processing, enhance security and improve operational efficiency, the report says.
The IoT & sensor data utilization segment by application is expected to grow at the highest rate during the forecast period and rising adoption of industrial IoT (IIoT), such as GE’s (US) Predix platform, is accelerating demand for IoT and sensor data utilization solutions, according to the report.
