As the Internet of Things continues to grow, developing an edge computing strategy becomes more important for companies. And the market for edge computing technologies, which support a distributed computing model that brings analytics and data storage closer to the locations where they are needed, is on the rise.
Research firm Grand View Research recently reported that the global edge computing market was valued at $1.47 billion in 2018 and is expected to expand at a compound annual growth rate (CAGR) of 54 percent from 2019 to 2025.
A growing need to collect and analyze large volumes of data at the edge of the network with reduced latency is expected to drive the growth of the market. Rising adoption of IoT and big data and the proliferation of cloud services is generating large volumes of data, the report said.
An edge application makes effective use of IoT devices’ processing power to aggregate and filter the IoT data, Grand View said. At the same time, it also uses the flexibility and power of the cloud to execute complex analyses of the data and contributes to decision-making processes.
In remote locations where network connectivity is a challenge, edge products can also help reduce latency.