Edge Computing Market Size, Share, Growth, Report 2026 to 2035

Edge Computing Market Size and Growth 2026 to 2035

The global edge computing market size reached at USD 167.82 billion in 2025 and is expected to be worth around USD 867.41 billion by 2035, exhibiting at a compound annual growth rate (CAGR) of 17.9% over the forecast period 2026 to 2035. The edge computing market is growing rapidly because companies need faster and more efficient ways to process huge amounts of data. More devices connected through IoT generate massive data that cannot always be sent to distant cloud servers, so businesses are placing computing closer to where the data is created. This reduces network congestion, lowers latency, and enables real-time decision-making, which is critical for applications like industrial automation, autonomous vehicles, and smart cities. The rollout of 5G networks and the rising use of AI at the edge also boost demand for edge solutions, making the edge computing market essential for processing data with speed and reliability.

Recent developments are further strengthening this growth. Many technology companies are launching new edge AI processors, partnerships, and specialized infrastructure to support edge innovation. For example, global firms are expanding edge AI licensing and chip designs to accelerate on-device intelligence, while regional initiatives are producing local edge processors to support national tech ecosystems. Cloud providers and telcos are also investing in distributed edge nodes and services to meet the rising need for hybrid cloud and low-latency applications. These advancements help drive the edge computing market forward by enabling more industries to adopt edge solutions for real-world use cases.

Report Highlights

• By Region, the edge computing market is dominated by North America, accounting for 37.8% of the global market share, driven by advanced cloud infrastructure and early 5G adoption.
• By component, hardware leads the edge computing market with a 42.5% share, as physical infrastructure is essential for data processing at the source.
• In terms of application, IoT & IIoT applications hold the largest share at 36.8%, driven by widespread deployment of connected devices across industries.
• By deployment mode, the on-premises edge computing leads deployment modes with a 57.6% share, supported by requirements for data security, control, and ultra-low latency.
• By vertical, telecommunications & IT is the leading segment with 24.6% market share, driven by 5G rollout, network optimization, and edge-enabled services.

Growth in Connected Devices Driving Demand for Low-Latency Edge Processing

The rapid growth in connected devices such as IoT sensors, smart machines, wearables, and autonomous systems is creating large volumes of data at the network edge. Sending all this data to centralized cloud data centers causes delays, bandwidth strain, and higher costs. Many applications like industrial automation, smart grids, connected vehicles, and real-time video analytics need instant responses. This makes low-latency processing near the data source essential. Edge computing allows data to be processed locally, close to where it is generated, which improves speed, reliability, and security. As the number of connected devices continues to rise, the need for fast, local data processing increases, strongly driving the growth of the edge computing market.

Moreover, the steady rise in both IoT and non-IoT active device connections worldwide is strongly driving the edge computing market. As billions of devices generate continuous data, processing everything in centralized clouds becomes inefficient and slow. This growth increases the need for low-latency, real-time data processing closer to the source, which edge computing enables. As a result, industries are investing more in edge infrastructure to handle higher data volumes, improve performance, and support applications such as smart cities, industrial automation, and connected healthcare.

Recent Major Milestones

1. Toyota & NTT’s USD 3.3 Bn AI Mobility Platform Initiative

Toyota Motor Corporation and Nippon Telegraph and Telephone (NTT) announced a joint investment of about USD 3.3 billion to build a distributed Mobility AI Platform that combines AI, communication, and edge computing capabilities to process data locally for real-time mobility applications such as autonomous driving and traffic safety. This initiative highlights how edge computing infrastructure is becoming foundational for advanced AI systems that require low-latency data processing near vehicles and traffic networks. By integrating edge computing into automotive and mobility ecosystems, this development accelerates real-world adoption of edge technologies in critical industries, encouraging other players to invest in edge-enabled platforms for intelligent transport systems.

2. Accenture’s Strategic Investment in CLIKA for Edge AI

Accenture Ventures invested in CLIKA, a startup focusing on high-performance AI compression tools that make it easier to run AI models on edge devices. This partnership aims to simplify deployment of compact AI models across a broad range of edge endpoints, such as IoT sensors, robotics, and autonomous vehicles. By reducing the complexity of running AI at the edge, this milestone helps enterprises scale intelligent edge computing solutions faster and more cost-effectively. The development strengthens the ecosystem of software tools supporting edge computing and drives broader enterprise adoption by solving key deployment challenges.

3. Expansion of Distributed Edge Data Centers Globally

Although not tied to a single company announcement, investment trends in edge data center construction represent a major milestone for the edge computing market. Data centers built closer to users reduce latency and improve performance for edge workloads, enabling real-time processing for applications like streaming, IoT, and industrial automation. This shift toward decentralized computing infrastructure supports market growth by making edge solutions more accessible, scalable, and efficient across industries worldwide.

4. Japan’s Government-Backed “Society 5.0” Initiative Integrating Edge Tech

Japan’s “Society 5.0” national initiative, backed by significant public investment in AI and smart infrastructure, promotes the integration of edge computing across sectors including logistics and healthcare. This government-led push encourages development of next-generation smart systems that rely on local data processing for speed and reliability. Public initiatives like this not only boost domestic edge computing adoption but also set benchmarks for other countries to follow, driving innovation and investment in edge technologies at both national and industry levels.

Report Scope

Market Dynamics

Market Drivers

• Demand for low-latency processing: The need for real-time data processing is a major driver of the edge computing market. Applications such as autonomous vehicles, industrial automation, and smart healthcare systems require instant responses. Processing data near the source reduces delays and improves system performance. This strong demand for speed and reliability continues to push adoption of edge computing solutions.
• Growth of IoT and connected devices: The rapid increase in connected devices is driving the edge computing market. Billions of IoT sensors and smart devices generate large volumes of data every second. Sending all this data to centralized clouds is inefficient and costly. Edge computing helps process data locally, reducing bandwidth use and improving efficiency.

Market Restraints

• High initial deployment cost: High setup and infrastructure costs restrain the edge computing market. Edge solutions require investments in hardware, software, and network upgrades. Small and medium enterprises often find these costs difficult to manage. This slows adoption, especially in cost-sensitive regions.
• Complexity of edge infrastructure management: Managing distributed edge infrastructure is challenging and acts as a restraint. Multiple edge nodes spread across locations increase operational complexity. Ensuring updates, monitoring, and maintenance requires skilled resources. This complexity can limit large-scale deployment.

Market Opportunities

• Integration of AI at the edge: The rise of edge AI creates strong opportunities in the edge computing market. Running AI models locally enables faster analytics and smarter decision-making. Industries such as manufacturing, retail, and healthcare are adopting edge AI rapidly. This trend opens new revenue streams for solution providers.
• Expansion of 5G networks: The global rollout of 5G offers major growth opportunities for the edge computing market. 5G enables high-speed, low-latency connectivity needed for edge applications. Telecom operators are deploying edge nodes alongside 5G infrastructure. This combination supports advanced use cases and accelerates market growth.

Market Challenges

• Data security and privacy risks: Security remains a key challenge in the edge computing market. Distributed edge devices increase the number of potential attack points. Protecting sensitive data across multiple locations is complex. Addressing these risks requires strong security frameworks and continuous monitoring.
• Lack of standardization: The absence of common standards is a major challenge for the edge computing market. Different vendors use varied architectures and platforms. This creates interoperability issues and vendor lock-in concerns. Standardization is needed to enable seamless integration and faster adoption.

Edge Computing Market Regional Analysis

The edge computing market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

North America Edge Computing Market: Strong Infrastructure & 5G Deployment Driving Growth

The North America edge computing market size was valued at USD 63.44 billion in 2025 and is expected to be worth around USD 327.88 billion by 2035. North America leads the market because the region has advanced digital infrastructure, early adoption of 5G, and heavy investment by major tech companies. The widespread deployment of 5G networks improves low-latency performance, which boosts edge use in sectors such as manufacturing, healthcare, and retail. Large data center ecosystems and strong cloud penetration also support edge deployment across industries, helping enterprises process data close to where it’s generated and improving operational efficiency. North America’s established technology ecosystem keeps it at the forefront of edge computing innovation.

Recent Developments:

• Verizon partners with AWS to deliver 5G edge services using AWS Wavelength.
• Leading hyperscale cloud providers continue expanding edge-integrated regions across the U.S. and Canada.

Asia-Pacific (APAC) Edge Computing Market: Smart Cities & 5G Expansion Fuel Fast Growth

The Asia-Pacific edge computing market size was estimated at USD 40.44 billion in 2025 and is forecasted to surpass around USD 209.05 billion by 2035. The Asia-Pacific region is the fastest-growing market thanks to rapid adoption of 5G networks, smart city projects, and a dense ecosystem of connected devices. Countries like China, India, Japan, and South Korea are investing heavily in digital infrastructure, Industry 4.0, and low-latency processing capabilities. Rising industrial IoT adoption and government support for digital transformation further accelerate market growth. As more enterprises deploy edge solutions for real-time data analytics and automation, Asia-Pacific continues to expand its edge computing footprint.

Recent Developments:

• Tencent Cloud opens new data center regions, including first Middle East site supporting APAC growth.
• Major telecom and cloud players partner with regional operators to deploy edge infrastructure for IoT and real-time services.

Europe Edge Computing Market: IoT & Digital Infrastructure Growth Driving Adoption

The Europe edge computing market size was accounted for USD 43.47 billion in 2025 and is projected to hit around USD 224.66 billion by 2035. Europe market is growing as industries adopt IoT and digital transformation initiatives. Strong IT infrastructure across countries and investment in network modernization supports the deployment of edge solutions. European governments and businesses are focusing on data sovereignty and innovation in sectors like automotive, smart cities, and manufacturing. These factors drive edge computing adoption to enable real-time processing, localized data handling, and improved service delivery across industrial and public sectors.

Recent Developments:

• Gcore leads a smart city edge integration initiative funded by the EU to deploy 5G-enabled infrastructure.
• European edge data center expansions with partnerships between major cloud and local infrastructure firms.

Edge Computing Market Share, By Region, 2025 (%)

LAMEA Edge Computing Market: Infrastructure Expansion & Cloud Investment Supporting Demand

The LAMEA edge computing market was valued at USD 20.47 billion in 2025 and is anticipated to reach around USD 105.82 billion by 2035. LAMEA are emerging markets as cloud infrastructure investments expand, especially in data centers and connectivity services. Increasing digital adoption in sectors like e-commerce, telecommunications, and public services creates demand for edge solutions to support low-latency processing. Investments by global cloud providers in LAMEA boost local capacity and help organizations adopt edge computing for faster data analysis and service delivery, driving regional market growth.

Recent Developments:

• AWS announces a USD 4 billion cloud infrastructure build in Chile to support regional data services.
• Regional edge computing providers like EdgeUno expand data center networks across Latin America.

Edge Computing Market Segmental Analysis

The edge computing market is segmented into component, application, organisation size, deployment mode, vertical, and region.

Component Analysis

Hardware dominates the edge computing market because it forms the foundation of edge infrastructure. Devices such as edge servers, gateways, sensors, and industrial controllers are required to collect and process data near the source. Large-scale deployment of IoT devices, smart factories, and telecom edge nodes has increased demand for robust hardware. Without reliable hardware at the edge, software and services cannot function effectively, making this segment the largest contributor.

Software is the fastest-growing segment in the edge computing market as enterprises focus on data analytics, orchestration, and AI-driven decision-making. Software platforms help manage distributed edge nodes, run AI models, and integrate edge systems with cloud environments. Growing demand for edge AI, automation, and real-time analytics is accelerating software adoption. This shift from hardware-only investments to intelligent software layers drives rapid growth.

Application Analysis

IoT and industrial IoT applications dominate the edge computing market due to their widespread use across manufacturing, utilities, smart cities, and logistics. These applications generate continuous streams of data that require local processing to reduce latency and bandwidth usage. Edge computing improves operational efficiency and system reliability in IoT environments. The large installed base of IoT devices keeps this segment in a leading position.

Edge Computing Market Share, By Application, 2025 (%)

Edge AI and inference is the fastest-growing application segment in the edge computing market. Businesses are increasingly deploying AI models at the edge to enable real-time insights, predictive maintenance, and intelligent automation. Processing AI workloads locally improves response time and data privacy. Advancements in AI chips and lightweight models are accelerating adoption across industries.

Deployment Mode Analysis

On-premises edge computing dominates the edge computing market due to strong requirements for data control, security, and ultra-low latency. Industries such as manufacturing, healthcare, and defense prefer on-site processing to meet regulatory and operational needs. This deployment model ensures reliability even in low-connectivity environments. These advantages keep on-premises edge widely adopted.

Edge Computing Market Share, By Deployment Mode, 2025 (%)

Cloud-integrated edge is the fastest-growing deployment mode in the edge computing market. It combines the scalability of cloud with the speed of edge processing. Organizations use this model to manage edge nodes centrally while processing critical data locally. Growing adoption of hybrid cloud strategies and 5G networks is accelerating this segment’s growth.

Vertical Analysis

Telecommunications and IT dominate the edge computing market as telecom operators deploy edge infrastructure to support 5G, content delivery, and network optimization. Edge computing helps reduce latency for applications like video streaming and real-time communication. IT companies also use edge solutions to support distributed cloud services. Heavy investment in network infrastructure keeps this vertical in the lead.

Edge Computing Market Share, By Vertical, 2025 (%)

Healthcare and life sciences are the fastest-growing verticals in the edge computing market. Edge computing enables real-time patient monitoring, medical imaging analysis, and faster clinical decision-making. It also supports data privacy by processing sensitive information locally. The rise of digital health, remote care, and smart medical devices is driving rapid growth in this segment.

Edge Computing Market Top Companies

• Amazon Web Services (AWS)
• Microsoft Corporation
• Cisco Systems Inc.
• IBM Corporation
• Hewlett Packard Enterprise (HPE)
• Dell Technologies
• Google LLC
• Intel Corporation
• NVIDIA Corporation
• Huawei Technologies
• Siemens AG
• Schneider Electric
• Nokia Corporation
• Juniper Networks
• Advantech Co., Ltd.

Recent Developments by Major Companies

Amazon Web Services (AWS)

• AWS continues to expand its edge-to-cloud services including AWS IoT Greengrass and AWS Wavelength, offering compute, storage, AI/ML, and analytics closer to data sources for industrial IoT and real-time applications. This enhances real-time processing and scalability for enterprise edge workloads.

Microsoft Corporation

• Microsoft is advancing Azure Edge Zones and Azure Stack solutions to enable hybrid cloud-to-edge deployment. These platforms support real-time analytics and AI applications across industries such as healthcare, manufacturing, and retail, driving cloud-edge integration.

Cisco Systems Inc.

• Cisco made major strategic shifts in 2025, including large AI investments and a revamped partner program (Cisco 360) focused on simplifying channels and strengthening edge-related offerings. This supports growth of secure, scalable edge infrastructure.

Market Segmentation

By Component

• Hardware
  
  • Servers
  • Gateways
  • Sensors & Devices
• Software
  
  • Data Management Platforms
  • Analytics & AI Software
• Services
  
  • Professional Services
  • Managed Services

By Application

• Real-Time Processing & Control
• Edge AI & Inference
• Immersive & Interactive Experiences
• IoT & IIoT Applications

By Organization Size

• Large Enterprises
• Small & Medium-sized Enterprises (SMEs)

By Deployment Mode

• On-Premises Edge Computing
• Cloud-Integrated Edge

By Vertical

• Telecommunications & IT
• Manufacturing
• Healthcare & Life Sciences
• Retail & Consumer Goods
• Transportation & Logistics
• Energy & Utilities
• Government & Public Sector
• Media & Entertainment
• Others

By Region

• North America
• APAC
• Europe
• LAMEA