Our report forecasts $445bn in global demand for edge computing services in 2030. We explore the global demand for on-prem, network, and regional edge represented by 20 use cases and 16 verticals. The forecast helps telcos and other edge providers to identify which areas of the market and the value chain are most suitable for them to capture.
This is the second release of STL’s edge computing revenue forecast
In this release, we update the forecast and include regional edge
The edge computing market continues to invite different types of players including telcos, hyperscalers, data centre operators and enterprise connectivity providers. The varying requirements across verticals, business sizes and use cases create an opportunity that can accommodate all these different players. However, it is important for any edge provider to understand how to position its service in the space and what areas of the market to pursue vertically and horizontally.
Through quantitative analysis, this report aims to help telcos and others to identify where opportunities lie. This report presents the key findings of STL Partners’ demand forecast model for edge computing services. Its purpose is to:
- Assess the demand from 20 use cases which currently rely on edge or will require edge to fully develop;
- Identify the total revenue across the value chain: device, connectivity, application, edge infrastructure (regional, network and on-premise), and integration and support;
- Output a full set of results for over 90 countries over the 2020–2030 period per use case and per vertical.
This report is accompanied by a dashboard which presents a summary of our model output and the associated graphics for the world’s regions and for 20 major markets. The dashboard also presents the full revenue output for the 97 countries.
Edge computing addressable revenue will reach US$445 billion by 2030
High-level findings from the model indicate that:
- The total edge computing addressable market will grow from US$9 billion in 2020 to US$445 billion in 2030 at a CAGR of 48% over the 10-year period.
- We now forecast regional edge in addition to network and on-prem edge. Regional edge refers to local edge data centres that are outside the telecoms operators’ network. Examples of these include internet exchange data centres, small data centres in Tier 2/3 cities, AWS Local Zones, etc.
- The vertical opportunities in on-prem and distributed edge are quite different. Telcos and other providers that are looking into the various types of infrastructure to offer edge services should evaluate these differences and assess their own capabilities and willingness to compete in these verticals.
- The growth in the number of connected devices, as well as the need for higher levels of automation, operational efficiency and cost reduction, will drive the adoption of edge computing across many use cases and verticals over the next 10 years. This will result in increased spend across the value chain.
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Total edge computing addressable revenue 2020–2030
This forecast is part of our Edge Insights Service which also includes:
- Our edge reports and articles
- Network edge capacity forecast
- Edge Computing Use Case Directory
- Edge Computing Ecosystem Tool
- Edge Computing Investment Tracker