Edge computing market sizing forecast: Second release

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.

Download the accompanying spreadsheet 

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:

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Edge computing market sizing forecast

We have updated this forecast. Check the latest report here

Introducing STL Partners’ edge computing market sizing forecast

This report presents the key findings of STL Partners’ new 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: hardware, connectivity, application, edge infrastructure (network and on-premise), and integration and support;
  • Output a full set of results for over 180 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 180+ countries.

Enter your details below to request an extract of the report

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Edge computing addressable revenue will reach US$543 billion by 2030

High-level findings from the model indicate that:

  • 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.
  • The total edge computing addressable market will grow from US$10 billion in 2020 to US$543 billion in 2030 at a CAGR of 49% over the 10-year period.
  • The total value chain breaks into five main components which are hardware, connectivity, application, integration & support, in addition to the edge infrastructure which includes both on-prem edge and network edge.

Total edge computing addressable revenue

Edge computing

Source: STL Partners

Table of contents

  • Executive Summary
  • Methodology
  • Revenue by value chain component
  • Revenue by use case
  • Revenue by vertical
  • Revenue by region
  • Appendix

For more information on STL Partners’ edge-related services, please go to our Edge Insights Service page.

The new forecast is intended to complement:

Enter your details below to request an extract of the report

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