The Internet of Things (IoT) edge computing market is closely correlated with the general IoT market, but despite a common misconception that Edge and IoT are synonymous, these terms are mutually exclusive.
Edge computing can be described as a distributed computing approach that brings compute capabilities and data stores closer to primary data sources. The overarching goal of edge computing is to improve network latency. IoT is a specific type of technology that helps facilitate this goal.
Cutting-edge computing has been in use since the late 90s, as shown in this Bosch ConnectedWorld blog post. Initially, the technology was used for the delivery of video and image content via content delivery networks (CDNs).
As the blog details, the widespread adoption of edge computing only happened when the adoption of IoT devices exploded, creating a need for networks to receive and send huge volumes of data. to and from the cloud. With traditional networking, these processes bogged down corporate networks and made IoT information only marginally useful in many cases.
This review of the IoT edge computing market will provide an overview of the state of this flourishing market, the major drivers impacting this growth, the major industries and organizations using IoT sensors, common use cases of IoT edge computing and major vendors in this space:
State of the IoT edge computing market
In its edge computing market analysis report, Grandview Research estimates the global advanced computing market size to be valued at $ 4.7 billion in 2020, and it predicts that the market will grow at a compound annual growth rate (CAGR) of 38.4%. between 2021 and 2028.
Main growth drivers
Grandview Research indicates that the wide range of stakeholders involved in IT infrastructure, including advanced IT, is a key growth driver. To function well, edge computing requires a complex architecture of hardware, software, IoT devices, and sensor communications, as well as various service management providers. Each of these stakeholders has a vested interest in the edge computing market and compete with each other to attract edge computing customers.
The IoT advanced computing market also benefits from the global nature of modern business. To gain international market share, global companies are investing in advanced computing to deliver the same level of reliability and speed to international customers that they offer domestically. A domain host, for example, can greatly benefit from an investment in advanced IT services that eliminate the latency inherent in delivering services over thousands of miles. Edge Computing can lead directly to new lines of business and an increased operational footprint.
Major industries using advanced IoT computing technology include:
- Health care
- Domain and website hosts
IoT Edge Computing Features
- Support for the most common protocols that allow communications between IoT sensors and devices and the Edge Gateway, for example Bluetooth, Z-Wave and Siemens S7
- Local data processing capabilities such as the ability to use analytics algorithms, provide notifications and alarms, and monitor and report application performance
- Local data storage capacity
- Security features such as authorization-based access control, encrypted communication, security certificate management and the ability to integrate with existing cybersecurity platforms
- Remote management capabilities of individual gateways
- Portable across multiple hardware platforms (although some advanced computing offerings are tied to proprietary vendor hardware)
Benefits of IoT edge computing
Reducing latency in network operations is arguably the biggest benefit of IoT edge computing. By bringing data processing and other IT processes closer to IoT sensors and other devices, network latency is reduced. Faster, more reliable networking speeds deliver benefits including increased operational efficiency and improved customer service.
Investing in edge computing can also benefit enterprises by reducing the size of an expensive on-premises network architecture. For the end user, edge computing is an almost invisible benefit that lowers the overall cost of cloud computing. Edge Computing is also often used in hybrid cloud architectures.
With edge computing, businesses can use data collected locally to provide global visibility and analysis in the cloud.
See more : Internet of Things (IoT) Security Market
IoT Edge Computing Use Case
Operations with particularly large footprints, such as pipeline companies, benefit from remote asset monitoring facilitated by advanced IT. IoT sensors send data about asset conditions to edge servers, which analyze the information and issue alerts on potential issues before failures occur.
While this use of Edge Computing technology is still in its infancy, the transportation industry is benefiting from fleet management enhanced by Edge Computing. As truck fleets roam the highways, IoT sensors send information to edge servers about fuel consumption, routing, and other data that can help logistics managers increase efficiency and deliveries and pickups. on time.
State-of-the-art computing can be used for video surveillance, biometric scanning, and other surveillance measures. Advanced computer systems can analyze security data in real time to ensure that only authorized people access secure locations.
Health monitoring applications
Healthcare providers produce and manage huge stocks of data from a wide variety of devices found in medical facilities and patient wearable devices. Due to the immense amount of data that must be managed from many multiple IoT endpoints, healthcare data networks can get bogged down, leading not only to IT problems, but potentially dangerous outcomes for the community. patient health. Edge computing relieves much of this burden.
Multiplayer games require a lot of bandwidth and suffer greatly from latency issues. Large-scale game companies like Blizzard Entertainment use cutting edge computing to match players based on their location to the game servers closest to them. The result is dramatically improved latency and better gaming experiences, which many users are happy to pay extra for.
Remote work applications
As many companies discovered during the COVID-19 pandemic, keeping a remote workforce connected can be a significant challenge. VPN and other approaches often introduce so much latency into workflows that the work stops altogether. State-of-the-art IT approaches for remote worker connectivity reduce lag and improve network security through increased endpoint monitoring. Applications such as video conferencing also benefit from advanced computing configurations.
Video streaming services
Content distribution today is driven by streaming platforms (OTT) and edge computing can make these business models viable on a global scale by delivering content from physically larger edge servers. relatives. Video streaming providers like Hulu have spread to new regions where latency issues made it impossible before the advent of advanced computing.
Support for smart devices
Homes and offices are increasingly relying on smart technology to control air conditioning systems and other functions remotely, but users often find that there is a noticeable delay when executing commands via mobile applications. Edge computing decreases this delay.
See more : 85 best IoT devices
IoT edge computing vendors
These ten companies are among the top IoT advanced computing providers:
- Amazon Web Services (AWS)
- Google Cloud
See more : Best IoT platforms and software