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Global Edge Computing Market (2015 - 2023)

March, 2018 Prepared by Netscribes Inc.


Proprietary and Confidential, Copyright © 2018, Netscribes, Inc.. All Rights Reserved
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Table of contents
Chapter 1: Executive summary

1.1. Market scope and segmentation


1.2. Key questions answered in this study
1.3.1. Executive summary(i)
1.3.2. Executive summary(ii)
1.3.3. Executive summary(iii)
1.3.4. Executive summary(iv)
1.3.5. Executive summary(v)
1.3.5. Executive summary(vi)
Chapter 2: Global edge computing market overview
2.1. Global - market overview
2.2. Global-market drivers
2.3. Global-market trends
2.4. Global-market challenges
2.5. Value chain
2.6.1. Global – applications (smart city)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends
2.6.2. Global – applications (smart factory)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends
2.6.3. Global – applications (connected healthcare)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends
2.6.4. Global – applications (connected vehicle)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends
2.6.5. Global – applications (smart grid)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends
2.6.6. Global – applications (others)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends 2
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2.7.1. Global –end-users (manufacturing) )-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends
2.7.2. Global –end-users (energy and utility) )-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends
2.7.3. Global –end-users (IT and telecommunications) )-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends
2.7.4. Global –end-users (healthcare and life science) )-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends
2.7.5. Global –end-users (consumer appliance) )-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends
2.7.6. Global –end-users (transportation and logistics) )-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends

Chapter 3: North America edge computing market overview

3.1. North America edge computing market-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends, challenges
3.1.1. North America– applications (smart city)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
3.1.2. North America– applications (smart factory)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
3.1.3. North America– applications (connected healthcare)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
3.1.4. North America– applications (connected vehicle)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
3.1.5. North America– applications (smart grid)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
3.1.6. North America– applications (others)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
3.2.1. North America– by end-users industry (manufacturing)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
3.2.2. North America– by end-users industry (energy and utility)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations

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3.2.3. North America– by end-users industry (IT and telecommunication)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations
3.2.4. North America– by end-users industry (healthcare and life science)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations
3.2.5. North America– by end-users industry (consumer appliance)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations
3.2.6. North America– by end-users industry (transportation and logistic)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations

Chapter 4: Europe edge computing market overview

4.1. Europe edge computing market-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends, challenges
4.1.1. Europe– applications (smart city)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
4.1.2. Europe– applications (smart factory)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), Key observations
4.1.3. Europe– applications (connected healthcare)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
4.1.4. Europe– applications (connected vehicle)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
4.1.5. Europe– applications (smart grid)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
4.1.6. Europe– applications (others)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
4.2.1. Europe– by end-users industry (manufacturing)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
4.2.2. Europe– by end-users industry (energy and utility)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations

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4.2.3. Europe– by end-users industry (IT and telecommunication)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations
4.2.4. Europe– by end-users industry (healthcare and life science)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations
4.2.5. Europe– by end-users industry (consumer appliance)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
4.2.6. Europe– by end-users industry (transportation and logistic)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations

Chapter 5: Asia-Pacific edge computing market overview

5.1. Asia-Pacific edge computing market-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends, challenges
5.1.1. Asia-Pacific– applications (smart city)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
5.1.2. Asia-Pacific– applications (smart factory)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), Key observations
5.1.3. Europe– applications (connected healthcare)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
5.1.4. Asia-Pacific– applications (connected vehicle)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
5.1.5. Asia-Pacific– applications (smart grid)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
5.1.6. Asia-Pacific– applications (others)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
5.2.1. Asia-Pacific– by end-users industry (manufacturing)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
5.2.2. Asia-Pacific– by end-users industry (energy and utility)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations

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5.2.3. Asia-Pacific– by end-users industry (IT and telecommunication)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations
5.2.4. Asia-Pacific– by end-users industry (healthcare and life science)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations
5.2.5. Asia-Pacific– by end-users industry (consumer appliance)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
5.2.6. Asia-Pacific– by end-users industry (transportation and logistic)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations

Chapter 6: Latin America edge computing market overview

6.1. Latin America edge computing market-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends, challenges
6.1.1. Latin America – applications (smart city)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
6.1.2. Latin America– applications (smart factory)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), Key observations
6.1.3. Latin America– applications (connected healthcare)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
6.1.4. Latin America – applications (connected vehicle)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
6.1.5. Latin America– applications (smart grid)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
6.1.6. Latin America– applications (others)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
6.2.1. Latin America– by end-users industry (manufacturing)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
6.2.2. Latin America– by end-users industry (energy and utility)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations

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6.2.3. Latin America– by end-users industry (IT and telecommunication)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations
6.2.4. Latin America– by end-users industry (healthcare and life science)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations
6.2.5. Latin America– by end-users industry (consumer appliance)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations
6.2.6. Latin America– by end-users industry (transportation and logistic)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations

Chapter 7: Middle East and Africa edge Computing market overview

7.1. Middle East and Africa edge computing market-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), drivers, trends, challenges
7.1.1. Middle East and Africa– applications (smart city)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
7.1.2. Middle East and Africa– applications (smart factory)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), Key observations
7.1.3. Middle East and Africa – applications (connected healthcare)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations
7.1.4. Middle East and Africa – applications (connected vehicle)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
7.1.5. Middle East and Africa – applications (smart grid)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
7.1.6. Middle East and Africa– applications (others)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key observations
7.2.1. Middle East and Africa– by end-users industry (manufacturing)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations

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7.2.2. Middle East and Africa– by end-users industry (energy and utility)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations
7.2.3. Middle East and Africa– by end-users industry (IT and telecommunication)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn),
key observations
7.2.4. Middle East and Africa– by end-users industry (healthcare and life science)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn),
key observations
7.2.5. Middle East and Africa– by end-users industry (consumer appliance)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn), key
observations
7.2.6. Middle East and Africa– by end-users industry (transportation and logistic)-Historical (2015-2017) and forecasted (2018-2023) market size (USD Bn),
key observations

Chapter 8: Competitive landscape

8.1 Cisco Systems, Inc.. (*)


- Company snapshot
- Product/services
- Global presence
- Recent initiatives
- Geographic share of revenue
- Growth strategy
8.2 Microsoft Corporation

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8.3. IBM
8.4. Google
8.5. Amazon
8.6. SAP
8.7. Oracle
8.8. Huawei Technologies Co. Ltd.
8.9. Intel Corporation
(*) all the information are similar for the mentioned companies
8.10. Porter’s five forces analysis

Chapter 9: Conclusion

9.1. Conclusion

Chapter 10: Appendix

10.1 List of tables


10.2.Research methodology
10.3.Assumptions
10.4.About Netscribes Inc.

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Exhibits
List of Tables

1. Global edge computing market (USD Bn) (2018-2023)


2. Geography wise market revenue (USD Bn) (2018-2023)
3. Global edge computing market by application (USD Bn) (2018-2023)
4. Global edge computing market by end users industry (USD Bn) (2015-2023)
5. North America edge computing market by application (USD Bn) (2015-2023)
6. North America edge computing market by end user Industry (USD Bn) (2018-2023)
7. Europe edge computation market by applications (USD Bn) (2018-2023)
8. Europe edge computation market by en user industry (USD Bn) (2018-2023)
9. Asia Pacific edge computing market by applications (USD Bn) (2018-2023)
10. Asia Pacific edge computing market by end user industry (USD Bn) (2018-2023)
11. Latin America edge computing market by applications (USD Bn) (2018-2023)
12. Latin America edge computing market by end user industry (USD Bn) (2018-2023)
13. MEA edge computing market by applications (USD Bn) (2018-2023)
14. MEA edge computing market by end user industry (US$ Bn) (2018-2023)

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Exhibits
List of Figures

Fig 1: Market attractiveness analysis, by geography


Fig 2 : Global revenue contribution(USD Bn)-smart city
Fig 3 : Global revenue contribution(USD Bn)- smart factory
Fig 4 : Global revenue contribution(USD Bn)- connected healthcare
Fig 5 : Global revenue contribution(USD Bn)-connected vehicle
Fig 6 : Global revenue contribution(USD Bn)- smart grid
Fig 7: Global revenue contribution(USD Bn)- others
Fig 8 : Global revenue contribution(USD Bn)- manufacturing
Fig 9 : Global revenue contribution(USD Bn)- energy and utility
Fig 10 : Global revenue contribution(USD Bn)- IT and telecommunications
Fig 11 : Global revenue contribution(USD Bn)- healthcare and life science
Fig 12 : Global revenue contribution(USD Bn)- consumer appliance
Fig 13 : Global revenue contribution- transportation and logistics
Fig 14: North America revenue contribution (USD Bn)
Fig 15: North America revenue contribution (USD Bn)- smart city
Fig 16: North America revenue contribution(USD Bn)- smart factory
Fig 17: North America revenue contribution(USD Bn)- connected healthcare
Fig 18: North America revenue contribution(USD Bn)- connected vehicle

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Exhibits
List of Figures

Fig 19: North America revenue contribution(USD Bn)- smart grid


Fig 20: North America revenue contribution(USD Bn)-others
Fig 21: North America revenue contribution(USD Bn)-manufacturing
Fig 22: North America revenue contribution(USD Bn)- energy and utility
Fig 23: North America revenue contribution (USD Bn)-IT and telecommunications
Fig 24: North America revenue contribution (USD Bn)- healthcare and life science
Fig 25: North America revenue contribution (USD Bn)- consumer appliance
Fig 26: North America revenue contribution (USD Bn)- transportation and logistics
Fig 27: Europe revenue contribution (USD Bn)
Fig 28: Europe revenue contribution (USD Bn)- smart city
Fig 29: Europe revenue contribution (USD Bn)- smart factory
Fig 30: Europe revenue contribution (USD Bn)- connected healthcare
Fig 31: Europe revenue contribution(USD Bn)- connected vehicle
Fig 32: Europe revenue contribution(USD Bn)- smart grid
Fig 33: Europe revenue contribution(USD Bn)- others
Fig 34: Europe revenue contribution(USD Bn)- manufacturing
Fig 35: Europe revenue contribution(USD Bn)- energy and utility

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Exhibits
List of Figures

Fig 36: Europe revenue contribution(USD Bn)- IT and telecommunication


Fig 37: Europe revenue contribution(USD Bn)- healthcare and life science
Fig 38: Europe revenue contribution(USD Bn)- consumer appliance
Fig 39: Europe revenue contribution(USD Bn)- transportation and logistics
Fig 40: Asia Pacific revenue contribution (USD Bn)
Fig 41: Asia Pacific revenue contribution(USD Bn)- smart city
Fig 42: Asia Pacific revenue contribution(USD Bn)- smart factory
Fig 43: Asia Pacific revenue contribution(USD Bn)- connected healthcare
Fig 44: Asia Pacific revenue contribution(USD Bn)- connected vehicle
Fig 45: Asia Pacific revenue contribution(USD Bn)- smart grid
Fig 46: Asia Pacific revenue contribution(USD Bn)- others
Fig 47: Asia Pacific revenue contribution(USD Bn)- manufacturing
Fig 48: Asia Pacific revenue contribution(USD Bn)- energy and utility
Fig 49: Asia Pacific revenue contribution(USD Bn)- IT and telecommunication
Fig 50: Asia Pacific revenue contribution(USD Bn)- healthcare and life science
Fig 51: Asia Pacific revenue contribution(USD Bn)- consumer appliance
Fig 52: Asia Pacific revenue contribution(USD Bn)- transportation and logistics
Fig 53: Latin America revenue contribution (USD Bn)

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Exhibits
List of Figures

Fig 54: Latin America revenue contribution(USD Bn)- smart city


Fig 55: Latin America revenue contribution(USD Bn)- smart factory
Fig 56: Latin America revenue contribution (USD Bn)- connected healthcare
Fig 57: Latin America revenue contribution(USD Bn)- connected vehicle
Fig 58: Latin America revenue contribution(USD Bn)- smart grid
Fig 59: Latin America revenue contribution(USD Bn)- others
Fig 60: Latin America revenue contribution(USD Bn)- manufacturing
Fig 61: Latin America revenue contribution (USD Bn)- energy and utility
Fig 62: Latin America revenue contribution(USD Bn)- IT and telecommunications
Fig 63: Latin America revenue contribution(USD Bn)- healthcare and life science
Fig 64: Latin America revenue contribution(USD Bn)- consumer appliance
Fig 65: Latin America revenue contribution(USD Bn)- transportation and logistics
Fig 66: Middle East and Africa revenue contribution(USD Bn)
Fig 67: Middle East and Africa revenue contribution(USD Bn)- smart city
Fig 68: Middle East and Africa revenue contribution(USD Bn)- smart factory
Fig 69: Middle East and Africa revenue contribution(USD Bn)- connected healthcare
Fig 70: Middle East and Africa revenue contribution(USD Bn)- connected vehicle
Fig 71: Middle East and Africa revenue contribution(USD Bn)- smart grid

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Exhibits
List of Figures

Fig 72: Middle East and Africa revenue contribution(USD Bn)- others
Fig 73: Middle East and Africa revenue contribution(USD Bn)- manufacturing
Fig 74: Middle East and Africa revenue contribution(USD Bn)- energy and utility
Fig 75: Middle East and Africa revenue contribution(USD Bn)- IT and telecommunications
Fig 76: Middle East and Africa revenue contribution(USD Bn)- healthcare and life science
Fig 77: Middle East and Africa revenue contribution(USD Bn)- consumer appliance
Fig 78: Middle East and Africa revenue contribution(USD Bn)- transportation and logistics

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Chapter 1: Executive summary
1.1 Market scope and segmentation

Segments Differentiation

• Smart city
• Smart factory
• Connected healthcare
• Connected vehicle
• Smart grid
By- Applications
• Others
Global Edge Computing Market

• Manufacturing
• Energy and utility
• Healthcare and life science
• Consumer appliance
• Transportation and logistics
By- End-use industry

North America

Europe

Asia Pacific

Region Latin America

Middle East and Africa


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1.2 Key questions answered in this study

 What is the global market revenue of edge computing market?

 What is the future of edge computing market?

 What are the factors instrumental in changing the market scenario?

 What are the drivers, restraints, and trends in the market?

 What is the competitive scenario of the global edge computing market?

 What are the strategies of the key market players?


Global Edge Computing Market

 How have the competitors performed in 2016?

 What are the different classes, application, end use and mode of administration of the edge computing
market?

 What are the respective market shares and the opportunities associated with cybersecurity products in
various regions around the world?

 What are the regions with maximum opportunity for the growth of edge computing market? Which are the
countries in those regions with maximum opportunities?

 What are the investment opportunities for the edge computing market?

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1.3.1 Executive Summary (i)

By end-users industry
Manufacturing
2023
Energy and utility
2023 1.94Bn
IT and Telecom
2.43Bn Healthcare and
2018
2018 0.54Bn 2023 life Science
2.68Bn Consumer appliance
0.69Bn Transportation
2018 and logistics
0.49Bn

2023 By application
2023 1.46Bn
Smart city
0.44Bn
2018 Smart factory
2018 0.35Bn Connected health
0.11Bn Connected cars
Smart grid
others

Global Market share by applications Global Market share by end users industry

3%
7%
4% 20%
26% 9%
17% 23% 25%
28% 17%
17%

2023
2018 2018 6% 2023
18% 17%
8%
13% 12%
21%
20% 13%
13% 30% 33%

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1.3.2 Executive Summary (ii)

North America 2018 By application


32%
3% 3%
13% 15%
30% 29%

2.43 24% 2018 2023


24%

0.69
0.47 14% 12%

16%
17%
2015 2018 2023

By Industry
IOT is trending in North America, which has the highest adoption rate of the
edge computing technology. IOT devices take advantage of edge computing to
overcome the latency and bandwidth challenges faced due to data 9% 7%
transmission. 25%
17% 16% 27%
By end-users industry By application
Manufacturing Smart city
Energy and utility Smart factory 2018 4% 2023
IT and Telecom Connected health 6%
Healthcare and
Connected cars
life Science 10%
Consumer appliance Smart grid 8%
Transportation others
and logistics
33%
38%
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1.3.3 Executive Summary (iii)

Europe 2018 By application


25%
5% 4%

20% 28% 23% 25%

1.94 2018 2023


10%
7%

0.54
0.35
13% 24% 26%
15%
2015 2018 2023

By Industry
European countries are investing in edge computing technology. By 2026, this
region is expected to invest USD 278 Bn on this technology.The government
sector in this region is prioritizing IoT investment. Increasing IoT device would 9% 7%
increase the demand of edge computing 20%
20%
18%
21%
By end-users industry By application
Manufacturing Smart city
Energy and utility Smart factory 2018 2023
IT and Telecom Connected health
Healthcare and 12%
Connected cars 14% 14%
life Science 11%
Consumer appliance Smart grid
Transportation others
and logistics
27%
27%
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1.3.4 Executive Summary (iv)

Asia-Pacific 2018 By application


22%
4% 3%

20% 26% 23% 25%

2.68
2018 2023
15%
14%

0.49 25%
0.26 27%
10%
8%
2015 2018 2023

By Industry
The retail, banking and other sectors are appearing to move from the cloud
computation to edge computation, i.e. shifting the storage from core data
centre to edge locations. The region is growing at a faster pace to adopt edge
computing in the coming next three and five years. More than half of the 10% 8%
organisation is willing to adopt the emerging technology 23%
15% 14% 24%

By end-users industry By application


Manufacturing Smart city
Energy and utility Smart factory 2018 5%
6%
2023
IT and Telecom Connected health
Healthcare and
Connected cars
life Science
Consumer appliance Smart grid 16% 12%
Transportation others
and logistics
30%
37%
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1.3.5 Executive Summary (v)

Middle East and Africa 2018 By application


16%
6% 4%

25% 19% 23%


18%

2018 2023
1.46

23% 26%
16% 18%
0.35
0.21
12%
10%
2015 2018 2023

By Industry
The region has witnessed data center evolution in the past few years, which has
become an important investment across the region. This is basically driving the
business across the region. As more and more companies are working to
implement IOT devices, edge computing is expected to expand its applications 10% 8%
across the region 23%
17% 27%
19%
By end-users industry By application
Manufacturing Smart city
Energy and utility Smart factory 2018 2023
IT and Telecom Connected health 6%
Healthcare and 7%
Connected cars
life Science 15%
Consumer appliance Smart grid
Transportation others 15%
and logistics
26% 27%

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1.3.6 Executive Summary (vi)

Latin America 2018 By application


5%
5% 4%

26% 19%
18% 26%

0.44 2023
2018
14%
18%

0.11
0.08 24% 22%
13%
11%
2015 2018 2023

By Industry
Despite only 50% of Latin America's population being exposed to the internet,
IoT is booming here. The IoT market is prepared to grow at high pace.
Around 60% of the developers are planning to work with IOT projects, and 22%
have already implemented it. As the region is progressing with IoT, edge 13% 10%
computing will find its importance in the region. 25%
16% 30%
By end-users industry By application 17%
Manufacturing Smart city
Energy and utility Smart factory 2018
3% 2023
IT and Telecom Connected health
Healthcare and
Connected cars 5%
life Science
Consumer appliance Smart grid 13%
Transportation others
and logistics 13%
27% 28%

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Chapter 2: Global edge computing market overview
2.1 Global - market overview

Fig 1: Market attractiveness analysis, by geography

• 2018-USD 0.49 Bn
• 2023-USD 2.68 Bn

• 2018-USD 0.54 Bn
• 2018-USD 0.69 Bn
• 2023-USD 1.94 Bn
• 2023-USD 2.43 Bn
Growth %

• 2018-USD 0.11Bn
• 2023-USD 0.44 Bn
• 2018-USD 0.35Bn
• 2023-USD 1.46 Bn

Market attractiveness

• The Global edge computing is USD 2.18Bn in 2018, it is expected to increase to USD 8.96Bn by 2023 at 32.6% CAGR
• North America grab the largest market share. Approximately 32% of the edge computing market is in this region. The technology advancement and shift toward connected devices is increasing
the application of edge computing network
• Asia Pacific is the most attractive market. IT is growing at a highest rate. The region is expected to grow at 40.5% CAGR. The popularity of connected device in India and China is driving the
market
• Other region like MEA, and LATAM are at an early stage of development. These region is expected to catch the market in the near future

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2.2 Global - market drivers

The rising number of devices that are connected to artificial intelligence


In today’s world, cloud has become the default storage of a
requires a lot of real-time analysis. Relying on traditional cloud computing
huge volume of data that reduce the storage cost and improve
is difficult. Hence, it is predicted that edge computing would be the next
efficiency. Edge computing is also walking down the same path
big trend after cloud
as that of cloud computing but with advance features. It
performing data processing close to data storage that helps to
reduces data latency

The major drivers of edge computing market are


manufacturing robots, security camera, and argument reality One of the good examples of edge computing is the 5G network.
that depends on AI (artificial intelligence). All these require a As more telecom companies are plugging 5G into their wireless
Market
massive volume of data processing based on real-time network, they are building a more adjoining micro data centre to
analytics and thus, edge computing technology drive the ICT Drivers
allow the business customer have direct access into broader
market network offered by the service provider (telecom provider)

Edge computing technology is possessed with processing


power to handle device like self-adjusting thermostats and
self-driven cars. It is anticipated to follow the trend of cloud
computing at the same time boost the market of self-driving Although, edge computing can solve the problem of cloud
cars and robots computing but still there lies a challenge in running a
traditional database or application server at the edge. It
requires light weighted computing like the serverless system
to run at the edge

27
2.3 Global - market trends

Increasing volume of data


1 • The process of collecting, processing and sending the massive volume of data to the traditional cloud creates the problem of latency. The
companies need to behave more intelligently and act quickly to the situation to make an informed decision.
• The upcoming technology, edge computing is expected to resolve the problem of data latency. The data center is located nearer the IoT
sensor to decrease latency and improve efficiency
• It is a type of computing that allows the IoT device to process data close to its origin to avoid slowing down data movements and
disruption

Increase in network bandwidth Rapid digitalization coupled with increasing adoption of ICT
• Bandwidth refers to the speed of data transmission. However, the actual
devices
2 3 • The rapidly growing trend of digitalization coupled with increasing
speed is usually less than peak rating. Excessive data latency creates traffic
adoption of various ICT technology and devices like smart meters, optic
jam, which may and may not be temporary. This problem usually arises for
Wi-Fi, cognitive technologies, 5G network and new payment model
high bandwidth videos
among others by various citizen, company and government
• To avoid network congestion, the service providers are deploying a system on
organizations across the globe is anticipated to accelerate transfer of
the internet that caches the information close to the users by duplicating the confidential data from one point to other or from one server to other
content on multiple servers. This is an example of edge computing at a high speed without latency
• This, in turn, is predicted to generate the need of edge computing to
bring data center close to users and ensure security and protection
measures regarding data exchange and to create an environment of
digital trust and safety

28
2.4 Global - market challenges

General purpose computing on Edge


1 • Edge computing can be facilitated on various nodes that are located between the edge and cloud. These are
access points, base stations, gateways, traffic aggregation points, routers, switches, etc. Base stations like Digital
Signal Processors (DSP) are customized to handle the workload but may not be suitable for handling analytics,
simply because it is not designed for general purpose computing.

Complication in discovering the edge nodes Uncompromising quality of service and quality of experience
• To explore the edge network, a distribution mechanism is required in the • Quality delivered by edge nodes can be captured by QoS and delivered
2 3 to users by QoE. The challenge lies in choosing the edge computing
network to find the appropriate nodes within the cloud setup. The
that does not overload nodes with computationally intensive
mechanism is difficult due to the bulk devices that are available at these
workloads. It is required to ensure that the nodes have high
layers. It faces complication as it requires to cater various device from
throughput and are reliable to deliver the intended workload even if it
multiple generations as well as modern workload like machine learning. The
is accommodated with additional workload from the data center or
existing methodology used in the cloud is practically unavailable for edge edge service
nodes

29
2.5 Value Chain

End Users

Local Ecosystem

Architecture Manufacturing
TEMs/OEMs
providers/Silicon providers Service/solutions Providers

• Companies positioned • Original Equipment


their gateway as edge • Companies positioned Energy and utility
manufacturer is a their gateway as edge
devices company that
• These gateways route devices
produces equipment • These gateways route
and perform analysis and parts required by
over the data and perform analysis IT and Telecommunication
another manufacturer over the data
• TEM (Transmission 26
electron microscopy)
that uses specimen to
transmit beam of Healthcare and life science
electron to an image

Consumer appliance

Transportation and logistics

30
2.6.1 Global – applications (smart city)
Edge computing in smart city Core
Cloud technology
Trends Cloud
Growth drivers
BIG DATA

• The rising demand for more operational Big data


• Rapid urbanization - the rising trend of urbanization processing,
indicates an expected increase in the global population intelligence to reduce latency and provide
data
from 3.6 Bn to 6.3 Bn by 2050. Urban population real-time analysis would force smart city
warehouse
consumes 75% of the world's energy and is responsible projects to move toward edge computing.
for 80% greenhouse emission. • Under smart city infrastructure, IoT connects
• Smart city project aims to resolve various urban sensors that helps to deal with environmental,
and, safety issues. The IoT environment Edge
problems through ICT based technology. This would
allow citizens to decide by accessing the data. requires edge computing to allow easy data
transmission from one device to another. For Real time
• Internet of things aims to connect various smart objects example, a commuter can deal with real-time
data
that generate huge volume of data. This data is sent to processing,
alert to estimate the time of bus arrival after a basic
cloud for processing and knowledge discovering. traffic accident. analytics,
However, sending this huge volume of data to the
data
cloud is less reliable. • GIS, big data and analytics together are analytics,
expected to create a real-time “living map” data
• Edge computing solves the problem by pushing the
to understand community behavior. caching
data to the edge for data analytics. Edge computing
and fog computing must work together to provide • Building tool to enhance real-time citizen
Smart city ecosystem
sustainable IoT infrastructure of the smart city. interaction with the government that
includes data sharing, real-time video and
base level artificial intelligence.

Fig 2 : Global revenue contribution(USD Bn)-smart city Smart city


CAGR (2017-2022): 31.11% 2.3

1.64 Sensors and


controllers
1.18
0.90
0.60 0.72
0.39 0.45 0.52
Edge

2015 2016 2017 2018 2019 2020 2021 2022 2023

31
2.6.2 Global – applications (smart factory)
Edge computing in smart factory
Cloud technology
Trends Cloud
Growth drivers
BIG DATA

• Manufacturing plants are employing sensor devices to • Smart sensor is an important component of Big data
the edge system. Production plants require processing,
capture data and derive insights. However, real-time
data
communication across the machine is hindered due to smart sensors to improve productivity. It has
warehouse
lack of compatible interfaces and communication an IP address that helps to direct network
protocols. communications and transfer of data within
the plants.
• It cannot rely on cloud computing to automate decision
and take predictive action. Edge computing is a • Industrial IoT is rapidly integrated into Edge
convenient solution. It has got enormous processing industries for creating data hubs to store and
power that allows manufacturing firms to perform real- analyze data for real-time decision-making. Real time
time analysis data analysis. data
• Industry 4.0 mainly deals with connecting
processing,
• Manufacturing industries are focusing on new machines. Edge computing plays a vital role, it
basic
technologies that include predictive maintenance, AI allows quick data process and intelligently analytics,
(artificial intelligence) and robotics. Edge computing response to any change in the factory flooring. data
would help the manufacturing sector to embrace this Edge computing is also used to prevent analytics,
concept. vulnerable cyber attacks. data
caching
• With the shift of cloud computing toward the edge, the
IoT gateways would serve as integrated edge server Connected smart factory ecosystem
solutions. Cloud with edge computing can act as a
private cloud by offloading computing task from smart 3D printing
devices by caching.

Fig 3 : Global revenue contribution(USD Bn)- smart factory


CAGR (2017-2022): 33.81% 1.87 Robotic
Sensor camera
1.30 Smart
0.91 Factory
0.68
0.44 0.53
0.27 0.31 0.37
Automation Flexible
manufacturing
2015 2016 2017 2018 2019 2020 2021 2022 2023
Connected factories
32
2.6.3 Global – applications (connected healthcare)
Edge computing in connected healthcare
Cloud Technology
Trends Cloud
Growth drivers
BIG DATA
• Under connected healthcare, the internet of things • With an increasing number of healthcare Big Data
connect clinical devices to the customer’s smartphone organizations adopting digitalization and Processing,
so that patients can have a complete understanding of Data
adding the internet of things to their IT
their health at a lower cost and clinics can have access Warehouse
infrastructure, edge computing is becoming a
to the data to provide better healthcare services. more efficient way to analyze data
• Initially, the data generated were stored in clouds, but • This trend is increasing the number of
with edge computing, it is expected to speed up connected healthcare devices, helping the
remote monitoring, in-patient management, health Edge
clinician gain better revenue by providing
information management. improved patient care by analyzing real-time Real time
• With the increase in demographic dividend, the data. data
healthcare data generated is growing exponentially. processing,
• It is estimated that by 2020, there would be
This makes cloud computing less useful because of the Basic
about 20 to 30 Bn internet of medical things analytics,
latency problem. Thus, expected to drive the edge (IoMT). Edge computing would play a vital role data
computing market. in the healthcare industry to improve the IT analytics,
• Edge computing in the healthcare industry is expected infrastructure data
to gear up the hospitals and clinics to take fast action in caching
response to patient health. Connected healthcare Ecosystem
• Growing number of healthcare organizations have
started working with edge computing and found it far
more effective than cloud computing.
Patients information
Fig 4 : Global revenue contribution(USD Bn)- connected healthcare Medical records
CAGR (2017-2022): 31.60% 1.13

0.80
0.57
0.43
0.29 0.35
0.18 0.21 0.24

EPG record
2015 2016 2017 2018 2019 2020 2021 2022 2023

33
2.6.4 Global – applications (connected vehicle)
Edge computing in connected vehicles
Cloud Technology
Trends Cloud
Growth drivers
BIG DATA

• Connected autonomous driving (AD) is an Big data


• Connected vehicles create huge volume of data on its processing,
moves. These data help to perform real-time analysis to advanced form of connected vehicles that is
data
re-route the car to the less congested road, track the expected to drive the demand of internet of
warehouse
traffic light. It also helps to lower the carbon dioxide Vehicle (IVOR) or Vehicle IOT.
emission during a traffic jam. • Demand for autonomous is maximum,
• In the near future, connected vehicles will advance according to forecasts. Major auto-makers are
towards connected autonomous driving (AD) that is working to make this a reality very soon. Ford Edge
expected to create a whole new ecosystem comprising is expected to release a fully autonomous
real-time services.(e.g. high definition real timing maps, vehicle by 2021, GM also plans autonomous Real time
real-time traffic monitoring) cars deployment by 2020 or sooner. data
processing,
• Edge computing is expected to enhance different level • Edge computing backs autonomous driving. It
basic
of automation in vehicles. These would provide drivers will intelligently process information and analytics,
and passengers with better user-experience. support the growing demand of V2X data
technology (vehicle to everything). It can analytics,
• The growing demand for reducing transmission latency, lower latency problem while exchanging data
network churn and processing power close to vehicles information between the vehicle, caching LTE/5G
is expanding cloud computing to edge computing. infrastructure, and network
Connected Car Ecosystem
• Edge computing can better handle huge volume of data
coming from the vehicle and roadside sensor and take
up better actions. Parking sensor
Road side
Fig 5 : Global revenue contribution(USD Bn)-connected vehicle Infrastructure

CAGR (2017-2022): 31.44%


1.53
1.09
0.78
0.59
0.39 0.47
0.25 0.29 0.34
Vehicle to vehicle

2015 2016 2017 2018 2019 2020 2021 2022 2023 Local sensor

34
2.6.5 Global – applications (smart grid)
Edge computing in smart grid
Cloud server
Trends Service providers
Growth drivers
BIG DATA

• With the exponential growth of population, an • European countries have the highest smart Big Data
meter installations, which makes it the region Processing,
alternative source of energy is required. The smart grid
Data
is one of the biggest advancements of an electrical grid. with the maximum deployment of smart
Warehouse
meters.
• Smart grid has the potential to reduce the inefficiency
of the grid, integrate power distribution with • To overcome the city problem, an idea of
technology, and improve customer experience. “intelligent light “ i.e.. Smart light has come up
to inform the official about the city problem, Edge
• Smart meter is one of the important devices used in the server
act as the backbone to support the city
smart grid. It performs a real-time bi-directional data
department, and solve environmental
communication. It immediately informs the user as
problems.
soon as energy consumption reaches the peak.
• A start-up within GE (general electric) is
• Smart meter generates a huge volume of data, which is
working to offer smart light services. As
difficult to process and analyze on the cloud. Hence,
transmitting data to cloud creates the
edge computing solves the problem by storing and
problem of latency and bandwidth. GE has

Smart grid ecosystem


processing data before transmitting to the cloud
partnered with Intel. They have very strong
• Over the time as the smart meters deployments are processor to handle tough data processes in Smart grid
increasing, there is a high chance of the energy the edge. layer
providers to shift to edge computing to speed up the
data processing procedure.

Fig 6 : Global revenue contribution(USD Bn)- smart grid


CAGR (2017-2022): 36.94%
1.80

1.23
0.85
0.62
0.37 0.47
0.21 0.25 0.31

2015 2016 2017 2018 2019 2020 2021 2022 2023

35
2.6.6 Global – applications (others)

Fig 7: Global revenue contribution(USD Bn)- others

9.0

6.27
4.45
3.35
2.18 2.64
1.36 1.58 1.85

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 32.65%

Key observations-applications of edge computing in others applications

The gaming market is rising at an exponential rate. The global spending on mobile games is The retail sector also sees the advantage of using the edge computing
expected to exceed USD 59 Bn by 2017. The immense demand for mobile games has pushed the technology. IoT creates a new opportunity for the retail stores to innovate and
physical limitation of super slim devices. This complicating and heavy processing power enable the create a unique customer experience.
gaming industry to foresee a change.

Adopting IoT technology will lead retailers to invest in edge computing which places
Edge computing would play a vital role in the gaming industry. As there is an evolution of network analytics and data storage close to users. It would enable real-time processing of
access to cloud computing with 5G, edge computing would move the data centre close to gamers, supply chain without lag or extra cost. Retails are willing to adopt edge computing as
and possible to the high-end console in the palm of our hand. Edge computing would reduce they would stay advantageous against the competitors who are reluctant to adopt it.
battery drain, and workload from a mobile device, it would also support the video game processing
to ensure high-end users experience.

36
2.7.1 Global –end-users industry (manufacturing)

Drivers

• Internet of Things is anticipated to create a revolution in the manufacturing


sector. 1.44 Bn data point is forecasted to be generated from each plant per
day. These data would be utilized to make an important business decision
• As most of the manufacturing industry is focusing on predictive maintenance of
artificial intelligence and robotics, edge computing technology is expected to
make a revolutionary change where the factory equipment will be able to make
an autonomous decision
• The potential of edge computing in manufacturing – localize and distribute data
storage, cost-effective solution, maintain security and compliance. Edge device
can act a nexus between modern machine and legacy
• The concept of smart manufacturing to utilize advance programmatic data led
to the development of high and good quality product. Edge computing would
help organizations extract insight and take action at a near real-time

Fig 8 : Global revenue contribution(USD Bn)- manufacturing

Trends CAGR (2017-2022): 34.34%


2.21

1.54
• The manufacturing industry is expected to take up a rigorous step toward smart
1.07
manufacturing by 2018. The biggest players have already welcomed this disruptive 0.80
technology. The midsize manufacturers are on the verge of adopting the technology 0.51 0.62
0.30 0.36 0.42
• Smart manufacturing is foreseen to be the most common practice for the
manufacturing sectors. One of them is predictive maintenance that fits machines to
sensors and continuously collect and interpret data 2015 2016 2017 2018 2019 2020 2021 2022 2023

37
2.7.2 Global – end-users industry (energy and utility)

Drivers

• The IoT infrastructure is offering advanced landscape to monitor, manage, and


control the smart grid distribution infrastructure
• Overutilization of fossil fuel puts emphasize on shifting to renewable energy
resources to ensure cost and operational efficiency
• Edge computing creates a new revenue stream. Utility company with edge
model is entering an agreement with civic authorities to manage street light and
other public utility systems
• Edge computing solution helps to integrate the additional renewable power
generating resources into the grid with real-time analysis
• Edge computing analyze, process, and then deliver insights in real time, allowing
the control center to access the data to foresee and prevent malfunctions
occurring
• Failure in energy infrastructure such as oil, and other energy services, should be
provided with a warrant as it requires the highest level of precaution

Fig 9 : Global revenue contribution(USD Bn)- energy and utility

Trends CAGR (2017-2022): 30.19%


1.06

0.76
• Energy providing organization, by placing servers closer to connected devices are 0.55
expected to reduce the data travel time from 150-200 milliseconds to 2-5 milliseconds, 0.42
0.28 0.34
boosting the performance of applications 0.22 0.25
0.19
• Smart grid infrastructure is ready to introduce artificial intelligence to improve the
energy consumption pattern. It is expected to generate a huge volume of data that
requires processing and analyzing. Edge will play an important part in the growing smart 2015 2016 2017 2018 2019 2020 2021 2022 2023
meter trend

38
2.7.3 Global –end-users industry (IT and telecommunications)

Drivers

• The existing mobile network faces bandwidth problem. The users find the issue
while streaming videos in 3G and the very new 4G networks. The current
smartphone limits the amount of information one can pull out from at once.
The longer the distance between the cloud and endpoint, the slower the
application response
• With the innovation of advanced services that require fast response requires
telecommunication operators to deploy edge computing. Hosting gateways
closer to the edge of the network with lower latency and improved scalability
• Edge computing involves deploying cloudlet (small clouds) at the strategic
nodes of the network. Next generation networking involves coming up with
heavy latency and bandwidth content and videos like augmented reality (AR)
and Virtual Reality (VR)
• If the telecom operators are late to deploy edge computing, then the cloud
service provider would grasp the market by simply innovating and providing
services

Fig 10 : Global revenue contribution(USD Bn)- IT and telecommunications

Trends CAGR (2017-2022): 35.19%


2.97
• AR and VR are forecasted to be the two most emerging market by 2020. It estimated to
be worth of USD 150 Bn. It requires low latency, heavy bandwidth and no jitter. Edge 2.03
computing is expected to work perfectly in the mobile networking landscape 1.41
• Edge computing is expected to play a strong role in LTE network and assets and also a 1.03
0.64 0.80
part of the 5G revolution 0.37 0.44 0.53
• It is predicted that telecom providers will build a micro data center and integrate with
the local 5G towers. Organizations would be able to rent space in the data center to 2015 2016 2017 2018 2019 2020 2021 2022 2023
perform edge computing and have direct access to a telecom provider broader network
that would connect to public cloud providers

39
2.7.4 Global – end-users industry (healthcare and life science)

Drivers

• Cloud-based IT has emerged as a backbone for the connected healthcare


systems. Various hospitals and care monitoring management have adopted
monitoring devices to connect healthcare providers to patients
• Though the cloud-based ecosystem provides analytical insight in connected
healthcare, the massive volume of critical patients makes the data storage and
management cumbersome. It leads to latency issues, data quality, and security
issue
• Edge computing localizes storage, monitoring, and diagnose patients perform
analytics in a decentralized manner via mobile applications or portal
• The technology can be used to monitor patients health at a real-time base using
a mobile application or portal
• It drives customers satisfaction and improves operational efficiency. It
empowers the patients with vital healthcare tips and ensures personalizes
record management

Fig 11 : Global revenue contribution(USD Bn)- healthcare and life science

Trends CAGR (2017-2022): 23.88%


0.52
• With the rise in demographic dividend the volume of patient record would rise at an 0.39
exponential rate. This would drive the demand of deploying edge computing eco-space 0.29
in healthcare and life science 0.24
0.18 0.20
0.14 0.15 0.16
• Cloud computing is adopted by the many healthcare and life science companies like
Pfizer, Sanofi, Waters and Life Technology to streamline workflow and reduce
infrastructure cost. The rise in advanced healthcare demand would turn the companies
to shift from cloud to edge computing to further streamline healthcare service 2015 2016 2017 2018 2019 2020 2021 2022 2023

40
2.7.5 Global –end-users industry (consumer appliance)

Drivers
• In the era of automation, the internet of things is setting new standards by
innovating advanced connected devices called as “Smart Home”
• Smart home adoption is gaining pace overtime as consumers are becoming
aware of the benefits. About 81 percentage of customers are aware about
smart homes out of which 26% have started using it
• Consumer spending on connected home devices is forecasted to be USD 189
Mn by 2018, 18% growth from 2017
• IoT-Cloud computing acts as the backbone for smart homes automation. It has
the potential to solve issues faced by citizen like pollution issue, traffic
congestion, ensure smart retail service under smart city
• It is predicted that two-thirds of consumers plans to buy smart home devices by
2019. This predicts that huge volume of data will be transacted creating latency
and bandwidth issue
• Edge computing would play an important complementing cloud computing. By
deploying gateway closer to the devices, which would reduce the response
timing and would act an important factor driving smart home market

Fig 12 : Global revenue contribution(USD Bn)- consumer appliance

Trends CAGR (2017-2022): 32.46%


1.51

1.06
• Smart home is acceptable in all the countries, though the penetration rate is different. 0.75
The global smart home device shipment is expected to reach USD 1.11 Bn by 2020. 0.57
0.37 0.45
• Various smart home products are expected to launch in 2018 like air quality monitoring, 0.23 0.27 0.31
leak detection control, energy consumption monitoring, temperature monitoring, etc.
Hence, the rise in number of connected devices would generate huge volume of data.
Edge computing application would grow at an increasing rate to support the smart 2015 2016 2017 2018 2019 2020 2021 2022 2023
home eco-space

41
2.7.6 Global –end-users (transportation and logistics)

Drivers

• The automobile industry is adapting cloud computing technology to create


advanced seamless driving experience, automate vehicles
• IoT devices are plugged into the vehicle's on board diagnostics (OBD) to capture
and transmit data on the driving pattern to back offices. This data are used to
analyses the drivers behaviour patter, weather condition and also used by the
insurance company to build usage-based insurance (UBI) product, and also work
on industry
• Increase in smartphone penetration, is driving the need of automotive devices.
Moreover the demand of safe and secure driving experience. The demand for
connective cars are increasing
• IoT terminals mounted on connected vehicle use edge computing to provide
rapid local computations and response to services. It collects status services and
status parameter of the vehicle, fuel, tanks, driver, etc. The engine status and
fuel consumptions are monitored in real time, the data is collected and analysed
instantly

Fig 13 : Global revenue contribution- transportation and logistics

Trends CAGR (2017-2022): 32.46%


0.68
0.50
• Connected vehicle is next big hype in the market. Chipmakers, SaaS vendors, and
0.37
hardware providers are investing in autonomous car. Companies like Intel, Qualcomm, 0.29
Cisco, Verizon invested in connected cars. This tech companies are trying to diversify 0.20 0.23
0.14 0.16 0.18
their profile and extend their service in automobile industry. Samsung invested USD
300Mn on automotive innovation fund to launch autonomous driving
• Logistics is using IoT and smart solutions to ensure better waste management and 2015 2016 2017 2018 2019 2020 2021 2022 2023
temperature sensitive product

42
Chapter 3: North America edge computing market overview
3.1 North America edge computing market

Drivers of edge computing in North America Fig 14: North America revenue contribution (USD Bn)

• More than 8.4 Bn devices have been added and the number is expected to
grow to 20 Bn by 2020. The increase in the number of IoT devices requires a
network that is capable of fast processing and has less congestion. This is
expected to drive the edge computing market.
2.43
• Edge computing is required for instantaneous processing. It can reduce the 1.76
processing time from 900ms to 169ms as compared to the cloud. Since
1.28
North America is progressing in connected devices, edge computing will 0.99
0.69 0.81
have a significant market in this region by storing and processing this 0.47 0.53 0.60
massive volume of data

• Infrastructure cost reduction and increase in infrastructure flexibility are the


2015 2016 2017 2018 2019 2020 2021 2022 2023
two most important factors driving the cloud computing market in North
America. This is expected to enhance the edge computing market.

• To handle bandwidth problems, many IoT devices are starting with mini CAGR (2017-2022): 28.7%
datacenter for processing the data to and forth the device. This is increasing
the infrastructure cost by increasing the hardware cost. However, edge
computing should address this issue.

Challenges
Trends of edge computing in North America

• Edge computing is one of the key factors powering IoT adoption in North America. • Edge computing is an emerging technology and requires standardization of
With more IoT devices, some burden of cloud computing is shifted to the edge. how it is implemented.
Cloud computing can be mainly used for storage and core applications.
• Edge computing faces the problem of deployment as it is difficult to optimize
• More and more North Americans are expected to adopt connected devices apart spectrum usage on complex system components.
from smartphones and connected TVs. It is assumed that there would be 13
connected devices per person (from the earlier eight devices); hence, edge
computing would play a vital role in the coming years.

44
3.1.1 North America– applications (smart city)

Fig 15: North America revenue contribution (USD Bn)- smart city

0.70

0.51
0.38
0.29
0.24
0.18 0.20
0.14 0.16

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 28.1%

Key observations — application of edge computing in smart city

Various U.S. states are moving toward setting up smart cities. The smart city concept is spreading About 60% of Americans prefer to stay in smart cities despite budget constraints.
far and wide. About 66% of U.S cities are investing in the smart city technology. Around 25% of This factor would encourage the cloud provider of this region to deploy edge
those who have no smart city systems are trying to explore their implementation. Boston is leading computing. This technology would enable the provider to have a competitive
the efforts in this direction, based on Easypark’s 2017 Smart Cities Index. advantage.

Smart city technologies can be applied to intelligence traffic signal, Wi-Fi kiosks, e-governance As the smart city concept spreads in North America, the region would increasingly
applications, radio frequency identification (RFID) sensors in pavements, drones, etc. These deploy edge computing to overcome latency and bandwidth problems. It would
applications require real-time analysis. For example, Toronto, a city in Canada, is on the way to test help the citizens easily get accustomed to the smart city system.
two pilot projects at a traffic signal. The technology would be able to take a decision based on real-
time traffic conditions.

45
3.1.2 North America– applications (smart factory)

Fig 16: North America revenue contribution(USD Bn)- smart factory

0.29
0.22
0.17
0.13
0.10 0.11
0.08 0.08 0.09

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 24.0%

Key observations — application of edge computing in smart factory

Companies in North America are increasingly embracing smart manufacturing. About 54% of the The North American smart factory market is expected to grow close to USD 100
U.S. manufacturing sector have ongoing smart factory initiatives; 24% states that they would Bn by 2020. This is majorly driven by growing adoption of industrial robotic
launch smart factory initiatives within the next three to five years devices, sensors, communication technology, and others

The machines that are deployed as part of smart manufacturing need to be flexible
On the other hand, digital transformation in Canada can enable Canadian manufacturing and responsive to the demand of the product. It should be able to keep a real-time
companies to stay competitive across the globe. However, the lack of digital culture is posing a track of the demand; hence, edge computing is expected to play a key role. It would
problem. allow the factory to keep a track of any change on the factory floor.

46
3.1.3 North America– applications (connected healthcare)

Fig 17: North America revenue contribution(USD Bn)- connected healthcare

0.41

0.30
0.22
0.17
0.11 0.13
0.08 0.10
0.07

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 30.0%

Key observations — application of edge computing in connected healthcare

The U.S. has seen expanding healthcare IT investment. It rose from USD 2.8 Bn to USD 7.1 Bn from As the region continues investing in healthcare IT, edge computing is expected to
2013 to 2017. Google and GE are the most active investors in healthcare start-ups among U.S.- play a vital role. It would help the healthcare industry overcome the most
based tech corporates. They are mainly investing in the medical record system, connected medical important challenges: turning Big Data into smart data, geographical distribution
devices, and telemedicine software of providers and lack of interoperability, and strict privacy to govern the flow of
sensitive healthcare data

North America will continue to have a significant market share backed by the U.S. The U.S.
healthcare system is exploring five advanced healthcare information technologies in 2018. They
are artificial intelligence, cybersecurity, consumer-facing technology, predictive analytics, and
virtual care

47
3.1.4 North America– applications (connected vehicle)

Fig 18: North America revenue contribution(USD Bn)- connected vehicle

0.58

0.42
0.31
0.24
0.17 0.19
0.11 0.13 0.14

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 28.5%

Key observations — application of edge computing in connected vehicle

North America is a matured market because of the extensive infrastructure and investment made The adoption of autonomous cars is paving the way for edge computing
in this market. The demand for autonomous vehicles is the highest in this region. For example, technology. Since North America is making large investments in connected
Ford is expected to launch a fully autonomous vehicle by 2021 followed by GM which plan to vehicles, the use of edge computing technology will increase in the coming
deploy autonomous cars that year. Toyota Motor plans to double its connected car investment in years.
North America
The penetration rate of connected cars in North America is 70% and expected to
In North America, commercial and regulatory initiatives have recently driven the adoption of increase to 90% by 2020. The V2V (vehicle to vehicle), V2P (vehicle to
connected vehicles. The U.S government is stepping forward to invest in connected cars. The U.S. pedestrian), and V2I (vehicle to infrastructure) technologies used in connected
department of transportation (DOT), multiple OEMs, and carmakers have joined hands to deploy cars can leverage edge computing to lower latency for real-time applications
and test the performance of connected vehicles. Volkswagen of America has participated in the
DOT-funded project

48
3.1.5 North America– applications (smart grid)

Fig 19: North America revenue contribution(USD Bn)- smart grid

0.37

0.26
0.18
0.14
0.11
0.07 0.09
0.05 0.06

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 34.0%

Key observations — application of edge computing in smart grid

Utilities in the Caribbean and Central America invested USD 3.3 Bn over the next decades on smart The trend toward smart grid implementation across the region has led to
grid to overcome electricity losses and incorporate renewable energy sources. This region is at the increased adoption of edge computing. In 2017, a leading smart grid provider,
forefront of smart grid investment which is focused on smart meter deployment Tantalus System, acquired Energate, Inc. a leading demand-management
solutions provider. This acquisition is expected to enhance the market-leading
edge-computing smart-grid platform

More than 40 Mn smart meters are installed in North America. It provides


By 2015, the U.S. had already deployed smart meters in more than 50% of households. It plans to
benefits to both the consumers and utilities. Edge computing helps the smart
install smart meters in more than 28% of the households from 2017 to 2020. The Canadian
grid conduct data analysis on a real-time basis. The ITRON RIVA™ edge
government, on the other hand, plans to invest USD 100 Mn on smart grid development through
intelligence platform announced by Itron will yield a common set of technology
the ministry of natural resources
attributes for the smart meter

49
3.1.6 North America– applications (others)

Fig 20: North America revenue contribution(USD Bn)-others

0.07

0.05
0.04
0.03
0.02 0.02 0.02 0.02
0.01

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 27.0%

Key observations — application of edge computing in other segments

North America has a booming gaming market. The total consumer spending on gaming has North America witnessed growth in the e-commerce market with rise in online
increased approximately 16.4% from 2014-2016. The average time spent on mobile gaming has shopping profile, digital payment methods, and digital advertising. It is expected
increased from 2.7 hours per day to 5.6 hours per day from 2015-2018. There are around 600 that around 85% of the total population will shop online by 2021. The internet
active video game studios in Canada that contribute 4% to the country’s GDP penetration in North America is forecast to increase from 83% to 86% by 2021

The rising dependence on online shopping would require the implementation of


As North America is fast embracing edge computing technology, it is expected that the gaming
edge computing technology to track consumer behaviors and maintain an
industry will sooner or later apply edge computing to improve end-user experience
efficient supply chain on a real-time basis

50
3.2.1 North America– by end-users industry (manufacturing)

Fig 21: North America revenue contribution(USD Bn)-manufacturing

0.65

0.47
0.34
0.26
0.21
0.15 0.17
0.11 0.13

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 30.1%

Key observations — application of edge computing in manufacturing

The North American Digital Capability Center was launched by McKinsey and Company and DMDII The U.S. has the largest market share in digital manufacturing. Canada is also
(Digital Manufacturing and Design Innovation Institute), a part of the manufacturing network of gaining traction in digital manufacturing. According to a study conducted by the
the U.S. The center has started providing hands-on training in next-generation digital Business Development Bank of Canada, out of 1,000 small and midsize
manufacturing technology. It would help start-up businesses benefit from digital innovation in manufacturers, only 40% have successfully implemented digital manufacturing.
their operation, production, and design Of these that implemented digital technology, 60% claimed that there has been
a rise in their productivity
The center gives organizations the opportunity to adopt Industry 4.0 and gain deep expertise in As the manufacturers of North America adopt digitization, edge computing is
digital manufacturing. Smart factories in the U.S. are expected to increase the productivity seven expected to play a vital role. The data generated would be huge in volume. Edge
times by 2020. computing would be the solution to store and perform real-time analysis. This, in
turn, would help start-ups generate innovative ideas that would increase
productivity

51
3.2.2 North America– by end-users industry (energy and utility)

Fig 22: North America revenue contribution(USD Bn)- energy and utility

0.20
0.15
0.11
0.08 0.09
0.06 0.06 0.07 0.07

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 22.2%

Key observations — application of edge computing in energy and utility

The energy and utility sector lags behind other sectors in data analytics that helps make use of Smart grids are expected to increase the data generated exponentially. These
advanced analytics and derive value from data. Over the next few decades, this sector is expected data sources could provide rich information on power usage as compared to the
to implement digitization traditional Supervisory Control and Data Acquisition system. The data would
enable the grid to be operated closer to the system, lower operational cost, and
improve asset utilization

North America is leveraging data analytics in the utility sector to improve accuracy in forecasting Edge computing would help the utility sector in North America to achieve its
the duration of power outages. The government of Canada plans to invest more in smart grids. The goals. The data being stored close to the user would enable utility providers to
minister of natural resources, Jim Carr, announced the investment of USD 100 Mn for smart grids get easy access to all the dimensions and maintain the quality and quantity of
by 2018. The funding was a part of the 2017 budget in support of Pan-Canadian framework on data which are the main challenges
clean growth and climate change

52
3.2.3 North America– by end-users industry (IT and telecommunication)

Fig 23: North America revenue contribution (USD Bn)-IT and telecommunications

0.92

0.65
0.46
0.35
0.28
0.19 0.23
0.14 0.16

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 32.2%

Key observations — application of edge computing in IT and telecommunication

IT and telecom companies are increasingly deploying edge computing to support massive Internet 5G has more potential than 4G. The launch of 5G networks is expected to drive
of Things implementations, critical communication, and major 5G use cases. American advance innovation based on a highly distributed edge network. The wireless
broadcasting and wireless real-estate developers like American Tower and Crown Castle are network would be the foundation of real-time network response, high
exploring the use of edge computing technology in their cell tower sites broadband speed, and reliable security

North America is leading in deploying 5G. All the service providers in the U.S. and Canada are With the growth of mobile data traffic, there is a rise in the types of online
moving toward commercially launching 5G. R&D is underway for the development of the devices; the demand for streaming video is increasing the demand for edge
technologies that will eventually power 5G networks. Mobile data traffic is expected to reach computing in the telecom sector
approximately 25GB per month by 2022. The increase in data volumes is expected to create
latency problems. Advanced technology is required to support 5G deployment

53
3.2.4 North America– by end-users industry (healthcare and life sciences)

Fig 24: North America revenue contribution (USD Bn)- healthcare and life science

0.10

0.07
0.06
0.05
0.04 0.04 0.04
0.03 0.03

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 20.1%

Key observations — application of edge computing in healthcare and life sciences

Edge computing is trending in North America. The technology is the next stage in the evolution of The United States Food and Drug Administration has acknowledged the need for
cloud computing. It is being increasingly used in the healthcare sector as this sector requires real-world data to improve health quality driven by digital health products. This
immediate response to help the healthcare provider make life and death decisions can also be used in medical device marketing

Hospitals have been slow in adopting the technology. Humber River Hospital is one of the first in As more and more medical devices are connected to IoT (the Internet of Things),
the region to be fully digitized. It is using information, communication, and automation technology the data generated is huge in volume. Edge computing gives a perfect solution to
and has set a target of 40% reduction of energy cost per the national standard. store the increasing volume of data

54
3.2.5 North America– by end-users industry (consumer appliance)

Fig 25: North America revenue contribution (USD Bn)- consumer appliance

0.39

0.29
0.21
0.17
0.12 0.14
0.08 0.09 0.10

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 27.7%

Key observations — application of edge computing in consumer appliance

The average number of digital devices available to the U.S. consumers has increased in recent Faster innovation and smart digital-physical integration require better collection
years. Consumers are more connected and have deeper access and engagement with content and of data. Enterprises are turning to the solutions that are built for smartphones to
brands. PCs/Laptops and smartphones are the most used with usage of around 88% and 75%, unlock new opportunities and bring digital efficiencies into the physical
respectively. environment

Consumer appliances are incorporating a wider range of digital voice assistants. Around 46% of North America has the second-largest connected population. Thus, edge
Americans are using voice-controlled digital assistance mostly to interact with their smartphone computing is expected to play a vital role in storing the massive volume of data
and other devices, including computer tablets and stand-alone devices. The application is popular generated to bring digital efficiency
among those aged between 18 years and 49 years

55
3.2.6 North America– by end-users industry (transportation and logistics)

Fig 26: North America revenue contribution (USD Bn)- transportation and logistics

0.18

0.13
0.10
0.08
0.07
0.05 0.06
0.05 0.05

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 24.5%

Key observations — application of edge computing in transportation and logistics

The connected vehicle system in the U.S. generates real-time data that would help improve safety, An autonomous vehicle creates 25 GB of data per hour from almost 40
reduce fuel consumption, and enhance traffic management. Panasonic and Colorado’s Department microprocessors as well as numerous sensors from almost every GPS location to
of Transportation have collaborated to launch the connected vehicle demo center every driver’s preference and behavior

The demo center has been designed to collect travel data from various sources and integrate with
the technology ecosystem. It also includes V2I and I2V communications. The use of V2I implies
immense amount of data. The data are collected 10 times per second. Edge computing would
support this huge volume of data, analyze it on a real-time basis, and send customized alerts to
each vehicle based on geolocation

56
Chapter 4: Europe edge computing market overview
4.1 Europe edge computing market

Drivers of edge computing in Europe Fig 27: Europe revenue contribution (USD Bn)

• European governments and corporates are prioritizing IoT investments. Around


27% of the corporates stated that they have implemented high-value IoT
analytics. A large portion of European companies will use IoT in their business
by 2020. This is expected to expand the edge computing market
1.94
• Most of the applications are outsourced to cloud services providers and few to
the datacentre. Around 80% of European organizations are now dependent on 1.40
the cloud. The increased burden on the cloud increases latency and lowers the 1.02
processing power. Edge computing is the solution to this problem 0.78
0.54 0.63
0.35 0.40 0.46
• The European Commission seeks to obtain 20% added value from the
manufacturing sector. Hence, the sectors are moving to digital
industrializations. Members states like France, Italy, and the UK are taking
2015 2016 2017 2018 2019 2020 2021 2022 2023
initiatives to move to Industry 4.0
• The convergence of operational and information technologies (OT and IT) can
make Industry 4.0 a reality. OT and IT are supported by the upcoming 5G
CAGR (2017-2022): 29.3%
wireless and OPC UA (OPC Unified Architecture), all being integrated into fog
computing

Challenges
Trends of edge computing in Europe

• European investments in edge computing are expected to reach USD 185 Bn by 2026. • Edge computing faces the problem of deployment as it is difficult to optimize
Europe could surpass the U.S. in investing in edge computing in the coming months spectrum usage on a complex system
• The UK has the largest IoT market, followed by Germany and France. These countries • At the initial level of deployment, it faces huge deployment costs
are expected to utilize edge computing in the future to improve the customer
experience
• Deutsche Telekom, the largest telecommunications provider in Europe, aims to regulate
5G application with edge computing. The company is going deeper into edge computing
with new test beds

58
4.1.1 Europe– applications (smart city)

Fig 28: Europe revenue contribution (USD Bn)- smart city

0.49

0.36
0.27
0.21
0.18
0.13 0.15
0.11 0.12

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 26.5%

Key observations — application of edge computing in smart city

Europe’s smart city model is unparalleled as it is denser and more sustainable. The region tends to Berlin is a famous smart city. It has constructed green energy infrastructure,
focus on making the best use of technology to manage public transit and lower carbon emission to encouraged low carbon usage, and installed intelligent features under a smart city
limit pollution. The top five smart cities are Amsterdam, Barcelona, Copenhagen, Dublin, Helsinki, program. The key features are backed by edge computing. It helps in various
and Manchester frameworks that include network rollout, smart sensor, and data collections

More than 240 European cities with more than 100,000 people are progressing toward a smart city Edge computing also implements cross-application and cross-vendor integration and
program. Prismtech, an UK-based IoT solution and technology provider, collaborated with Cisco on interpolation. Its application includes predictive maintenance and enabling future
implementing smart city services in Barcelona using fog computing. Barcelona has 3,300 street transformation of the business model. Though the metropolitan cities like London
cabinets for traffic, energy, and IT function. By implementing fog computing, Cisco will be able to and Paris are smart cities, half of EU cities are still lagging behind. Under the
integrate all the functions in a common IT infrastructure, provide real-time monitoring, and European Commission 2020 funding, the lighthouse project is coming up with new
virtualize logical decision-making ideas to deliver smart technologies in municipalities

59
4.1.2 Europe– applications (smart factory)

Fig 29: Europe revenue contribution (USD Bn)- smart factory

0.49

0.35
0.25
0.19
0.16
0.11 0.13
0.08 0.09

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 30.5%

Key observations — application of edge computing in smart factory

Europe is progressing toward digital industrialization. About 91% of European corporates are As factories implement IIoT, connecting machines, devices, and sensors to the
investing to build digital factories. Germany is leading the digital factory implementation within digital enterprises, it also needs to process the huge quantity of data on a real-
this region. About 77% of the companies that are planning to invest in deploying the digital factory time basis. Smart manufacturing with edge computing has got enough potential
model in the next five years are in Germany and Western Europe to improve the business

Smart factories are expected to play an important role in the reindustrialization of


Governments have stepped in to promote Industry 4.0 in Germany and France. They are also Europe. This is expected to strengthen the European economy and help deliver
encouraging the implementation of IIoT solutions in Europe. Much of IIoT is dependent on the higher-end products at low prices. This progression is expected to be supported by
cloud; however, it is estimated that by 2019, 40% of the data created by IoT would be stored on edge computing
the edge

60
4.1.3 Europe– applications (connected healthcare)

Fig 30: Europe revenue contribution (USD Bn)- connected healthcare

0.29

0.21
0.15
0.11
0.09
0.06 0.07
0.04 0.05

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 32.4%

Key observations — application of edge computing in connected healthcare

The European Commission is working on digital healthcare to provide its citizens with top-class Telemedicine and m-healthcare are the vital use cases of 5G. With the increase
healthcare services. Around 80% of the countries in the region are working on strategies to in demographic dividend and frequent update of health records by the elderly
implement e-healthcare. E-prescribing and electronic health records are widely used in Europe. population, the role of MEC (mobile edge computing) becomes more evident. As
The UK is expected to reap benefits of EUR 4.8 Bn from the use of IoT in the healthcare sector the region is progressing with its digital healthcare services, edge computing is
expected to expand its presence

In 2017, Europe had the largest m-healthcare app market. It captured 47% market share and is
followed by the U.S. Digital technologies like 4G/5G services and artificial intelligence provide a
better opportunity to transform the healthcare services. European Structural
and Investment Funds invested EUR 979 Mn Mn ICT solutions and e-healthcare

61
4.1.4 Europe– applications (connected vehicle)

Fig 31: Europe revenue contribution(USD Bn)- connected vehicle

0.14
0.11
0.08
0.07
0.06
0.05 0.05
0.04 0.04

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 22.5%

Key observations — application of edge computing in connected vehicle

The potential of autonomous and connected vehicles is expected to become much more evident in Connected vehicles offer an opportunity for Europe. It is going to offer an
the coming years. Europe is the second largest market for connected vehicles. The EU’s member evolution path for 5G. With these factors, it is also expected to drive the edge
states and the European Commission are collaborating to realize EU’s vision on connected and computing market. The UK is the first country to test fully connected road
automated mobility infrastructure. Vodafone with its consortium partners from the automotive
industry are discussing ways to enhance the road infrastructure using edge
computing
A connected car is forecast to send 25GB of data every hour to the cloud, which
The EU is in the process of relaxing the legislation related to the transport sector. With the
is expected to impose a burden on the cloud. Edge computing is expected to
evolution of artificial intelligence, the Internet of Things, and high-performance computers, the
bring the device close to data storage and solve the latency problem. A third of
policies related to cybersecurity and data privacy have been liberalized. The EU should make sure
all cars in western Europe are connected cars; the figure is expected to reach
that the vehicles remain connected even when they cross borders
90% by 2020

62
4.1.5 Europe– applications (smart grid)

Fig 32: Europe revenue contribution(USD Bn)- smart grid

0.45

0.32
0.22
0.17
0.11 0.13
0.07 0.09
0.06

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 33.7%

Key observations — application of edge computing in smart grid

The EDSO (European distribution system operator) is working to bring smart grid to reality in
Europe and is focused on guiding regulation policy and R&D to support the system. A smart grid
would help the EU to achieve its ambitions on reducing greenhouse emission and promote
efficient use of energy. EDSO connects Europe’s DSOs and European institutions in promoting
large-scale testing and development of smart grid models in real-life condition

France, the UK, Germany, and Italy are expected to have most of smart meters shipped by 2025.
Western European is implementing massive power grid modernization. Adoption of Third
European Energy Liberalization Package expanded the public awareness on smart grid technology
across Europe

63
4.1.6 Europe– applications (Others)

Fig 33: Europe revenue contribution(USD Bn)- others

0.07

0.05
0.04
0.03 0.03 0.03
0.02 0.02 0.02

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 22.2%

Key observations-applications of edge computing in others

The gaming market is growing constantly in Europe. UK has the largest video game market in this Europe is showing 10 times faster growth in online retail sector. In 2017, online
region. VR gaming segment is one of the most competitive spaces of Europe gaming market. A VR grocery sales grew to EUR 1Bn in Netherlands and online supermarket sale grew
consulting firm LucidWeb selected 116 VR start-ups to release VR landscape in Europe. The region by 5%. This is expected to drive the edge computing application. As the
is fast picking up e-Sports and government initiated to consider e-Sports as formal gaming segment technology is already trending in Europe, sooner or later the retail sector would
adopt the emerging technology

Edge computing is a strong backbone of AR app. It cannot afford to make a round trip in the public
cloud. It requires millisecond response to deliver a seamless experience.

64
4.2.1 Europe– by end-users industry (manufacturing)

Fig 34: Europe revenue contribution(USD Bn)- manufacturing


0.38

0.27
0.20
0.15
0.13
0.09 0.11
0.07 0.08

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 28.6%

Key observations-applications of edge computing in manufacturing

The rapid acceptance of industrial internet of things leads to the generation of


Enterprises that are able to understand the potential of industrial internet of things are embracing
enough amount of data. Latency problem is now the main concern of the
the concept and shifting to smart manufacturing. In order to be globally competitive, UK
manufacturer since it disturbs the decision-making process of the manufacturer.
manufactures need to invest in smart tech. Failure to adopt fourth industrial revolution will cause
UK manufacturers to lose opportunity.

These are key factors driving the use of edge computing in smart manufacturing,
43% of the UK manufactures belief that fourth industrial revolution technologies such as machine
which is expected to reduce the response time, maintain security and
learning, sensor and big data are expected to increase productivity. Robotics has the highest
compliance, provide a cost effective solution
adoption rate in manufacturing with around 76%, artificial intelligence is yet on the growing stage
that requires investment. Lack of skill is the key barrier faced by the industry, however 78% of the
manufacturers are committed to invest in automation within the next few years

65
4.2.2 Europe– by end-users industry (energy and utility)

Fig 35: Europe revenue contribution(USD Bn)- energy and utility

0.28

0.20
0.14
0.10
0.07 0.08
0.05 0.06
0.04

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 33.0%

Key observations-applications of edge computing in energy and utility

70% of worldwide utility have launched digital transformation initiatives. Some


of the European based utility companies like EDF, ENEL and ENGIE have already
European utilities are collaborating with strategic partners to solve the skill gap in analytics, work started to revise their business model. Digital transformation is the only way the
on data management which are crucial for their digital transformation. They are also collaborating European utility can respond to customer expectations met in other industries.
to remain competitive in business 4.0 world. Although majority of digital transformation are at the beginning stage but it
presence are still felt
As the European union targets to replace 80% of electricity with smart meter by
Germany makes the highest IoT application in energy and utility followed by the UK almost 27%. 2020. This would reduce the emission by 9%. 200 Mn and 45Mn of smart meter
Majority of the European countries are slowly adopting IoT in the energy and utility sector. The for electricity and gas are expected to roll by 2020. That includes EUR 45 Bn
European utility are gradually increasing there investment capability. The European Union investment. The huge volume of data that is expected to generate from this
comprising 6 utilities together have decided to strengthen renewable energy around 35% by 2030 digital utility would create latency and reduce customer satisfaction. Edge
computing would have its market along with this to improve customer
experience and support new innovation.

66
4.2.3 Europe– by end-users industry (IT and telecommunication)

Fig 36: Europe revenue contribution(USD Bn)- IT and telecommunication

0.53

0.38
0.28
0.21
0.15 0.17
0.09 0.11 0.12

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 29.3%

Key observations-applications of edge computing in IT & telecom

The telecom operators and enterprises in Europe and US are expected to spend USD 185 Bn by The European telecommunication standard institute has disclosed its first APIs
2026 on edge computing. European commission aims to provide internet speed with 1 GB of data under (MEC) (Multi access edge computing) project. The API includes mobile
per second across schools, transport hubs, and digital intensive business by 2020. To fulfil those edge service, application lifecycle management, radio information service, and
ambition, the commission set out rules for spectrum allocation, and deployment of new telecom applications running on edge platform. Europe is running the race to invest in
infrastructure 5G. Recently in the UK the telecom companies opened bidding for the airwaves
to host next generation wireless technology (5G).
In the UK, smartphone adoption will continue to grow till 2023. Around 92% of the adult
population is expected to access smartphones, rising from the earlier figure of 85%. The Mobile edge computing is an essential component of 5G to provide seamless
penetration of smartphones will expand to 85% by 2023, surpassing PCs and laptops within the age service. 5G network which promises to support augmented reality, and video
group of 55 years to 75 years. In 2016, the UK’s residential and small business broadband traffic streamline services would require mobile edge computing to support the
rose by 40% and mobile data traffic by 64%. network

67
4.2.4 Europe– by end-users industry (healthcare and life science)

Fig 37: Europe revenue contribution(USD Bn)- healthcare and life science

0.21
0.16
0.12
0.10
0.07 0.08 0.08
0.06 0.06

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 22.3%

Key observations-applications of edge computing in healthcare and life science

European commission is prioritising digital healthcare to provide citizen access to better healthcare One such example of digital healthcare in Europe is KRY. It is a leading digital
service. The healthcare system is facing severe challenges due to increasing ageing population, lack healthcare provider in Europe that has raised USD 6 Mn in series B investment. It
of healthy workforce, rising burden of preventable and non-communicable diseases. Even though allows individuals to get connected to a healthcare professional via smartphone
the Europeans are still hesitant to pay for digital healthcare service. London has become one the and tablet. Initially, it has established its presence in the UK and France and
most emerging markets to make 22 deals, which is a sum of USD 189 Mn plans to expand geographically.

The commission has published Communication on Digital Transformation of Health and Care in the Edge computing improves healthcare system for IoT adoption. It helps users to
Digital Single Market to provide citizen secure access to health data across the boarder, access better data, have control over stored data, respond quickly, help in better
personalize medicine through European data infrastructure, and citizen empowerment through communication between devices
digital tool

68
4.2.5 Europe– by end-users industry (consumer appliance)

Fig 38: Europe revenue contribution(USD Bn)- consumer appliance

0.41

0.29
0.20
0.15
0.10 0.12
0.07 0.08
0.05

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 34.1%

Key observations-applications of edge computing in consumer appliance

78 cities in Europe have already undertaken smart city development with the help of smart cities 47% of the UK’s citizen belief that smart home technology would have good
and Communities European Innovation Partnership. The region aim 300 smart cities by the end of impact on their life in the next few years. European witnesses double digit
2019. All the technologies and services in the smart city aims to improve life quality growth in home automation system featured by connectivity and advance
interactive features. Even though smart home penetration in Europe is behind
north America, approximately 68 Mn homes in Europe and the Middle East and
Africa are expected to become smart home by 2019.
In 2016, 39% of purchased interest were connected/smart TV/Streaming device. SAREF ( European The rising automation in home appliance would generate huge volume of data.
standard for smart appliance has been launched by the European commission in collaboration with Smart home automation requires quick response thus, requires real time
European telecommunication standard institute. To support the market need, European analytics. Storing data in cloud would create latency problem, hence, edge
commission financed a study to create a language (ontology) for smart appliance which has computing would serve the need
become the new standard in Europe. The commission has also launched public consultation on
standard to gather view on priorities for standard

69
4.2.1 Europe– by end-users industry (transportation and logistics)

Fig 39: Europe revenue contribution(USD Bn)- transportation and logistics

0.14

0.10
0.08
0.06
0.05 0.05
0.04 0.04
0.03

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 24.1%

Key observations-applications of edge computing in transportation and logistics

European automotive industry is creating huge opportunities for the autonomous car. The In April 2016, Volvo, Scania, Daimler, MAN, DAF Trucks and Iveco had initiated
capability of the car to drive itself partly or completely without any human intervention are the trail-European Truck Platooning. They were successful in self driving truck
short term objective of 2020. The innovation includes safety (advanced driver assistance system), platoons coverage in Rotterdam. This are expected to reduce carbon emission.
connected car features (optimising fuel consumption, etc.), autonomous driving (self parking, Even though manual transmission is dominant in Europe. Autonomous vehicle
highway, autopilot) would slowly and subsequently grow in the region

With the support of artificial intelligence and machine learning, external data are connected to the The total data that is expected to generate from autonomous vehicle would
car data to analyse the mood of the driver along with traffic, and weather condition. Around 25GB require edge computing technology. Real time analyses would require to
of data are processed per hour. European automobile manufacturer like BMW, Volvo, Audi, etc., understand weather conditions, traffic management and respond quickly.
are forerunner in introducing partial autonomous features like warning and auto parking.

70
Chapter 5: Asia Pacific edge computing market overview
5.1 Asia Pacific edge computing market

Drivers of edge computing in Asia Pacific Fig 40: Asia Pacific revenue contribution (USD Bn)

• Asia pacific is expected to see a rapid growth in the use of edge computing in
the coming 3-4 years. As the number of users are increasing, managing cloud
is becoming more a tedious job. This is turning the companies to move to
edge computing to speed up the data process 2.68

• As the Internet of things are deployed on a global scale, it generates an 1.78


enormous amount of data on cloud. The problem is intensified with
increased distance between cloud and users. All together creating a latency 1.20
0.85
problem 0.63
0.39 0.49
0.26 0.31
• Asia companies are appearing to move toward edge computing mechanism.
This includes bank and retail stores.
2015 2016 2017 2018 2019 2020 2021 2022 2023
• 97% of the companies belief that edge computing will be an important
business and IT strategy in the coming few years
• Australia, Singapore and Indonesia are the countries that are working with
CAGR (2017-2022): 40.5%
and much more knowledgeable on edge computing

Challenges
Trends of edge computing in Asia Pacific

• The modernization effort of a global automotive company with its headquarter in • Adoption of edge computing is restrained due to budget factor, lack of system
Malaysia, upgrading communication network for a fitness studio in Australia, and future compatibility, and security issues
proofing network project of a telecommunications operator in New Zealand are the
current edge computing projects underway in the region • The concept of edge computing in this region is still vague due to lack of
understanding and awareness
• Asia firms are expected to show rapid growth in edge computing. AWS has started
snowball data transfer and edge computing service in Singapore. Thus, riding the • South Korea, New Zealand and Cambodia are lagging behind due to the lack of
growing the IoT and hybrid IT in APAC region understanding of edge computing

72
5.1.1 Asia Pacific – applications (smart city)

Fig 41: Asia Pacific revenue contribution(USD Bn)- smart city

0.67

0.45
0.30
0.22
0.13 0.16
0.07 0.08 0.10

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 39.6%

Key observations-applications of edge computing in smart city

APAC region count the largest IoT spending, the total spending is expected to reach to USD 59 Bn Apart from Barcelona, Berlin, capital of Germany is a famous smart city. The city has
by 2020. The pace of IoT adoption is higher in South Korea and Singapore. South Korea has 1.8 Mn constructed their green energy, low carbon, and intelligent feature under smart city
IoT connected devices and decided to invest USD 350 Mn in 300 companies to make them globally program. The key feature is backed by edge computing. It helps in various
competitive in IoT ecosystem framework that includes network rollout, smart sensor, data collections

Asia-Pacific is leading the smart city evolution and have decided to invest USD 28.3 Bn on Edge computing also implements across applications and cross vendor integration
technologies to initiate smart city program by 2018. Government bodies and business are and interpolation. Its application includes predictive maintenance, and maintaining
expected to put more effort to build smart cities through interconnections the future transformation of the business model. Though the metropolises cities like
London, Paris are smart cities on the other hand half of EU cities are still lagging
behind. Under the European commission 2020 funding, the lighthouse project is
coming up with new ideas to deliver smart technologies in municipalities

73
5.1.2 Asia Pacific– applications (smart factory)

Fig 42: Asia Pacific revenue contribution(USD Bn)- smart factory

0.73

0.48
0.32
0.22
0.16
0.10 0.12
0.06 0.08

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022: 42.3%

Key observations-applications of edge computing in smart factory

Asia Pacific is a manufacturing hub. The sector keeps growing due to growing demand for product Smart factory is gaining its momentum in Asia Pacific region, it is estimated that
and services. Smart manufacturing would help the industry to boost their productivity. It would 50% of the APAC manufacturers are going to acquire smart manufacturing by
bring information technology to the manufacturing sector and integrate various technologies such 2022. Integrating the manufacturing sector with the emerging technologies
as cloud computing, business intelligence, and analytics could increase the profit and reduce the production cost. This would reduce the
annual economic impact in ASEAN from USD 25 Bn to USD 45 Bn from 2018 to
2030

Being a quality concerned manufacturing unit, APAC makes quality assurance as their top priority Manufacturing companies are making investment toward smart factory. For example
The region plans to provide improved quality for finished goods for manufacturer in the coming Bosch, a German company invested USD 96.2 Mn in Thailand to open a smart
next year. Visible technologies is expected to grow, around 42% of the manufacturer are planning factory. To realise USD 3.7Tn saving from IoT in manufacturing, it should be scaled
to invest in the area, out of which 55% are planning to invest in real time location system (RTLS), up with security. The rising trend of smart factory is expected to increase the
and 48% on RFID (Radio-frequency identification) demand of edge computing

74
5.1.3 Asia Pacific– applications (connected healthcare)

Fig 43: Asia Pacific revenue contribution(USD Bn)- connected healthcare

0.22

0.15
0.11
0.08
0.05 0.06
0.03 0.03 0.04

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 36.1%

Key observations-applications of edge computing in connected healthcare

In APAC region, connected healthcare is one of the top five growing sectors. The private and public Similarly in western Australia, eHealthWA is one of the major reform
hospitals are intensive installing and upgrading their IT capabilities to remain competitive, and be programmes designed to provide innovative and modern integrated platform of
financial profitable. Even though this sector lag behind financial and telecommunication sectors, information and communication technology in healthcare service
this sector has massive scope of innovations and improvement

Countries like Singapore, Japan, South Korea and Australia are leading the adoption of IT in The region has embraced emerging technology cloud computing. The health minister
healthcare sector, whereas China, India, Malaysia, and Thailand are the emerging markets. Strong of New Zealand has approved the use of Microsoft’s core cloud services including
government support is one of the key drivers, driving the adoption of HIT in Asia Pacific. For Azure, and office 365 to store personal health records. However, with rising
example, the state and federal government of Australia supported State-wide and country wide innovative technology embracing the healthcare sector, edge computing is expected
HIT initiatives to make its way to improve health services

75
5.1.4 Asia-Pacific – applications (connected vehicle)

Fig 44: Asia Pacific revenue contribution(USD Bn)- connected vehicle

0.36

0.25
0.17
0.12
0.10
0.06 0.08
0.04 0.05

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 36.7%

Key observations — application of edge computing in connected vehicle

Asia-Pacific is expected to have a large market by 2025, owing to high growth in the automotive Investment in autonomous cars would help Singapore’s government narrow
market and enhanced connectivity infrastructure across the region. Advanced driver assistance down the number of private vehicles owned. The region is making use of
systems can be integrated with vehicles to provide intelligent and safe driving experiences artificial intelligence

Hence, the connected vehicles market is showing momentum in the APAC


The demand for vehicles in China is the highest; this is driving the connected in-vehicle
region. Automakers are showing increasing tendency to shift to autonomous
infotainment market. The country has the fastest growing automotive market. Singapore has plans
vehicles. This is expected to drive the edge computing technology adoption. The
to introduce legislation for autonomous vehicles in the second half of 2018. It would be at the
region would support the emerging technology integration in connected vehicles
forefront of self-driving testing. An automaker start-up, Autonomy, was the first to set up an
autonomous ride-sharing service in 2016

76
5.1.5 Asia-Pacific– applications (smart grid)

Fig 45: Asia Pacific revenue contribution(USD Bn)- smart grid

0.62

0.40
0.26
0.18
0.10 0.13
0.04 0.06 0.07

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 45.0%

Key observations — application of edge computing in smart grid

The region has promising growth in smart grid technology, thus expected to
Asia-Pacific region is focusing on smart grid technology and moving to smart energy. In 2017, this
increase edge computing applications. With growing population, and rise in
region witnessed 17.5 Mn smart electricity installation. Countries like Japan, South Korea, India are
demand of energy. The energy providers would be keen to adopt smart
focusing more on smart meter
technology and improve customer efficiency

Japan and south Korea are rigorously planning smart meter installation, Japan plans to install 27Mn
meter by 2024. In 2017, Southeast Asia installed 360000 meter and this is likely to double by 2020.
Malaysia, Thailand, Singapore are key investment area

77
5.1.3 Asia-Pacific– applications (others)

Fig 46: Asia Pacific revenue contribution(USD Bn)- others

0.08

0.05
0.04
0.03
0.02 0.02 0.02
0.01 0.01

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 33.7%

Key observations — application of edge computing in others segment

Asia-Pacific has an attractive retail industry that is keen to deploy emerging


Smartphone penetration precipitated by favourable market disruption strategies like R-Jio in India technology to improve customer experience and generate more sales. A rise in
has a direct positive impact on the gaming industry. With the increase in media exposure, the internet and smartphone penetration is driving the technology adoption.
number of active gamers is expected to increase. Pokémon Go has become a household name in Retailers in this region are prioritizing data centers to expand digital initiatives
India due to social media and word-of-mouth marketing across the business ecosystem

Edge computing is used in mobile gaming like Pokémon Go. It helps capture real-time location Retailers plan to invest 47% of their digital budget on external vendors to drive
based on game arena digital initiatives. The region has a fast-growing millennial population, who's
buying patterns are tech-enabled. This cannot be supported by the edge
computing mechanism. Retailers should think of investing in edge computing to
ensure improved end-consumer experience

78
5.2.1 Asia-Pacific– by end-users industry (manufacturing)

Fig 47: Asia Pacific revenue contribution(USD Bn)- manufacturing

0.65

0.43
0.29
0.20
0.15
0.09 0.11
0.06 0.07

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 41.5%

Key observations — application of edge computing in manufacturing

By 2022, 72% of manufacturers are expected to expand mobile technologies,


The Asia-Pacific region is progressing in smart factory. Nearly half of the manufacturers in this
65% are expected to expand wearable technologies, 51% expanding location
region have adopted the smart factory model. It is expected that number will triple by 2022. Under
tracking, and 51% expanding voice technology. Manufacturers are now highly
Industry 4.0 and the smart factory model, the workers are expected to use radio frequency
motivated to provide faster and high-quality product and remain competitive
identification, wearable technologies, and other emerging technologies to monitor the physical
process of the plant and make decentralized decisions.
Around 42% of the manufacturers are expected to invest in visibility technology,
APAC manufacturers are expected to grow at a high rate. About 77% are estimated to collect data
55% are investing in real-time location system, and 44% are expected to allow
from the production line and supply chain by 2020 to improve productivity and identify defects.
just-in-time (JIT) notification for their customers. This would require the export
Around 55% of the manufacturers consider quality assurance as their top-most priority
and import of huge volumes of data in a short span of time. Thus, edge
computing technology market would grow alongside to support the technology
expansion in the manufacturing sector

79
5.2.2 Asia-Pacific– by end-users industry (energy and utility)

Fig 48: Asia Pacific revenue contribution(USD Bn)- energy and utility

0.32

0.22
0.16
0.12
0.08 0.09
0.06 0.07
0.05

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 32.3%

Key observations — application of edge computing in energy and utility

Even though smart meters face disruption in this region due to legislation, the
Smart meters as a market is expected to grow in the Asia-Pacific region after its expansion in
market is expected to grow. Edge computing would sooner or later be required
Europe. South Korea is the key market for smart meter installation and expected to reach 2.5 Mn
to achieve the goal set by the utility sector
units by 2025. The region aims to achieve a 25% penetration rate by 2025. integrating analytics,
package and data processing with smart meter, meeting smart city vision, and developing the
capability to offer a scalable metering solution

Several smart meters are in use in Asia. It is expected to improve customer service, reduce costs,
and enable new business models. The region requires USD 11.7 tn investment in the energy sector
to meet the business and energy demand

80
5.2.3 Asia-Pacific– by end-users industry (IT and telecommunication)

Fig 49: Asia Pacific revenue contribution(USD Bn)- IT and telecommunication

1.00

0.64
0.41
0.28
0.15 0.20
0.06 0.08 0.11

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 47.1%

Key observations — application of edge computing in IT & telecom

Asia is expected to deploy 5G service to improve performance and supplement


Asia-Pacific has the most dynamic telecom market. The region has been the biggest contributor to
the existing mobile broadband capacity. 5G connections are expected to cover
global subscribers. In 2016, the region added two-third unique subscribers, accounting for a 2.7
60% of the population, totalling 670 million by 2025.
billion population. India and China are the highest contributors in this region

Some edge computing projects have already started in this region like the
“future-proofing” telecom project in New Zealand. Vodafone Australia and Nokia
The region is growing exponentially in MVNO and VoLTE. Global players are ready to enter the announced a partnership to establish proof of concept by combining mobile
mobility space by acquiring MVNO licenses in Asia. Similarly, local players are looking to expand edge computing, 4G network, IoT sensor, network function virtualization (NFV)
their reach globally. More and more operators are acknowledging the use of VoLTE to provide and video analytics to improve customer experience. Their partnership is also
advanced voice quality service to their customers, hence driving the market heading toward 5G network trial. Similarly, China Telecommunications plans to
use MEC to streamline services like video surveillance, mobile office, and on-site
data collection and transmission

81
5.2.4 Asia-Pacific– by end-users industry (healthcare and life sciences)

Fig 50: Asia Pacific revenue contribution(USD Bn)- healthcare and life science

0.12

0.08
0.06
0.05
0.04
0.03 0.03
0.02 0.02

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 29.9%

Key observations — application of edge computing in healthcare and life science

As the countries in this region are moving toward digital healthcare with the
Countries like Singapore, South Korea, and Australia have a strong penetration of electronic
application of emerging technologies, the use of edge computing is also
medical devices to maintain healthcare records that would help optimize health system resources
expected to gain momentum. With edge computing-connected hospital systems,
and improve primary and home care
telemedicine, and VR-based physician training would gain efficiency

The healthcare industry in this region is expected to be driven by the digital platform, which will
power 20% of the growth in the clinical trial market. Emerging technologies like Big Data, artificial
intelligence, the Internet of Things, and m-health platforms are expected to create a new workflow
in clinical trial management

82
5.2.5 Asia-Pacific– by end-users industry (consumer appliance)

Fig 51: Asia Pacific revenue contribution(USD Bn)- consumer appliance


0.38

0.26

0.17
0.12
0.09
0.06 0.07
0.04 0.05

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 39.1%

Key observations — application of edge computing in consumer appliance

Many emerging device companies in Asia-Pacific want to infuse their products


Smart city investment in Asia-Pacific, excluding Japan, is expected to increase from USD 2.8bn to
with AI and build intelligent edge into all the consumer devices, appliances, and
45.3bn from 2018 to 2021. China is expected to lead the transformation. Approximately 500 cities
services that would help improve consumer efficiency. Asia is playing a vital role
are expected to transform to smart city
in innovating with new AI technologies with Microsoft research labs in China and
India

In Asia, billions of appliances and machines are rolling off the production line to become smarter
and connected. These devices are pushing the boundaries of IoT by infusing with artificial
intelligence, building with sensors, and enabling machine learning

83
5.2.6 Asia-Pacific– by end-users industry (transportation and logistics)

Fig 52: Asia Pacific revenue contribution(USD Bn)- transportation and logistics

0.21

0.15
0.10
0.08
0.05 0.06
0.03 0.03 0.04

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 8.7%

Key observations — applications of edge computing in transportation and logistics

Japan’s biggest automaker, Toyota, leads the research and development


Asia-Pacific is the fastest growing automotive telematics market and it is expected to contribute
spending. It has earmarked JPY 1.05 Tn by the end of March 2018 on R&D. The
30% to the growing market. The major factor driving the market is the increase in vehicle
company is boosting spending on connected cars, artificial intelligence, and
legislation and industry compliance regarding safety and cybersecurity
robotics. Honda takes the second place in terms of research and development
investment
The era of connected devices and autonomous vehicles is challenging the
Asia is investing in autonomous cars. In September 2017, Samsung Electronics and South Korea’s automotive industry. The problem lies in Big Data. Toyota estimated that
tech behemoth announced that they would create a fund of USD 300 Mn to invest in autonomous connected vehicles are going to create 10.7 Bn GB of data between vehicle and
car technology. This includes investing in driverless driving, smart sensor, artificial intelligence, cloud. Hence, Toyota teamed up with Denso Corp, Japanese telecoms company
connective solutions, and security NTT, Intel, and Ericsson to form the Automotive Edge Computing Consortium.
The consortium would accommodate automotive Big Data between vehicle and
cloud using edge computing technology

84
Chapter 6: Latin America edge computing market overview
6.1 Latin America edge computing market

Drivers of edge computing in Latin America Fig 53: Latin America revenue contribution (USD Bn)

• With half of the population connected to the internet, Latin America is trying to
progress in IoT (the Internet of Things). Approximately 60% of the developers in this
region is planning to develop IoT technology, whereas 22% have already executed it
0.44
• The Latin America trade show in São Paulo in September 2017 focused more on
educating the public about the importance of IoT. Brazil is one of the countries to
0.31
start adopting IoT 0.23
0.17
0.11 0.14
• Latin America is expanding its IoT technology and continuously receiving investment 0.08 0.09 0.10
from broadband network cloud service and OTT providers. According to the world
stat report, around 60% of the internet penetration is established in this region
2015 2016 2017 2018 2019 2020 2021 2022 2023
• The main reason driving the IoT market in Latin America is consumer demand for
automated and self-control appliances
CAGR (2017-2022): 31.11%
• The unavoidable expansion of IoT applications foretells that edge computing
technology would expand its usage in Latin America

Challenges
Trends of edge computing in Latin America

• In Latin America, the average connected device per person is two as compared to 11.5 • Inadequate penetration is one of the key factors impeding the adoption of IoT
connected devices in North America solutions in this region
• Several companies are investing in Latin America. Tata Consultancy Services has • The organization faces the challenge to integrate the IT system with the new
invested USD 54.7 Mn in IoT development. Approximately 45% of the companies have environment. This is due to lack of required skill and other infrastructure
already started tracking people on mobile devices and providing IoT delivery solutions problems
• The region is pushing broadband initiatives to reduce the gap between rural and urban
areas, which is expected to extend the edge network

86
6.1.1 Latin America– applications (smart city)

Fig 54: Latin America revenue contribution(USD Bn)- smart city

0.12

0.08
0.06
0.04
0.03 0.04
0.02 0.02 0.03

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 31.2%

Key observations — application of edge computing in smart city

In Brazil, smart city transportation is expected to add USD 14 Bn value in 2017-


Latin America is a developing region but has the highest urbanization rate. Approximately three-
18. The country is planning to build a smart city from scratch. It has decided to
fourths of the population is expected to live in megacities. Since the region is developing, the
cover 330 hectares to house 21,000 inhabitants. Colombia has decided to invest
smart cities are in the developing countries. Some of the smart cities in Latin America are Santiago,
USD 100 Mn in smart city initiatives. For example, Medellín uses IoT to reduce
Mexico City, Bogota, Buenos Aires, Rio de Janeiro, Medellin, and Montevideo
traffic and improve emergency response

Since this region has the biggest share of citizens living in cities, the demand for smart cities is even Latin America is slowly but steadily progressing toward building smart cities. As
greater. The region lags due to poor implementation of electronic administration. Though Chile the proportion of population residing in the urban area is the highest, huge
and Colombia are progressing toward the smart city model, it requires huge investments. volumes of data would be generated between IoT devices and the cloud. Edge
However, the region has a lot of opportunities to progress. It is estimated the smart cities have the computing would be required to store the bulk data close to users’ devices and
potential to create USD 1.6 tn additional value perform real-time analytics

87
6.1.2 Latin America– applications (smart factory)

Fig 55: Latin America revenue contribution(USD Bn)- smart factory

0.10

0.07
0.05
0.04
0.03 0.03
0.02 0.02 0.02

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 29.1%

Key observations — application of edge computing in smart factory

Digital manufacturing reduces the product development cycle from idea to prototype and helps to Brazil has shown a significant rise in the percentage of organizations under a
test new ideas at a reduced cost. It helps the manufacturers to produce the products per client digital umbrella. It increased from 63% to 73% from 2016 to 2018. Around 90%
requirement. The Ideame in Latin America helps the manufacturers to finance the transformation of the organizations are using digitization for production and management, 58%
of the prototype to product for product development, and 33% for new business models

Though the edge computing opportunity is small in Latin America as compared to


Even though this region is slowly progressing in this area, digitally manufactured floating
other regions, Brazil is creating an opportunity to work on edge computing. The
laboratory is one of the highest profile projects of Latin American Fab Lab Network. Brazil’s
progress of digital manufacturers would require the organizations to work with edge
manufacturing sector has embraced Industry 4.0. Around 48% of organizations plan to invest in
computing technology. This would help them to become globally competitive
automation technologies and data exchange manufacturing in 2018. Of these organizations, 96%
already have digital initiatives

88
6.1.3 Latin America– applications (connected healthcare)

Fig 56: Latin America revenue contribution (USD Bn)- connected healthcare

0.05

0.04
0.03
0.02
0.01 0.02
0.01 0.01 0.01

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 28.2%

Key observations — application of edge computing in connected healthcare

According to the World Economic Forum, healthcare was the center of attention in this region. The Since Latin America is a vast region, standardized path support with data and
region spends only 6.7% of GDP on healthcare. Around 30% of the population do not have access automation can be powerful enough to ensure predictable outcomes and
to healthcare. Technology is said to play a major role in improving healthcare facilities. Around 40% improve quality healthcare service. The collected data along with AI and robotic
of the population have smartphone connections. Technology like m-health could manage automation will allow healthcare providers to learn, improve the process, reduce
diagnostic services, treatment routines, provide data for R&D, and simplify predictive medicine healthcare delivery cost, and enhance efficiency

A start-up in Brazil, Dr Consulta, used online technology and data analysis to provide low-cost, Similarly, edge computing technology would act as a new opportunity for the
primary healthcare service to 100 million citizens without health insurance. A Brazilian region to improve its healthcare service. The technology would ensure data
organization, Plataforma Saúde, uses mobile technologies to provide improved quality healthcare collected are processed faster to reduce response time
service to communities

89
6.1.4 Latin America– applications (connected vehicle)

Fig 57: Latin America revenue contribution(USD Bn)- connected vehicle

0.08

0.05
0.04
0.03
0.02 0.02
0.01 0.01 0.01

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 36.8%

Key observations — application of edge computing in connected vehicle

In Latin America, connected car penetration will increase from 3.9% to 12.5% from 2018 to 2021. It is the first time that motorists have adopted new services without the need for
Brazilian drivers are willing to embrace connected vehicle technology. Around 62% of the drivers changing the SIM card. It can get an update on a real-time basis about traffic,
are happy with the technology. Around 46% are concerned about security and safety, while 32% weather condition, etc. Edge computing technology also has an opportunity in
are concerned about traffic the field of connected vehicles. With the rising popularity of connected cars,
edge computing would gain significance

Gemalto and Embratel together are transforming the connected car experience in Brazil. They
are delivering on-demand connectivity (ODC), and eSIM technology to enable the remotely
connected car to regularly update over the mobile network through the lifecycle of the
vehicle

90
6.1.5 Latin America– applications (smart grid)

Fig 58: Latin America revenue contribution(USD Bn)- smart grid

0.08

0.06
0.04
0.03
0.02 0.03
0.01 0.02 0.02

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 32.0%

Key observations — application of edge computing in smart grid

Latin America has invested USD 22.6 Bn in smart meters, USD 7.2 Bn in
Latin America has kick-started investing in smart grid technology. The country is expected to install
distribution automation, and USD 8.3 Bn in the smart grid segment. Cloud
30.2 Mn smart meters by 2025. Mexico is the second largest consumer of smart grid after Brazil.
computing is the backbone of smart grid technology, including on-demand
This country is expected to invest USD 10.9 Bn in smart grid infrastructure. This would expand the
service and ubiquitous network access. However, with the rising popularity of
deployment of smart meters and home energy management. Both local and international players
smart grid technology across all types of infrastructure using IoT impose a huge
are ready to serve large-scale smart grid projects
burden on cloud computing and leads to latency. Edge computing would
Even though smart grid deployment has slowed down in Latin America due to regulatory hurdles complement cloud computing by sharing some burden. It can also allow
and technical faults, Brazil leads the smart grid market in South America. The region had suffered application of real-time data
from poor reliability, operational inefficiency, and electricity theft

91
6.1.6 Latin America– applications (others)

Fig 59: Latin America revenue contribution(USD Bn)- others

0.017

0.012
0.009
0.008
0.006 0.006
0.004 0.005 0.005

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 24.5%

Key observations — application of edge computing in smart grid

The e-commerce market is booming in the LATAM region. The growing internet
Smartphone penetration increased from 155.9 Mn to 228.0 Mn from 2015 to 2018. Around 80% of
penetration and social media dependence are driving the market. Retailers and
the smartphone users are from Argentina, Brazil, Chile, Colombia, and Mexico. The share is
e-commerce providers are gaining momentum in term of cloud computing
expected to remain unchanged in the forecast period. This factor is driving the digital gaming and
e-commerce market in this region

Edge computing would sooner or later be used in the retail and gaming industry.
Eon Reality launched the first virtual reality center in Atizapán in Latin America. Mexico is investing
As the gaming industry is planning to come up with VR-enabled games, it needs
in VR. Since the region are capitalizing on VR business, it is expected to allow VR to enable a digital
to deploy edge computing to streamline the gaming experience
game in future

92
6.2.1 Latin America– by end-users industry (manufacturer)

Fig 60: Latin America revenue contribution(USD Bn)- manufacturing

0.13

0.09
0.06
0.05
0.03 0.04
0.02 0.02 0.02

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 36.2%

Key observations — application of edge computing in manufacturing

In Latin America, Mexico and Brazil are making maximum use of robots. There
In Latin America, Mexico is leading in implementing Industry 4.0. The country is paying attention to
are 27,700 robots in the region, mostly in Mexico and Brazil. Even though the
the fourth industrial revolution. This is enabling the region to be involved in the main international
region uses one-two robots per thousand workers, it still lags behind most
forum actively. The technology advancement taking place in the country is appealing to other
developed countries
countries. It is expected that the region would drive a huge wave toward automation

Since these two countries are the earliest adopters of digital manufacturing
The director of the Institute for the Integration of Latin America and the Caribbean, Gustavo Beliz,
within this region, edge computing technology is expected to make early gains in
at the Integration and Trade Sector at Inter-American Development Bank stressed that socio-
this two region. Over time, as digital manufacturing gains popularity, the
technological contract would enable the region to make the fullest use of the opportunities to
emerging computing technology would gain in confidence
explore new technology

93
6.2.2 Latin America– by end-users industry (energy and utility)

Fig 61: Latin America revenue contribution (USD Bn)- energy and utility

0.06

0.04
0.03
0.02
0.01 0.02
0.01 0.01 0.01

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 31.0%

Key observations — application of edge computing in energy and utility

Latin America is expected to bring transformation in the energy and utility


Latin America is expected to bring transformation in the energy and utility sector. This is due to
sector. This is due to increased smart meter installation in this region. Coelce,
increased smart meter installation in this region. Coelce, Endesa, and Enel are the three Brazilian
Endesa, and Enel are the three Brazilian distributors to develop first pilot
distributors to develop first pilot projects using the remote system. The country is also planning to
projects using the remote system. The country is also planning to export its
export its remote management model abroad to boost the smart grid technology
remote management model abroad to boost the smart grid technology

The Latin American company, Coelce, was the first company to use remote management
technology for the residential consumers in this region. It had gained over three million customers
and 8.85TWN electricity sales in 2010

94
6.2.3 Latin America– by end-users industry (IT and telecommunications)

Fig 62: Latin America revenue contribution(USD Bn)- IT and telecommunications

0.12

0.09
0.06
0.05
0.03 0.04
0.02 0.02 0.03

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 32.5%

Key observations — application of edge computing in IT & telecom

The Internet of Things is the key driver for 5G commercialization. IoT and
In Latin America, the telecommunications sector is bullish as most of the countries in this region
telecom are expected to add USD 100 Bn in Latin America. Other Latin American
are relatively untapped and have significantly less mobile and internet penetration. However,
Brazil and Mexico are the only countries to dominate the telecommunications sector countries are planning to discuss their digital agendas and IoT in the short span

In 2016, Telecom Argentina with the help of Huawei started “All –cloud core
The region also witnesses significant growth in LTE coverage and expansion in fiber optics-based network deployment.” Huawei NFV-based CloudCore and CloudEdge co-
connecting the cell sites. Vivo in Brazil and Entel in Chile, along with 21 operators, announced LTE deployment solution addressed the telecom business and technology
in advance with notable coverage. Since the maximum speed of LTE already exceed 1GBps, the requirement of Argentina. It uses advanced distributed DC network architecture,
evolution of fiber optics with high capacity, along with edge computing technology, will be where cloud-based network function on control plane was deployed on central
essential to implementing 5G soon DCs and media plane were distributed on edge DC to ensure the optimal user
experience

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6.2.4 Latin America– by end-users industry (healthcare and life science)

Fig 63: Latin America revenue contribution(USD Bn)- healthcare and life science

0.0148

0.0112
0.0085
0.0068
0.0051 0.0053 0.0059
0.0049 0.0050

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 22.8%

Key observations — applications of edge computing in healthcare and life science

The arrival of these operators has resulted in the high degree of computerized
Currently, the mobile healthcare is trending across the globe. It is said that mobile healthcare
hospitals, and demand for ICT solution in healthcare. This would further mature
would provide an opportunity for Latin American developers. M-healthcare has great potential in
and improve information technology for the healthcare sector.
the developing countries. In Latin America, healthcare expenditure comprises 6% of the service
sector.

Pressure has been created by both public and private healthcare organizations for the deployment Among the Latin America countries, Brazil has advanced healthcare facilities and
of an interoperable electronic health record system (EHR). The investment of the operators from service market. The health minister announced to invest BRL 67 Mn in 2016 on
the United States, Europe is said to have a considerable impact on Latin America healthcare sector three supercomputers to integrate all the medical record in a single system.
Brazil market has huge potential in m-health and IoT. Application of Edge
computing is slow in this sector, but it has huge potential in the near future

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6.2.5 Latin America– by end-users industry (consumer appliance)

Fig 64: Latin America revenue contribution(USD Bn)- consumer appliance

0.069

0.050
0.036
0.028
0.020 0.023
0.016 0.017 0.018

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 28.1%

Key observations — applications of edge computing in consumer appliance

The concept of smart homes is evolving in Brazil, The smart home penetration is
Latin America is in the early stage of consumer digitization. Young and affluent population mostly
1.9% in 2018 and is expected to reach 7.4% by 2022. 60% of household have
adopts digital commerce as compared to the non-digital counterpart. 25 to 34 is the age bracket
fixed broadband connections, 92% have access to internet connection. Around
within which the digital consumer is most tightly concentrated. The average income of digital
16 million smart TV devices were sold in 2016.
consumers is USD 42,000 as compared to approximately USD 14,000 non-digital counterparts. This
is motivating more consumers to adopt digitization in their daily lives.
The devices performing telecommunications requires approval from local
Latin Americans are more active on social media than that just using email; the regions use the
telecommunication agency Anatel to be sold in Brazil. Connected TVs, Video
most mobile devices to browse the internet. The four-fifth of Latin American was reported to
surveillance over IP, Connected household appliances such as refrigerators,
update on social media as compared to 65% of the digital consumer across the globe.
stoves, microwaves, dishwashers, Connected doorbells, etc., have received
certification. The increasing demand for smart devices would require the
organization to work with edge computing to improve customer efficiency

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6.2.6 Latin America – by end-users industry (transportation and logistics)
)
Fig 65: Latin America revenue contribution(USD Bn)- transportation and logistics

0.043

0.033
0.025
0.020
0.015 0.017
0.013 0.014 0.014

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 23.6%

Key observations — applications of edge computing in transportation and logistics

With increased smartphone penetration, automotive OEMs is expanding as


In most Latin American cities, for example, public transportation is poor enough that people who
customers are more demanding e-commerce platform and new service model. It
currently own cars are unlikely to abandon them and are looking forward to upgrading to a more
plans to integrate artificial intelligence, industry 4.0, and an advanced feature to
advanced and connected vehicle
upsell the product. Edge computing technology would help the automaker to
integrate the vehicle with the more connected device to improve safety and
reduce the fatal accident
The government regulation is enabling the automotive companies to install advanced technology
and create a more efficient vehicle system which is safer, efficient and consumes less fuel. The
region automotive business is expected to boost by new mobility applications

98
Chapter 7: Middle East and Africa edge computing market overview
7.1 Middle East and Africa edge computing market

Drivers of edge computing in the Middle East and Africa Fig 66: Middle East and Africa revenue contribution(USD Bn)

• In the Middle East and Africa, data center infrastructure and application is
evolving with the explosion of cloud computing. This is driving their business
• Datacenter is the necessary investment across all the industry to drive their
business. There are practically infinite volume of data available to analyze,
store, broadcast, send, share, etc. With increased requirement, the data is 1.46
multiplying at an exponential rate. The data is needed to be stored, managed 1.03
and processed efficiently at real-time. The demand of local and global business 0.73
0.55
is making way for edge computing technology. 0.35 0.43
0.21 0.25 0.30
• Dubai is among the fastest developing cities. The government plans to make the
city ten years ahead of other metropolises. The stakeholder of this region is
attracting most innovative manufacturer across the globe to boost productivity 2015 2016 2017 2018 2019 2020 2021 2022 2023
and efficiency
• Edge computing is expected to provide immense opportunity for small and
medium size business to grow in this region. It will play a vital role to suit the CAGR (2017-2022): 32.97%
smart city vision of Dubai. Technology would play a major role as the MEA looks
forward to transform the economies for the coming generation

Challenges
Trends of edge computing in the Middle East and Africa

• Dubai is highly trending in artificial intelligence. The city has officially approved the • Security concern is pressing more challenge to the future adoption of edge
technology. This has maximum application in healthcare sector. computing. The region has several time faced cybercrimes due to lack of security
knowledge, skill and effective process to respond threats
• In order to embrace edge computing in future the region need to take care about
• AWS (Amazon web service) plans to expand its presence in the Middle East region. The their security infrastructure by educating the local business on cybersecurity
company plans to open an infrastructure region by early 2019. It had announced to landscape
launch AWS edge network location in UAE (United Arab Emirates) by the first quarter of
2018

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7.1.1 Middle East and Africa– applications (smart city)

Fig 67: Middle East and Africa revenue contribution(USD Bn)- smart city

0.340

0.242
0.173
0.132
0.087 0.105
0.054 0.063 0.074

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 31.4%

Key observations — applications of edge computing in smart city

MEA is facing a huge pressure of urbanization. According to a United Nation’s report, the urban Saudi Arabia is gaining momentum in smart city projects. It plans to invest USD 500
population of this region has increased by 20% in 1960 to 45% by 2015. This pressure is causing the Bn on mega city called Neom built on the Red Sea. The city plans to deploy artificial
government to shift to smart solutions to ensure sustainability in various city services. intelligence, and the internet of things to provide connected lifestyle. The city is
expected to be one of the most efficient destinations of the world. Silicon park is the
first smart city in Dubai. The smart solution ranges from smart transportation to
Technology spending for smart city initiatives is expected to reach to USD 1.2 Bn by 2018. It is smart kiosks to purchase mobile airtime top-up and make bill payment
forecasted that smart cities would significantly help in tackling the population pressure by rolling The popularity of smart city initiatives across the MEA will generate huge volume of
out emerging technologies infrastructure to meet evolving transportation, water management, data-imposing challenge on cloud computing to store, process and analyze the data
and urban planning. on a real-time base. Edge computing technology will work as a complement to store
the data close to the user’s network and ease data processing mechanism

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7.2.2 Middle East and Africa – applications (smart factory)

Fig 68: Middle East and Africa revenue contribution(USD Bn)- smart factory

0.263

0.180
0.124
0.090
0.055 0.069
0.030 0.036 0.044

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 36.9%

Key observations — applications of edge computing in smart factory

Middle East and Africa are the next most appealing regions after BRICS. The region has The MEA manufacturing companies have already integrated its supply chain and
experienced a series of investments. MEA smart factory is anticipated to have the highest CAGR. visibility of stock maintained by the distributors. This will benefit the companies
to optimize their inventories prevent loss due to stock out.
Manufacturers are keen to use real time tracking as IoT enable them to control supply chain. It
incorporate automation and improve product efficiencies

The upcoming three to four years are crucial for MEA manufacturer. As the
Smart factory is expected add USD 17 Bn increased revenue for the coming years in this region. companies are planning to expand their digital portfolio. Their starting to digitize
Around 89% of manufacturers in the MEA region are willing to spend 4% or more of their annual their existing product and expand their data service, few are planning to use big data
revenue on industry 4.0. The amount is expected to add up to USD 42 Bn over the next five years. analytics to satisfy customer demand. All these initiatives are expected to impose
The companies are aiming to deploy automation beyond operational efficiency. They are planning huge pressure on cloud storage. Edge computing offering is expect to foresee a
to deploy technologies to address the specific need of the client bright future in this region under smart factory projects

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7.1.3 Middle East and Africa – applications (connected healthcare)

Fig 69: Middle East and Africa revenue contribution(USD Bn)- connected healthcare

0.153

0.110
0.080
0.061
0.041 0.049
0.027 0.031 0.036

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 30.0%

Key observations — applications of edge computing in connected healthcare

UAE is making use of cloud to track patients information and healthcare records. MEA region is In Africa, technology can make a real difference in healthcare service. As most
prone to chronic diseases. The International Diabetes Foundation identified the region to have the citizen lives outside the urban area, technology would help to monitor patients
highest prevalence of Diabetes. 39 million have been diagnosed and more 19 million are estimated on digital platform, empower patients to manage their healthcare. One of SA’s
to be undiagnosed. The people are also prone to cardiovascular disease. Most Innovative Hospital Groups “Busamed” commits to deliver healthcare
through digital platform. It applied cutting edge technology with unparalleled
dedication to support the healthcare system.
The middle East’s healthcare sector continue to focus on deploying internet of things to make the
As connected healthcare is becoming more advanced in this region gradually, it
healthcare sector a world class healthcare system. Honeywell plans to showcase its connected
is expected to impose pressure on the cloud. The rising population and rising
healthcare service in Arab by 2018. Honeywell is the global leader of connected healthcare, that
lifestyle disease would generate huge bulk of data. This would require edge
integrates IoT with clinics, patients for better healthcare.
network to support the data storage. It is expected that edge computing would
make its way in connecting healthcare across the region.

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7.1.4 Middle East and Africa – applications (connected vehicle)

Fig 70: Middle East and Africa revenue contribution(USD Bn)- connected vehicle

0.373

0.258
0.180
0.133
0.103
0.068 0.083
0.047 0.056

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 35.2%

Key observations — applications of edge computing in connected vehicle

The Middle East and Africa regions are embracing connected vehicle. The rising smartphone Africa is also paving its way toward the connected car. MTN was the first telecom
penetration and tech savvy population have increased the demand of connected vehicle. UAE and company collaborated with Huawei to install on-board diagnostic device to
Saudi Arabia are witnessing a major growth in connected cars track the driver, and state of the vehicle. On the other hand, India is a progestin
on automotive telematics and it has good trading relation with South Africa .
Nigeria is India’s largest trading partner.

Etisalat, a telecom operator and , Nissan, Japanese automobile giant collaborated to introduce the The region is reviving driverless future. Dubai aims to transfer 25% of the
first connected car in the MEA region during the Dubai international motor show in 2015. After transportations to driverless vehicle by 2030. Hence, provide opportunities for
downloading the app on Android, or iOS smartphone, the user gains control over the horn, edge computing technology to progress in this sector.
headlight, vehicle air-conditioning, etc.

104
7.1.5 Middle East and Africa – applications (smart grid)

Fig 71: Middle East and Africa revenue contribution(USD Bn)- smart grid

0.271

0.191
0.135
0.101
0.064 0.079
0.045 0.053
0.037

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 33.5%

Key observations — applications of edge computing in smart grid

MEA region is accelerating with smart grid deployment. As this region is largely driven by smart Africa is lagging behind in energy production as compared to other continents.
grid investment owing to government control over the power sector. Smart grid investment is Mass of the population does not have access to electricity or if accessible, the
cost is beyond budget. Smart grid technology could help Africa toward a new
expected to reach USD 17.6 Bn by 2027. Countries like Saudi Arabia, Egypt, and the UAE is
production model. On the other hand, the UAE is progressing in Smart grid
expected to lead smart grid market.
deployment. Dubai Electricity and Water Authority (DEWA) installed 3392 smart
meter in Hatta. It is projected that by 2020 around 1,200,000 smart meter would
be installed in Dubai
Some of the international vendors that completed their projects in this region are Itron,
Honeywell, Landis+Gyr and ABB. The growing renewable energy market in the gulf region is The rising deployment of smart grid in the ME region would led the energy
expected to drive the smart grid market. Smart grid deployment would reduce dependency on providers to acquire edge computing technology. This emerging technology
fossil fuel and would save USD 10 Bn infrastructure investment. would make its significant presence in this sector.

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7.1.6 Middle East and Africa – applications (others)

Fig 72: Middle East and Africa revenue contribution(USD Bn)- others

0.061

0.047
0.036
0.029
0.022 0.025
0.018 0.019 0.021

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 22.1%

Key observations — applications of edge computing in other segments

The retail sector in the UAE is one the most lucrative industries across the region. Even though it
Since both e-commerce and gaming market are growing. It is expected to drive
consists mostly brick and mortar store, digitization is making its way. Increased smartphone
the applications of edge computing technology in this sector.
penetration, highest average ticket size of online shopper are expected to drive the digital retail
sector

The gaming market is also booming in MEA region. In 2017, approximately 587 Mn population
were online gamers. 60% of them played on PC, console or mobile. The region is gaining
momentum and is expected to show the fastest growing rate in the gaming market.

106
7.2.1 Middle East and Africa – by end-users industry (manufacturing)

Fig 73: Middle East and Africa revenue contribution(USD Bn)- manufacturing

0.398

0.271
0.186
0.135
0.080 0.102
0.043 0.053 0.065

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 37.7%

Key observations — applications of edge computing in manufacturing

Middle East and Africa are expected to twice their IoT spending in the coming years. The Even though the region is advancing in smart factory by including big data
manufacturing sector is expected to make the highest IoT expenditure approximately USD 1.07 Bn. analytics, around 57% of MEA manufacturers states most company lags
Their spending will be directed toward operations and production. The sector has attracted USD significant data analytics function embedded in their operations. The region
0.62 Bn in 2018 needs to make investment to acquire top twenty position in the Network
Readiness Index from the World Economic Forum

Manufacturing companies in this region are embracing digital factory. For example, an aerospace The region is making effort, for example ME government initiated open data
manufacturing company is on the procedure to establish smart factory to enable process initiatives to share data between government entity and stake holders. It is
traceability, automation, and digital feedback. It would help to track the high value customers, expected that digital integration would expand at fast pace in the MEA region.
track the staffs and customer interaction. 62% of the companies are expected to reach to advanced digitization by the next
five years. This would widen the edge computing market. The data generated
would be stored and easily processed to provide real time solutions

107
7.2.2 Middle East and Africa – by end-users industry (energy and utility)

Fig 74: Middle East and Africa revenue contribution(USD Bn)- energy and utility

0.214

0.151
0.107
0.081
0.053 0.064
0.032 0.038 0.044

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 32.4%

Key observations — applications of edge computing in energy and utility

The GCC (Gulf Cooperation country) is driving digitization in the utility sector. DEWA (Dubai Water On the other hand, Africa’s utilities sector are facing the challenges to meet
and Electricity Authority) collaborated with SIEMENS to work on advance world-class utility, and energy demand across the region. Africa Utilities Technology Council (AUTC) is
ensure efficient and reliable power generation asset. SEWA (Sharjah Electricity and Water adapting digital transformation in the utility. Siemens won the digital solution
Authority) had so far installed 18,000 smart meter and ensure to replace all convectional meter by award of the year for its microgrid project in Cape Town at the Africa Utility
2020 Week Industry Awards on 16th May 2018

The region’s utility sector had planned to invest USD 918 Mn on IoT in 2017. The region is gaining The massive increase in digitization in the utility sector across the region is
momentum in smart grid deployment to efficiently distribute resources among the end-user expected to widen the implementation of edge computing technology. The rising
customers. The utility sector plans to investment 82% of their total investment on smart grid smart meter installation would generate mass data that would require proper
technology. A pioneering technology leader ABB see profitable growth and huge opportunity in storage, real time analysis. This would push the organization to shift from cloud
digital energy transformation in UAE computing to edge computing platform

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7.2.3 Middle East and Africa – by end-users industry (IT and telecommunication)

Fig 75: Middle East and Africa revenue contribution(USD Bn)- IT and telecommunications

0.403

0.281
0.197
0.147
0.092 0.114
0.054 0.064 0.077

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 34.3%

Key observations — applications of edge computing in IT and telecommunication

The IT and telecom market in the MEA region are turning point toward digitization.. The focus is to The telecommunication sector is preparing for 5G, MEA is expected to be the
transform their business model to outperform its competitors. The rapid population growth and earliest adopter of 5G network. The region is expected to create approximate 50
tech savvy youth has enabled the region to capture broadband subscriber over 1 million and grow million connections by 2025. Etisalat was the first telecom operator to announce
at 3.5%. the launch of commercial 5G in this region.

In Dubai, du and UIB partnered to offer single solution for telecom using artificial intelligence 5G connection would provide faster data connectivity combined with high
powered by the internet of things. Using AI with Machine Learning (ML) and Natural Language speed. This is not possible if the data face latency, and bandwidth problem. The
Processing (NLP), UIB would develop assistance to support du customers. The user would be able expansion of 5G would be accompanied by edge computing network. This region
to choose the language for text and voice without any additional app. This would create brand is expected to progress in deploying edge computing in IT and telecom sector
loyalty.

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7.2.4 Middle East and Africa – by end-users industry (healthcare and life science)

Fig 76: Middle East and Africa revenue contribution(USD Bn)- healthcare and life science

0.082

0.061
0.046
0.036
0.026 0.030
0.019 0.021 0.024

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 25.6%

Key observations — applications of edge computing in healthcare and life science

The Middle East and Africa are working on multiple initiatives to ensure digital transformation in As the region is witnessing an exponential growth in the healthcare sector owing
the field of healthcare. In Dubai, Dubai Health Experience was created by Dubai Health Authority to the rising population and rise in life style related diseases. The region is
to promote Dubai as the global leader of healthcare. Similarly in Saudi Arabia healthcare shifting to digitalized healthcare, provide online healthcare information, and
transformation in the central issue to be discussed both in Vision 2030, and National electronic medical record
transformation plan 2020

The government of the MEA region is trying to foster IoT into healthcare to ensure better The shift to digitization would drive the edge computing market in this sector
healthcare service. The healthcare sector in this region is expected to hold massive potential to across the region. The healthcare information would increase at a same pace
deploy IoT in their existing healthcare facilities to provide advance healthcare services. An increase with population. Hence, edge computing would play a significant role, provide
in government expenditure is expected to expand the market by 7.7%. real life analyses, which in turn would help to make better health care decision

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7.2.5 Middle East and Africa – by end-users industry (consumer appliance)

Fig 77: Middle East and Africa revenue contribution(USD Bn)- consumer appliance

0.252

0.180
0.129
0.099
0.066 0.079
0.042 0.048 0.056

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022):30.9%

Key observations — applications of edge computing in consumer appliance

The Middle East region is showing a momentum in growth toward smart city projects. Abu Dhabi The rising urbanization in the gulf region is supported by the smart cities
rank top in the list. The list is followed by Dubai, which is one of the most attractive retail hubs of initiative. The two most important events to be held in Qatar, Dubai i.e. 2022
the MEA region. The region is increasingly focusing on smart technologies and devices. Thus, FIFA world cup, and 2020 world EXPO requires technology investment ranging
contributing the demand of PCs and tablet. Dubai retailer’s are realizing to invest more on digital smart conditioned sport stadium or other smart devices.
platforms as consumers spend most of their time online, especially shopping online.

It is expected that the demand of smart home devices like HVAC, security and access control, The technology advancement in this region would cause huge volume of data to
entertainment, and other IoT-connected home devices will rise close to 28% annually. UAE export and import from cloud to users. This would create latency problem and
dominates the Middle East smart home market. The increase smart phone penetration and bandwidth problem. Cloud computing would face challenges tackling the bulk
incorporation of artificial intelligence and big data are making the device more smarter and data, hence, edge computing has immense opportunity to invest and capture the
intelligent market

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7.2.6 Middle East and Africa – by end-users industry (transportation and logistic)

Fig 78: Middle East and Africa revenue contribution(USD Bn)- transportation and logistics
0.113

0.083
0.061
0.048
0.034 0.039
0.026 0.030
0.023

2015 2016 2017 2018 2019 2020 2021 2022 2023

CAGR (2017-2022): 27.6%

Key observations — applications of edge computing in transportation and logistics

The MEA’s tech sector witness the opportunity due to evolution of connected car. The internet and Africa is also progressing with the concept of connected cars. MTN was the first
smartphone penetration could help the UAE to become players in this sector. The region is to launch commercial connected car service in South Africa. It partnered with
expected to see strong and consistence sales in vehicle sector. Huawei to install on-board diagnostic (OBD) device. It would export information
to driver’s mobile phone as well as the datacenter to be used by insurance fleet
management companies. This would help to monitor driver’s behavior and state
of vehicle, and offer user based policies based on analyzing the data collected
Connected car provides opportunity for automaker to gain post sale profit. This allows them to sale
upgraded feature and enhance brand loyalty through improved customer experience. Since the region is working on connected cars and is expected to progress on the
concept, edge computing would slowly and steadily be adopted in this region

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Chapter 8: Competitive landscape
8.1 Company overview – Cisco Systems, Inc..

Company snapshot
Cisco Systems, Inc., designs, manufactures and sells Internet Protocol (IP) based networking and other products related to the communication and information
technology industry worldwide.

Year of Establishment: 1984 Growth strategy


Recent initiatives
Headquarters: San Francisco, California,
Key People: Chuck Robbins (CEO and Chairman)
Traded as: NASDAQ: CSCO • In Cisco Innovation Center, the company is working with global
startups to create solutions like- sensors, retail solutions and Cisco intends to continue impacting industries around the
NASDAQ-100 component
lighting transformations, to impact industries like oil and gas, world with the help of fog and edge computing, by
Employee Strength: 72,790 (2017) retail, manufacturing, and more. delivering products to market faster, preventing
Total Revenue: USD48.005 BN (2017) emergencies, reducing energy usage and more..
Industry: Networking hardware
Website: www.cisco.com
The company is trying to facilitate operations and
services to the vision of the multi-cloud with the help of
fog computing.
Products/Services
• Cisco Edge 300 • Cisco Kinetic Edge & Fog Geographic share of revenue
• Cisco Edge 340 Processing Module
Cisco aims to move and analyse terabytes of data at a rapid
Global presence 16% pace, truly creating changes across verticals, by using fog
computing.
Americas

EMEA
59%
25%
APJC
Note: EMEA- Europe , Middle East and Africa
APJC- Asia Pacific, Japan, and China

114
8.2 Company overview – Microsoft Corporation

Company snapshot
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. It positions itself as the leading company in Edge
computing.
Year of Establishment: 1975
Headquarters: Albuquerque, New Mexico,
Growth strategy
Key People: Satya Nadella (CEO), Scott Guthrie Recent initiatives
(Executive Vice President, Microsoft Cloud)
Traded as: NASDAQ: MSFT • In 2018, Microsoft announced a joint effort with Qualcomm
NASDAQ-100 component Technologies, Inc., to create a AI developer kit running Azure IoT Edge.
This solution makes the key hardware available and software required to
Employee Strength: 131,300 (2018)
develop camera-based IoT solutions.
Total Revenue: USD 110.360 BN (2018) Microsoft corporation is announcing partnerships with
• Microsoft is open sourcing the Azure IoT Edge Runtime, allowing other technology companies to strengthen its edge
Industry: Computer software, Computer hardware,
customers to modify, debug and have more transparency and control for computing products and services.
Consumer electronics, Social networking service,
edge applications.
Cloud computing, Video games, Internet Corporate
venture capital • Custom Vision will now run on Azure IoT Edge, enabling devices such as
Website: www.microsoft.com drones and industrial equipment to take critical action quickly without
requiring cloud connectivity. This is the first Azure Cognitive Service to Microsoft is giving developers more flexibility and
support edge deployment. control over edge solutions by allowing them to modify
the runtime and debug problems.
Products/Services
Geographic share of revenue
• Microsoft azure IoT Edge
The company is emphasizing on artificial intelligence and
Global presence edge computing. It is planning to run artificial intelligence
directly on IoT devices

United States

50%

50%

Other countries

115
8.3 Company overview – IBM

Company snapshot
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its technology services and cloud platforms
segment provides cloud, project-based, outsourcing, and other managed services for enterprise IT infrastructure environments.

Year of Establishment: 1911


Growth strategy
Headquarters: Endicott, New York, Recent initiatives
Key People: Virginia M. Rometty (chairman, president
and CEO) • In 2018, IBM created some models combining TensorFlow
Traded as: NYSE: IBM with IBM Watson Studio. The models can be optimised for
different operating systems. With the help of Watson IoT Platform Edge, sensors and
DJIA Component • In April 2018, IBM partnered with fog/edge computing IoT devices are producing a huge volume of data, and this
Employee Strength: 380,300 (2017) developer- Technoton Engineering. This partnership is expected volume is expected to increase further.
Total Revenue: USD 79.139 BN (2017) to improve digital transformation, drive customer engagement
and create new services.
Industry: Cloud computing, Cognitive computing
Website: www.ibm.com
IBM is catering for the data privacy and security issues
by processing the data at the edge.
Products/Services
• Watson IoT Platform Geographic share of revenue
Edge IBM is aiming to make it easy to manage large
infrastructures of edge nodes, maintain and update
Global presence 21% software on edge nodes, and deploy custom, IBM and
Americas third-party services to the edge, using Watson IoT Platform
Edge

48%
EMEA

APAC
31% Note: EMEA- Europe , Middle East and Africa
APAC- Asia-Pacific

116
8.4 Company overview – Google

Company snapshot
Google specializes in Internet-related services and products, which include online advertising technologies, cloud computing, search engine, software, and hardware. It
Year of Establishment: 1998 is the latest entrant into the edge computing market.
Headquarters: Menlo Park, California,
Key People: Sundar Pichai (CEO), Jeff Dean (Head of
Growth strategy
Google's Artificial-Intelligence Efforts) Recent initiatives
Traded as: NASDAQ: GOOGL (Class A)
NASDAQ: GOOG (Class C) • By October 2018, Google is planning to provide a development
kit to kick-start the development and testing of the Edge TPU.
NASDAQ-100 components Google being a new joiner to the edge computing services
This kit includes a "System on Module" (SOM) that combines
market seems to be catching up fast with the latest trends
Employee Strength: 85,050 (2018) Google’s Edge TPU, an NXP CPU, Wi-Fi, and Microchip’s secure in the market by introducing intelligent devices that will be
Total Revenue: USD110.9 BN (2017) element in a compact form factor. taking advantage of Google Cloud IoT innovations at the
• Furthermore, Google plans to work with its Internet of Things edge.
Industry: Internet, Software, Computer hardware
(IoT) ecosystem partners to develop intelligent devices that take
Website: www.google.com advantage of Google cloud IoT innovations at the edge.

With investments in Android Things, a cloud-based IoT


platform, and an edge computing layer powered by
TPUs, Google has a solid IoT strategy
Products/Services
• Tensor Processing Unit Geographic share of revenue
(TPU) The two big steps – one in hardware and one in software –
• Cloud IoT Edge to bring the company’s analytics and machine learning
Global presence 5% capabilities to edge networks has put it on better footing
United States 15% against its competitors.

EMEA 47%

APAC

Other Americas 33% Note: EMEA- Europe , Middle East and Africa
APAC- Asia-Pacific

117
8.5 Company overview – Amazon

Company snapshot
Amazon is an international e-commerce company that provides a market for consumers, sellers and also content creators. The company offers its users, products and
contents, purchased for resale from vendors and those offered by third-party sellers.

Year of Establishment: 1994 Growth strategy


Recent initiatives
Headquarters: Seattle, Washington,
Key People: Jeffrey Bezos (President, CEO and • In November 2017, Amazon released a new version of AWS
Chairman of the Board) Greengrass is packaged with an OTA Update Agent that updates
Traded as: NASDAQ: AMZN the core's software.
• In 2018, AWS Greengrass got a facelift in the form of machine The new OTA Update Agent feature of AWS Greengrass
NASDAQ-100 component provides benefits like: Fix security vulnerabilities, Address
learning inference support. The latest version (v1.5.0) can run
software stability issues, Deploy new or improved features.
Employee Strength: 566,000 (2017) Apache MXNet and TensorFlow Lite models locally on edge
Total Revenue: USD177.86 billion (2017) devices based on NVIDIA Jetson TX2 and Intel Atom
architectures.
Industry: Online shopping
• AWS Greengrass extends AWS IoT to the edge by delivering local AWS Greengrass with ML inferencing is a perfect
Website: www.amazon.com M2M, rules engine, and routing capabilities example of machine intelligence running on modern
infrastructure. The platform is the convergence of edge
computing, serverless computing, IoT, and machine
Products/Services learning technologies.

• AWS Greengrass Geographic share of revenue


• AWS Snowball Edge With the advent of AWS Greengrass, Amazon is looking
forward to providing a more prompt response to local
Global presence United States events. The service also ensures the authentication and
10%
encryption of device data for both local and cloud
United Kingdom 7% communications.
9%

Germany

Japan 68%
6%

Rest of the
world

118
8.6 Company overview – SAP

Company snapshot
SAP SE operates as an enterprise application software, and analytics and business intelligence company worldwide. The company operates through two segments: SAP
Business Network segment and the Applications, Technology & Services segment.

Year of Establishment: 1972 Growth strategy


Headquarters: Walldorf, Germany, Recent initiatives
Key People: Hasso Plattner (Chairman)
• In 2018, SAP added REST-based APIs for custom edge
William R. McDermott (CEO)
applications to leverage IoT data stored locally at the edge
Traded as : FWB: SAP • SAP expanded edge operating system support to include
NYSE: SAP Windows x64 Operating System, in addition to Linux x64 for
DAX Component edge deployments. SAP, with the help of Edge Services, is trying to optimize
Employee Strength: 88,543 (2017) the process of maintaining the equipment for edge
• The company has added support for off-line data model feature
scenarios when there is no connectivity. It also ensures the
Total Revenue: €23.46 billion (2017) in SAP IoT Services Gateway Edge 4.14+ – When enabled, Edge minimisation of latency issues resulting from continuous
Industry: Enterprise software Services such as streaming and persistency services make use of roundtrips to the cloud.
optimization to start in cloud-offline mode.
Website: www.sap.com

Products/Services

• SAP Leonardo IoT Edge


Geographic share of revenue With SAP Leonardo IoT Edge, the company aims to
increase asset uptimes, operational efficiency and
• SAP Edge Services productivity
Global presence 16%
Americas

40%

EMEA

APAC
Note: EMEA- Europe , Middle East and Africa
44%
APAC- Asia-Pacific

119
8.7 Company overview – Oracle

Company snapshot
Oracle is a computer technology corporation that specialises mainly in developing and marketing database software and technology, enterprise software products,
and cloud engineered systems.

Year of Establishment: 1977


Headquarters: Santa Clara, California, Growth strategy
Recent initiatives
Key People: Safra A. Catz (CEO),
David Donatelli (Executive Vice President, Cloud • In August 2017, Oracle announced a collaboration with
Business Group) Mitsubishi Electric Corporation to develop an Internet of Things
Traded as: NYSE: ORCL (IoT) platform for smart manufacturing. This platform enables
the rapid collection, analysis, and utilization of data at the
Employee Strength: 138,000 (2018) production site, by using edge computing between devices and
Total Revenue: USD39.83 billion (2018) business applications.
The company is developing solutions which will ensure the
Industry: Enterprise software, Cloud computing security of the edge devices from any attack.
Website: www.oracle.com

Products/Services
Geographic share of revenue Oracle is collaborating with other companies to develop
• Oracle Edge Analytics a new class of industry-specific solutions.

Global presence 15%


Americas

EMEA
57%

28%
APAC
Note: EMEA- Europe , Middle East and Africa
APAC- Asia-Pacific

120
8.8 Company overview – Huawei Technologies Co. Ltd.

Company snapshot
Huawei Technologies Co., Ltd. is a multinational telecommunications equipment, networking, and services company. The company offers technical support and
maintenance of electrical equipment and spare parts.

Year of Establishment: 1987 Growth strategy


Recent initiatives
Headquarters: Shenzhen, Guangdong,
Key People: Liang Hua (Howard Liang) (Chairman) • Huawei is actively exploring key services during the 5G
Type: Private, employee-owned technology R&D test, which includes partnering with vertical
Employee Strength: 180,000 (2017) industries to apply 5G to remote-operated vehicles and drones,
holographic calls, smart manufacturing, and other uses.
Total Revenue: USD92.549 billion (2017) Implementing 5G in Mobile Edge Computing will help operators
Industry: Telecommunications equipment, Networking enable new smart use cases, such as at a campus, stadium, and With the Open Edge Computing Initiative, Huawei is aiming
equipment, Semiconductor office environment. to deliver innovative services that include smart robots/
• In September 2017, Huawei joined hands with Infosys and machine tools and smart water systems.
Website: www. huawei.com
Wapwag at Huawei Connect 2017 to adopt open edge
computing IoT.

Products/Services
• Edge-Computing-IoT (EC-
Geographic share of revenue Huawei aims to decrease end-to-end latency by
IoT) localising the edge computing and using it in conjunction
• CloudEdge with 5G.
Global presence China 7% 3%
12%
EMEA

51%
APAC

Americas

Other 27% Note: EMEA- Europe , Middle East and Africa


APAC- Asia-Pacific

121
8.9 Company overview – Intel Corporation

Company snapshot
Intel Corporation is a company that develops and manufactures microprocessors and other semiconductor chips. The Company designs, manufactures and sells
integrated digital technology platforms worldwide.

Year of Establishment: 1968 Growth strategy


Recent initiatives
Headquarters: Santa Clara, California,
Key People: Andy Bryant(Chairman) • In 2018, Intel designed a chip called the Xeon D-2100 processor
Traded as: NASDAQ: INTC which is made for edge computing workloads. This processor
intends to help communication service providers (CSPs) offer The company is shifting its focus from mobile edge
NASDAQ-100 Component computing to multi-access edge computing to deliver
Multi-access edge computing (MEC).
Employee Strength: 106,000 (2017) • The processor allows service providers and enterprises to deliver highly-scalable edge computing services in the enterprise
Total Revenue: USD62.76 billion (2017) the maximum amount of computing intelligence at the edge or and fixed networks.
Industry: Semiconductors web tier while expending the least power.
Website: www.intel.com
The company is working on the efficiency of its services
with the help of Xeon D-2100 processor, which is
designed for possibly power-constrained environments.
But the low power usage doesn’t compromise with its
Products/Services high performance.
• Intel Xeon D-2100 • Intel Network Edge Geographic share of revenue
processor Virtualization
United States With the new Xeon D-2100, the company aims to offer
Global presence better power and performance to 5G-connected cars,
20% smart stadiums, and retail and medical solutions.
17%
China (including
Hong Kong)

Taiwan
23%
Singapore
23%
17%
Other Countries

118
8.10 Porter’s five forces analysis

• Edge computing technology is still at the


• Google and Amazon were the first beginning stage. A huge capital is
company to work with edge computing required for hardware installations,
technology hence sunk cost and switching cost are
• .The suppliers would hold the high
bargaining power • The economics of scale is high for this
• These companies have first mover industry
advantage • There not much product
• As the time progress, increase in Supply Power Threat of new entrant
differentiations, so companies trying to
number of entrant would reduce the enter should have same level of product
bargaining power differentiations to attracts its buyers

Competitive rivalry

• The main competitors of edge • In edge computing technology will have


computing is traditional IT and open Threat of substitutions Buyer powers limited bargaining power since it is a
source computing new technology
• The demand for real time analytics and • Currently several Edge offering • However if bought in bulk the buyers
enter of new players, creates product vendors in the market including may gain the bargaining power
diversification Microsoft, AWS, IBM, Siemen,
• Reduces cost Bosch
• The rate for threat of substitution is • All these vendors are competing
moderate because of new potential on features and functionality
products • Analytics, machine learning are
expected for any edge solution,
however the better way it is
integrated with IOT solution wins
the battle

123
Chapter 9: Conclusion
9.1. Conclusion

The combination of cloud computing and edge computing together


will significantly increase the effort of IoT. It would help to better
analyse and manage the data generated
Cloud computing technology has been the biggest blessing to big
data processing. It has the ability to store, process data without any
concern about scaling servers and database maintenance. The
immense use of IoT devices is creating data exponentially. This data
needs to process and analyse faster
Edge computing would act as an important backbone for the upcoming
5G network. Since 5G promised to provide high data rate, spectral
efficiency, and ultra low latency supporting AR, VR. Edge computing
would be the operators to achieve the goals
As cloud computing cannot deal alone with the huge volume of data,
edge computing helps to process, analyse data in much shorter time
interval. Instead of sending the data from device and sensor to cloud,
the data can be delivered to nearest computing device like gateway
networking device, a computer, or micro data center. These are called
edge computing or sometime fog computing The edge computing framework needs to develop process request real
time on edge node. Even though the current cloud computing
technology such as Google App Engine, Amazon Web Service and
Microsoft Azure support intensive database applications, they are yet
to work with real time data processing
Edge computing reduces latency problem, reduces loads on internet
network, reduces management cost, and improve security and
privacy. Edge computing is mostly used in time sensitive situation, and
when there is high burden of real time functional analysis

Edge computing is still in its infancy stage., but it has huge potential
to make it a way to become more efficiently distributed computing.

Hence, as IoT device becomes more prevalent, demand for edge


computing would rise exponentially. Cloud computing will
continue to play an crucial role in aggregating important
information, edge computing would help to analyse it at a faster
pace

121
Appendix
Appendix
List of Tables
Table 1: Global edge computing Market (USD Bn) (2018-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

Global edge computing


1.36 1.58 1.85 2.18 2.65 3.35 4.45 6.27 8.96 32.6%
market

Table 2: Geography wise market revenue (USD Bn) (2018-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

North America 0.46 0.53 0.60 0.69 0.81 1.00 1.29 1.76 2.43 28.7%

Europe 0.35 0.40 0.46 0.54 0.63 0.78 1.02 1.40 1.94 29.3%

Asia-Pacific 0.25 0.31 0.39 0.49 0.63 0.85 1.19 1.77 2.68 40.5%

MEA 0.21 0.25 0.30 0.35 0.43 0.55 0.73 1.03 1.46 33.0%

Latin America 0.08 0.09 0.10 0.11 0.14 0.17 0.23 0.31 0.44 31.1%

127
Appendix
List of Tables
Table 3: Global edge computing Market by application (USD Bn) (2018-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

Smart cities 0.39 0.45 0.52 0.60 0.72 0.90 1.18 1.64 2.32 31.11%

Smart factory 0.27 0.31 0.37 0.44 0.53 0.68 0.91 1.30 1.87 33.81%

Connected health 0.18 0.21 0.24 0.29 0.35 0.43 0.57 0.80 1.13 31.60%

Connected cars 0.25 0.29 0.34 0.39 0.47 0.59 0.78 1.09 1.53 31.44%

Smart grid 0.21 0.25 0.31 0.37 0.47 0.62 0.85 1.23 1.80 36.94%

Others 0.07 0.07 0.08 0.09 0.11 0.13 0.16 0.22 0.29 26.01%

128
Appendix
List of Tables
Table 4: Global edge computing Market by end users industry(USD Bn) (2015-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

Manufacturing 0.30 0.36 0.42 0.51 0.62 0.80 1.07 1.54 2.21 34.34%

Energy and utility 0.19 0.22 0.25 0.28 0.34 0.42 0.55 0.76 1.06 30.19%

IT & Telecom 0.37 0.44 0.53 0.64 0.80 1.03 1.41 2.03 2.97 35.91%

Healthcare and life


0.14 0.15 0.16 0.18 0.20 0.24 0.29 0.39 0.52 23.88%
science

Consumer appliance 0.23 0.27 0.31 0.37 0.45 0.57 0.75 1.06 1.51 32.46%

Transportation and
0.14 0.16 0.18 0.20 0.23 0.29 0.37 0.50 0.68 27.68%
Logistics

129
Appendix
List of Tables
Table 5: North America edge computing market by application (USD Bn) (2015-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

Smart cities 0.14 0.16 0.18 0.20 0.24 0.29 0.38 0.51 0.70 28.1%

Smart factory 0.08 0.08 0.09 0.10 0.11 0.13 0.17 0.22 0.29 24.0%

Connected health 0.07 0.08 0.10 0.11 0.13 0.17 0.22 0.30 0.41 30.0%

Connected cars 0.11 0.13 0.14 0.17 0.19 0.24 0.31 0.42 0.58 28.5%

Smart grid 0.05 0.06 0.07 0.09 0.11 0.14 0.18 0.26 0.37 34.0%

Others 0.01 0.02 0.02 0.02 0.02 0.03 0.04 0.05 0.07 27.0%

130
Appendix
List of Tables
Table 6: North America edge computing market by end user Industry (USD Bn) (2018-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

Manufacturing 0.11 0.13 0.15 0.17 0.21 0.26 0.34 0.47 0.65 30.1%

Energy and utility 0.06 0.06 0.07 0.07 0.08 0.09 0.11 0.15 0.20 22.2%

IT & Telecom 0.14 0.16 0.19 0.23 0.28 0.35 0.46 0.65 0.92 32.2%

Healthcare and life


0.03 0.03 0.04 0.04 0.04 0.05 0.06 0.07 0.10 20.1%
science

Consumer appliance 0.08 0.09 0.10 0.12 0.14 0.17 0.21 0.29 0.39 27.7%

Transportation and
0.05 0.05 0.05 0.06 0.07 0.08 0.10 0.13 0.18 24.5%
Logistics

131
Appendix
List of Tables
Table 7: Europe edge computation market by applications(USD Bn) (2018-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

Smart cities 0.14 0.16 0.18 0.20 0.24 0.29 0.38 0.51 0.70 28.1%

Smart factory 0.08 0.08 0.09 0.10 0.11 0.13 0.17 0.22 0.29 24.0%

Connected health 0.07 0.08 0.10 0.11 0.13 0.17 0.22 0.30 0.41 30.0%

Connected cars 0.11 0.13 0.14 0.17 0.19 0.24 0.31 0.42 0.58 28.5%

Smart grid 0.05 0.06 0.07 0.09 0.11 0.14 0.18 0.26 0.37 34.0%

Others 0.01 0.02 0.02 0.02 0.02 0.03 0.04 0.05 0.07 27.0%

132
Appendix
List of Tables
Table 8: Europe edge computation market by en user industry (USD Bn) (2018-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

Manufacturing 0.07 0.08 0.09 0.11 0.13 0.15 0.20 0.27 0.38 28.6%

Energy and utility 0.04 0.05 0.06 0.07 0.08 0.10 0.14 0.20 0.28 33.0%

IT & Telecom 0.09 0.11 0.12 0.15 0.17 0.21 0.28 0.38 0.53 29.3%

Healthcare and life


0.06 0.06 0.07 0.08 0.08 0.10 0.12 0.16 0.21 22.3%
science

Consumer appliance 0.05 0.07 0.08 0.10 0.12 0.15 0.20 0.29 0.41 34.1%

Transportation and
0.03 0.04 0.04 0.05 0.05 0.06 0.08 0.10 0.14 24.1%
Logistics

133
Appendix
List of Tables
Table 9: Asia Pacific Edge computing market by applications(USD Bn) (2018-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

Smart cities 0.07 0.08 0.10 0.13 0.16 0.22 0.30 0.45 0.67 39.6%

Smart factory 0.06 0.08 0.10 0.12 0.16 0.22 0.32 0.48 0.73 42.3%

Connected health 0.03 0.03 0.04 0.05 0.06 0.08 0.11 0.15 0.22 36.1%

Connected cars 0.04 0.05 0.06 0.08 0.10 0.12 0.17 0.25 0.36 36.7%

Smart grid 0.04 0.06 0.07 0.10 0.13 0.18 0.26 0.40 0.62 45.0%

Others 0.01 0.01 0.02 0.02 0.02 0.03 0.04 0.05 0.08 33.7%

134
Appendix
List of Tables
Table 10: Asia Pacific Edge computing market by end user industry (USD Bn) (2018-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

Manufacturing 0.06 0.07 0.09 0.11 0.15 0.20 0.29 0.43 0.65 41.5%

Energy and utility 0.05 0.06 0.07 0.08 0.09 0.12 0.16 0.22 0.32 32.3%

IT & Telecom 0.06 0.08 0.11 0.15 0.20 0.28 0.41 0.64 1.00 47.1%

Healthcare and life


0.02 0.02 0.03 0.03 0.04 0.05 0.06 0.08 0.12 29.9%
science

Consumer appliance 0.04 0.05 0.06 0.07 0.09 0.12 0.17 0.26 0.38 39.1%

Transportation and
0.03 0.03 0.04 0.05 0.06 0.08 0.10 0.15 0.21 35.2%
Logistics

135
Appendix
List of Tables
Table 11: Latin America edge computing market by applications (USD Bn) (2018-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

Smart cities 0.02 0.02 0.03 0.03 0.04 0.04 0.06 0.08 0.12 31.2%

Smart factory 0.02 0.02 0.02 0.03 0.03 0.04 0.05 0.07 0.10 29.1%

Connected health 0.01 0.01 0.01 0.01 0.02 0.02 0.03 0.04 0.05 28.2%

Connected cars 0.01 0.01 0.01 0.02 0.02 0.03 0.04 0.05 0.08 36.8%

Smart grid 0.01 0.02 0.02 0.02 0.03 0.03 0.04 0.06 0.08 32.0%

Others 0.00 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.02 24.5%

136
Appendix
List of Tables
Table 12: Latin America edge computing market by end user industry (USD Bn) (2018-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

Manufacturing 0.02 0.02 0.02 0.03 0.04 0.05 0.06 0.09 0.13 36.2%

Energy and utility 0.01 0.01 0.01 0.01 0.02 0.02 0.03 0.04 0.06 31.0%

IT & Telecom 0.02 0.02 0.03 0.03 0.04 0.05 0.06 0.09 0.12 32.5%

Healthcare and life


0.00 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 22.8%
science

Consumer appliance 0.02 0.02 0.02 0.02 0.02 0.03 0.04 0.05 0.07 28.1%

Transportation and
0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.03 0.04 23.6%
Logistics

137
Appendix
List of Tables
Table 13: MEA edge computing market by applications (USD Bn) (2018-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

Smart cities 0.05 0.06 0.07 0.09 0.10 0.13 0.17 0.24 0.34 31.4%

Smart factory 0.03 0.04 0.04 0.05 0.07 0.09 0.12 0.18 0.26 36.9%

Connected health 0.03 0.03 0.04 0.04 0.05 0.06 0.08 0.11 0.15 30.0%

Connected cars 0.05 0.06 0.07 0.08 0.10 0.13 0.18 0.26 0.37 35.2%

Smart grid 0.04 0.04 0.05 0.06 0.08 0.10 0.14 0.19 0.27 33.5%

Others 0.02 0.02 0.02 0.02 0.03 0.03 0.04 0.05 0.06 22.1%

138
Appendix
List of Tables
Table 14: MEA edge computing market by end user industry (USD Bn) (2018-2023)

CAGR(2017
Industry 2015 2016 2017 2018 2019 2020 2021 2022 2023
-2022)

Manufacturing 0.04 0.05 0.07 0.08 0.10 0.13 0.19 0.27 0.40 37.7%

Energy and utility 0.03 0.04 0.04 0.05 0.06 0.08 0.11 0.15 0.21 32.4%

IT & Telecom 0.05 0.06 0.08 0.09 0.11 0.15 0.20 0.28 0.40 34.3%

Healthcare and life


0.02 0.02 0.02 0.03 0.03 0.04 0.05 0.06 0.08 25.6%
science

Consumer appliance 0.04 0.05 0.06 0.07 0.08 0.10 0.13 0.18 0.25 30.9%

Transportation and
0.02 0.03 0.03 0.03 0.04 0.05 0.06 0.08 0.11 27.6%
Logistics

139
Appendix
Research Methodology

The study begins with identifying the right research question(s). The question depends on what we are going to achieve by conducting the research or what we want
to convey to the prospective customers through this research. Next we identify the logical steps to arrive at the answers to the question(s). These logical steps form
our research objectives. The research objectives provide us a guideline regarding what information we need to conduct analysis. We strongly believe that clear
objectives will lead to clear results about the given market

The next stage of the research is conducted utilizing the secondary sources of information, process called desk/secondary research. Netscribes Inc. has a considerable
volume of information in both quantitative and qualitative forms, across all major industries and its sectors. Also, we conduct in-depth study of the market,
understanding its key stakeholders, drivers, trends, challenges and opportunities globally covering major regions such as North America, Latin America, Europe, Asia
Pacific, and Middle East & Africa. The key sources consumed for these research include (but not limited to) the following:
 Financial reports published by the key market players
 Government and other official sources including the National Statistics
 National and International trade associations
 Paid databases
 Other reliable sources

Primary research complements the secondary research as it helps us to gain insights from the industries directly by communicating with the senior executives, key
opinion leaders and independent consultants who are experts in their industries or specific industry sectors. Such interviews are conducted across the value chain of
the market in question. A survey questionnaire is usually prepared for conducting any primary interview or survey. The questionnaire is developed with utmost care to
fulfil the key research objectives and also to validate the assumptions about the market. This supplements the information otherwise unaddressed via secondary
research. The primary data collection is done by expert interviewers who have specific industry knowledge. Linguists are hired to conduct interviews in the
respondent’s native language. Only paid interviews are conducted to incentivize the respondents and ensure that there is no shift of focus. Some of the primary
research methods applied at Netscribes include the following:
 In-depth Interviews
 Executive Interviews
 Expert Panels

The qualitative and quantitative findings from the above stages are brought together by specialists to perform a rigorous analysis. The regional market trends, drivers,
and opportunities obtained during the analysis is compared with regional economic indicators, sector growth rates, population index, etc. to ensure the data
consistency. After ensuring the consistency, these historical and present indicators help us to understand how the market will perform in future. Our proprietary
forecasting model factors in all these indicators to predict the future market accurately.

140
Appendix
Assumptions

 All the values are in USD (united States Dollar) billion

 The CAGR is used to define growth over the period of years that stands for Compound

Annual Growth Rate

 No significant new competition has been considered while forecasting the market

 No unexpected changes in the external factors have been considered that could change

the global scenario of the market in the future

 No major technological development has been taken into consideration that may replace

edge computing technology market in the coming years

 The inflation rate has not been taken into consideration while forecasting the revenue

141
Appendix
About Netscribes Inc.
Well-qualified team

Global market 725+ member delivery Others MBA


intelligence and content Venture-funded by US team across Mumbai,
10% 28%
management firm – and Singapore private Kolkata and Gurgaon, and
services across the equity firms sales presence in USA, UK,
research and information Singapore, Dubai and
value chain Israel
CPA/CA/CFA Graduates
8% 22%

Revenue composition: Owns:


ISO 9001:2008 – Inrea Research
certified by DNV GL BCA/MCA BE
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APAC: 10% Markets

Netscribes provides end-to-end research-driven solutions that help clients meet their growth objectives by collaboratively transforming information into business advantage.

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142
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