Federal Edge Computing Market Analysis

Federal Edge Computing Market Overview:

The Federal Edge Computing market Vertical is projected to grow from USD 0.65789999  Billion in 2022 to USD 1.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.4% during the forecast period (2022 - 2032). Edge computing's security concerns, the volume of data being created and consumed at the edge, and the localization of computing are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Federal Edge Computing Market Trends

Increasing quantity of data being created and consumed at the edge is driving the market growth

The growing amount of data generated and consumed at the edge is a major growth driver. IDC predicts that from now until 2025, data generation at the edge will increase 33% (CAGR), making up 22% of all digital data generated, recorded, and copied globally. Edge computing, which was once primarily thought of as a network accelerator for field-based sensors, is quickly becoming recognized as an intelligent orchestrator of more intricate processes and applications that operate outside of the conventional perimeter. The U.S. federal government is particularly well-positioned to profit from these developing technologies given the requirement to carry out a highly spread job, whether it be patrolling the battlefield, guarding our borders, or improving transportation networks and monitoring the environment.

Federal IT leaders should actively analyze how their architectures and networks can support and benefit from edge computing if they want to take advantage of this opportunity. Additionally, program managers should think about how field-enhanced data from Internet of Things (IoT) devices like cameras and sensors may support smarter, more autonomous operations. According to Accenture study, federal officials already have high expectations, with more than 90% stating that edge solutions are very or extremely crucial to fulfilling the objectives of their agency. By enabling more advanced data processing at the moment of collection, edge computing increases the value of the expanding number of smart devices operating at the network perimeter. In some usage circumstances, processing and analyzing this data locally rather than relying on centralized resources makes more sense. The need to reduce latency and address network capacity and availability challenges are the main motivators, with potential cost savings, greater security, and improved compliance as side advantages.

Smaller, localized data processing and storage do provide new security vulnerabilities. Because they are deployed far from a central data center or infrastructure, edge devices are more difficult to secure both physically and digitally. Companies and government organizations can now hide their data and activities behind a variety of physical and virtual security protections thanks to the concentration of computers in corporate data centers and hyper-scale clouds. Users are being forced to reconsider security by edge computing. When it comes to the edge, traditional IT security paradigms are becoming increasingly unworkable; one typical risk is for cybercriminals to intercept data as it is being transferred from devices to the edge server through its many open endpoints. Another danger is that devices or the edge server itself could be infected with malicious malware.

The further advancement of 5G networks and its benefits are anticipated to have a significant positive impact on edge computing. It is anticipated that the number of connected devices will increase dramatically when the 5G network is deployed. A considerable data burden is also predicted to be placed on physical data centers by connected devices and 5G networks, which will increase the demand for capacity and decrease latency. Due to all of these factors, the market is consequently anticipated to have promising development possibilities. Thus, driving the Federal Edge Computing market revenue.

Federal Edge Computing Market Segment Insights

Federal Edge Computing Component Insights

The Federal Edge Computing Market segmentation, based on component, includes hardware, software, and services. Hardware segment dominated the global market in 2022. Around the world, hardware edge providers are boosting their efforts in edge computing. For instance, HPE invested over USD 4 billion over four years and is improving edgeline converged edge systems, an edge computing device that was already released. Such edge services are anticipated to see an increase in demand in the upcoming years. Strategic investments are being made by businesses like Intel Corporation and Dell Technologies Inc. to create and improve edge intelligence solutions for commercial and industrial use. The demand for these technologies and the services that go along with them is anticipated to increase as a result of these expenditures.

Federal Edge Computing Application Insights

The Federal Edge Computing Market segmentation, based on application, includes smart cities, industrial internet of things (IoT), remote monitoring, content delivery, augmented reality (AR), virtual reality (VR), and others. Industrial internet of things (IoT) segment dominated the Federal Edge Computing Market in 2022. This is as a result of their wide applications. Omdia claims that despite economic uncertainty, investments and developments in global loT projects are always rising. By using edge computing-enabled technologies like loT and 5G networks, smart cities can operate efficiently. The need for edge solutions in smart cities has increased as a result.

Federal Edge Computing Organization Size Insights

The Federal Edge Computing Market segmentation, based on organization size, includes large enterprises and SMEs. Large enterprises segment dominated the Federal Edge Computing Market in 2022. Large businesses worldwide are growing as a result of the data influx from internet of things (IoT) devices, including intelligent cars, machinery, and other objects.

Figure 1: Federal Edge Computing Market, by Organization Size, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Federal Edge Computing Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Federal Edge Computing Market dominated this market in 2022 (45.80%). The three main cloud service providers, Microsoft Azure, Web Services, and Google Cloud, are all based in North America. All significant technology advancements, including 5G, autonomous driving, blockchain, gaming, and artificial intelligence, are also thought to have originated in this area. This region of the world has a reputation for being among the first to use newly created technologies. Many new technologies being developed nowadays rely largely on data.Further, the U.S. Federal Edge Computing market held the largest market share, and the Canada Federal Edge Computing market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: FEDERAL EDGE COMPUTING MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Federal Edge Computing market accounted for the healthy market share in 2022. The testing phase of 5G technology is presently underway in a number of European nations, including the United Kingdom. For instance, Vodafone is conducting tests in cities like Glasgow, Birmingham, Liverpool, Bristol, Cardiff, London, and Manchester as part of its 5G experiment at the MediaCity UK technology hub. Further, the German Federal Edge Computing market held the largest market share, and the U.K Federal Edge Computing market was the fastest growing market in the European region.

The Asia Pacific Federal Edge Computing market is expected to register significant growth from 2023 to 2032. In terms of 5G and the edge, China has made good progress; a surveillance culture might determine how technology develops. The worldwide digital economy has been shaped by Western businesses that have established norms for the use of personal data to target advertisements, like Meta, Apple, Netflix, and Google. Chinese businesses like Alibaba, Baidu, Huawei, and ZTE are influencing the route that edge computing-based surveillance technology will take in the future. China has the biggest share in the area since these activities there meet the demand. 90% of mobile ecosystem players in China, according to a GSMA survey, see edge computing as a key revenue prospect in the 5G era. The nation's edge computing deployments are made to satisfy the needs of smart ports, campuses, and factories. Edge computing use cases including athletic events, gaming, and autonomous driving will be feasible as the 5G networks expand over the coming years. Moreover, China’s Federal Edge Computing market held the largest market share, and the Indian Federal Edge Computing market was the fastest growing market in the Asia-Pacific region.

Federal Edge Computing Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Federal Edge Computing market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Federal Edge Computing Industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Federal Edge Computing Industry to benefit clients and increase the market Application. In recent years, the Federal Edge Computing Industry has offered some of the most significant advantages to medicine. Major players in the Federal Edge Computing market, including Cisco, AWS, Dell Technologies, Google, HPE, Huawei, IBM, Intel, Litmus Automation, Microsoft, Nokia, ADLINK, Axellio, Capgemini, ClearBlade, Digi International, Fastly, StackPath, Vapor IO, GE Digital, Moxa, Sierra Wireless, Juniper Networks, EdgeConnex, Belden, Saguna Networks, Edge Intelligence, Edgeworx, Sunlight.io, Mutable, Hivecell, Section, and EdgeIQ, are attempting to increase market demand by investing in research and development operations.

Intelligent solution and cloud-based service provider Hewlett Packard Enterprise Co (HPE). The company's product line includes software, converged systems, servers, storage devices, networking goods, cloud service-based products, and bespoke financial solutions. Additionally, it offers services for IT consulting, IT support, instruction, and training.

Information and communication technology (ICT) infrastructure and smart gadgets are provided by Huawei Technologies Co Ltd (Huawei), a division of Huawei Investment & Holding Co Ltd. In addition to laptops, tablets, routers, wearable technology, headphones, enterprise wireless goods, enterprise optical transmission and access devices, networking equipment, cloud computing products, and more are all part of the company's product line.

Key Companies in the Federal Edge Computing market include

• 
  

  Cisco

  
  


• 
  

  AWS

  
  


• 
  

  Dell Technologies

  
  


• 
  

  Google

  
  


• 
  

  HPE

  
  


• 
  

  Huawei

  
  


• 
  

  IBM

  
  


• 
  

  Intel

  
  


• 
  

  Litmus Automation

  
  


• 
  

  Microsoft

  
  


• 
  

  Nokia

  
  


• 
  

  ADLINK

  
  


• 
  

  Axellio

  
  


• 
  

  Capgemini

  
  


• 
  

  ClearBlade

  
  


• 
  

  Digi International

  
  


• 
  

  Fastly

  
  


• 
  

  StackPath

  
  


• 
  

  Vapor IO

  
  


• 
  

  GE Digital

  
  


• 
  

  Moxa

  
  


• 
  

  Sierra Wireless

  
  


• 
  

  Juniper Networks

  
  


• 
  

  EdgeConnex

  
  


• 
  

  Belden

  
  


• 
  

  Saguna Networks

  
  


• 
  

  Edge Intelligence

  
  


• 
  

  Edgeworx

  
  


• 
  

  Sunlight.io

  
  


• 
  

  Mutable

  
  


• 
  

  Hivecell

  
  


• 
  

  Section

  
  


• 
  

  EdgeIQ

  
  

Federal Edge Computing Industry Developments

In May 2024, IBM unveiled the addition of IBM® Power® S1012 to its range of servers. This system, powered by the Power10 CPU and featuring one socket and a half-width design, provides up to three times greater performance per core compared to the Power S812. The product is offered in a 2U rack-mounted or tower deskside design and is specifically designed for edge-level computing. It also provides the most affordable option in the Power portfolio for running essential tasks for small and medium-sized enterprises. IBM Power S1012 enables clients to execute AI inferencing workloads in remote office and back office (ROBO) sites, which are situated outside of conventional datacenter facilities. It also allows for direct connectivity to cloud services like IBM® Power® Virtual Server for backup and disaster recovery purposes.

February 2024: Gcore, a global provider of cloud, AI, and edge solutions, has announced the introduction of FastEdge, an advanced serverless offering that is transforming the way applications are deployed and enhancing performance. FastEdge is a cloud-native development platform that offers a high-performance and low-latency solution for generating responsive and personalized apps. It eliminates the need for server management, making it easier to use. FastEdge utilizes Gcore's extensive knowledge in cloud technology, artificial intelligence, and security to provide serverless edge execution.

The service allows developers to globally deploy decentralized applications without the requirement for server configuration or infrastructure upkeep. This innovation is based on Gcore's resilient content delivery network (CDN), which disperses customized code across more than 160 edge nodes globally. This guarantees a very instantaneous reaction to user actions, resulting in outstanding app responsiveness.

Federal Edge Computing Market Segmentation

Federal Edge Computing Component Outlook

• 
  

  Hardware

  
  


• 
  

  Software

  
  


• 
  

  Services

  
  

Federal Edge Computing Application Outlook

• 
  

  Smart Cities

  
  


• 
  

  Industrial Internet of Things (IoT)

  
  


• 
  

  Remote Monitoring

  
  


• 
  

  Content Delivery

  
  


• 
  

  Augmented Reality (AR) and Virtual Reality (VR)

  
  


• 
  

  Others (Autonomous Vehicles, Drones, And Gaming)

  
  

Federal Edge Computing Organization Size Outlook

• 
  

  Large Enterprises

  
  


• 
  

  SMEs

  
  

Federal Edge Computing Regional Outlook