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    US Federal Edge Computing Market

    ID: MRFR/ICT/13465-HCR
    100 Pages
    Garvit Vyas
    October 2025

    US Federal Edge Computing Market Research Report: By Component (Hardware, Software, Services), By Application (Smart Cities, Industrial Internet of Things (IoT), Remote Monitoring, Content Delivery, Augmented Reality (AR), Virtual Reality (VR), Others) and By Organization Size (Large Enterprises, SMEs) - Forecast to 2035

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    US Federal Edge Computing Market Infographic
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    US Federal Edge Computing Market Summary

    The US Federal Edge Computing market is projected to grow significantly from 206.2 million USD in 2024 to 973.5 million USD by 2035.

    Key Market Trends & Highlights

    US Federal Edge Computing Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate of 15.15 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 973.5 million USD, indicating robust growth potential.
    • In 2024, the market is valued at 206.2 million USD, reflecting the current investment landscape.
    • Growing adoption of edge computing due to increasing demand for real-time data processing is a major market driver.

    Market Size & Forecast

    2024 Market Size 206.2 (USD Million)
    2035 Market Size 973.5 (USD Million)
    CAGR (2025-2035) 15.15%

    Major Players

    VMware, Dell Technologies, Edgewise Networks, Oracle, NVIDIA, Rockwell Automation, Samsung Electronics, IBM, Amazon Web Services, Microsoft, AT&T, Verizon, Google Cloud, Cisco Systems, Hewlett Packard Enterprise

    US Federal Edge Computing Market Trends

    Opportunities within the US Federal Edge Computing Market include the integration of AI and machine learning at the edge, which can facilitate advanced data analytics and decision-making in real time.Agencies are exploring how edge computing can enhance their capabilities in areas such as national defense, public safety, and urban development, ultimately leading to better citizen services. The alignment of edge computing with government initiatives to improve operational efficiency and strengthen mission readiness further propels its adoption. 

    In recent times, there has been a noticeable trend towards public-private partnerships to foster innovation in edge computing technologies. As federal agencies collaborate with private sector companies, they are enhancing access to cutting-edge solutions and speeding up implementation. Additionally, government funding initiatives aimed at bolstering technology infrastructure are opening up avenues for growth in this space.Overall, the US Federal Edge Computing Market is poised for growth, driven by advancements in technology and the urgent need for improved data processing and security measures in government operations.

    Market Segment Insights

    Federal Edge Computing Market Component Insights

    The Component segment of the US Federal Edge Computing Market plays a critical role in the overall development and implementation of edge computing technologies within government agencies, contributing to improved operational efficiencies and data management capabilities. In this segment, there are three main categories: Hardware, Software, and Services. Hardware includes advanced computing devices and machinery that are specifically designed to handle data at the edge, often resulting in faster processing times and reduced latency. 

    Software encompasses applications and platforms tailored for edge computing which facilitate seamless integration, data analytics, and security, making it an essential portion of the ecosystem.Services refer to the range of support and expertise offered to government entities, including installation, maintenance, and consulting, which are crucial for successfully deploying edge computing solutions. The increasing need for real-time data processing and storage, driven by a growing emphasis on efficiency and responsiveness in federal operations, has placed significant focus on these components. 

    The rapid advancements in artificial intelligence and machine learning technologies are prompting federal agencies to invest more in sophisticated hardware solutions, ensuring that their infrastructure can support the demands of modern data processing.Moreover, as edge computing continues to evolve, the integration of robust cybersecurity measures within each component is becoming paramount, ensuring that sensitive government data remains protected. Overall, the Component segment stands as the foundation of the US Federal Edge Computing Market, facilitating the transition to more agile and responsive federal operations while navigating the associated challenges of integration and cybersecurity.

    The dynamics of this market segment are continuously influenced by advancements in technology and a growing focus on data-driven decision-making within government functions.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Federal Edge Computing Market Application Insights

    The US Federal Edge Computing Market is experiencing notable growth in the Application segment, which encompasses crucial areas such as Smart Cities, Industrial Internet of Things (IoT), Remote Monitoring, Content Delivery, Augmented Reality (AR), and Virtual Reality (VR). Smart Cities leverage edge computing to enhance urban infrastructure, optimize transportation systems, and improve service delivery by processing data locally, thus ensuring quick responses to city management demands. 

    The Industrial Internet of Things (IoT) being significantly important facilitates real-time data analytics, crucial for industries aiming for efficiency and operational excellence, enhancing productivity.Remote Monitoring provides valuable capabilities for federal agencies, allowing them to oversee critical systems and environments more effectively, ensuring enhanced security and operational integrity. Additionally, Content Delivery networks benefit tremendously from the low latency offered by edge computing, which is imperative for seamless media consumption and user experience. 

    Meanwhile, Augmented Reality (AR) and Virtual Reality (VR) applications gain traction within federal training and public services, offering immersive experiences that are essential for modern education and training programs.Collectively, these applications contribute to the robust growth of the US Federal Edge Computing Market structure by addressing real-time processing needs and fostering significant operational advancements across various federal sectors.

    Federal Edge Computing Market Organization Size Insights

    The US Federal Edge Computing Market shows significant differentiation when examined through the lens of Organization Size, specifically focusing on Large Enterprises and Small and Medium-sized Enterprises (SMEs). Large Enterprises are positioned strategically due to their extensive resources, enabling large-scale deployments of edge computing infrastructure. They benefit from advanced technological capacities and have a higher tolerance for innovative risks, allowing them to harness the benefits of edge computing to improve operational efficiency.

    Meanwhile, SMEs are increasingly adapting to edge computing technologies, driven by the need for agile solutions and cost-effectiveness. These smaller entities hold a significant position as their growing reliance on edge computing solutions supports competitive advantage and operational streamlining. The diverse needs across these organization sizes reflect broader market trends, including the rising demand for real-time data processing and improved cybersecurity measures, propelling growth within the US Federal Edge Computing Market.

    With a focus on compliance and efficiency, both segments contribute uniquely to the industry's evolution while confronting challenges like limited budgets and technological expertise.The market continues to adapt, providing varied opportunities and insights into these organizational dynamics.

    Get more detailed insights about US Federal Edge Computing Market Research Report - Forecast till 2035

    Key Players and Competitive Insights

    The US Federal Edge Computing Market has experienced significant growth due to the increasing demand for decentralized computing solutions that enhance data processing speeds and improve responsiveness, especially in government sectors. This market is characterized by the interplay of various technological advancements and strategic positions held by leading firms aiming to offer innovative solutions tailored for federal agencies. Competitive insights reveal that organizations are focusing on developing robust edge computing frameworks that support secure and efficient data management processes.

    This growing interest in edge computing is largely driven by the need for real-time data analytics, enhanced cybersecurity measures, and the proliferation of Internet of Things devices within the federal landscape. 

    As federal agencies strive to modernize their IT infrastructures, understanding the competitive dynamics within this niche market becomes essential.In the context of the US Federal Edge Computing Market, VMware has positioned itself as a formidable player with a focus on virtualization technology and cloud solutions. The company's strengths include its long-standing reputation for delivering secure and scalable edge computing frameworks that meet the stringent demands of federal contracts. VMware’s innovative approach to providing hybrid cloud infrastructure solutions enhances its appeal to federal agencies looking to optimize their IT operations. 

    The company has leveraged partnerships with various government entities and industry stakeholders to expand its influence within the market, thereby reinforcing its brand and solidifying its role as a key enabler of edge computing initiatives in the federal space.

    Its commitment to security and compliance is evident in its offerings tailored for the unique regulatory landscape of the US federal government, providing a foundation of trust that is crucial for consistent engagement with federal clients.Dell Technologies plays a significant role in the US Federal Edge Computing Market, offering a wide array of products and services that cater to the needs of government agencies. 

    The company’s portfolio includes ruggedized edge devices, servers, and data storage solutions designed specifically for deployment in the field. Dell Technologies boasts a strong market presence backed by its reputation for delivering high-performance hardware and integrated systems that facilitate efficient data processing and analytics at the edge. Its strengths lie in its ability to combine cutting-edge technologies with reliable supply chains to support government initiatives at scale. Furthermore, Dell Technologies has engaged in strategic mergers and acquisitions to broaden its capabilities, enhancing its offerings in edge computing solutions that are compliant with federal standards.

    The company's collaborations with key technology partners also amplify its capacity to deliver comprehensive edge computing solutions designed to meet the evolving demands of federal agencies. As such, Dell Technologies remains a crucial player in driving forward the federal edge computing agenda within the United States.

    Key Companies in the US Federal Edge Computing Market market include

    Industry Developments

    In recent developments within the US Federal Edge Computing Market, companies such as VMware, Dell Technologies, Oracle, and Amazon Web Services continue to drive innovation and deployment strategies to enhance cloud capabilities essential for government operations. Notably, in September 2023, IBM announced a strategic partnership with the U.S. Department of Defense to integrate edge computing solutions that bolster national security efforts. Additionally, in August 2023, NVIDIA reported a significant growth in demand for its edge computing hardware, which translates to a surge in market valuation, influencing investments and technological advancements across various sectors within the federal government.

    Moreover, in October 2022, Rockwell Automation completed its acquisition of Plex Systems, amplifying its edge computing solutions in industrial applications, which is critical for federal clients. Companies like Microsoft and Google Cloud are also expanding their federal partnerships to ensure compliance and service efficiency. The increasing emphasis on cybersecurity coupled with the push for digital transformation within federal agencies indicates a robust trajectory for edge computing technology, making it crucial for organizations like Cisco Systems and Hewlett Packard Enterprise to innovate and secure their market position in this evolving landscape.

    Market Segmentation

    Outlook

    • Large Enterprises
    • SMEs

    Federal Edge Computing Market Component Outlook

    • Hardware
    • Software
    • Services

    Federal Edge Computing Market Application Outlook

    • Smart Cities
    • Industrial Internet of Things (IoT)
    • Remote Monitoring
    • Content Delivery
    • Augmented Reality (AR)
    • Virtual Reality (VR)
    • Others

    Federal Edge Computing Market Organization Size Outlook

    • Large Enterprises
    • SMEs

    Report Scope

    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 177.47(USD Million)
    MARKET SIZE 2024 206.25(USD Million)
    MARKET SIZE 2035 973.5(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 15.151% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Million
    KEY COMPANIES PROFILED VMware, Dell Technologies, Edgewise Networks, Oracle, NVIDIA, Rockwell Automation, Samsung Electronics, IBM, Amazon Web Services, Microsoft, AT and T, Verizon, Google Cloud, Cisco Systems, Hewlett Packard Enterprise
    SEGMENTS COVERED Component, Application, Organization Size
    KEY MARKET OPPORTUNITIES Increased data processing efficiency, Enhanced cybersecurity measures, Real-time data analytics applications, Improved disaster recovery solutions, Support for IoT innovations
    KEY MARKET DYNAMICS Increased data processing demand, Network latency reduction needs, Enhanced security regulations, Real-time analytics capabilities, Government modernization initiatives
    COUNTRIES COVERED US

    FAQs

    What is the projected market size of the US Federal Edge Computing Market for 2024?

    The US Federal Edge Computing Market is projected to be valued at 206.25 million USD in 2024.

    What will the estimated market value of the US Federal Edge Computing Market be by 2035?

    By 2035, the estimated market value of the US Federal Edge Computing Market is expected to reach 973.5 million USD.

    What is the expected compound annual growth rate (CAGR) for the US Federal Edge Computing Market from 2025 to 2035?

    The expected CAGR for the US Federal Edge Computing Market from 2025 to 2035 is 15.151 percent.

    Which segment holds the highest value within the US Federal Edge Computing Market in 2024?

    In 2024, the Software segment holds the highest value within the US Federal Edge Computing Market at 80.0 million USD.

    What is the projected market share of the Hardware component in the US Federal Edge Computing Market for 2035?

    The Hardware component is projected to have a market share of 280.0 million USD in the US Federal Edge Computing Market by 2035.

    Who are the key players in the US Federal Edge Computing Market?

    Key players in the US Federal Edge Computing Market include VMware, Dell Technologies, Oracle, IBM, and Amazon Web Services among others.

    How much is the Services segment expected to contribute to the market in 2035?

    The Services segment is expected to contribute 293.5 million USD to the US Federal Edge Computing Market by 2035.

    What are some of the key applications driving the growth of the US Federal Edge Computing Market?

    Key applications driving the growth include data processing, real-time analytics, and IoT integration in federal systems.

    What is the anticipated impact of current global scenarios on the US Federal Edge Computing Market?

    Current global scenarios are anticipated to drive demand and innovation within the US Federal Edge Computing Market.

    Which region is expected to experience significant growth in the US Federal Edge Computing Market during the forecast period?

    The US region is expected to experience significant growth in the US Federal Edge Computing Market during the forecast period from 2025 to 2035.

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