The short-term future of edge computing is looking bright, with new analysis suggesting that the technology will be widely adopted in the Asia Pacific region over a five year period, with the coronavirus pandemic playing a part in its success.
This is according to research firm GlobalData, which claims that the market is expected to grow at a compound annual growth rate (CAGR) of 21 per cent from 2019 to 2024, reaching US$ 5.8 billion by the end of the five-year period.
By the end of this period, the APAC region is forecast to be the second-largest edge computing market in the world, driven mostly by China and Japan, which together would account for an estimated 61 per cent of the overall edge computing revenue for the region.
While the global COVID-19 coronavirus pandemic has hindered many aspects of the international technology market, in this case, GlobalData claims the pandemic is anticipated to be a driver for edge computing as enterprises accelerate their digital transformation initiatives.
To drive the adoption of edge computing in APAC, Shamin Khan, senior technology analyst at GlobalData, said the internet of things (IoT) and 5G will be vital and he expects these technologies to help to “transform whole industries” and create new opportunities for enterprises.
“A large number of applications across enterprises would spur up in the region, with 5G networks becoming more prevalent in the region,” Khan said.
“The shift from a cloud-based centralised model to intelligence at devices would, in turn, require next-generation applications and new IT architectures.
“The demand for edge computing will grow, as the enterprises would increasingly continue to link core and edge resources for supporting their digital transformation initiatives.”
In the region, manufacturing, banking, financial services and insurance, IT and consumer goods are predicted to be the top five verticals spending on edge computing, and combined, these verticals will account for half of the overall spending in 2024.
Use cases of these verticals include manufacturing utilising industrial IoT with edge computing to assist with industrial processes, improving supply chains and enable industrial equipment work with varying degrees of automation, GlobalData research noted.
For the financial related areas, edge computing can be used to improve security and privacy of data with secure gateways.
Meanwhile, connected peripherals, connecting cities, vehicles and homes, would generate large quantities of data, which would need to be stored and processed.