In this article, we discuss the 10 best edge computing stocks to buy. If you want to skip our discussion on the edge computing market, head over to 5 Best Edge Computing Stocks To Buy.
What is Edge Computing?
Edge computing focuses on bringing computing power closer to where data is generated, rather than relying on a centralized cloud-based system. In simple terms, edge computing involves relocating a part of storage and computing capabilities from the central data center to close proximity of data sources. Rather than sending raw data to a central facility for analysis, computation is performed at the location where the data is generated and only the computed results, like real-time business insights or equipment maintenance predictions, are transmitted back to the central data center. Devices such as smart speakers, watches, and phones, which engage in edge computing by locally collecting and processing data, are already a part of our daily lives.
Contrary to what some may think, edge computing doesn’t need a separate “edge network.” It can work on single devices or routers. If a separate network is used, 5G is important, offering fast wireless connections. This enables cool applications like autonomous drones, remote surgeries, and smart cities. The edge network is useful when on-site computing is too expensive or complex, but fast responses are needed, and the cloud is too distant. Edge networks enable local computation, allowing devices at the edge (like sensors, cameras, or IoT devices) to process data and make decisions without the need to send all information to a centralized cloud for analysis.
The Intelligent Edge aims to provide faster, more reliable, and efficient processing for quicker decision-making and reduced dependence on centralized cloud systems, which may face issues like latency and bandwidth. However, deploying and managing edge computing infrastructures pose challenges due to technological complexity, overwhelming data volume, and interoperability issues. Gartner predicts that by 2026, at least 50% of edge computing deployments will involve machine learning. AI algorithms are well-suited for the data-rich environments of edge computing, enabling quick and accurate analysis of vast data sets. Integrating AI allows edge devices to independently process and act on collected data without constant communication with a central server. This integration enhances decision-making speed, crucial for applications like real-time inventory management or industrial equipment calibration.
Edge Computing Market Size and Key Trends
According to Expert Market Research, the global edge computing market is anticipated to grow significantly from $15.54 billion in 2023 to $147.38 billion by 2032, reflecting a compound annual growth rate (CAGR) of 28.4% during the forecast period of 2024-2032. This growth is attributed to the rise of autonomous vehicles, connected car networks, and the demand for lightweight frameworks and applications to enhance edge computing efficiency, creating numerous market opportunities. PwC expects the global market for edge data centers to nearly triple, reaching $13.5 billion in 2024 from $4 billion in 2017. This growth is driven by the potential of locally located data centers to reduce latency, address intermittent connections, and enable data storage and computation in close proximity to end-users. Edge data centers are growing in popularity due to several key trends. The introduction of 5G is a big factor, as these smaller decentralized centers support high-density 5G applications with low costs and latency, especially in smart-city scenarios. Similarly, the increasing use of IoT devices requires quick data processing at the edge to handle the growing amount of information from sensors in homes and industries. Moreover, the adoption of software-defined networking and virtualization technologies allows software to replace expensive hardware in data centers. Lastly, the demand for video streaming and AR/VR is met by these cost-effective edge data centers, reducing latency and providing good performance for users.
Read also: Top 15 Edge Computing Companies in the World
What’s New in the Edge Computing Market?
On January 5, 2024, International Business Machines Corporation (NYSE:IBM) disclosed that it is partnering with American Tower Corporation (NYSE:AMT), a global digital infrastructure provider, to accelerate the deployment of a hybrid, multi-cloud computing platform at the edge. This collaboration aims to expand American Tower’s Access Edge Data Center ecosystem by integrating IBM Hybrid Cloud capabilities and Red Hat OpenShift. The goal is to help clients address evolving customer requirements and expectations in digital transformation, incorporating…
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