The 5G edge computing market will grow from USD 14.257 billion in 2025 to USD 90.818 billion in 2030 at a CAGR of 44.82%.
In comparison to 4G, the 5G technology significantly improves the application performance and response timing, and edge computing forms an integral part of the 5G network as it reduces the distance of data traveling by bringing the computing capabilities in a network closer to end-users, devices, or data sources. Hence, the low latency offered by edge computing makes it ideal for data-intensive 5G applications such as gaming, AI, cloud, and autonomous drones, among others.
The booming high-speed bandwidth demand globally has provided a major boost to 5G consumption both by residential and commercial users, which has paved the way for future market expansion for 5G edge computing. As per GMS’s “State of 5G 2024”, the global 5G connection in 2023 reached 1.5 billion, thereby making it the fastest mobile broadband-growing technology. Likewise, according to Ericsson’s “Mobility Report June 2023”, 5G penetration reached 38% in Northeast Asia by the end of February 2023 and accounted for 78% of the total mobile data traffic.
Edge computing has provided a new prospect for 5G applications, which will be supported by high data transmission, low latency, extensive network coverage, and high throughput. Strategic investments and the implementation of digitalization plans by the governing authorities globally have further bolstered the overall market demand.
Data-driven applications require high-speed networks to support data transmission and edge computing’s ability to reduce latency, thereby providing a good user experience has made it an integral part of 5G technology. Applications such as cloud and AI are witnessing a significant boom as technological adoption in commercial and industrial units is growing. According to the white paper issued by Rackspace Technology in June 2023, private cloud adoption by companies in the next three years is expected to grow from 35% to 41%, whereas public cloud adoption is set to grow from 41% to 48%.
Likewise, other applications where 5G technology is witnessing significant growth are gaming and media & entertainment. Rapid progression in gamers' strength, followed by the adoption of a modern approach in live streaming, has provided a major boost to 5G demand. For instance, according to the 2023 research report by the Entertainment Software Association, nearly 212.6 million as part of their daily routine play video games. The same source stated that 54% used consoles for playing video games, followed by tablet users with 24%.
The 5G edge computing market, based on components, is analyzed into hardware, software, and services, where the software and services are anticipated to account for a considerable market share, fueled by the growing demand for real-time data processing and analytics by enterprises and data-driven organizations. Likewise, the ongoing progression supporting augmented and virtual reality, followed by investments in smart cities and autonomous vehicles, is further driving the market growth.
Various strategic collaborations and product development & launches are taking place in the market, which is expected to positively impact the market growth.
Based on geography, the 5G edge computing market is analyzed in the Americas, EMEA, and Asia Pacific. Major countries, namely the United States, China, Japan, the United Kingdom, and Germany, are experiencing significant growth in their industrial productivity and technological innovations, which has expanded the 5G scope in such countries.
Moreover, the well-established presence of major players, namely IBM, Huawei, AWS, Dell, and Intel, in such countries will augment the overall market expansion. Various new launches, partnerships, and developments are taking place, for instance,
Some of the leading players in the market include Cisco, Microsoft, Dell Technologies, and Digi International, among others. The product offerings of the major corporation include the following:
|
COMPANY NAME |
PRODUCT NAME |
DESCRIPTION |
|
Cisco |
Cisco+ Hybrid Cloud |
Cisco+ Hybrid Cloud offers flexible consumption, thereby optimizing workloads on on-premises infrastructure such as data centers, co-location facilities, and labs. The solution is also ideal for high-growth businesses as it allows capacity additions as per business changes. |
|
HPE |
Edgeline e920t Server Blade |
HPE’s “Edgline e920t Server Blade” is a multi-workload edge compute platform offering high scalability and throughput. It is specifically designed to perform even in rugged environments, backed up by persistent memory support. |
|
Microsoft |
Azure Private MEC |
The “Azure Private MEC” combines network functions, inclusive of 4G & 5G applications, and provides ultra-low-latency solutions that can meet dynamic business needs. |
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| 5G Edge Computing Market Size in 2025 | US$14.257 billion |
| 5G Edge Computing Market Size in 2030 | US$90.818 billion |
| Growth Rate | CAGR of 44.82% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
|
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the 5G Edge Computing Market |
|
| Customization Scope | Free report customization with purchase |
The 5G Edge Computing Market is analyzed into the following segments: