Posted by Hyderabad: Edge computing is poised to garner a lot of interest in APAC, as the emphasis on improving networking technologies for remote working grows amid the Covid-19 pandemic.
Edge computing market in APAC is estimated to grow at a compound annual growth rate (CAGR) of 21% between 2019 and 2024 to reach $ 5.8 billion in 2024, according to GlobalData.
It is not just the current situation that will push the edge computing adoption in APAC, but the Covid-19 crisis is expected to push digital transformation initiatives amongst the enterprises in APAC. This would also necessitate the edge computing adoption.
By 2024, Asia-Pacific is forecast to be the second-largest market behind North America in terms of edge computing. The APAC region growth would be primarily driven by China and Japan, which would together account for approximately 61% of the overall edge computing revenue in the region.
China and Japan together would primarily drive APAC region’s growth, accounting around 61% of the overall edge computing revenue.
Manufacturing, BFSI, energy, information technology and consumer goods would be the five leading verticals in terms of edge computing spend and together account for half of the overall spending in 2024.
“IoT and 5G will be the crucial drivers for the increased adoption of edge computing offerings in the APAC region. Together, these technologies are expected to transform whole industries and create a host of new opportunities for enterprises,” said Shamim Khan, Senior Technology Analyst – GlobalData.
For manufacturing companies in APAC, Industrial IoT with edge computing would allow streamlining of industrial processes, improving supply chain and enabling industrial equipment work without or with less human intervention.
Similarly, financial markets can leverage the benefit of edge computing secure gateways to enhance the security and privacy of data for enhanced banking solutions.
In addition, the surge in the connected devices ecosystem, comprising of smart cities, connected vehicles, and smart homes would further result in the generation of huge volumes of data, which would need to be stored, analysed and processed in order to facilitate timely and effective decision making.
“Edge computing would be key in handling most of these challenges, as decentralized processing would allow for excellent response times and reduced latency,” added Shamim.
The recent weeks have seen a host of activity on this front. Amazon Web Services (AWS) announced updates to its ‘Snow’ family of edge computing, Microsoft announced Azure Edge Zones, and Google unveiled its Global Mobile Edge Cloud (GMEC) strategy.
While these offerings are primarily targeted at the US market, for now, these are expected to shortly make their way to APAC, given edge computing market in the region. The availability of these offerings will unlock an entirely new range of distributed applications with a consistent architecture for enterprises in APAC.
According to Shamim, a large number of applications across enterprises would spur up in the region, with 5G networks becoming more prevalent in the region.
The shift from a cloud-based centralised model to intelligence at devices would, in turn, require next-generation applications and new IT architectures. Edge computing demand will grow, as the enterprises would increasingly continue to link core and edge resources for supporting their digital transformation initiatives,” concluded Shamim.