Demand for machine intelligence (MI) and artificial intelligence (AI) applications at the edge is driving the market adoption of edge analytics.
Becoming a billion-dollar market
In fact, by 2025, the global edge analytics software market is estimated to witness nearly five-fold growth, garnering a revenue of $1.18 billion from $254.8 million in 2020.
This is according to recent analysis from Frost - Sullivan, outlined in the report ‘Growth Opportunities in the Global Edge Analytics Market, Forecast to 2025'.
Recognising the value of edge analytics
The report finds that dissatisfaction with Big Data Analytics (BDA) is increasing the uptake of edge analytics solutions across industry verticals.
It examines the key competitors in the edge analytics software market, revenue forecast analysis by region and industry vertical, and much more.
Frost - Sullivan program manager of Information - Communication Technologies Anisha Vinny says, "Businesses recognise data as a valuable asset, which they can leverage to create a competitive advantage, operational efficiencies, new revenue opportunities, customer satisfaction, and even industry disruption.
“Approximately 51% of business leaders surveyed by Frost - Sullivan claimed that investigating and utilising data is a top business priority.
"Cost reduction is cited as a strategic priority by 78% of business leaders, while 72% are willing to invest in technologies that could reduce spending."
Vinny says, “By 2025, the North America and Latin America (NALA) region, led by the United States, will be a key adopter of edge analytics solutions, accounting for 59.3% of the total market revenue.
"Europe, Middle East, and Africa (EMEA) region is the second-largest revenue contributor in the market, followed by Asia-Pacific. In terms of industry verticals, the manufacturing sector leads the way, followed by energy and logistics.
Examining different verticals
According to the analysts, to capitalise on the immense growth prospects market participants should focus on manufacturing, energy and logistics.
Manufacturing: Predictive analytics, primarily predictive maintenance, is a critical use case in the manufacturing sector. Discrete manufacturing in the automotive and consumer packaged goods (CPG) sectors is a major revenue contributor in the United States and EMEA, the analysts find.
Energy: Edge analytics data can be utilised to make needed adjustments to optimize energy production. EMEA is the leading contributor to edge analytics software in this sector. While India is witnessing growth in government investment in edge analytics for renewable energy (mainly solar), green buildings are driving adoption in Singapore, Indonesia, Thailand, and Malaysia.
Logistics: Growing investment in autonomous vehicles in the transport sector impacts investment in autonomous robots on the factory floor. The use of edge analytics to automate and track the movement of raw materials and goods on the factory floor is expected to grow over the forecast period.
Growth Opportunities in the Global Edge Analytics Market, Forecast to 2025 is the latest addition to Frost - Sullivan's Information - Communication Technologies research and analyses available through the Frost - Sullivan Leadership Council, which helps organisations identify growth opportunities to succeed in a changable future.