The trend of Edge Computing refers to the decentralization of IT architecture, bringing computer processing closer to sensors and other data sources – at the edge of a network – and away from remote cloud servers and data centers.
Deploying computing and storage resources at the location where data is produced, edge computing minimizes the need for continuous, long-distance communication between clients and servers, improving processing time and the speed of response to surrounding changes.
The volume of data generated by internet-connected devices is growing far too quickly for traditional data center infrastructures to cope. Gartner predicts that by 2025 75% of enterprise-generated data will be created outside centralized data centers. Moving such vast amounts of data via the internet is often time- and disruption-sensitive.
With edge computing and the ability to decentralize IT architecture with the growing capabilities of mobile computing and the Internet of Things (IoT), organizations gain near real-time insights with a lower demand for cloud server bandwidth. This also adds an extra layer of security for sensitive data, as decentralization means data can be more safely stored near to its source.
With global market value predicted to hit 116.5 billion USD by 2030, and expanding at a CAGR of 12.4% between 2022 and 2030 , this trend and its wide application across many different sectors also triggers other innovative technologies, accelerating development and new capabilities.
It is said that the rise of 5G networks across the globe actually positions edge computing as the next evolution of cloud computing. More than ever seen in the past, organizations can now harness comprehensive data analysis without the IT infrastructure that was necessary in previous years. Considering that edge computing is in relative infancy, its maximum potential is still far from full realization, although it is already accelerating digital transformation across organizations, including logistics and supply chain facilities. As edge computing streamlines how much detailed data the organization can process at any given time, it enables companies to learn more and it delivers insights at a faster rate than before. This helps businesses to predict, manage, prepare, and adapt, meaning they remain resilient in the face of future demands.
In the logistics industry, the ongoing development of self-driving vehicles is a prime example of an edge computing application. Driverless cars must react and adapt to surroundings in real time rather than wait for commands from data centers in far-away locations.