
The edge computing market is set to boom over the next few years. Find out what’s driving its exponential growth.
A new research study has revealed where expectations lie for edge computing over the next few years. According to a MarketsandMarkets report, the U.S. Edge Computing Market is poised for significant growth, projected to reach USD 43.59 billion by 2029, up from USD 24.17 billion in 2024, at a compound annual growth rate (CAGR) of 12.5%. This expansion is driven by increasing demand for faster data processing, lower latency, and enhanced security.
Sectors such as telecommunications, healthcare, and manufacturing are increasingly adopting edge solutions to support real-time analytics, IoT applications, and AI workloads. The rise of 5G networks, cloud-edge integration, and autonomous systems is further fueling this growth, enabling businesses to process data closer to the source and reduce their reliance on centralized data centers.
See also: Edge Computing Set to Dominate Data Processing by 2030
Key Drivers and Market Segments in Edge Computing Growth
The hardware segment holds the largest market share in the US Edge Computing Market, spurred by the demand for high-performance edge devices, servers, and networking equipment. The rapid growth of IoT, 5G networks, and AI-driven applications has led to significant investments in edge infrastructure. Major cloud providers like AWS, Microsoft Azure, and Google Cloud have expanded their offerings with specialized servers and edge nodes, bringing cloud capabilities closer to end users.
The data management software segment also accounts for a big share, as businesses increasingly adopt solutions to handle real-time analytics, optimize bandwidth usage, and ensure data integrity across distributed edge environments. Industries like healthcare and finance rely on edge data management to process sensitive information locally, ensuring compliance with privacy regulations such as HIPAA and GLBA.
The IoT and sensor data utilization segment is expected to experience the highest growth rate during the forecast period. Deploying connected devices and smart infrastructure across sectors like manufacturing, healthcare, and transportation is accelerating the demand for edge computing solutions. Technologies like GE’s Predix platform, which integrates edge computing for real-time equipment monitoring and predictive maintenance, are driving the adoption of IoT solutions.
As the market grows, major players like IBM, HPE, Microsoft, Dell Technologies, and AWS are leading the way in shaping the future of edge computing in the US.