Edge computing expected to thrive post-coronavirus

Before the global outbreak of the coronavirus, edge computing was widely considered one of the hottest emerging trends in IT. However, the coronavirus crisis has thrown industries and economies around the world into turmoil, forcing many businesses to reevaluate previous IT investment plans - including those involving edge computing.

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Nevertheless, investments in edge computing technology are expected to continue through the rest of 2020 before starting to grow in 2021. This is because of the benefits that edge computing brings and the variety of use cases that edge computing technology supports. Together with 5G networks and artificial intelligence (AI), edge computing can also help governments and businesses enhance their digital infrastructure and support economic recovery after the crisis.

Edge computing will grow rapidly

GlobalData’s latest edge computing market opportunity forecast predicts that sales of edge computing infrastructure and services will increase by nearly 14% in 2020, with expansion accelerating between 2021 and 2024. The verticals that will see the strongest growth in adoption include energy and utilities, healthcare, retail banking, and transportation and logistics.

By decentralizing computing and other IT resources and bringing them closer to where digital applications and services are used, edge computing promises to deliver multiple benefits to businesses and other organizations.

These include the ability to process and use large amounts of data in real time. They also include the potential to deliver digital applications that require high levels of performance and rely on other technologies such as artificial intelligence. Because of its ability to support local, real-time data processing, edge computing is seen as key to seizing opportunities related to the Internet of Things (IoT) with or without the support of high-bandwidth 5G networks.

Coronavirus increases the importance of edge computing

In some cases, the need for edge has become more acute due to the crisis. For example, a large portion of the world now relies on online and video communications technologies to work from home, learn remotely, shop, entertain, and stay connected with others. This puts more pressure on data centers and service provider networks and strengthens the business case for leveraging edge computing resources.

Other drivers include the accelerating automation of processes in the manufacturing, retail and healthcare sectors, which are either forced to reduce their workforce or minimize human interaction.

At the same time, the long-term drivers for edge computing are equally important and will continue to exist once the worst of the coronavirus crisis is over. These benefits mean that existing uses will be expanded, developed and refined over time by existing users and adopted by others.

New uses will emerge

New uses for edge computing, especially those that also involve IoT data and AI processing and analysis, will also emerge. Some of these (including autonomous ships and other vehicles, for example) are already being tested and deployed. Other uses will emerge as 5G networks expand and proliferate.

Although some 5G deployment plans will be delayed due to disruptions caused by the crisis, other 5G network deployments will continue as planned. 5G is increasingly seen as key to helping post-crisis economic stimulus measures. The same is true for edge computing, which can create new business opportunities for enterprises while also helping them operate in a more efficient and adaptable way.