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. It improves processing time, data security, and the speed of response to surrounding changes.
The increasing use of technologies such as artificial intelligence (AI) and Internet of Things (IoT) in enterprises continues to multiply data volumes with unprecedented scale. At the same time, as data strategy shifts to the edge, AI is being trained on edge data to look for patterns in real time.
A 2023 Accenture survey of 2,100 C-level executives in 18 industries across 16 countries found that 83% believe that edge computing will be essential to remaining competitive in the future. Still, only 65% of companies are using edge to some degree today. Of these, only half have deeply integrated edge with their digital core.
Decentralization with edge computing adds an extra layer of speed, information security as data is processed and stored near its source rather than sent from the logistics facility to centralized or cloud servers.
The global edge computing market size was valued at US$ 16.45 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 37.9% from 2023 to 2030.
As edge computing is still in its relative infancy, it is far from realizing maximum potential. However, already today it is accelerating digital transformation across many industries, including logistics. Efficiency in the supply chain can be boosted by edge computing as it frees up resources and lessens reliance on human management. It also significantly increases bandwidth and reduces latency for time-sensitive activities. Furthermore, it is helping businesses predict, manage, prepare, adapt, and achieve resilience.