Space-Based Edge Computing Markets, 2022-2033
The space-based edge computing market is estimated to reach $1.8 billion in 2033, up from $200.9 million in 2022. The market is forecast to grow at a CAGR of 22.64% during the forecast period 2023-2033.
According to a report from BIS Research, the ecosystem of the space-based edge computing market comprises component manufacturers and end users.
The market for edge computing has been growing and will continue to grow. Space-based edge computing is a part of edge computing that has also been becoming popular because of the growing demand for latency reduction in space and increase in demand for shifting data centers in space.
Currently, many space agencies and commercial companies across the globe have been focusing on developing low Earth orbit (LEO) satellite constellations for communication purposes, driving the market. Moreover, an increase in research and development activities to develop cost-efficient edge computing components are other factors contributing to the growth of the space-based edge computing market.
For instance, in March of this year, Nearby Computing signed a partnership with Cellnex Telecom for the demonstration of 5G and edge computing infrastructure. The demonstration also shows the integration of 5G along with edge can be implemented into smart sensors on the ground and space for the use of serving smart cities.
Research and Development Helping Drive the Space-Based Edge Computing Market
Evolving customer requirements, along with access to cheaper LEO-based satellite connectivity, has increased demand for production of the necessary technology.
Furthermore, there is a rise in research and development activities for the development of smaller and cheaper components, which has increased the demand for space-based edge computing for satellites.
The market is expected to witness huge revenues from the defense segment, followed by the commercial segment. The software and hardware segments are also expected to generate significant revenue.
Based on components, the global market is expected to witness huge revenues from the software segment, followed by the hardware segment.
North America accounted for the highest share of 67.5% in the market by value in 2022, owing to a significant number of service providers based in the region.
(Source: BIS Research via ResearchandMarkets. Images provided and from file)