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Edge Computing

Generating, collecting, and analyzing enterprise data will never be the same.

Overview

Edge computing refers to computing that takes place close to the source of data (i.e. the device that generates the data) by decentralizing data storage and processing. In contrast, cloud computing hinges on centralized data storage and processing. Edge computing generally complements cloud computing and is not likely to replace it. This is because not all information generated by devices needs to be processed in a time-sensitive manner, and therefore can continue to use the cloud for data storage so as to reduce the pressure on the edge data center. 

What's driving this industry?
Market Sizing

Edge computing market in the US could reach USD 7.6-13.4 billion by 2025

Conservative case

USD 7.6 Bn

Base case

USD 10.2 Bn

Expansion case

USD 13.4 Bn

USD billion051015202020212022202320242025
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COVID-19 IMPACT

An increase in demand for automation and managing a large amount of web traffic boosts the demand for edge computing

  • Kentik witnessed a 200%-500% increase in traffic growth of its networks since the early stage of the Covid-19 pandemic. 

  • Cisco’s Webex was able to deal with the spike in video conferencing due to its use of edge data centers.

  • Fastly’s revenue rose 45.1% year-over-year (YoY) in 2020.

Disruptors launch products that use edge computing to combat the spread of the pandemic

  • FogHorn launched its “Lightening Health and Safety Suite” in June 2020 to use edge artificial intelligence (AI) to ensure employees adopt necessary safety regulations.

  • SmartCone Technologies introduced Symp2passTM in September 2020, a biometric-based web process that allows users to check themselves for Covid-19 symptoms.

Market Mapping

Most of the disruptors in the edge computing space typically specialize in a specific element of the value chain, while it is common for incumbents to offer both hardware and software for the edge. However, the data center market is dominated by disruptors, as many players specialize in offering hyperlocal to hyperscale data centers in key locations. That said, the software, platforms, and services segment has the highest number of disruptors, led by analytics and Internet of Things (IoT) edge software providers. The segment also includes data center software and edge application software. Meanwhile, the hardware segment comprises on-device hardware components as well as routers, servers, and processors.

Around half of the disruptors and watchlist companies identified in this report are in the early stage, with the remainder fairly evenly split between seed and growth stages.

Incumbents
Growth
Early
Seed
Pre-Seed
Data center
?
Data center software
?
On device hardware components
?
Edge IoT and analytics software
?
Routers, servers and other
?
Edge application and other software
?
Ferroelectric
Ferroelectric
Ferroelectric
Ferroelectric
Ferroelectric
Ferroelectric
Schneider Electric
Equinix
Eaton
Vertiv
vXchnge
DC Blox
DataBank
EdgeConneX
Vapor IO
365 Data Centers
Yondr
Zenlayer
ClearSky Data
Mangata Networks
EdgePresence
EdgeMicro
Edge Data Solutions
DataQube
Axellio
Dell
Nokia
HPE
NVIDIA
Schneider Electric
Pensando
Sunbird DCIM
Microsoft
Amazon
Google
NVIDIA
Apple
Qualcomm
Ambarella
Synaptics
Graphcore
Kneron
Flex Logix
Videon
Hailo
Mythic
Deep Vision
AIStorm
GrAI Matter Labs
Ferroelectric Memory Company
Eta Compute
Kinexon
Axelera AI
AlphaICs
ArchiTek
Blaize
SiMa.ai
EdgeQ
Innatera Nanosystems
Microsoft
Amazon
Google
IBM
Cisco
Dell
Nokia
GE
Lumen Technologies
Scale Computing
Johnson Controls
NetraDyne
FogHorn
ClearBlade
Mimik
StackPath
Edge Impulse
Olea Edge Analytics
Arundo Analytics
Swim.ai
Eta Compute
Latent AI
Phizzle
SecuriThings
Adapdix
Litmus Automation
IOTech
Quartic.ai
Crosser
Prescient Devices
SmartCone Technologies
StarlingX
Dianomic
Blink Technologies
Deeplite
Tignis
Edge Intelligence Software
Nubix
Pratexo
LGN
SliceUp
Cisco
Dell
Nokia
HPE
Lumen Technologies
Qualcomm
Oracle
Scale Computing
Stratus
Eaton
Tachyum
Infiot
AlphaICs
Cisco
Nokia
Siemens
Akamai
Cloudflare
VMware
Oracle
F5 Networks
Vertex
Fastly
StackPath
Zededa
Macrometa
Swim.ai
Omnillion
AlefEdge
Section
EDJX
Ori Industries
Edgegap
Avassa
Azion
Nubix
Edgeworx
Mutable

The Disruptors

Data center startups remain the largest funded

The main disruptors we identified primarily offer data center related services (commonly colocation centers—where clients’ servers will be hosted and maintained in the data center providers’ facilities), hardware, and software. While disruptors are dispersed across the value chain, they typically focus on one core segment. Data center providers, including Vertiv, vXchnge, and DC Blox, feature among the highest funded disruptors, followed by software and hardware providers.

Data center

?

Disruptors

?
Funding in USD Millions
Vertiv
Public - Market cap USD 8.7 bn
vXchnge
405
DC Blox
239
DataBank
185
EdgeConneX
122
Zenlayer
102
Vapor IO
90
365 Data Centers
71
ClearSky Data
59
Mangata Networks
33
EdgePresence
30
DataQube
29
EdgeMicro
11
Yondr
Unknown
Watchlist
?
Axellio
Edge Data Solutions

Data center software

?

Disruptors

?
Funding in USD Millions
Pensando
313
Sunbird DCIM
Unknown

On device hardware components

?

Disruptors

?
Funding in USD Millions
Graphcore
682
Hailo
224
Mythic
155
Blaize
136
Kneron
115
SiMa.ai
110
Flex Logix
67
EdgeQ
51
AIStorm
29
GrAI Matter Labs
29
Ferroelectric Memory Company
25
Eta Compute
24
Kinexon
18
Axelera AI
12
Videon
8
Watchlist
?
Deep Vision
AlphaICs
ArchiTek
Innatera Nanosystems

Edge IoT and analytics software

?

Disruptors

?
Funding in USD Millions
StackPath
396
NetraDyne
198
FogHorn
73
Edge Impulse
54
Olea Edge Analytics
51
Arundo Analytics
33
Swim.ai
25
Eta Compute
24
Latent AI
23
Phizzle
18
SecuriThings
18
Adapdix
16
Mimik
14
Litmus Automation
11
IOTech
10
SmartCone Technologies
1
Watchlist
?
Blink Technologies
ClearBlade
Quartic.ai
Crosser
Deeplite
Tignis
Edge Intelligence Software
Nubix
Pratexo
LGN
Prescient Devices
SliceUp
StarlingX
Dianomic

Routers, servers and other

?

Disruptors

?
Funding in USD Millions
Tachyum
42
Infiot
15
Watchlist
?
AlphaICs

Edge application and other software

?

Disruptors

?
Funding in USD Millions
Fastly
Public - Market cap USD 4.7 bn
StackPath
396
Zededa
31
Macrometa
28
Swim.ai
25
Omnillion
25
AlefEdge
25
Section
24
EDJX
24
Ori Industries
11
Azion
Unknown
Watchlist
?
Edgegap
Avassa
Nubix
Edgeworx
Mutable

Vertiv

Vertiv supports the digital transformation of enterprises by providing a wide range of digital infrastructure solutions, including critical power solutions, thermal management, racks and enclosures, and maintenance services. The company was formed in 2016 through a spinoff from Emerson Electric Co (a diversified global manufacturer) and has a global presence with regional hubs in China, India, the Philippines, and Italy. Vertiv generated over USD 4.4 billion in revenue in 2019 and had a workforce of more than 20,000 employees globally as of November 2020.

Vertiv builds a range of customized modular, low-power edge micro data centers for enterprises, including its “SmartMod” and “SmartRow” units. Its offering ranges from 3-kilowatt to 30-kilowatt solutions in terms of power specs, which function as data-center-in-a-box solutions. The data centers include thermal and infrastructure management platforms as well. In November 2020, the company also rolled out a series of smart edge infrastructure solutions for its data centers to assist enterprises in optimizing data center architecture.

It also expanded its data center technology and operations by acquiring Geist in January 2018. Geist looks to enhance data center availability for enterprises through its rack power distribution solutions, which support data center infrastructure in terms of power, cooling, and monitoring.

In March 2021, Vertiv partnered with Green Revolution Cooling (GRC) to launch “Liebert VIC,” (a single-phase cooling system that reduces cooling energy costs by up to 95%) throughout Asia, Australia, and New Zealand. Moreover, Green Mountain, a data center provider focussing on sustainability and efficiency, deployed Vertiv’s Liebert PCW units and UPS systems.

Segment:
Data center
Total funding:
USD 1.2 billion
Competitors:
Vapor IO, ClearSky Data, Axellio, EdgePresence
Disruptor Funding History

Data center:

Vertiv
vXchnge
DC Blox
DataBank
EdgeConneX
Zenlayer
Vapor IO
365 Data Centers
ClearSky Data
Mangata Networks
EdgePresence
DataQube
EdgeMicro

Data center software:

Pensando

On device hardware components:

The Incumbents

Partnerships with telcos and growth through acquisitions remain common

Leading cloud computing vendors play a critical role in the edge computing market as players such as Microsoft and Amazon offer their services across the value chain, and feature in each of the broad segments. This is in contrast to disruptors, which typically specialize in a given segment.

Most incumbents offer a range of products, including various software and platforms to assist users in adopting edge computing. Notably, IT hardware manufacturers such as Hewlett-Packard Enterprises (HPE) and Dell play a leading role in providing edge servers for the market, while players such as Google offer chips for devices, in essence making them edge devices.

It is common for cloud providers to collaborate with telcos to enhance their offerings. This was seen in leading telcos Verizon and AT&T choosing to form strategic partnerships with Google and Amazon as opposed to competing with them for cloud services. The partnerships are likely to offer synergies by combining the reach of telcos with the software, solutions, and data centers of edge computing incumbents. For instance, Google and AT&T partnered to benefit from Google’s technology (artificial intelligence, machine learning, edge computing, etc.) and AT&T’s network.

In addition to cloud providers, leading tech firms have also invested heavily in the edge computing market and offer a wider range of products. HPE has invested around USD 4 billion in the industry, which also has diversified conglomerates such as General Electric (GE).

Incumbents have used acquisitions as a main means of inorganic growth to enhance their existing offerings. For instance, GE acquired Bit Stew and Wise.io to improve the intelligence and machine learning capabilities of its Predix platform.

Data center
Data center software
On device hardware components
Edge IoT and analytics software
Routers, servers and other
Edge application and other software
In House Development
M&A
Partnership
Investment

Notable Investors

No investor data is available

Funding data are powered by Crunchbase
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