The new computing concept known as "space-based edge computing" describes a variety of networks and gadgets that one can connect together and closer to the source for better connectivity and latency. Edge is about handling data more quickly and in larger quantities close to the point of generation, allowing action-driven outcomes in real-time. It has some unique advantages over traditional models, where processing power is centralized at an on-premise data center, including by placing compute at the edge. This will provide businesses with better control and utilize physical assets and develop fresh and interactive human experiences. Also, self-driving vehicles, autonomous robots, data from smart machinery, and automated shopping are a few instances of space-based edge use cases.
Read Report Overview: Space-Based Edge Computing Market
The global space-based edge computing market is estimated to reach $1,807.3 million in 2033 from $200.9 million in 2022, at a CAGR of 22.64% during the forecast period 2023-2033. The space-based edge computing market companies have witnessed the demand from the growing defense industry. The ecosystem of the space-based edge computing market comprises component manufacturers and end users.
The growth of edge computing is being fueled by a number of important factors, such as the increase in use cases that call for low-latency processing, the significance of big data, and the adoption of artificial intelligence (AI), Internet of Things (IoT) and the rise in smart devices, 5G adoption, as well as partnerships and acquisitions with telecommunication companies and startups. Additionally, the small number of cloud service providers, including Amazon, Microsoft, Google, and IBM, provide the infrastructure, hosting, machine learning, and computing capacity, which contribute to reducing latency and clearer images in the case of geospatial imagery.
North America accounted for the highest share of 67.50% in the global space-based edge computing market by value in 2022, owing to a significant number of service providers based in the region. and is expected to witness the second-highest growth during the forecast period 2023-2033, driven by various activities in the U.K., Germany, and France. Increased spending by commercial organizations such as Hewlett Packard Enterprise, Orbits Edge, Exo-Space, LeoCloud, Inc., KP Labs, Nearby Computing, Satellogic, Spiral Blue, and government key agencies for different end users is expected to drive huge growth in the global space-based edge computing market during the forecast period.
Recent Developments in the Global Space-Based Edge Computing Market
- In March 2023, 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.
- In November 2022, Ubotica Technologies and Open Cosmos signed an agreement to deploy CogniSat-6, an AI-focused CubeSat flight with autonomous skills. It’s equipped with the CogniSat edge computing platform to LEO and will provide reactive retargeting to optimize image gathering scope in-orbit.
- In October 2022, Exo-Space signed a contract with Sidus Space to integrate a payload into its hybrid 3D-printed satellite LizzieSat, which is expected to launch sometime in 2023.
- In August 2022, OrbitsEdge signed a long-term launch agreement with Vaya Space, with a launch slotted for the fourth quarter of 2023. The agreement aims to develop high-performance computing data centers that can handle and evaluate data generated in space, which will be launched into low Earth orbit (LEO) above the cloud. By using this approach, the present bandwidth restrictions and the transmission delay brought on by sending huge amounts of satellite data to Earth for processing are reduced.
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Competitive Landscape
The competitive landscape of the global space-based edge computing service market consists of several organic and inorganic strategies followed by the key players to increase their market share. The strategies include product innovations, contracts, partnerships, acquisitions, and business expansions, among others.
Some of the key players in the global space-based edge computing market include Hewlett Packard Enterprise, LEOcloud, Inc., Loft Orbital, KP Labs, Satellogic, SKYWATCH, and Ubotica. These companies are aiming for a wide range of partnerships, collaborations, agreements, and contracts to expand their operations and increase their market presence globally to generate revenues and attract new customers.
