5G and the IoT Need This New Tech
Last week, my colleague Ian King and I attended the Collision online conference to stay informed about the newest tech trends.
Some huge mega trends were covered, many of which we follow in our Automatic Fortunes service.
All of these tech trends have one thing in common: they’re built on the concept of living life on the edge. Literally.
Edge computing is a hot tech trend that the market is just waking up to.
Although it sounds mysterious, it’s quite simple: processing data locally. The “edge” is just the tech way of saying away from centralized data centers.
(Source: Open Automation Software)
The truth is, all of the mega trends that we cover in Automatic Fortunes, such as self-driving cars, 5G and the Internet of Things (IoT), will only reach their full potential with edge computing.
That means investors will make huge profits by investing in the right tech companies early on.
The Demand for Data Is Accelerating
As I covered last week in my article on Big Data, tech mega trends will produce enormous amounts of data over the coming years.
If only centralized data centers are used to process all of this information, data transmission would resemble a traffic jam.
COVID-19 has accelerated the demand for edge computing as employees work from home and internet usage has skyrocketed.
The latest reports suggest that the market size of edge computing will increase by more than six times between 2019 and 2027, from $2.8 billion to $18.4 billion:
(Source: Fior Markets)
In reality, the market’s value will likely be much higher.
Edge Computing and 5G Go Hand in Hand
The data speaks for itself.
According to Gartner, companies generated only 10% of their data outside a data center or cloud in 2019. In 2025, this number is expected to reach 75%!
IoT and 5G will need edge computing. Without it, data transmission between IoT devices would be too slow.
This is why the International Data Corporation predicts 45% of IoT-generated data will be handled at the edge.
And in order for 5G latency to reach its target of one millisecond, the usage of edge computing will be critical.
Ian King realized that edge commuting and 5G go hand in hand earlier than Wall Street. As a result, he recommended a leading company in the $12-trillion 5G market in Automatic Fortunes last year.
But there are plenty more ways to profit from this trend in the near future. To find out how Automatic Fortunes targets tipping point tech trends, click here.
Research Analyst, Automatic Fortunes