Edge Computing Industry Analysis: Business Models, Technological Innovations, and Future Opportunities in the Era of AI and 5G

Abstract

Purpose: The purpose of this study is to analyze the Edge Computing industry from technological, business, and strategic perspectives in the era of Artificial Intelligence and 5G. It examines emerging business models, key innovations, industry opportunities, and critical challenges shaping the sector. The study also aims to identify future growth trends and provide insights for organizations pursuing digital transformation through edge-enabled intelligent systems.

Methodology: This study adopts an exploratory qualitative research methodology to systematically examine the Edge Computing industry using data gathered from Google Search, Google Scholar, and AI-driven GPT tools. The collected information was organized and analyzed using established frameworks such as SWOC, ABCD, PESTLE, Porter’s Five Forces, and Impact Analysis to generate comprehensive insights into the industry's technological, strategic, and business dimensions.

Results/Analysis:

The analysis reveals that Edge Computing is emerging as a transformative industry that enables real-time data processing, decentralized intelligence, and low-latency services across diverse sectors through the integration of AI, IoT, and 5G technologies. The study identifies strong growth opportunities driven by Edge AI, smart industries, autonomous systems, and digital transformation initiatives, while also highlighting challenges related to cybersecurity, interoperability, scalability, and infrastructure costs. Overall, the results indicate that Edge Computing is evolving into a strategic digital infrastructure with significant potential to reshape business models, industrial operations, and future intelligent ecosystems.

Originality/Value: This study offers a comprehensive industry-level perspective on Edge Computing by integrating technological, business, strategic, and future-oriented analyses within a single framework. Its originality lies in combining analytical tools such as SWOC, PESTLE, Porter’s Five Forces, ABCD, Value Chain, and Technology Adoption analyses to evaluate the industry beyond purely technical dimensions. The article provides valuable insights for researchers, policymakers, technology developers, investors, and business leaders seeking to understand the evolving role of Edge Computing in the AI- and 5G-driven digital economy.

Type of Paper: Qualitative Exploratory Case Study Research.