Top 3 Industries with the Most Edge Computing Use Cases

24 June 2020

Edge computing, now a humongous $4 billion+ industry, has witnessed exponential growth in the past few years. Just two years ago, in 2018, the industry was worth around $1.2 billion, with most industries dismissing the potential impact of the new technology. 

Edge computing technology with distributed network performing computation and data storage near the user instead of in the cloud, internet service for IoT, gamelets and AI recognition, concept

Fast-forward to 2020 and edge solutions are now some of the most sought-after and the fastest-growing industry, with a projected Cumulative Annual Growth Rate (CAGR) of 19.9% between 2020 and 2025.

The Top 3 Industries Ahead of The Curve 

As expected, however, not everyone is aboard the edge computing hype train yet. Although the technology promises multiple benefits, including cost savings (up to 20%) and increased business efficiency, a few industries are head of the pack.

Below, we look at some of the industries leading the way in the edge computing arms race. These industries have not only pumped more money into edge computing but also boast of more existing applications and use cases.

The Automotive Industry

The age of smart cars is here. Indeed, we’re at the final stages involving tests and trials that, if successful, could lead to driverless cars gracing our roads.  

But, to achieve this new milestone, cars will need to transmit a lot of data. Moreover, the transmission must happen in real-time.

Two technologies are making this a possibility – 5G and edge computing. The following are a few ways edge computing is playing its part in this development;

  • Sensor fusion and value aggregation to protect sensitive data

The driverless car comes with an endless amount of sensors that use a lot of data. Moreover, not all the data can be processed in the vehicle. Some applications, such as raising alerts in case of a diversion from the norm, require moving from the cloud.

Edge computing is being used to reduce the amount of sensitive data leaving the vehicle as well as minimize the cost of data processing.

  • Multi-factor authentication for easy, keyless entry

Edge computing is also playing a central role in the design of keyless car entry. At Porsche, for example, a new form of keyless entry is being developed that involves the use of a camera for face recognition and an infrared camera for spoofing detection. It also involves using a Bluetooth sensor to detect the proximity of the driver’s mobile device.

As you can imagine, it’s another process that involves a lot of data movement and processing. But, edge computing has made it a possibility.  

Other edge computing use cases in the automotive industry involve:

  • Enhanced fleet management
  • Ultra-personal infotainment
  • Multi-level authentication 

The Manufacturing Industry

The manufacturing industry is also realizing a lot of applications and consistently developing new use cases for edge computing.

Condition-based monitoring, for instance, has been a persistent challenge in the industry. Traditional IT can’t fully solve the problem because of the enormous data involved in getting proprietary systems to communicate.  

Edge computing solves this problem by allowing manufacturers to reduce the amount of data sent to the central server.

Edge analytics is also used in;

  • Predictive maintenance 

In predictive maintenance, potential issues are pre-emptively detected through data analytics and mitigated in advance to prevent breakdowns in the first place.

Unfortunately, it’s not as easy as it sounds. For one, integrating the insights from operational technology into IT systems is very difficult. Also, machine learning platforms necessary for predictive maintenance aren’t mature enough yet.

Edge computing alone won’t fix these problems. But it goes a long way in addressing some of the issues. Predictive analytics, for instance, requires plenty of data to work well. With edge computing, access to such data is granted with easy.

  • Precision and monitoring control 

Industry 4.0 requires that data from multiple machines, processes, and systems adapted to the manufacturing process in real-time.

This, too, isn’t easy. The precision monitoring and control process uses vast amounts of data. Moreover, it requires machine learning to determine the best course of action once insight is obtained.

Edge computing benefits the process in multiple ways. For one, edge computing can be used to collect, filter, and aggregate data before sending outcomes to the central server. Additionally, the edge is instrumental in training as well as executing ML algorithms.

Other edge computing use cases in manufacturing include:

  • Ensuring compliance
  • Performance optimization
  • Quality testing and inspections

 The Finance Industry  

Finally, the finance industry is another market where edge computing has found a home. Edge computing is known to increase security, reduce latency, and boost the use of the internet of things. The finance industry stands to benefit from all of these.

With regards to security, for example, edge computing eliminates the need to send a consumer’s information into the public cloud. Firms, therefore, avoid the inherent security risks.

Existing edge computing use cases in the industry include:

  • Greater individual intelligence

Banks need to know exactly what the customer wants to provide that customer with the most satisfying experience. And that’s what you get with edge computing. You can monitor the customer very closely without spending too much money on data transmission.

AT&T gives an example of interactive kiosks and ATMs. Many banks now use these kiosks to create the ultimate experience. Using AI, the bank can match up customers with tellers they’re most likely to enjoy using. The kiosks are also used to provide augmented reality and VR experiences. Edge computing plays a central role in delivering such experiences.

  • Encouraging mobile finance  

Today’s customers want to be able to conduct their banking business from wherever they are. According to the recent Mobile Money Report by the Mobile Ecosystems Forum, 61% of customers want to use their mobile devices for banking. Up to 40% have dedicated apps for this purpose.

To make this a reality, however, real-time data transmission is instrumental. And that’s where edge computing comes in.

Edge computing provides high-speed connections and processing for the vast amounts of data generated through mobile banking. It also reduces latency and promotes efficient utilization of network capacity.

Other applications of edge computing in finance include:

  • Regulatory compliance
  • Boosting security

Make NIX Your Edge Computing Partner

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