Edge Computing is becoming mainstream Edge computing represents a potential value of $175-215B in hardware by 2025 1 % of total edge % of total edge 2025 hardware value 1 Industry use cases 2025 hardware value $B Industry use cases $B Travel, transport, 24% 35-43 Advanced 10% 5-13 and logistics industries Cross-vertical 9% 32-40 Healthcare 10% 5-13 Retail 10% 20-28 Infrastructure 6% 4-11 Media and 1% 17-25 Chemicals and 5% 4-11 entertainment agriculture Public sector and 10% 16-24 Banking and 1% 2-7 utilities insurance Global energy and 13% 9-17 Consumer 4% 1-5 materials 1 Hardware value includes opportunity across the tech stack (i.e., the sensor, on-device firmware, storage, and processor) and for a use case across the value chain (i.e., including edge computers at different points of architecture) McKinsey & Company SOURCE:McKinsey, “New Demands, New Markets: What Edge Computing Means for Hardware Companies” – Oct 2018 McKinsey & Company 38