McKinsey & Company 38 McKinsey & Company Edge Computing is becoming mainstream SOURCE: McKinsey, “New Demands, New Markets: What Edge Computing Means for Hardware Companies” – Oct 2018 Edge computing represents a potential value of $175-215B in hardware by 2025 Travel, transport, and logistics 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) % of total edge use cases 2025 hardware value 1 $B Industry 2025 hardware value 1 $B % of total edge use cases Industry Cross-vertical Retail Media and entertainment Public sector and utilities Global energy and materials 9-17 16-24 32-40 35-43 20-28 17-25 1-5 2-7 4-11 5-13 5-13 4-11 Advanced industries Healthcare Infrastructure Chemicals and agriculture Banking and insurance Consumer 10% 10% 6% 5% 1% 4% 24% 9% 10% 1% 10% 13%