Edge Computing Powers the Connected Vehicle Ecosystem

Daniel Davenport
5 min readFeb 11, 2024

So what exactly is edge computing, and how is it transforming the automotive sector?

Of the many industries exploring edge computing, few have jumped in as aggressively as automotive. Advanced vehicle capabilities like autonomous driving and vehicle-to-everything (V2X) communications depend heavily on the real-time data processing and split-second latency enabled by edge.

As such, auto manufacturers and telecom operators are teaming up to develop connected vehicle solutions centered on 5G connectivity and edge computing power. And the partnerships are bearing fruit, with one forecast cited in the GSMA Intelligence white paper predicting a 16–20% revenue uplift by 2025 for 15% of carmakers from connected vehicle services powered by edge.

What is Edge Computing?

Edge computing refers to the concept of moving compute and data resources like storage and networking from large, centralized data centers to the metaphorical “edge” of the network physically closer to end users and devices.

This edge could include end devices like connected cars, appliances or machines, as well as micro data centers embedded at the base of cell towers or smart factories. Edge computing is complementary to (not replacing) cloud computing, which continues to provide…

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