Edge computing is processing data close to its physical source, on the shop floor and next to the machine, instead of round-tripping to the cloud. It lowers latency, enables real-time decisions, saves bandwidth and keeps sensitive data inside the factory perimeter.
How edge computing works
Industrial compute devices (gateways, plant PCs, compact servers) sit on the factory network and run locally what used to require the cloud: capturing PLC and sensor signals, filtering and aggregating telemetry, running visual-inspection or anomaly-detection models, and buffering data when the external connection drops. The cloud still receives cleaned, aggregated data for history and analysis, while millisecond decisions are resolved at the edge.
Why it matters for industrial SMEs
Edge solves three concrete problems: latency (an inspection camera deciding in under 100 ms cannot depend on an internet link), resilience (the plant keeps capturing and deciding during outages, syncing later) and cost/confidentiality (raw sensor streams are expensive to ship and often should not leave the perimeter). You can start with one device on one line and grow in phases.
Related terms
Edge computing is the physical base of OT/IT integration: industrial gateways capture data over OPC-UA or Modbus and publish it via MQTT into a Unified Namespace. It is also where real-time anomaly-detection and inspection models run.