Multi-access Edge Computing Market Size, Share & Trends Analysis Report By Solution (Hardware, Software, Services), By End Use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global multi-access edge computing market size was valued at USD 1.3 million in 2019 and is anticipated to register a CAGR exceeding 38% from 2020 to 2027. The rising trend among companies to establish cloud computing capability at the edge of mobile networks is expected to offer growth prospects over the forecast period. Gradual rolling out of 5G internet and incrementing trend among Communications Service Providers (CSP) to adopt a virtualized, software-empowered network model, with a cloud-based architecture is expected to offer new growth avenues to the market growth. Additionally, the adoption of the t5G delivery model enables Control and User Plane Separation (CUPS), which facilitates flexible deployment of user plane functions at the network edge and allows the central deployment of the control plane for easier interfacing with several core network functions.

In addition to high throughput and low latency offered by multi-access edge computing (MEC) applications running on 5G networks, 5G service delivery model offers several new B2B services by leveraging edge clouds. High-level end-to-end performance via network slicing, security, session, and service continuity modes for ultra-low-latency, seamless connectivity, and reliability are the main features of 5G enabled multi-access edge computing, that is driving the market forward. The ability to crunch large volumes to sophisticated telemetry data at the edge of the network facilitates new business model upgradation and hence allows service providers to enhance competitive rivalry. Furthermore, the integration of 5G with multi-access edge computing architecture could enhance the first response and is expected to help public sector organizations with connectivity and technology solutions.

The need to optimize Augmented Reality/Virtual Reality (AR/VR) experience by extending bandwidth to enhance 5G capabilities is driving the MEC market growth. Furthermore, the need to deliver high-quality AR, VR, and Mixed Reality (MR) experience via wireless medium has enabled the integration of MEC and 5G. Such integration is expected to offer attractive growth prospects in the market over the next few years. Combining multi-access edge computing infrastructure with VR/AR has led to major improvements in the broadcasting of sports and entertainment, thus enhancing users’ viewing experience. For instance, sports enthusiasts can now enjoy real-time, high-quality footages of live matches from different angles, all of which are facilitated by the use of MEC techniques.

Furthermore, multi-access edge computing has gained utmost importance in mining and energy and utility industries. Offshore mining facilities traditionally used satellite communications as their primary communications medium along with cloud computing and hybrid storage methodologies for data transfer and processing, which resulted in the loss of time and resources. Such loss of resources has led the end-use industries to engage in efficient communications and storage mediums to analyze large quantities of data usually generated at remote locations. The adoption of multi-access edge computing techniques offers the opportunity to control devices and sensors from a distance. Rapid automation of processes using several sensors and robots, due to the advent of Industry 4.0 and the ability to control mining processes at distant locations further emphasizes the need to use multi-access edge computing technology at scale.

Solution Insights

The presence of several IoT devices in MEC-based ecosystem facilitates the need to have dedicated software that works and functions according to the available multi-access edge computing architecture. The growing need to use the software as per the given ecosystem to exercise multi-level load-balancing, distributed processing, and content synchronization is promoting the growth of the software segment. Additionally, solution providers, such as Verizon, have started offering software developer kits to its customers, thus allowing in-house teams to develop programs that are in-line with the company’s needs and requirements. Furthermore, these companies also provide predesigned software compatible with existing multi-access edge computing architecture of companies and ensure optimum processing capability, thereby stimulating multi-access edge computing market growth.

The hardware segment captured more than 33% revenue share in 2019. The rapid increase in the number of connected devices and accompanying need to engage in real-time decision making is paving the way for the adoption of enhanced data centers and servers. Companies have started offering advanced Telecommunications Computing Architecture (TCA) hardware platforms for enterprises and individuals. These platforms are cost-efficient, compact, and can be customized according to the user’s requirements to maintain availability, serviceability, and reliability. For instance, Lanner Electronics has recently rolled out a new hybrid TCA platform that is extremely efficient at access networks and is expected to offer new revenue channels for the company.

End-Use Insights

The IT and Telecom segment captured the largest revenue share in 2019. The commercial rollout of the 5G delivery system offers users to experience ultra-low latency and very high bandwidth for efficient transfer and analysis of data resolution, which is expected to further promote companies to leverage MEC practices. Additionally, IT hardware and software companies are coming up with new low-power products for IoT systems and networks, which is expected to boost sales and generate new revenue channels. For instance, AT&T Inc. has started providing MEC-based products, services, and solutions to its clients, according to their needs and requirements.

The datacenters segment captured significant revenue share in 2019, owing to a higher degree of flexibility in data center deployment, offered by multi-access edge computing architecture. Furthermore, changing trends in data center deployment are promoting networks and operators to leverage an agile approach to develop environments and infrastructures based on a distributed architecture. MEC-based micro data centers are expected to facilitate a paradigm shift in deployment methods of data centers. The ability to deploy data centers that are clustered with several small and medium devices such as mobile phones, wearables, IoT devices, and gateways is expected to encourage the MEC market growth.

Regional Insights

North America emerged as the market leader with more than 45% revenue share in 2019. The Federal Communications Commission (FCC) in the U.S. has implemented strategic initiatives, such as the 5G FAST PLAN, which is envisioned to accelerate 5G deployment in the country. The acceleration of 5G deployment is expected to increase the demand for multi-access edge computing solutions over the next few years. Furthermore, increasing datacenter installations have enabled solution providers to integrate multi-access edge computing and 5G, thereby boosting the regional market growth. Increasing datacenter deployments have given rise to partnerships and collaborations between several companies to enhance edge computing capabilities in their product and solution portfolio. Communication infrastructure provider Vertical Bridge Holdings LLC partnered with DataBank Ltd. to develop micro data centers with edge computing capability.

The Asia Pacific region captured significant revenue share in 2019. Companies in the region are offering the combined functionality of cloud computing and edge computing solutions to extend multi-access edge computing architecture for commercial services. Major telecom companies such as SK Telecom Co., Ltd. in South Korea, China Mobile Limited, China Unicom (Hong Kong) Limited, and China Telecom Corporation Limited have started deploying regional edge centers. These companies are keen on constructing large-scale edge-cloud networks and are engaged in multi-access edge computing pilot projects. Such initiatives undertaken by key players are contributing to the regional growth.

Multi-access Edge Computing Market Share Insights

ADLINK Technology Inc.; Microsoft Corporation; Advantech Co, Ltd.; FogHorn Systems; Hewlett Packard Enterprise Development LP; and Saguna Networks Ltd. are some of the major players in the market. Organizations worldwide have started collaborating with other companies to enhance their service offerings and generate new revenue streams. New entrants in the market, such as FogHorn Systems, are disrupting the industry by integrating AI into their platforms, thus offering better decision-making ability and functionality. Additionally, established players, such as Hewlett Packard, are increasing investments to innovate newer and better products by incorporating intelligent edge technology in their products.

As mobile edge computing is one of the emerging technologies, independent software providers, public cloud service providers, industrial automation, and networking companies are entering the multi-access edge computing landscape. Startups and new entrants are focusing on establishing themselves as key enablers by developing innovative techniques and solutions. Saguna Networks, Ltd. and Vapor IO are such companies with the latest advancements in the field of edge and cloud computing. Saguna Networks has developed a technique to support edge computing on a communication network, whereas Vapor IO is building next-generation edge and hybrid cloud.

Additionally, established players are signing agreements to join a group of companies that aim to promote multi-access edge computing practices. For instance, Huawei Technologies Co, Ltd. recently joined the Edge Computing Consortium Europe (ECCE), which is expected to provide a co-operative platform for IT companies to accelerate smart city development. The company also introduced an Edge-Computing-IoT (EC-IoT) solution for easier network management on cloud.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global multi-access edge computing market report based on solution, end use, and region.

• Solution Outlook (Revenue, USD Million, 2016 - 2027)

  • Hardware

  • Software

  • Services

• End-Use Outlook (Revenue, USD Million, 2016 - 2027)

  • IT & Telecom

  • Smart Cities, Smart Homes, & Smart Buildings

  • Datacenters

  • Energy & Utilities

  • Automotive

  • Others (Healthcare, Agriculture)

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA