Multi-access Edge Computing Market Size, Share & Trends Analysis Report By Solution (Hardware, Software, Services), By End-use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global multi-access edge computing market size was valued at USD 1,949.6 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 47.2% from 2022 to 2030. The increasing implementation of IoT devices across industries such as manufacturing, IT and telecom, data centers, transportation, and logistics is projected to drive market development. These industries generate vast amounts of data and demand faster decision-making, thus driving the implementation of Multi-access Edge Computing (MEC) technology. MEC implementation also minimizes latency and provides a safer framework for data transfer, further boosting the technology's adoption across businesses.

Moreover, with the low latency and high throughput provided by MEC applications functioning on 5G networks, the 5G service delivery model provides numerous new B2B solutions by using edge clouds. 5G-enabled MEC also offers advanced end-to-end performance via network slicing, session, security, and service continuity capabilities for ultra-low-latency and reliability, and seamless connectivity. The capacity to crunch enormous volumes of complex telemetry data at the network's edge enables service providers to increase competitive rivalry by enabling new business model modifications. Moreover, the incorporation of 5G with MEC architecture is expected to assist public sector organizations with connectivity and technological solutions, as well as improve initial reaction times.

The MEC market is also benefitting from the rising demand to improve Mixed Reality (MR), Virtual Reality (VR), and Augmented Reality (AR) experiences by increasing bandwidth to develop 5G abilities. In addition, the need to deliver high-quality experiences through a wireless medium has encouraged the integration of 5G and MEC, which is projected to offer the market promising growth prospects over the next few years. Integrating MEC technology with VR/AR has resulted in significant advances in sports and entertainment broadcasting, hence improving users' watching experiences. For example, sports fans may now watch high-quality, real-time footage of live games from a variety of angles due to MEC technology.

MEC has also become crucial in the energy, mining, and utility industries. Offshore mining operations have typically relied on satellite technology as their major form of communication, and also hybrid storage and cloud computing strategies for data processing and transfer, resulting in loss of resources and time. The need for improvement on these fronts has turned end-use businesses into more reliable storage mediums and communications to evaluate massive amounts of data created at remote locations. The use of MEC techniques allows equipment and sensors to be controlled from a distance. Rapid automation of operations using robots and sensors, due to the emergence of Industry 4.0, and the ability to supervise mining activities from distant locations emphasize the need for using multi-access edge technology at scale.

The fusion of edge computing and big data analytics could also offer promising growth prospects to the market. Service providers across sectors such as financial services, manufacturing, energy, and agriculture are increasingly adopting multi-access edge computing to gain better business decision-making capabilities, financial instruments, and competitive intelligence. Big data analytics is being constantly used to build compression-based data reduction to minimize the total volume for better in-network data transfer in data centers and clusters. Furthermore, extraordinary use-cases including MEC integration with unmanned aerial vehicle base stations allow the stabilization of delay in edge nodes to safeguard effective energy-saving capabilities and data analysis.

Solution Insights

The availability of multiple IoT devices inside a MEC-based ecosystem reduces the requirement for specialized software that operates and functions in accordance with the MEC architecture. The need for software capable of offering multi-level load balancing, content synchronization, and distributed processing is boosting the growth of the software segment. Furthermore, solution vendors such as Verizon have begun to offer software development kits to their customers, enabling in-house teams to create programs that are adapted to the demands and objectives of the firm. Furthermore, these businesses also offer pre-designed software that is compatible with an existing MEC architecture and ensures optimal processing capability, hence encouraging market growth.

The hardware segment acquired more than 30% revenue share in 2021. The ubiquity of connected devices and the increased demand for real-time decision-making are encouraging the adoption of improved data centers and servers. Companies have begun to offer enhanced Telecommunications Computing Architecture (TCA) hardware systems for individuals and enterprises. Companies are offering compact, cost-effective, and customizable products to meet the needs of the user to ensure serviceability, availability, and reliability. For instance, Lanner Electronics has launched a hybrid TCA platform that is highly effective in access networks.

End-Use Insights

The telecom and IT segment captured a revenue share of more than 30% in 2021. The commercial applications of 5G-enabled delivery systems provide customers with ultra-low latency and extremely high bandwidth for effective analysis and data transfer, which is expected to encourage businesses to adopt MEC practices.

Furthermore, IT software and hardware firms are creating new low-power solutions for IoT networks and systems that are anticipated to enhance sales and open up new revenue streams. For instance, AT&T Inc. offers MEC-based services, products, and solutions to its customers, customized to their specific needs.

The MEC architecture helps increase the flexibility in data center deployment.  As a result, the data center segment accounted for a prominent market share in 2021. Moreover, evolving data center deployment trends are encouraging network operators to take a more agile approach to developing distributed architectures and infrastructures. Microdata centers based on MECs are intended to promote a paradigm shift in data center deployment techniques. The ability of the technology to create data centers that are linked with a variety of small and medium devices, such as wearables, mobile phones, gateways, and IoT devices, is likely to promote market growth.

Moreover, the rising numbers of smart building applications and smart cities offer a variety of opportunities to players in the market, especially in areas such as image recognition, video analytics, and facility management end-use. While industries like retail and healthcare are still in the early stages of MEC adoption, some major companies are conducting deployment trials and are focusing on Proof of Concept (POC); these companies are expected to adopt MEC extensively in the near future.

Regional Insights

North America emerged as the market leader with more than 43% revenue share in 2021. The Federal Communications Commission (FCC) of the U.S. has adopted strategic initiatives, like the 5G FAST PLAN, which intends to speed up 5G deployment in the country. The rapid adoption of 5G is projected to drive the need for multi-access edge computing solutions in the coming years. Additionally, the increasing data center installations due to cloud adoption allowed the solution providers to incorporate edge computing and 5G, thereby enhancing the market growth of the region. Increased data center deployments have encouraged several companies to form alliances and collaborate to improve edge computing capabilities in their solution and product portfolios. For Instance, Vertical Bridge, REIT, LLC., a provider of communication infrastructure, collaborated with Databank, Ltd. to create micro data centers with edge computing capabilities.

The Asia Pacific captured a substantial revenue share in 2021. Companies in the region are delivering solutions that integrate cloud computing with edge computing capabilities to enhance MEC architecture for commercial services. Key telecom companies such as China Unicom (Hong Kong) Limited, China Mobile Limited, China Telecom Corporation Limited, and SK Telecom Co., Ltd. in South Korea, have started installing regional edge centers. These firms are working on MEC pilot projects and are interested in building large-scale edge-cloud networks. Such initiatives by leading market players are favoring the growth of the regional market.

Biometrics, face recognition, cost reduction, and interactive gaming in backhaul investments are some of the other important applications of MEC in vital real-time applications that are pushing its wide-scale adoption in the Asia Pacific regional market.

Key Companies & Market Share Insights

Establishments globally are joining forces with other companies to develop their service offerings and create new revenue streams. New entrants in the market, including FogHorn Systems, are disrupting the market by incorporating AI into their platforms, allowing for enhanced decision-making and functionality. Furthermore, established businesses such as Hewlett Packard Enterprise Development LP are growing their investments in intelligent edge technology to develop newer and better solutions.

Independent public cloud service providers, networking firms, industrial automation, and software suppliers, are entering the MEC market to exploit the promising growth opportunities the evolving technology market offers. New entrants and startups are working on developing innovative strategies and solutions to establish themselves as important facilitators. Vapor IO and SAGUNA are two such companies providing the latest cloud and edge computing technologies. Vapor IO has designed hybrid cloud and next-generation edge, whereas SAGUNA has created a technology to enable edge computing on a communication network.

Furthermore, due to the COVID-19 pandemic, the telecom sector has witnessed a high demand for video conferencing software such as Microsoft Teams and Zoom. In response to the increasing demand, several companies are releasing new solutions. For instance, Amazon Web Services and SK Telecom Co., Ltd. partnered and launched edge cloud services built on 5G MEC. Businesses are exploring new opportunities by investing in research and development to deliver new services in the market.

Additionally, leading companies are collaborating with businesses dedicated to promoting multi-access edge computing. For instance, Huawei Technologies Co., Ltd. partnered with the Edge Computing Consortium Europe (ECCE), a collaborative platform for IT businesses, to drive smart city development. The company also unveiled an Edge-Computing-IoT (EC-IoT) solution for cloud-based network management. Some of the prominent players working in the global multi-access edge computing market are:

• ADLINK Technology Inc.

• Advantech Co., Ltd.

• FogHorn Systems

• Hewlett Packard Enterprise Development LP

• Huawei Technologies Co., Ltd.

• Juniper Networks, Inc.

• SAGUNA

• SMART Embedded Computing

• Vapor IO

• Skyvera

Multi-access Edge Computing Market 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 2018 to 2030. For 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, 2018 - 2030)

  • Hardware

  • Software

  • Services

• End-Use Outlook (Revenue, USD Million, 2018 - 2030)

  • IT & Telecom

  • Smart Cities, Smart Homes, & Smart Buildings

  • Datacenters

  • Energy & Utilities

  • Automotive

  • Others (Healthcare, Agriculture)

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA