Multi-access Edge Computing Market Size, Share & Trends Analysis Report By Solution (Hardware, Software, Services), By End-use (IT & Telecom & Smart Buildings, Datacenters, Energy & Utilities), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global multi-access edge computing market size was valued at USD 2.52 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 49.1% from 2023 to 2030. The market is expected to gain massive momentum in the coming years, due to the growing demand for the digital transformation of industries, with digitization being the foundation, network-based connectivity being the support, and industrial intelligence. MEC refers to a distributed computing architecture that brings computation and storage capabilities closer to the end-users and devices, such as smartphones, IoT devices, and autonomous vehicles. MEC addresses the increasing demand for low-latency, high-bandwidth, and high-reliability applications, such as augmented reality, virtual reality, gaming, and industrial automation.

Continued adoption of the latest technologies such as the Internet of Things (IoT) and big data across various sectors, including education, healthcare, manufacturing, and the government has generated large volumes of data. As a result, computing is getting more complex, as the volumes of data being handled are increasing. The increasing penetration of cloud services and IoT is expected to impact the industry’s growth over the forecast period positively. Additionally, the key driving factors boosting the growth of software and devices include the growing need for real-time interaction with incoming data and the limitations of bandwidth availability.

MEC envisages leveraging local computing power using devices such as routers, smartphones, and PCs. It offers several benefits and helps in processing the data at faster rates with reduced latency, thereby optimizing costs and providing real-time information. MEC is scalable as it can potentially utilize its computing capabilities to meet contextual computing requirements. This capability has thus provided an impetus to the adoption of edge computing solutions among enterprises.

The MEC deployment in numerous application segments is predicted to go hand-in-hand with heavy network traffic applications, which in many cases culminates in 5G. An important point to be considered in understanding the potential growth for MEC is the number of MEC appliances needed for each application and the functionalities expected from the edge infrastructure. For example, the edge infrastructure for automotive applications (V2X) will need higher computing power as compared to the MEC appliance in retail applications. However, the sheer number of MEC appliances in retail would outnumber those in V2X. The cost, criticality of information, and speed are some of the key parameters that will define the adoption of MEC in the coming years.

The emergence of different technologies and applications is expected to change traditional systems to improve efficiency and latency. For instance, the constant technological upgrades in electric vehicles are expected to overtake traditional combustion engine vehicles and conventional vehicles. Key players, including Tesla, Volkswagen, BMW, Engie, Siemens, and ABB, among others, are actively participating in the development of the global Electric Vehicle (EV) market, recognizing the necessity to serve future EV customers as well as the enormous growth potential.

These businesses provide solutions that emphasize accessibility, efficiency, and enhanced end-user experiences. MEC helps to intelligently limit the amount of data that is sent out, lowering data transmission costs and reducing the quantity of sensitive data that leaves the vehicle. MEC will play a critical role in providing real-time, precise energy load control, which is critical for grid stability, especially in emergency scenarios.

Solution Insights

Based on the solution, the software segment dominated the market in 2022 with a revenue share of 48% and is expected to grow at a CAGR of 50.9% during the forecast period. The software provides a platform for virtualizing the network functions and services that run on edge servers. Virtualization software enables operators to deploy and manage virtualized network functions (VNF) at the edge, such as firewalls, load balancers, and content delivery networks.

This software enables greater flexibility and scalability compared to hardware-based solutions, as VNFs can be easily deployed, scaled, and upgraded per the requirements. This software runs on edge servers and provides a platform for deploying and managing applications at the edge, it enables developers to create and deploy applications that require low-latency and high-bandwidth connectivity, such as augmented reality, virtual reality, and gaming. Edge computing software solutions can also provide analytics and real-time processing capabilities for data generated by IoT devices.

End-use Insights

Based on end-use, the IT & telecom segment dominated the market in 2022 with a revenue share of 29% and is expected to grow at a significant pace over the forecast period. The telecom industry is a significant end-user of MEC, as it enables them to provide low-latency and high-bandwidth services to their customers. MEC allows telecom operators to move computing and storage closer to the end-users, enabling faster delivery of services. The IT industry is also showing increasing adoption of MEC to provide better services to their customers. It enables IT service providers to deploy applications and services at the edge, enabling faster processing and analysis of data generated by IoT devices. Additionally, MEC can provide real-time analytics and insights, enabling IT service providers to deliver better services and user experiences.

Rising demand amongst consumers to gain access to personalized and premium content and changing lifestyle habits have resulted in a significant increase in content consumption on mobile devices. This is promoting mobile networks to produce more video, thus generating large chunks of user data, which can be leveraged to analyze and offer a better-personalized experience. Furthermore, the rise in the number of mobile devices and the demand to meet users’ needs is pushing service providers to improve their network infrastructure. Additionally, data transfer from its generation point to the processing data center is impacted by factors such as packet loss and results in a reduction of bandwidth, which can be mitigated by the adoption of mobile edge computing technology.

Regional Insights

Based on region, North America accounted for the largest market share of more than 40% in 2022 as the region becomes one of the early adopters of the 5G network, and the number of IoT devices is expected to increase significantly. The U.S. is the region's largest market owing to major players in end-use industries. The telecommunication industry is a major contributor to the market's growth as technology is essential for end-users and consumers. The healthcare industry also plays a significant role in market growth as technology can provide faster and more accurate medical data analysis, leading to better patient outcomes. In addition, the manufacturing industry is adopting MEC technology to improve production efficiency and reduce operational costs.

Followed by North America, Asia Pacific accounted for a sizable market share in 2022. The market across the region is likely to witness growth at a CAGR of nearly 55% during the forecast period. Companies in the region are providing solutions that integrate cloud computing with edge computing capabilities to enhance multi-access edge computing architecture for commercial services. For instance, in March 2021, Bridge Mobile Pte. Ltd., a business alliance of 34 major mobile telecommunications companies, demonstrated Asia-Pacific's first multi-access edge computing for cloud gaming. It involved SK Telecom Co., Ltd.'s and Singtel's MEC platforms.

Key Companies & Market Share Insights

The key players in the multi-access edge computing market include ADLINK Technology Inc.; Advantech Co., Ltd.; Hewlett Packard Enterprise Development LP; and Huawei Technologies Co., Ltd. Various 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 major companies in the MEC market include a list of telecom infrastructure equipment providers, core MEC platform providers, and core network & transport network providers. Huawei Technologies Co. Ltd. is yet another leading player offering MEC solutions. The company has maintained its position as the leading player by providing several innovative and cutting-edge solutions, which offers the company a competitive advantage. In January 2023, Advantech Co., Ltd. announced the launch of an NVIDIA Jetson AGX Orin-based AI computer system called MIC-733-AO.

The MIC-733-AO provided better computing power, versatile video input support, and wireless connectivity and was created for the emerging trend of Video + AI + 5G application. Furthermore, in March 2022, ADLINK Technology Inc. partnered with ANSCENTER, an AI development company based in Australia. The software development expertise of ANSCENTER complements ADLINK's portfolio of AI solutions and focuses on hardware. The two organizations have a combined vision of developing AI technology and offering end-to-end deployment solutions.

Hewlett Packard Enterprise Development LP is one of the leading players offering MEC solutions. HPE's MEC solution is simple to deploy at 5G edge sites, local offices, and customer sites, bringing computing services closer to the customer. In April 2021, Hewlett Packard Enterprise (HPE) partnered with Globe Telecom Inc., a telecommunications company in the Philippines, to provide low-latency cloud services at the edge of its network. Through this merger, HPE's MEC solution offers telecom companies a multi-vendor, multi-cloud edge application management platform. Organizations and enterprises can use their on-premises apps and data digitally for specific requirements with solutions such as the HPE GreenLake edge-to-cloud platform, which helps accelerate deployment, innovation, and business outcomes Some prominent players in the global multi-access edge computing market include:

• ADLINK Technology Inc.

• Advantech Co., Ltd.

• FogHorn Systems Inc.

• Hewlett Packard Enterprise Development LP

• Huawei Technologies Co., Ltd.

• Juniper Networks, Inc.

• Saguna Network Ltd.

• SMART Embedded Computing

• Vapor IO

• ZephyrTel

Recent Development

• In July 2023, ADLINK Technology Inc. unveiled the launch of the ROScube RQX-59 Series, a line of products categorically designed to reinforce the fields of robotics, Autonomous Mobile Robots (AMR), and autonomous driving. This exceptional solution highlighted a remarkable advancement in intelligent automation and represented the increasing importance of edge computing and AI-driven solutions in autonomous driving and robotics.

• In July 2023, Advantech announced the launch of SOM-2533, a high-performance module that features Intel's Core i, Celeron, Pentium, and Atom x7000 processors. With its brilliant computational power, cutting-edge design-in-service, and comprehensive I/O support, the module is an appropriate choice for a range of applications including medical, transportation, industrial control, and automation, which are pertinent to the multi-access edge computing market.

• In July 2023, ADLINK Technology Inc. introduced the SuperCAT, a software-defined EtherCAT motion controller. This new product launch demonstrated the company’s expertise in motion control technology and signified its commitment to the ever-evolving advancements in the multi-access edge computing arena.

• In June 2023, Hewlett Packard Enterprise (HPE) introduced an AI-driven cloud for large language models (LLM). The HPE GreenLake for LLMs delivers enterprises with the capability to privately train, tune, and implement large-scale AI models leveraging the company’s AI software and supercomputers, which thereby boosts innovation in the multi-access edge computing market.

• In June 2023, Advantech launched the TREK-60N, an edge AI dual-system computing platform designed for high-performance computing in severe environments, especially for deployment in in-vehicle applications. The platform is integrated with an Intel Core processor and an NVIDIA Jetson Orin NX, delivering substantial computing power and AI acceleration & multi-access edge computing capabilities.

• In May 2023, Juniper Networks announced a strategic partnership with ServiceNow for delivering end-to-end automation for Enterprises and Managed Service Providers. This deal was aimed at redefining the potential for end-to-end automation, improving experiences, lowering costs, and streamlining operations for both Service Providers and Enterprise customers in the multi-access edge computing industry.

• In April 2023, Stratus Technologies, Inc. (a part of SMART) announced the next generation of its Stratus ftServer fault-tolerant computing platforms. These platforms are specifically designed for implementing advanced software and supporting edge-core-cloud data architectures in line with the requirements of the MEC space.

• In April 2022, HPE teamed up with Maxis to be Malaysia’s first provider of multi-access edge computing as a digital solution for enterprises.

Multi-access Edge Computing Market Report Scope

Global Multi-access Edge Computing Market Report Segmentation

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

    • UK

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa