DUBLIN--(BUSINESS WIRE)--The "Mobile Edge Computing Market - Growth, Trends, Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
The Mobile Edge Computing Market was valued at USD 186.2 Million in 2019, and it is estimated to be worth USD 736.18 Million by 2025, registering a CAGR of 26.4% during the forecast period (2020 - 2025).
Enterprises across industries are beginning to drive new levels of performance and productivity by deploying different technological innovations, like sensors, and other data-producing and collecting devices, along with analysis tools. Traditionally, data management and analysis are being performed in the cloud or data centers. However, the scenario seems to be changing with the increasing penetration of network-related technologies and initiatives, such as smart manufacturing, smart cities, etc.
- Although the adoption is presently not common, over the forecast period, some large enterprises, especially across industries, such as telecom and manufacturing, are expected to use mobile edge computing (MEC), especially concerning IoT. With more than 50 billion connected devices expected, Huawei predicts that, by 2020, over 50 % of data may be analyzed, processed, and stored at the network edge.
- As enterprises embrace these new technologies, the need to analyze essential data in near real-time has become more critical to adopt the adopted technologies. The demand has become vital across many industries, including manufacturing, healthcare, telecommunications, and finance. Moreover, the explosion of data (according to SharesPost, more than 150 zettabytes (150 trillion gigabytes) of data is estimated to be generated by 2025) pushed the need further. It made factors, like network latency, very critical.
- Furthermore, with the current 4G networks reaching their maximum limit, 5 G is going to have to have to manage online traffic far more intelligently, in which mobile edge computing will play a significant role. With the management of the data load, MEC is expected to play a substantial part in reducing latency for 5 G networks.
- Moreover, in March 2020, Google announced its vision for enabling telecommunication providers to provide business services through 5G networks. Through the Global Mobile Edge Cloud (GMEC) strategy, Google and telecom companies will offer unique applications and services running at the edge delivered via the 5G networks.
- In March 2020, Four operators, Telefonica, KT, China Unico, and Telstra, started work with technology company Altran to develop and test software solutions that they will then submit to open source and standards organizations developing mobile edge computing (MEC) standards. The initiative, which is called as the Multi-Operator Multiaccess Edge Computing (MEC) Experience, is part of the GSMA Operator Platform project.
- However, it is delayed due to the global lockdown caused by COVID-19. The pandemic has negatively affected the market studied due to the shutdown of operations of companies globally. Three interrelated technologies, the internet of things (IoT), 5G, and edge computing, are expected to see a large stall in spending, which will affect the market to a certain extent.
Key Market Trends
Telecommunication is Expected to Hold Major Share
- Telecommunications is one of the fastest evolving industries in the global market. It is currently in the process of upgrading its infrastructure to prepare for the 5G transition, which makes it a suitable time for telecom end-users to invest in the mobile edge computing resources.
- With the rise in an enormous amount of data, generated from millions of subscribers streaming terabytes of videos, music, and social networking every day, enterprises are facing high network load, and increasing demand for network bandwidth is expected to cater by the increase in the spectrum bandwidth along with ultra-low latency rate.
- As 5G deployment is gaining traction worldwide, MEC architecture is evolving quickly to keep up with the expansion of 5G networks. Companies in the market are integrating MEC with 5G to distribute networking demands effectively.
- Tremendously improved capabilities could be handled on an exponentially increasing number of connected devices, enabling a wide range of latency and bandwidth dependent, cross-industry technologies and applications including artificial intelligence (AI) and the Internet of Things (IoT), machine learning, autonomous vehicles, connected cars.
- In March 2019, SK Telecom announced the launch of its 5G Mobile Edge Computing Open Platform'. By opening up the 5G Mobile Edge Computing Platform', SK Telecom will secure the basis for expanding the MEC-related ecosystem and accelerating the release of 5G services.
Industry Attractiveness - Porter's Five Force Analysis
- Widespread Adoption and Growth of Latency -specific Applications
- Rising Application of 5G & Industrial IoT Services Among End-user Industries
- Lack of a Common Security Framework
- SK Telecom Co. Ltd.
- Nokia Corporation
- Telefonaktiebolaget LM Ericsson
- Saguna Networks Ltd.
- AT&T Inc.
- Huawei Technologies Co. Ltd.
- ADLINK Technology Inc.
- SMART Embedded Computing (Artesyn Embedded Technologies)
- ZephyrTel Inc. (ESW Capital Group Company)
- Quortus Limited
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