San Francisco, USA: Global Industry Analysts (GIA) new report estimates the global mobile edge computing market to reach $2.2 billion by 2026. The study titled “Mobile Edge Computing – Global Market Trajectory & Analytics” shares insights on opportunities and challenges in a significantly transformed post-COVID-19 marketplace.
Global Mobile Edge Computing Market to Reach $2.2 billion by 2026
Mobile edge computing, also popular as multi-access edge computing, represents an advanced edge computing option intended to bring cloud storage and computing closer to the network edge for sophisticated capabilities.
The origin of mobile edge computing architecture can be attributed to the European Telecommunications Standards Institute (ETSI) initiative that places edge nodes on mobile and fixed networks. The concept allows processing in central offices, bases stations and other key aggregation points on a network.
The execution and processing of applications closer to cellular networks lead to network de-congestion, reduced latency, better user experience and enhanced performance. Mobile edge computing allows faster and more flexible deployment of various services and applications for customers.
The technology combines telecommunication networking and IT to help cellular operators in opening radio access networks (RANs) for authorization of third parties such as content providers and application developers. The access to cloud services and resources also allows the emergence of new applications to support smart environments.
Amid the COVID-19 crisis, the global market for Mobile Edge Computing estimated at $427.3 million in the year 2020, is projected to reach a revised size of $2.2 billion by 2026, growing at a CAGR of 30.8% over the analysis period.
Hardware, one of the segments is projected to record 29.3% CAGR and reach $2 billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the software and services segment is readjusted to a revised 35.4% CAGR for the next 7-year period.
The U.S. market is estimated at $242.5 million in 2021, while China is forecast to reach $173.5 million by 2026
The Mobile Edge Computing market in the U.S. is estimated at $242.5 million in 2021. China is forecast to reach a projected market size of $173.5 million by the year 2026 trailing a CAGR of 35.8% over the analysis period.
Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 25.9% and 29.1% respectively over the analysis period. Within Europe, Germany will grow at approximately 27.3% CAGR.
The market is presently witnessing steady growth also fuelled by the factor of aggressive investment of market players in developing cutting-edge technologies and providing more effective solutions to consumers.
Factors including growing load on global cloud infrastructure and increase in intelligent application numbers are also fuelling market growth for mobile edge computing. The growing need for enhancing QoE (Quality of Experience) for end-users and increasing ultra-low latency demand are also fuelling demand growth for MEC solutions.
MEC aids real-time applications in the processes of data analysis and processing. 5G network and the emergence of several new languages and frameworks for IoT solutions would also offer major market growth opportunities over the coming years.
Location-based services are expected to deliver one of the strongest growths of all services over the upcoming years. Mainly because of greater efficiencies, reduced costs and increasing requirement of enterprises to provide enhanced QoE.
Nonetheless, mobile edge computing necessitates more hardware locally which leads to an increase in maintenance cost, a factor with the potential to hinder anticipated growth for the market.
Also, despite being fairly safe, edge computing necessitates constant updating and monitoring because cyber-attacks are also becoming increasingly sophisticated.
There is also a dearth of skilled labour for handling the technology which is highly complex. Lack of deployment capability and required infrastructure could also restrain growth in the market.