Global Multi-access Edge Computing Market By Solution (Software, Hardware and Services), By End User (Telecom & IT, Data Centers, Automotive, Smart Cities, Smart Homes, & Smart Buildings, Energy & Utilities, and Others), By Regional Outlook, COVID-19 Impact Analysis Report and Forecast, 2021 - 2027
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Market Report Description
The Global Multi-access Edge Computing Market size is expected to reach $16.7 billion by 2027, rising at a market growth of 39.1% CAGR during the forecast period. Multi-access edge computing (MEC) is a part of edge computing that uses the potential of IT service and cloud computing by bringing it close to the edge of the network. The network edge is able to store, process and examine the data rather than transferring the whole data to the cloud for processing in traditional techniques. After the processing of data in the network edge keeping the customer in proximity, the produced data helps in providing real-time performance particularly, to high bandwidth applications such as Industry 4.0 and connected cars.
The environment of IT services and cloud computing holds a high bandwidth along with ultra-low latency and real-time access to Radio Network Information. Multi-access edge computing allows the software applications to get local content related to the local access network conditions, and real-time information. MEC is majorly working on the basic principle of diminishing the network crowding by directly processing data closer to the customer instead of sending it to a centralized cloud. Therefore, it offers distributed computing capabilities for holding different applications and services.
COVID-19 Impact Analysis
The outbreak of the COVID-19 pandemic had a negative impact on almost all industries around the world. The US and global tech market witnessed a significant slowdown in 2020 due to which, major nations like the US have lowered their investment in ICT in the first half of 2020, which is anticipated to negatively impact the growth of the multi-access edge computing market in the forecasting years. Additionally, spending on systems integration services and tech consulting witnessed a temporary slowdown.
Whereas, organizations from different industries are now recognizing the value and advantages of multi-access edge computing that would have helped them during the pandemic. Therefore, it is anticipated that several business owners will begin to scale up their digital transformation efforts and will start aggressively investing in IT and cloud resources in the coming year that will offer lucrative opportunities for the multi-access edge computing market.
Market Growth Factors:
Growing demand for low-latency
MEC is excessively utilized for low-latency communication and ultra-reliable which is an important part of latency-sensitive apps and services for several companies, industrial use, and consumers. The integration of 5G services along with multi-access edge computing helps in reducing network latency and facilitating communication and performance for services like 4K video.
Rising need for improvement in augmented and virtual reality (AR/VR)
Augmented reality helps in merging the view of the real world and computer-generated sensory inputs like GPS data, sound & video, and graphics. It enables the user to see the real world with virtual objects superimposed upon the real world and makes the information interactive and digitally manipulable. Edge computing here is used for the generation of rendering. The processing needed is performed on edge computing rather than on the main server due to the need for high processing speed and low latency.
Market Restraining Factor:
Difficult to prevent and monitor security breaches
Edge computing offers security benefits by reducing the large volume of data to protect at data centers, but along with this, there is a concern for security at each localized point of the edge network. As not every edge device has the same built-in security and authentication abilities that make data more vulnerable to breaches. In addition, the huge volume of data is difficult to be kept secured due to which, security challenges in edge computing are high.
Based on Solution, the market is segmented into Software, Hardware and Services. The integration of various IoT devices in a multi-access edge computing-based ecosystem accelerates the demand for software, which functions and works in accordance with the existing MEC architecture. The requirement to utilize the software according to the existing environment is increasing to practice content management, distributed processing, and multi-level load-balancing, which is contributing to the growth of the software segment.
End User Outlook
Based on End User, the market is segmented into Telecom & IT, Data Centers, Automotive, Smart Cities, Smart Homes, & Smart Buildings, Energy & Utilities, and Others. The data center segment acquired a prominent revenue share in 2020. This surge is attributed to the multi-access edge computing architecture that provided a higher degree of flexibility in the employment of datacenters. In addition, evolving trends in the employment of data centers are allowing networks and operators to leverage an agile approach to enhance infrastructures and environments that are based on a distributed architecture. Additionally, MEC-based micro data centers are anticipated to accelerate the paradigm shift in employment methods of data centers.
|Market size value in 2020||USD 1.5 Billion|
|Market size forecast in 2027||USD 16.7 Billion|
|Historical Period||2017 to 2019|
|Forecast Period||2021 to 2027|
|Revenue Growth Rate||CAGR of 39.1% from 2021 to 2027|
|Number of Pages||206|
|Number of Tables||293|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Solution, End User, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Asia-Pacific holds a prominent market share in 2020. Organizations in this region are providing the integrated functionality of edge computing solutions & cloud computing expand MEC architecture for commercial services. Various telecom companies like China Telecom Corporation Limited, SK Telecom Corporation, China Mobile Limited, Ltd. in South Korea, and China Unicom (Hong Kong) Limited are deploying edge centers in this region. These organizations are looking forward to constructing large-scale edge-cloud networks and are involved in MEC trial projects.
Free Valuable Insights: Global Multi-access Edge Computing Market size to reach USD 16.7 Billion by 2027
KBV Cardinal Matrix - Multi-access Edge Computing Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Amazon.com, Inc. and Microsoft Corporation are the forerunners in the Multi-access Edge Computing Market. Companies such as Hewlett Packard Enterprise Company, Juniper Networks, Inc., ZephyrTel are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Hewlett Packard Enterprise Company, Juniper Networks, Inc., Huawei Technologies Co., Ltd., Amazon.com, Inc., Microsoft Corporation, Adlink Technology, Inc., Advantech Co., Ltd., ZephyrTel, FogHorn Systems and SMART Embedded Computing.
Recent Strategies Deployed in Multi-access Edge Computing Market
» Partnerships, Collaborations, and Agreements:
- Aug-2021: Juniper Networks collaborated with Capital Online, a global data centre, and cloud service provider. Under this collaboration, Capital Online chosen Juniper Networks to make an expanded network infrastructure to complement its ever-growing cloud business and also streamlining network operations management by automation.
- Jun-2021: Amazon Web Services (AWS) entered into a partnership with Vodafone, a British multinational telecommunications company. Under this partnership, Vodafone would initially provide low-latency MEC services to users across London and the surrounding area, along with towns and cities like Cambridge, Oxford, Bristol, and Cardiff. This partnership aimed to release Multi-access Edge Compute (MEC) services provided with AWS Wavelength for Vodafone business clients in the UK.
- Apr-2021: Juniper Networks joined hands with 21Vianet, a leading carrier-neutral data center service provider in China. In this collaboration, 21Vianet implemented Juniper Networks MX Series Universal Routing Platforms utilizing segment routing traffic engineering (SR-TE) protocols to assist in fulfilling the growing demands of data traffic and to support the ever-expanding digital transformation requirements of its customers.
- Apr-2021: Hewlett Packard Enterprise signed a Memorandum of Understanding (MoU) with Globe Telecom, the leading mobile network operator in the Philippines. This MoU aimed to provide low latency cloud services at the edge of its network utilizing HPE’s latest Multi-access Edge Compute (MEC) solution.
- Apr-2021: Amazon Web Services collaborated with Verizon, an American multinational telecommunications conglomerate. This collaboration aimed to introduce a mobile edge computing platform. The integration of the companies reduces the latency and network hops needed to link from an application hosted on AWS to the end user’s device.
- Feb-2021: FogHorn teamed up with IBM, an American multinational technology corporation. This collaboration aimed to enable customers to swiftly implement, store, process, train, and analyze crucial data from the edge to the cloud and improve business processes.
- Feb-2021: Microsoft came into a partnership with Singtel, a Singaporean telecommunications conglomerate. Under this partnership, Singtel would offer its 5G edge computing infrastructure on Microsoft's Azure cloud platform. The partnership aimed to enable Azure users to tap Singtel's Multi-access Edge Compute (MEC) services, along with the telco's 5G network, with a latency of lessthan 10 milliseconds.
- Dec-2020: AWS teamed up with Vodafone, a British multinational telecommunications company. This collaboration aimed to launch distributed multi-access edge computing (MEC), embedded with AWS Wavelength at the edge of Vodafone’s 5G networks to bring users and main applications closer together.
» Acquisitions and Mergers:
- Jul-2021: Hewlett Packard Enterprise came into an agreement to acquire Zerto, an industry leader in cloud data management and protection. This acquisition would expand HPE GreenLake and deliver on HPE Storage’s shift to a cloud-native, software-defined data services business.
- Jan-2021: Juniper Networks took over Apstra, a leader in intent-based networking and automated closed-loop assurance. This acquisition aimed to develop a software solution to abstract the complications and deliver more robust automation and validation capabilities for data center networks.
- Feb-2020: Hewlett Packard Enterprise completed the acquisition of Scytale, an innovative company. This acquisition aimed to showcase HPE’s ongoing transformation to support and contribute to open source projects in the Cloud Native Computing Foundation and elsewhere. Through this acquisition, the company intended to provide services and products, which improve these developments, and deliver their customers and partners with the fastest possible path to application modernization.
» Product Launches and Product Expansions:
- Jul-2021: Advantech introduced a series of i.MX 8M Plus-based products including the EPC-R3720 compact edge AI system, the RSB-3720 2.5” Pico-ITX SBC, and the ROM-5722 SMARC 2.1 COM. Such AI-native platforms contain up to 2.3 TOPS, and support AI and edge computing in smart vision-based edge gadgets, which need a small footprint, high power efficiency, low latency, and advanced precision. Moreover, these solutions provide a highly integrated one-stop service with modular application-oriented I/O expansion boards, UIO40-Express, and AIM-Linux to Vision AI applications.
- Jun-2021: Microsoft introduced new Azure services, bolstered by partners. These services are supporting companies tapping private 5G networks and edge computing services.
- Dec-2020: Microsoft unveiled a new data governance solution in public preview on its cloud platform called Azure Purview. This latest service helps in automating the discovery of data and cataloging along with reducing the compliance risk and assist users map all their data, regardless of its location, to deliver an end-to-end view of their data estate.
- Jun-2020: Hewlett Packard Enterprise unveiled Edge Orchestrator. This product focuses on assisting operators to drive the real 5G opportunity under the business and not consumer usage cases, which helps them to monetize 5G networks and edge infrastructure by providing the latest low-latency cloud services at the edge.
- Apr-2020: Microsoft launched Azure Edge Zones, an infrastructure service. Azure Edge Zones are micro data centers, which are owned and run by Microsoft. In addition, Azure Edge Zones support containers, VMs, and a subset of Azure managed services, which can operate latency-sensitive and throughput-intensive applications, which live close to end customers.
Scope of the Study
Market Segments Covered in the Report:
By End User
- Telecom & IT
- Data Centers
- Smart Cities, Smart Homes, & Smart Buildings
- Energy & Utilities
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Hewlett Packard Enterprise Company
- Juniper Networks, Inc.
- Huawei Technologies Co., Ltd.
- Amazon.com, Inc.
- Microsoft Corporation
- Adlink Technology, Inc.
- Advantech Co., Ltd.
- FogHorn Systems
- SMART Embedded Computing
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What would be the size of the multi-access edge computing market by 2027?
The global multi-access edge computing market size is expected to reach $16.7 billion by 2027.
What are the key driving factors and challenges in the multi-access edge computing market?
Rising need for improvement in augmented and virtual reality (AR/VR) are driving the market in coming years, however, difficult to prevent and monitor security breaches limited the growth of the market.
Who are the leading players in the multi-access edge computing market?
Hewlett Packard Enterprise Company, Juniper Networks, Inc., Huawei Technologies Co., Ltd., Amazon.com, Inc., Microsoft Corporation, Adlink Technology, Inc., Advantech Co., Ltd., ZephyrTel, FogHorn Systems and SMART Embedded Computing.
What has been the impact of COVID-19 on the global multi-access edge computing market?
Organizations from different industries are now recognizing the value and advantages of multi-access edge computing that would have helped them during the pandemic.
Which segment hold the biggest market share?
The IT and telecom segment hold the maximum market share in 2020. The commercial launch of the 5G delivery system provides clients to experience efficient transfer & analysis of large volume data.
Which region dominated the multi-access edge computing market in 2020?
The North America dominated the market by acquiring the largest revenue share in 2020. The various strategic initiatives like the 5G FAST PLAN were taken by the Federal Communications Commission (FCC) to increase 5G deployment in the US.