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The mobile edge computing market size is estimated to grow by USD 3.54 billion at a CAGR of 46.12% between 2023 and 2028. In today's digital age, businesses and individuals are generating unprecedented amounts of data. This surge in data traffic necessitates advanced computing solutions that can handle large volumes of information with minimal latency. Furthermore, the proliferation of Internet of Things (IoT) devices is adding to the demand for low latency computing. IoT devices require real-time processing and analysis of data to ensure optimal performance and efficiency. Companies that can provide reliable, high-performance computing solutions with low latency will be well-positioned to meet the demands of this data-driven world. Our company specializes in providing such solutions, enabling our clients to process and analyze their data quickly and efficiently, thereby gaining a competitive edge.
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Mobile Edge Computing (MEC), also known as Multi-Access Edge Computing, is an innovative technology that brings IT services closer to the end-users by deploying computing resources at the edge of cellular networks. This technology addresses the issue of network congestion in the traditional cloud computing environment by processing data closer to the source, rather than sending it to a distant data center. The market is expected to grow significantly due to the increasing demand for low latency, high-quality services in sectors like Health, Autonomous vehicles, and Connected automobile infrastructure. The integration of AR and VR technologies with 5G networks and IoT solutions is also fueling the growth of the market. Cellular MEC technology enables Mobile Network Operators to offer Cloud computing capabilities directly from cellular base stations, enhancing the Quality of Experience for users. The Telecom industry is increasingly adopting 5G networks to support the growing demand for high-speed, low-latency services, making Mobile Edge Computing an essential component of the telecommunications networking landscape. The Radio access network plays a crucial role in Mobile Edge Computing by providing the necessary connectivity between the edge servers and end-users. The integration of 4G and 5G networks with Mobile Edge Computing is expected to accelerate the growth of the market, enabling new applications and use cases. Overall, the market is poised for significant growth, driven by the increasing demand for low-latency, high-quality services in various industries and the adoption of advanced technologies like 5G networks, IoT solutions, and Cloud services. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increase in data traffic is notably driving market growth. Mobile edge computing is an emerging technology that integrates Internet of Things (IoT) devices, such as routers, integrated access devices, routing switches, multiplexers, cloud services, and resources, into the mobile network. This innovation enables end-users to leverage the computing capabilities available at the mobile edge networks, reducing latency and enhancing the performance of real-time, compute-intensive applications.
Furthermore, the telecom industry, manufacturing, government and defence, energy and utilities, and other sectors are adopting mobile edge computing to simplify data analytics and access local content in real-time. With the deployment of 4G and 5G networks, mobile edge computing is expected to play a significant role in delivering cloud services closer to the end-users, thereby reducing the dependency on traditional data centers. Furthermore, artificial intelligence (AI) and machine learning algorithms can be executed at the edge, enabling faster decision-making and improved operational efficiency. Thus, such factors are driving the growth of the market during the forecast period.
Strategic collaboration among market participants is the key trend in the market. The market is witnessing significant investment from various industries, including information technology solutions, telecommunication network infrastructure, banking and finance, healthcare, utilities, and semiconductor integrated circuits. Governments are also collaborating with market participants to accelerate the deployment of 5G technology, which is anticipated to be a game-changer for mobile edge computing. Mobile cloud computing, a key mobile edge computing service, is expected to be highly valued among mobile users due to its quicker processing power and smaller form factors. .
Furthermore, the transition from 4G to 5G networks will enable network transmission speeds of unprecedented magnitudes, further enhancing the value of mobile edge computing. The telecom industry, Internet of Things (IoT), and energy and utilities sectors are expected to be major contributors to the growth of the market. Cloud services and artificial intelligence are also expected to be integral components of mobile edge computing, providing real-time data processing and analysis capabilities. Thus, such trends will shape the growth of the market during the forecast period.
High deployment cost of 5G technology is the major challenge that affects the growth of the market. Mobile edge computing, which extends cloud computing capabilities closer to the source of data generation, is gaining traction in various industries, including manufacturing, government and defence, energy and utilities, and the telecom industry. The integration of 5G networks is a significant driver for mobile edge computing, as it provides the necessary bandwidth for real-time data processing and analysis. The Internet of Things (IoT) is another key factor fueling the market growth, as it generates vast amounts of data that require immediate processing and analysis.
However, the high acquisition cost of 5G technology and mobile edge computing infrastructure is a major restraint for the market. The installation cost of small cell networks and security concerns for remotely placed outdoor power systems are also challenges that need to be addressed. Despite these challenges, large organizations are investing in mobile edge computing and cloud services to reduce latency and improve efficiency. Data centers are being upgraded to support edge computing, and artificial intelligence is being integrated to enhance the capabilities of edge computing systems. The telecom industry is expected to play a crucial role in the growth of the market by providing the necessary infrastructure and services. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ADLINK Technology Inc. - The company offers mobile edge computing services such as 5G which is 10 times faster than its predecessor and drives latency down to 1ms.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth of the hardware segment will be significant during the forecast period. Mobile edge computing, a subset of cloud computing, refers to the delivery of IT services within the network proximity of cellular base stations, enabled by Cellular MEC (Multi-access Edge Computing) technology. This technology addresses network congestion issues by enabling computational offloading and content delivery closer to end-users.
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The Hardware segment was valued at USD 182 million in 2018. The IT and telecom industry's adoption of edge computing is expanding across various sectors, including healthcare, entertainment, smart venues, smart enterprises, and IoT deployments. Hardware components, such as processors, servers, switches, routers, and end devices, are essential for mobile edge computing. These components must be rugged and high-performance to withstand harsh environments and ensure real-time data processing. The market for mobile edge computing hardware is anticipated to grow significantly due to the increasing demand for hyper-connectivity, edge devices, and advanced technologies like AR, VR, and 5G. Moreover, the collaboration between professional associations, universities, and micro-experts is driving innovation in edge computing. Key players in the market include Telecommunications networking and IT companies, Media and Entertainment firms, and Mobile Network Operators. Quality of Experience is a critical factor in the success of edge computing, and edge video caching, collaborative computing, and autonomous vehicles are some of the applications driving its growth. IoT solutions, such as connected cars and smart grids, are also expected to contribute significantly to the market's expansion.
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North America is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Mobile Edge Computing (MEC), a key component of IT service environment, leverages Cloud computing technologies and telecommunications networking to deliver computational services closer to the end-users, primarily through cellular networks. Cellular MEC technology, implemented at cellular base stations, enables computational offloading, content delivery, edge video caching, collaborative computing, and more. This approach addresses network congestion issues, enhancing the Quality of Experience for users in sectors like Health, Entertainment, Media and Entertainment, IoT deployments, and more. Industries such as Smart Venues, Smart Enterprises, Healthcare, Connected Cars, and Smart Grids are increasingly adopting MEC technology. Edge devices, including hardware and software, play a crucial role in this hyper-connectivity ecosystem. Service providers, including Mobile Network Operators, Professional Associations, and University studies, are collaborating to drive innovation in this space. MEC technology also supports emerging technologies like AR, VR, and 5G, enabling autonomous vehicles and connected automobile infrastructure. IoT solutions and 5G technologies are expected to further fuel the growth of this market.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Edge Computing Market: Edge Computing Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, UK, Japan - Size and Forecast
Edge Data Center Market: Edge Data Center Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast
Military Mobile Computing Systems Market: Military Mobile Computing Systems Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Russia, India, UK - Size and Forecast
Mobile Edge Computing (MEC), also known as Multi-Access Edge Computing, is a groundbreaking IT service environment that brings computing power closer to the end-users, leveraging cellular networks to deliver faster and more efficient services. This technology addresses the issue of network congestion by performing computational tasks and content delivery at the edge of the network, near cellular base stations. MEC is transforming various industries, including Health, Entertainment, and IT and Telecom, by enabling real-time data processing and analysis. It plays a crucial role in the era of hyper-connectivity and IoT deployments, where the need for quick response times and low latency is paramount.
Furthermore, cellular MEC technology is revolutionizing industries such as Media and Entertainment with edge video caching, collaborative computing, and augmented reality (AR) and virtual reality (VR) applications. In the realm of Healthcare, MEC is enabling remote patient monitoring and real-time diagnostics. Connected cars and smart venues are also benefiting from MEC, with applications like indoor positioning and edge devices enhancing the user experience. The Information Technology and Telecom sectors are heavily investing in MEC to improve Quality of Experience (QoE) and reduce the load on centralized servers. The technology is also gaining traction in Smart Enterprises, Smart Grids, and Autonomous Vehicles, where real-time data processing is essential. The MEC market is expected to grow significantly due to the increasing adoption of 5G technologies and IoT solutions by Mobile Network Operators. Professional associations and university studies are also emphasizing the importance of MEC in the future of telecommunications networking and Radio Access Networks. Micro experts predict a bright future for MEC, with its potential applications in various industries and its ability to enhance the overall user experience.
Market Scope |
|
Report Coverage |
Details |
Page number |
142 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 46.12% |
Market growth 2024-2028 |
USD 3.54 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
32.84 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 46% |
Key countries |
US, China, Germany, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ADLINK Technology Inc., Advantech Co. Ltd., AT and T Inc., COMSovereign Holding Corp., GigaSpaces Technologies Ltd., Huawei Technologies Co. Ltd., Intel Corp., Juniper Networks Inc., Nokia Corp., SK Telecom Co. Ltd., SMART Global Holdings Inc., TelcoDR Inc., Telefonaktiebolaget LM Ericsson, Verizon Communications Inc., Vodafone Group Plc, and ZTE Corp. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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