Multi-Access Edge Computing Market Growth Analysis | 2023-2028

Market Insights

The multi-access edge computing market was estimated at USD 2.27 billion in 2022 and is likely to grow at a CAGR of 48.96% during 2023-2028 to reach USD 25.01 billion in 2028.

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What is a multi-access edge computing (MEC)?

Multi-access edge computing (MEC) is a network building that supports evaluation and storage capacity at the network edges, rather than in a central data center or cloud location. MEC enables quick and flexible deployment of new applications. It offers a considerably lower time interval with better performance for local data and applications, compared to centralized data center resources. Rather than transmitting all data to a cloud for processing, the network edge analyzes, processes, and stores the data.

MEC is a natural development in the expansion of mobile base stations and the merger of IT and telecommunications networking growth. Multi-access Edge Computing will allow new vertical business sectors and services for customers and enterprises. It includes self-driving cars, virtual reality, and business-critical IoT applications all of which need an immediate response. It thus reduces network bandwidth requirements.

Key Players

The major players operating in the global market are:

• ADLINK Technology
• Microsoft
• Advantech
• FogHorn Systems
• HPE
• Saguna Networks
• Juniper Networks
• Artesyn Technologies
• Vapor IO
• ZephyrTel

Market Dynamics

The growth of IoT devices in sectors like manufacturing, IT & telecom, transportation, data centers, and logistics is poised to drive the market for Multi-Access Edge Computing (MEC) technology. As these industries produce massive amounts of data, the need for faster decision-making is fueling the implementation of MEC. This technology reduces latency and offers a secure framework for data transfer, contributing to its wider adoption among businesses.

Additionally, the integration of 5G technology and MEC architecture opens up new doors for B2B solutions and enhances competition among service providers. The ability to process large amounts of complex data at the network's edge allows for the creation of new business models and improved competitiveness.

Furthermore, 5G-enabled MEC offers advanced end-to-end capabilities, such as network slicing, session security, and service continuity, for ultra-low latency and reliability, as well as seamless connectivity. These features are expected to greatly benefit public sector organizations by providing better connectivity and technological solutions, as well as reducing response times.

The integration of MEC and 5G technology is driving the growth of the market, especially in the areas of mixed reality, virtual reality, and augmented reality. The integration is aimed at improving bandwidth to enhance 5G capabilities, resulting in better quality experiences through wireless mediums.

The MEC technology has made great strides in enhancing the experience of sports and entertainment broadcasting, improving the viewing experience for users. For instance, MEC technology allows sports fans to watch high-quality, real-time footage of live games from various angles.

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Segment Analysis

By Component Type

The widespread availability of IoT devices in an MEC environment minimizes the need for specialized software that operates within the MEC framework. This has led to a rise in demand for software with the capability to provide load balancing, content synchronization, and distributed processing.

Leading companies such as Verizon have started to offer software development kits to their clients, allowing internal teams to develop programs tailored to meet their specific needs and objectives. Additionally, these firms offer pre-designed software that integrates seamlessly with existing MEC architecture, ensuring efficient processing and driving market growth.

The hardware market segment saw significant growth in 2022, accounting for over 30% of the revenue share. The growing number of connected devices and the need for prompt decision-making have driven the adoption of advanced data centers and servers. Vendors are now offering improved Telecommunications Computing Architecture (TCA) hardware systems to both individuals and businesses, tailored to meet their specific requirements.

These systems are compact, cost-effective, and customizable, ensuring availability, reliability, and serviceability. An example of this is Lanner Electronics' launch of a hybrid TCA platform optimized for access networks.

By End User Type

The Telecom and IT sector held a significant share of over 30% in 2022 revenue. The commercial utilization of 5G-delivery systems, with their ultra-low latency and ultra-high bandwidth capabilities, is expected to drive the adoption of MEC technology among businesses for efficient data analysis and transfer.

Additionally, software and hardware companies in the IT industry are developing energy-efficient options for IoT networks, which are expected to drive sales and generate new sources of revenue. For example, AT&T Inc. offers MEC-based services, products, and solutions tailored to the specific needs of its clients.

The popularity of the MEC architecture has led to a rise in flexible data center deployments, contributing to a significant market share in 2022. The trend towards more agile data center development is driving network operators to adopt distributed infrastructure strategies.

The deployment of microdata centers based on MEC technology represents a shift in traditional data center deployment methods. The ability of MEC technology to connect a wide range of small and medium devices, such as wearables, mobile phones, IoT devices, and gateways, is expected to drive market growth.

Regional Insights

North America dominated the market in 2022, accounting for more than 40% of the revenue share. The United States' Federal Communications Commission (FCC) has initiated programs like the 5G FAST PLAN, aimed at accelerating the deployment of 5G in the country, which is expected to drive the demand for Multi-access Edge Computing (MEC) solutions.

The region's growth was further fueled by the increasing installation of data centers for cloud adoption, allowing solution providers to integrate edge computing and 5G technology. The growth in data center deployments has led to numerous collaborations and partnerships between companies to improve edge computing capabilities in their product offerings. For example, Vertical Bridge and Databank joined forces to develop micro data centers with edge computing capabilities.

In 2022, the Asia Pacific region had a significant market share in the Multi-access Edge Computing (MEC) market. Companies in the region are offering solutions that integrate cloud computing with MEC capabilities to improve the MEC architecture for commercial use.

Major telecom companies like China Unicom (Hong Kong) Limited, China Mobile Limited, China Telecom Corporation Limited, and SK Telecom Co., Ltd. in South Korea have started setting up regional edge centers. These companies are working on MEC pilot projects and are focused on building large-scale edge-cloud networks, which is driving market growth in the region.

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Market Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The multi-access edge computing market is segmented into the following categories.

By Component Type

• Hardware
• Software
• Services

By End-User Type

• Industrial
• Smart Cities
• IT and Telecommunications
• Energy and Utilities
• Automotive
• Others

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, and Rest of the Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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Company Profiling

• Detailed profiling of additional market players (up to three players)
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Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances.

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Recent Developments

• In February 2023, Advantech released its latest fanless edge platform, namely, the ITA-260 series for smart transportation applications. The platform is equipped by an 11th Generation Intel Core i3/i5/i7 processor enabling AIOps (Artificial Intelligence for IT Operations).
• In May 2022, Advantech entered into a partnership with Hivecell, an emerging firm in “edge as a service” technology solutions, for continued advancement of Artificial Intelligence of Things (AIoT).
• In April 2022, ADLINK Technology launched the Ampere Altra Developer Platform based on the COM-HPC Ampere Altra module, the world’s first 32/64/80-core COM-HPC based server type module with high performance and scalability required to drive a range of use cases across the cloud-to-edge development communities.
• In March 2022, HPE announced notable developments to HPE GreenLake, its flagship offering that supports organizations to enhance all their applications and data, from edge to cloud.