Mobile Edge Computing, also known as multi-access edge computing is a network architecture concept that provides IT and Cloud computing capabilities confined within the Radio Access Network close to the mobile subscriber. This environment is categorized by ultra-low latency and high bandwidth as well as real-time access to radio network information that can be leveraged by applications.
With mobile edge computing, services and application are accelerated which in turn increases the responsiveness from the edge. The experience of the mobile subscriber can only be good if he is using an efficient network. The efficient network provides the best service operation which is parallel to the radio and network conditions.
Mobile Edge Computing: How to Cope with Market Demand by 2020
The Market of mobile edge computing is expected to grow to USD 838.6 Million by 2020 from 185.8 Million in 2017. It shows as the compound annual growth rate of 35.2 percent as per “Market Research Report” by Grand View Research.
According to Transparency Market Research, the Mobile edge computing market globally will increase at a remarkable 51.0% CAGR during the period from 2017 to 2025. At this rate, its revenue will reach US$ 4228.3 mn by 2025 from US$73.8 mn in 2016, estimated.
From these expected figures, it is evident that demand for mobile edge computing is rising at a high pace and few factors are responsible for it:
- Ever Growing need of enterprises to deliver the quality of experience
- Increasing focus on providing high bandwidth and low latency
This growing market size of mobile edge computing is analyzed on the foundation of components, organization sizes, regions and applications. The hardware section is expected to grow at the highest CAGR in the foreseen period. Whereas the software section is estimated to have the largest market size in 2018.
Moreover, the rise of Internet users due to the inception of 3G/4G services and adoption of digital services have resulted in an exponential jump in volume of subtle data collected by companies. This increase in data is responsible for the adoption of mobile edge computing. Soon 5G will be launched which will be lead to more people accepting mobile edge computing.
In this tech-savvy world, people are more interested to save cost and time for which time management is important. Increasing demand for time management, IoTs has boosted the demand for edge computing. This new technology enables enterprises to gain real-time vision and also improves the efficiency of their decision-making process. In this way, it helps to generate more profit but we cannot outlook the data privacy and security concerns which are the hurdle to the market growth.
Analization of Global mobile edge computing market size with these factors:
- Vertical Insights
- Organization size insights
- Technology Insights
- Regional insights
Manufacturing segment is one of the most efficient sectors which is adopting edge computing services with a purpose to lower capital investments. Moreover, IT & telecom sector is the most prominent segment contributing to the growth of the market. With the ever-growing telecom subscribers globally, edge computing solutions are also increasing which helps in enhancing network efficiency and improving service quality.
The healthcare sector is forecasted to be the fasted growing segment. Heath sector has warmly welcomed internet of Things technologies due to which development is seen in smart healthcare solutions. On can see a real-time screening of patient with the successful implication of mobile edge computing in the healthcare sector.
Organization size insights:
As expected, the organizational size segment will increase at the highest CAGR in the foreseen period. This is due to ever-increasing need for cost optimization and automation in different sectors. No Doubt, enterprises are progressively storing a large amount of data on cloud platforms due to deteriorating cost of cloud-based services and easy approach. This leads to the growing trend of edge computing solutions among small and medium enterprises.
The large enterprise segment took the market by a storm in 2016. This trend will continue over the foreseen period as expected.
In 2016, the mobile edge computing segment dominated the market and this inclination will continue during the forecast period. As discussed, technological innovation in the telecom sector has paved the way to 5G network that needs high bandwidth and low latency that can only be provided by edge computing solutions.
On the other side, Fog computing has registered the highest CAGR due to the growing usage of connected devices.
North America had the largest market share in 2017. As predicted, Asia Pacific region will rise at the highest CAGR during respective period in the MEC market. This growth is mainly due to the ever-increasing need for data optimization as mobile edge computing reduces the overall response time for which it is famous globally.
The region will witness significant growth owing to the high concentration of manufacturing and telecommunication industries that majorly adopt edge computing services and solutions.
Asia Pacific is the most talented regional market with a CAGR of 46.7% over the forecast period. This is mainly due to the Government initiatives to promote digitization and advanced infrastructure.
MEC is a natural development in the evolution of mobile base stations and the convergence of IT and telecommunications networking. Multi-access Edge Computing open more new ventures for consumers and enterprise customers.