Mobile Edge Computing (MEC) is a network architecture perception that allows an IT service environment and cloud computing capabilities at the edge of the cellular network. The global mobile edge computing market is expected to grow at an exponential CAGR of 51.4% during the forecast period of 2023-2030. Wireless communication came into existence in 1895 when Guglielmo Marconi successfully transmitted three-dot morse code and since early 1970 mobile wireless industry came into evolution, creation and generation phase. In 1980s first generation analog cellular technology was developed followed in 1991 by second generation technology which introduced digital cellular technology. In 2001 third-generation technology was developed which could even support high speed data transfer. In 2009 fourth-generation telecommunication system was developed that supports Voice over Internet Protocol (VoIP).  With the development in wireless technology there is a need to develop computing capabilities at the edge (base station). Owing to the proliferation of Internet Protocol into enterprise networks and widespread adoption of 4G /LTE services, mobile edge computing solutions have been developed that would also help to bridge the gap for implementation 5G services.

Low Latency Computing – Need of the Hour

Rising demand for low latency computing is the major driver of the mobile edge computing market. As latency is the fundamental measure of network performance. Low latency computing demand is rising with the need for advanced services such as cloud computing, 5G technology, virtual reality headsets, fitness trackers and interactive gaming industries. Growing data traffic worldwide and emerging technologies such as 5G have led the demand of low latency computing to eliminate the failure of streaming. Growing digital data traffic lead to the constraints such as bandwidth overload, slow data connection and others. Mobile edge computing offers ultra-low latency and thus being recognized as a key technology and also represent architectural concept to enable the evolution of 5G era it also enables seamless video streaming. Mobile subscribers experience can be enriched by efficient service and network operations. Mobile edge computing combines capabilities of cloud computing and IT services to the base stations with low latency. 

The Hardware is the Key Component That’s Generating the Largest Revenues

The mobile edge computing market is segmented into technology, component and verticals. The component segment is sub-segmented into hardware, software and services. The hardware market is the dominating component segment in the mobile edge computing market with revenue in 2021. Hardware deals with the physical components present in the mobile edge computing network such as servers, routers, switches, processors. Rise in data traffic due to computing and networking is contributing to the growth of the global hardware market during the forecast period. According to the United States based Institute of Electronics and Electrical Engineers (IEEE), increase in the data traffic is mainly due to the media streams that need to be processed, conferencing and online gaming. Efficient hardware is required for proper management and control of data traffic in mobile edge computing which promotes the growth of the global hardware market during the forecast period. 

Key Market Opportunities in 4G and Telecom Segment

The 4G services lead the segment by the technology of the mobile edge computing market by capturing largest market share of approximately 66% in 2020. The MEC in 4G technology is expected to grow at CAGR of 47.9% during the forecast period. The 4G services market is primarily driven by high penetration/ adoption of 4G services in countries such as USA, China, India and others. IT and telecom leads vertical segment of the global mobile edge computing market by capturing the largest market share of over 35% in 2020. IT and Telecom edge computing market is expected to grow with the highest CAGR of 52.2% during the forecast period. MEC has the ability to optimize network along with delivering edge-based capabilities seamlessly over both wireless and fixed networks which offers a great potential opportunity to the mobile network operators (Telecom). It supplies required data at the radio access network edge, provides a local service delivery platform with ultralow latency and enhanced bandwidth utilization for the application developers, content providers and the wireless operators that would lead to wide adoption of MEC by telecom operators.

Current Market Dominated by NA, Long-term Growth from APAC

Geographically, the mobile edge computing market has been segmented into North America, Europe, Asia Pacific, and Rest of the World. North America held the largest revenue share of around 37% in global mobile edge computing market. The major drivers of North America business mobile edge computing market include enhancing data traffic, heavy investments made by the government, and enhancing usage of IOT devices such as smartphones and tablets. The United States mobile edge computing market is developing and expanding at a rapid pace. The rising data traffic occurring due to mobile browsing which acts as a major driver in the growth of mobile edge computing market. The rising adoption of smart devices which includes smartphones and tablets along with the heavy investments in rising 5G technology has also made an impact on the growth of mobile edge computing market. The Asia Pacific is the fastest-growing region in the Mobile Edge Computing (MEC) market with a CAGR of 52.4%. The MEC market in China has been impacted by year-over-year growing number of internet users in the country. Importantly, new internet users in China are using internet services on mobile platform such as on smartphones and tablets. Therefore, significant data traffic growth is expected to require the deployment of MEC devices for offering fast and uninterrupted data services.

Top Companies Resort to Partnership to Enhance Market Presence

Partnership/Collaboration is the primary strategy adopted by the companies in the mobile edge computing market. Strategic partnership allows the companies to share their resources in order to serve their respective self-interest. Partnerships also enable sharing of economic burden and facilitate better services to the users. Key companies in this market include Adlink Technology, Inc., Gigaspaces Technologies Inc., Huawei Technologies Co. Ltd., Peerapp Inc., Intel Corporation, Juniper Network Inc, Spidercloud Wireless, Inc, Saguna Networks Ltd, Quortus, Ibm Corporation, Integrated Device Technology, Inc., Vasona Networks, Artesyn’s Embedded Technologies, Nokia Company, ZTE Corporation and Others.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Mobile Edge Computing market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Mobile Edge Computing market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Mobile Edge Computing market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Mobile Edge Computing market?
• Which is the largest regional market for Mobile Edge Computing market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Mobile Edge Computing market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Mobile Edge Computing market worldwide?