Edge computing, says the firm, is a foundational technology for industrial enterprises as it offers shorter latencies, robust security, responsive data collection, and lower costs. In the increasingly hyper-connected industrial environment, edge computing, with its solution-agnostic attribute, can be used across various applications, such as autonomous assets, remote asset monitoring, data extraction from stranded assets, autonomous robotics, autonomous vehicles, and smart factories.
Despite being in a nascent stage, says the firm, the multi-access edge computing (MEC) market - an edge computing commercial offering from operators in wireless networks - is estimated to grow at an "astounding" compound annual growth rate (CAGR) of 157.4%, garnering a revenue of $7.23 billion by 2024 from $64.1 million in 2019.
"The recent launch of the 5G technology coupled with MEC brings computing power close to customers and also allows the emergence of new applications and experiences for them," says Renato Pasquini, Information & Communication Technologies Research Director at Frost & Sullivan. "Going forward, 5G and MEC are an opportunity for telecom operators to launch innovative offerings and also enable an ecosystem to flourish in the business-to-business (B2B) segment of telecom service providers using the platform."
From the perspective of the MEC ecosystem, says the firm, software (comprising edge application and solutions) promises the highest CAGR followed by services: telecom operators' services, cloud providers' infrastructure-as-a-service, and edge data center colocation services. The firm predicts that approximately 90% of industrial enterprises will utilize edge computing by 2022, presenting immense growth prospects for MEC market participants:
- Telecom operators should work on solutions and services to meet the requirements for connected and autonomous cars.
- System integrators should provide end-to-end solutions, which would be a significant value addition for enterprises because 5G requires specific skillsets.
- The combination of 5G and the new specialized hardware-based mobile edge compute technologies can meet the market's streaming media needs now and in the future.
- Telecom operators must partner with cloud providers and companies