Deployment of Mobile Edge Computing enables Customized and Innovative Network Services for Operators and Vendors

Industry Insights

According to Transparency Market Research (TMR), the global mobile edge computing market is projected to surge from US$73.8 million in 2016 to reach a worth of US$4228.3 million by 2025 end. The presence of stalwarts and big technology players focused on developing technology advanced applications and services for various industry verticals will keep future avenues bustling with opportunities.

World over, the need for cloud computing capabilities in mobile networks for carrying out enormous compute and storage-intensive applications is gathering steam in consumer markets. The need for potentially- powerful distributed computing environments for supporting these applications in an IT service environment has triggered the demand for mobile edge computing (MEC). MEC architecture has brought cloud computing to the fore by deploying applications and processes near to cellular customers, decreasing latency, meeting high-bandwidth requirements, and enhancing the user experience. In various parts of the world, application providers gaining access to radio network information in real time are leveraging the potential of mobile edge computing technology to offer customized applications and innovative services with higher quality of customer experience.

The rapidly expanding use cases of mobile edge computing, notably internet-of-things and augmented reality, is helping players explore new markets.  The emerging industry standards for deploying MEC and the rapid adoption of MEC server platforms is opening new revenue streams for telecom operators, content providers, and third-party vendors. Furthermore, the ongoing developments in 5G and other next-generation technologies in several developing and developed nations are underpinned by MEC technologies. The market is headed for exciting prospects in the coming years.

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Which component is expected to witness wide adoption in the coming years?

The major components of mobile edge computing network architecture comprise hardware, software, and service. Of these, hardware is the clear winner witnessing extensive demand as it serves as a key determinant of the deployment of mobile edge computing platforms. The extensive demand for processors, switches, servers, and routers to be used in MEC networks is a key factor bolstering the demand. The substantial demand for MEC hosting infrastructure among mobile network operators to offer innovative services is also accentuating the demand for hardware components.

A number of players in developed nations are intensifying their efforts to update their infrastructure and platforms to facilitate the development of mobile edge computing networks. To support one of these initiatives, the Open Networking Foundation (ONF), a consortium of operators offering advanced solutions, has in December 2017 upgraded its Central Office Re-architected as a Data Center (CORD) code, called 4.1 release, offering a single distribution platform for all subscribers—residential, mobile, and enterprise packages. The CORD project hopes to become one of the key infrastructure for mobile computing platforms. The CORD 4.1 release is a unified platform for various subscribers looking for leveraging the potential of edge computing.

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Which regions are likely to stoke the demand for mobile edge computing technologies?

The various regional markets for mobile edge computing are the Middle East and Africa (MEA), Asia Pacific, Europe, and North America. Europe stands out as the leader witnessing substantial adoption of MEC networks. The demand for MEC is driven by the staggering rise in monthly data consumption in various parts of the region and the burgeoning adoption of devices under the IoT network.

North America is another prominent regions for the uptake of mobile edge computing systems and services. The regional market, led by the U.S., is witnessing several exciting developments by globally prominent and regional hardware and software vendors. However, market players are likely to shift their focus toward developing regions such as Asia Pacific and MEA. A burgeoning mobile subscriber base and the soaring popularity of IoT devices and compute in these regions are noteworthy trends that will spur demand for MEC in the coming years.

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