Market Size Projection (2024-2030):

As per the recent study released by Virtue Market Research, the global 5G Multi-access Edge Computing (MEC) Market exhibited a value of USD 2.14 million and is anticipated to ascend to USD 25.79 million by the conclusion of 2030. Predicted over the period spanning 2024 to 2030, the market is forecasted to expand at a Compound Annual Growth Rate (CAGR) of 42.7%.

5G Multi-access Edge Computing (MEC) Market Overview:

Multi-access Edge Computing, a subset of edge computing, pertains to mobile-centric computing that leverages cloud computing capabilities and the IT service environment by bringing it closer to the network edge. It enables the storage, processing, and analysis of data at the network edge, optimizing real-time performance and catering to bandwidth-intensive applications such as Industry 4.0 and connected vehicles. Characterized by high bandwidth, ultra-low latency, and real-time access to Radio Network Information (RNI), MEC facilitates the acquisition of real-time data and local content pertinent to network conditions. By processing data closer to the user, MEC minimizes network congestion, offering distributed computing capabilities for hosting various services and applications. Furthermore, the integration of 5G with MEC architecture enhances service delivery models, providing novel Business-to-Business (B2B) opportunities through edge clouds. The amalgamation of 5G-enabled MEC ensures advanced end-to-end performance, encompassing network slicing, session management, security features, and service continuity capabilities, thereby fostering ultra-low latency, reliability, and seamless connectivity. Leveraging the ability to analyze extensive telemetry data at the network edge, service providers can bolster their competitive stance by facilitating new business model adaptations. Additionally, the amalgamation of 5G with MEC architecture is poised to support public sector entities in bolstering connectivity and technological solutions, thereby enhancing initial response times.

Impact of COVID-19 on the 5G Multi-access Edge Computing (MEC) Market:

The COVID-19 pandemic, caused by the novel coronavirus, emerged as a global health crisis, significantly burdening healthcare systems worldwide. The outbreak led to a rapid escalation of research and development endeavors aimed at devising vaccines and treatments. Its repercussions reverberated across various industries, inducing a considerable slowdown in the US and global tech markets in 2020. Consequently, major economies like the US curtailed their investments in Information and Communication Technology (ICT) during the first half of 2020, exerting a dampening effect on the multi-access edge computing market's growth prospects in the forecasted period. Moreover, expenditures on systems integration services and technology consulting experienced a temporary downturn. However, organizations across diverse sectors have come to recognize the value proposition and advantages offered by multi-access edge computing, which could have alleviated operational challenges during the pandemic. Consequently, it is envisaged that numerous business stakeholders will ramp up their digital transformation initiatives and intensify investments in IT and cloud resources in the forthcoming years, thereby presenting lucrative opportunities for the multi-access edge computing market.

Market Drivers:

Escalating Adoption of Internet of Things (IoT) Devices across Diverse Industries:

The burgeoning adoption of IoT devices across various industries constitutes a pivotal driver propelling market growth. With an increasing reliance on centralized cloud computing and storage solutions, industries encounter latency and cost-related challenges associated with transitioning to cloud-based IT infrastructure. Consequently, many industries are exploring edge computing solutions, leveraging IoT sensors, actuators, and other devices for localized data processing. Edge computing complements traditional cloud paradigms by facilitating proximity-based data processing, thereby expediting decision-making processes. Leveraging the enhanced service quality offered by 5G, numerous novel B2B services leveraging edge clouds have emerged, underscoring the significance of 5G-enabled multi-access edge computing in driving market expansion.

Swift Digitalization across Industries:

Industries are rapidly embracing digitalization, leveraging cutting-edge technologies to streamline and expedite their business operations. While localized data processing may mitigate data transmission and storage costs, investing in edge infrastructure entails substantial capital expenditure. Industries seeking comprehensive edge computing solutions will necessitate significant investments in edge nodes, devices, and infrastructure security to fortify their networks against potential threats.

Market Restraints:

Challenges in Mitigating and Monitoring Security Breaches:

Despite the security advantages offered by edge computing, mitigating security breaches remains a formidable challenge. While edge computing reduces the volume of data requiring protection at centralized data centers, ensuring security at localized network points poses concerns. Varying levels of built-in security and authentication capabilities across different network nodes render data susceptible to breaches. Furthermore, the sheer volume of data complicates security measures, heightening security challenges in edge computing environments.

5G Multi-access Edge Computing (MEC) Market - By Solution:

• Hardware
• Software
• Services

Within a MEC-based ecosystem, the presence of numerous IoT units reduces the necessity for specialized software aligned with MEC architecture. The software segment experiences growth due to the demand for solutions providing multi-level load balancing, content synchronization, and distributed processing. Notably, companies like Verizon offer software development kits, empowering in-house teams to tailor applications to their firm's objectives. In 2022, the hardware segment held over 30% revenue share, driven by the increasing ubiquity of connected devices and the demand for real-time decision-making. Providers offer advanced Telecommunications Computing Architecture (TCA) hardware, ensuring compactness, cost-effectiveness, and customization to meet individual needs while ensuring serviceability, availability, and reliability.

5G Multi-access Edge Computing (MEC) Market - By End-Use:

• IT & Telecom
• Smart Cities, Smart Homes, & Smart Buildings
• Datacenters
• Energy & Utilities
• Automotive
• Others (Healthcare, Agriculture)

The IT & Telecom sector dominated with over 30% revenue share in 2022, fueled by 5G-enabled transportation systems providing ultra-low latency and high bandwidth for quality analysis and data transfer. Moreover, IT companies are developing low-power solutions for IoT networks, enhancing revenue streams. For instance, AT&T Inc. offers tailored MEC-based services, products, and solutions. MEC architecture facilitates flexible data center deployment, driving the data center segment's significant market share. Evolving deployment trends encourage network operators to adopt distributed architectures, with microdata centers based on MECs expected to revolutionize data center deployment methods, fostering market growth.

5G Multi-access Edge Computing (MEC) Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

North America led the market with over 43% revenue share in 2022, driven by rapid 5G adoption and increased data center installations due to cloud adoption. The region's market growth is further enhanced by collaborations among companies to improve edge computing capabilities. Asia-Pacific also captured a significant revenue share in 2022, with companies integrating cloud and edge computing to enhance MEC structures for business services. Key telecom companies in the region, such as China Unicom (Hong Kong) Limited and SK Telecom Co., Ltd., are investing in MEC pilot projects and large-scale edge-cloud networks, contributing to market growth.

5G Multi-access Edge Computing (MEC) Market Share - By Company

Companies like Nokia Corporation, Huawei Corporation, Advantech Co Ltd, Juniper Networks Inc., Brocade Communications Systems Inc., Adlink Technology Inc., Saguna Networks Ltd, IBM Corporation, Intel Corporation, Artesyn Embedded Technologies Inc., among others, play pivotal roles in the market. Mergers and acquisitions enable diversification of service offerings, exemplified by Amazon Web Services' partnership with Vodafone to provide low-latency MEC services. Companies focus on R&D to innovate and expand product utility, while emerging players emphasize vertical integration and collaborations with established brands to enhance global presence.

NOTABLE HAPPENINGS IN THE 5G MULTI-ACCESS EDGE COMPUTING (MEC) MARKET IN THE RECENT PAST:

In November 2022, Colorbar, Honda, and Verizon collaborated to assess how new connected safety technology utilizes 5G and mobile edge computing solutions, ensuring rapid, reliable communication between road infrastructure and vehicles to mitigate road collisions.