5G Edge Computing Market - Forecasts from 2023 to 2028

The global 5G edge computing market is expected to grow at a CAGR of 51%, from US$11.182 billion in 2022 to US$132.566 billion in 2028.

GROWTH DRIVERS

The increase in international bandwidth consumption can boost the 5G edge computing market by creating new opportunities for high-speed and low-latency applications, such as VR/AR, autonomous vehicles, drones, gaming, and open RAN. It can also improve the network performance, capacity, and reliability of IoT and Industrial IoT devices, especially in remote and rural areas. Moreover, it can enhance data privacy and reduce the cost by minimizing the dependence on cloud computing and backhaul transport network.

For instance, the report “Facts and Figures 2022” from the International Telecommunication Union states that the Asia Pacific region’s bandwidth usage for the year 2019 was 248 Tbit/s, 2020 was 311 Tbit/s, 2021 was 442 Tbit/s, and 2022 was 542 Tbit/s. This represents the strong growth of bandwidth consumption in the Asia Pacific region. In addition to that, the ITU also mentions that the insatiable thirst for Internet data continues to fuel demand for overseas data and, as a result, bandwidth utilization. And also, the utilization of international bandwidth as a whole has increased by 33% over the last five years, while usage per Internet user has increased by 22%. These demand factors across the globe will influence the 5G edge computing market to grow in the future.

EMERGING OPPORTUNITIES IN THE GLOBAL 5G EDGE COMPUTING MARKET

SOFTWARE AND SERVICES

The global 5G edge computing market is expected to witness significant growth in the coming years as more enterprises and service providers adopt 5G networks and edge computing technologies to deliver low-latency, high-bandwidth, and secure applications and services. The 5G edge computing market consists of software and services that enable deploying, managing, and orchestrating edge computing resources and applications across 5G networks. Some key drivers for the 5G edge computing market include the increasing demand for real-time data processing and analytics, new use cases such as augmented reality, virtual reality, autonomous vehicles, and smart cities, and cost optimization and network efficiency.

The 5G edge computing market is segmented by application into smart cities, industrial IoT, remote monitoring, AR/VR, and others. These segments of the 5G edge computing market are witnessing various innovations and collaborations from different players in the industry.

For instance, the smart cities segment can benefit from the partnership between Verizon and Cisco, which aims to deliver 5G edge solutions for enterprise customers. The industrial IoT segment can benefit from the introduction of Cisco+. This new as-a-service model delivers technologies to help solve problems and provide faster time to value.

• In December 2021, Verizon announced in a press release that it has partnered with Cisco to deliver 5G edge solutions for enterprise customers. The partnership leverages Verizon’s 5G network and Cisco’s SD-WAN portfolio to offer secure and reliable connectivity for applications that require low latency and high bandwidth.
• In November 2021, Cisco introduced Cisco+, a new as-a-service model that delivers technologies to help solve problems and provide faster time to value. It offers solutions for hybrid cloud, secure connectivity, and network as a service (NaaS). Cisco+ seeks to assist businesses and telecom providers in transforming their service edge architecture by utilizing a distributed cloud model on top of a reliable and secure infrastructure.

GEOGRAPHICAL PRESENCE

The global 5G edge computing market consists of some major countries undertaking various measures to secure their 5G network across their respective nations. Americas is expected to have a higher CAGR during the forecasted period. In addition, a few major countries include the USA, Japan, South Korea, China, United Kingdom, and Germany. The nations have undertaken various measures which have complemented the overall market growth. For instance,

• In November 2021, in China, Haier used new manufacturing solutions that combine 5G and mobile edge computing to make its factories smarter. The solutions were developed at a base for joint innovation set up in February. In particular, they use 5G edge computing with artificial intelligence and machine vision to improve manufacturing processes. Huawei and China Mobile helped Haier with these solutions.
• In December 2019, in the United States, Verizon announced in a press release that the company and AWS have partnered to bring AWS Wavelength. This new service enables ultra-low-latency applications on 5G devices to Verizon's 5G ultra-wideband network. This will allow developers to create innovative solutions using machine learning, IoT, and AR/VR at the edge of the 5G network.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include Cisco, Microsoft, Dell Technologies, and Digi International, among others. The product offerings of the major corporation include the following:

• Cisco offers Cisco+ Hybrid Cloud which provides a smart way to manage hybrid cloud environment. Cisco+ Hybrid Cloud is a consumption-based solution that simplifies and optimizes your hybrid cloud management.
• Digi International offers Digi ConnectCore System-on-Modules. These embedded modules enable rapid development and deployment of IoT devices with edge intelligence. They support AI and computer vision tasks at the edge of the network.
• Dell Technologies Services Edge 1.2 is a solution that helps enterprises transform businesses with edge computing, private wireless, and industrial IoT. It combines leading technologies from Intel, Red Hat, Litmus, Airspan, and Expeto to create a cloud-native network infrastructure that supports private 5G and LTE services.
• Microsoft offers Azure Private MEC - a cloud computing solution. Microsoft Azure private MEC is a cloud computing solution that allows operators and system integrators to deploy and manage secure and private 5G networks and applications at the edge of enterprises. It combines Azure services, such as Azure Kubernetes Service, Azure IoT Hub, and Azure Cognitive Services, with Azure Stack Edge. This ruggedized edge device supports network functions such as a 5G core and radio access network.

SEGMENTATION:

The global 5G Edge Computing Market has been analyzed through the following segments:

By Component

• Hardware
• Software
• Services

By Organization Size

• Small and medium
• Large

By Application

• Smart Cities
• Remote Monitoring
• Industrial IoT
• AR/VR
• Others

By Geography

• Americas
• USA
• Others
• EMEA
• Germany
• UK
• Others
• APAC
• China
• Japan
• South Korea
• Others