IDC: Global Managed Edge Services Market forecast ~$2.8B in 2025

According to IDC, Managed Edge Services [1.] will deliver worldwide revenues of about $445.3 million this year – a 43.5% increase over 2020. In addition, the IT market research firm forecasts that managed services revenues will hit nearly $2.8 billion in 2025.  Over the 2021-2025 forecast period, the compound annual growth rate (CAGR) for managed edge services is expected to be 55.1%.

Note 1.  Managed Edge Services seems to be a misnomer or at least a redundant term.  That’s because all Multi-Access Edge Compute (MEC) services will be managed by a service provider (telco, cloud, or CDN) or network equipment vendor/managed services provider for on-premises edge computing.

“Managed edge services represent an emerging market opportunity that promises to provide a wide variety of low-latency services with the potential to enhance customer experience, drive operational efficiencies, and improve performance. It is a highly contested marketplace among key providers including communications SPs, hyper-scalers, CDN providers, and managed SPs with strategic partnerships and alliances forming to establish early commercial success and leadership,” said Ghassan Abdo, research VP, Worldwide Telecommunications at IDC.

“At the same time, service providers are keenly aware of the potential impact of the edge on their current market position and are watching closely for unforeseen competition from adjacent markets and new disruptors. Technology vendors including network equipment providers (NEPs) and software, datacenter, and networking vendors are vying to shape this market and play a significant role in delivering innovative edge services.  Technical challenges abound including interoperability, open interfaces, and varying standards. The potential, however, is there to positively transform industries and user experiences,” he added.

IDC has identified three primary deployment models for managed edge services.

  1. On-premises deployment: This represents managed edge use cases where the edge compute infrastructure is deployed at the enterprises’ premises, also referred to as private deployment. This deployment model is intended to address the need for extra low latency and is applicable to industrial use cases, healthcare, and AR/VR applications.
  2. Service provider edge deployment: This represents managed edge services provided by edge compute deployed at the provider edge, both fixed and mobile. IDC expects this deployment model to spur development of a wide range of vertical use cases.
  3. CDN edge deployment: This represents managed edge services provided by edge compute deployed at the CDN POPs or edge locations. These use cases will enhance content delivery with personalized, high-fidelity, and interactive rich media customer experience.

IDC projects the on-premises edge to be the fastest growing segment with a five-year CAGR of 74.5%. The service provider edge will be the second-fastest growing segment with a CAGR of 59.2%, which will enable it to become the largest market segment by 2022. The CDN edge segment is expected to have a five-year CAGR of 41.9%.

The IDC report, Worldwide Managed Edge Services Forecast, 2021–2025 (IDC report #US47308121), provides a worldwide forecast for managed edge services covering 2021–2025. The forecast quantifies the revenue opportunities for service providers (SPs) that offer managed edge services on a monthly recurring revenue contractual arrangement. Service providers, in this context, comprise communications SPs, content delivery network (CDN) providers, public cloud providers or hyper-scalers, and managed service providers. This is the first forecast provided by IDC on this new and developing market.

For more information, contact:
Michael Shirer [email protected] or 508-935-4200

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June was a busy month for managed edged compute deals:

  • Vodafone outsourced its European MEC infrastructure to Amazon Web Services (AWS);
  • Ericsson and Google agreed to collaborate on edge compute solutions for mutual benefit; and
  • AT&T sold its Network Cloud technology to Microsoft which will also provide Azure (public cloud) based 5G SA/core network for AT&T.

 

References:

https://www.idc.com/getdoc.jsp?containerId=prUS48179321

https://telecoms.com/511025/managed-edge-services-revenue-expected-to-hit-2-8-billion-by-2025/

Dell’Oro: MEC Investments to grow at 140% CAGR from 2020 to 2025

Multi-access Edge Computing (MEC) Market, Applications and ETSI MEC Standard-Part I

 

ETSI MEC Standard Explained – Part II

One thought on “IDC: Global Managed Edge Services Market forecast ~$2.8B in 2025

  1. Hyperscalers with their global scale are encroaching on the international and global aspects of the telecoms industry. Cloud brings a new means of delivering many services into both the CSPs themselves as well as business es and individuals. Hyperscalers are extending their reach ever closer to the customers, potentially squeezing the role of the connectivity providers. CSPs, on the other hand, have the hyper-local granularity to serve everyone and everything. As CSPs rationalise their own infrastructure they are benefiting from the Hyperscalers scale and skills to make themselves more attractive to the end user markets. Does this end in a Mexican stand-off, global political manoeuvring or national pride? Can they play nicely together in the digital sandpit or will it end in tears?

    https://www.telecomtv.com/content/the-great-telco-debate/live-debate-telcos-and-the-hyperscalers-43084/

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