Edge Computing Will Drive $7 Billion of Revenue by 2025

New report breaks out the share of revenue for Telcos, Cloud players, Neutral Hosts

News provided by

Oct 01, 2020, 08:23 ET

CAMPBELL, Calif., Oct. 1, 2020 /PRNewswire/ -- Mobile Experts just released the industry's first fully researched, comprehensive, unbiased forecast for Edge Computing. "Fully researched" means that this forecast is the result of twelve previous reports which examined specific business cases and ROI examples to determine business value and growth potential. "Comprehensive" means that the new forecast includes predictions for service revenue, data center deployment, and server shipments as well as CPU/GPU core shipments. "Unbiased" means that Mobile Experts takes an objective view of the balance of power between Telcos, Cloud Players, Neutral Hosts, and Enterprises. Because Mobile Experts doesn't owe allegiance to any one group, the research firm can make unbiased conclusions.

In Edge Computing, Mobile Experts anticipates the global market for connected edge computing services to grow to about $7 billion in 2025. As much as two thirds of service revenue will accrue to the Cloud players, but Telcos, Neutral Hosts, and Enterprises will play important roles in hosting sites and providing connectivity.

This new report provides a view of different business models that will play out in a variety of vertical markets cropping up for edge computing. In a series of ten case study reports, Mobile Experts has examined the economics of media streaming, gaming, retail, manufacturing, oil & gas, transportation, and other markets to define the best business model for each vertical market. This insight, validated with dozens of interviews with Cloud players and others, results in the most accurate view of Edge Computing available.

"Enterprise markets are ramping up, and the market will see significant revenue in the automotive, industrial, and retail arenas," commented Chief Analyst Joe Madden. "Telcos themselves will also become Edge Computing customers, by using cloud platforms to virtualize their networks."

According to the report, telcos and ISPs will add value through wholesale aggregation of local compute capacity, and by offering connectivity at various tiers of service. Some operators will move up to 5G to gain premium pricing for low-latency or high-reliability connections, while others will be satisfied with local real estate hosting edge cloud data centers.

"In 2025, we predict that more than half of 'edge data centers' will be on-premises, hosted by an enterprise. Another 20-25% will be hosted by the telcos or ISPs. Over a decade or more, we expect the maturing market to shift so that public edge cloud takes a more prominent role, so every small business can reap the benefits of automation."

Mobile Experts predicts at least 20 years of strong growth for edge computing. The forecast predicts rapid growth to hundreds of thousands of Edge servers, with millions of CPU and GPU cores shipped in the 2025 timeframe.

For more about this report, click here.

About Mobile Experts Inc.:

Mobile Experts provides insightful market analysis for the mobile infrastructure and mobile handset markets. Our analysts are true Experts, who remain focused on topics where each analyst has 20 years of experience or more. Research topics center on technology introduction for radio frequency (RF) and communications innovation. Recent publications focus on Edge Computing, ORAN, Fixed Wireless Access, RRH Semiconductors, RFFE, CBRS PAL Auction, Small Cells, 5G mm-wave, Private LTE and 5G, Macro Base Stations, 5G Business case, Cellular IoT, CBRS Infrastructure and Devices, URLLC and 5G IoT, Big Picture IoT, https://mobile-experts.net/Home/Report/98 and more.