Worldwide MEC Market Projected to Grow at 135 Percent CAGR over Next 5 Years, According to Dell'Oro Group

Emerging Lower-Latency Use Cases to Drive up Demand to 34 M MEC Systems

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Feb 05, 2020, 08:00 ET

REDWOOD CITY, Calif., Feb. 5, 2020 /PRNewswire/ -- According to a newly published forecast report by Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the multi-access edge computing (MEC) market is expected to grow at a compound annual growth rate of 135 percent over the next five years. Emerging lower-latency use cases could drive up demand to 34 M MEC systems.

"We forecast that MEC investments will grow to $5.2 B in servers and packet core user plane functions in 2024," stated Baron Fung, Research Director at Dell'Oro Group. "In 2019, we saw the first shipments of MEC sprinkled around the globe led by SKT Telecom and KT Corporation. The primary use case in Korea requiring lower-latency was multi-player online gaming," continued Fung.

"With the commercialization of more use cases, such as autonomous driving and 4K to 16K resolution AI-assisted video analytics, AR/VR, the necessity for lower-latency will be crucial," commented David Bolan, Senior Analyst at Dell'Oro Group. "To meet these low-latency requirements, MEC will have to be located at what we characterize as the deep edge—at every base station and enterprise wireless network—eventually creating the demand for up to 34 M MEC systems," added Bolan.

About the Report
Dell'Oro Group's Advanced Research Report on Multi-Access Edge Computing offers an overview of the MEC market, including a five-year forecast. The report's sections include: Definition and Scope, Market Drivers, Use Cases, System Architecture, Vendor Ecosystem, the U.S. MEC System Deployment Model, and MEC Revenue and Shipment Forecast for Servers and the Packet Core User Plane Function. The market is segmented by Public MEC and Private MEC, and offers a worldwide view of the total available market in units. To purchase this report, please contact us at [email protected].

About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.

SOURCE Dell'Oro Group