Mobile Experts recently released what it describes as the “industry's first fully researched, comprehensive, unbiased forecast for the edge computing market.
Fully researched, the company said, means that this “forecast is the result of 12 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 does not owe allegiance to any one group, the research firm can make unbiased conclusions.”
It anticipates the global market for connected edge computing services to grow to about US$7 billion in 2025. As much as two-thirds of service revenue will accrue to the cloud players, it said, but telcos, neutral hosts, and enterprises will play important roles in hosting sites and providing connectivity.
The 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 earlier case study reports 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.
“Enterprise markets are ramping up, and the market will see significant revenue in the automotive, industrial, and retail arenas,” said 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, Mobile Experts said, 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 centres.
“In 2025, we predict that more than half of 'edge data centres' will be on-premises, hosted by an enterprise,” said Madden. “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.”
The firm is predicting 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.