Multi-Access Edge Computing Market Analysis

Multi-Access Edge Computing Market Analysis

To get key market trends

  Download Free Sample

Based on components, the market is divided into hardware and software. In 2023, the hardware segment held approximately USD 1.6 billion. The hardware segment is witnessing a significant trend towards edge-optimized solutions for MEC environments. For instance, in July 2024, ADLINK Technology Inc., a global leader in edge computing, launched the AI Edge Server MEC-AI7400 series. This initiative aims to enhance smart manufacturing and drive AI-powered digital transformation.
 

By leveraging generative AI and digital twin technology, ADLINK bridges the physical and virtual worlds, paving the way for future innovations. Traditional data center hardware is being adapted to meet the specific demands of edge computing, featuring compact form factors, rugged designs, and low power consumption.
 

New edge servers and gateways are being developed to operate effectively in various environments, from industrial settings to remote locations. These include edge-specific processors, memory, and storage solutions designed for high performance in constrained spaces. The focus on edge-optimized hardware ensures wider and more efficient deployment of computing resources, supporting a broader range of applications.
 

Based on the deployment model, the multi-access edge computing market is categorized into cloud-based and on-premises. The cloud-based segment is expected to hold over USD 35.7 billion by 2032. Serverless computing, or Function-as-a-Service (FaaS), is rapidly gaining traction for its ability to streamline cloud application development and deployment.
 

For instance, in February 2024, Gcore, a global leader in cloud, AI, and edge solutions, launched FastEdge, a groundbreaking serverless product designed to enhance application deployment and performance. FastEdge leverages Gcore's expertise in cloud technology, AI, and security to provide serverless edge execution. This service allows developers to deploy decentralized applications globally without the need for server configuration or infrastructure maintenance.
 

In serverless architectures, developers focus solely on writing code, while cloud providers manage servers and infrastructure. This approach reduces operational overhead, lowers costs, and accelerates time-to-market. Serverless computing is particularly effective for event-driven applications, such as real-time data processing and microservices. Organizations are adopting serverless models to enhance flexibility, scalability, and efficiency in their cloud environments, optimizing resource utilization and minimizing costs.
 

North America dominated the multi-access edge computing market with around 43% of the market share in 2023. North America leads in 5G adoption, with 5G connections making up 32% of all wireless cellular connections. The region added 22 million new connections in Q1 2024, bringing the total to 220 million. Consequently, this rapid 5G deployment rate is driving the regional market growth.
 

Europe is leveraging MEC to advance industrial IoT and smart manufacturing. The region's strong industrial base uses MEC to optimize production, enhance automation, and enable real-time monitoring. MEC also supports smart grid management and energy efficiency. Germany and France are heavily investing in edge computing to drive Industry 4.0 initiatives.
 

The Asia Pacific region is rapidly urbanizing, leading to significant MEC investments in smart city projects and infrastructure. Countries like China, Japan, and South Korea deploy MEC to manage urban services, improve traffic control, and enhance public safety. The region's focus on digitalization and the need for low-latency solutions in technologies like autonomous vehicles and IoT is driving MEC adoption.