Edge Computing: Telco Positioning Strategies and Monetization Opportunities in AME

The global edge computing market in 2021 was valued at $9.5 billion. The market is projected to grow at a CAGR of more than 23% during the forecast period 2022-2025. The global edge computing market is expected to grow in AME, supported by growth in edge data centers, edge software/platforms, edge integration services, and telco edge solutions. The manufacturing, retail banking, insurance, energy, and utilities verticals are among the top ten verticals in the report.

These verticals can benefit from use cases enabled by edge computing. The key players in the market are hyperscalers vendors, data center infrastructure vendors, telecom infrastructure vendors, telecom operators, content delivery network providers, and system integrators. Telcos in AME are still in the process of developing and testing edge use cases and solutions for their customers, as edge enablers and demand drivers such as big data, data centers, IoT/M2M, and 5G continue to expand in AME. Several AME telcos are still in the early stages of edge computing MoUs and partnerships with vendors, vertical industry players, and hyperscalers. There have also been a number of small-scale trials, use case co-creation efforts, and solution development initiatives.

Global edge computing market overview

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What are the market dynamics in the edge computing market?

The edge computing market is driven by new use cases that require low latency and real-time data processing.

Performance and Latency: Edge computing reduces the number of “network hops” that data or application content has to travel in order to be processed or delivered to consumers. The faster turnaround times associated with local data processing help to ensure lower latency and higher levels of application performance. This has implications for a wide range of content-rich and time-sensitive applications such as media content, autonomous vehicles, oil rigs condition monitoring data, Industry 4.0, and real-time digital health applications.

Real-Time Data Processing: By supporting the ability to process data locally, close to where it is generated and/or collected, edge computing ensures that data can be harnessed and acted upon in real-time. Real-time data processing makes it possible to offer a wide range of new applications and digital services and is essential for things like autonomous, driverless vehicles, online gaming, or failure detection systems in a factory or chemical plant.

Privacy and Security: By processing and storing data locally, edge computing is able to address the privacy and security concerns that arise when personal data is sent to a centralized cloud data center. It can therefore help enterprises manage data residency and compliance obligations. In addition, the edge offers an additional perimeter where potential security attacks can be detected and prevented.

What are the trends in the telcos edge computing market in AME?

Several AME telcos are in the early stages of edge computing MoUs and partnerships with vendors, vertical industry players, and hyperscalers. There have also been a number of small-scale trials, use cases co-creation efforts, and solution development initiatives. Telcos have also begun to link edge computing into their wider growth strategies as they seek to enhance core telecom services with the edge or deploy standalone edge computing services in the future.

Many telcos have partnered with hyperscalers to bring cloud resources closer to customers and to leverage the hyperscalers existing development tools and market presence. The partnerships allow telcos to leverage the hyperscalers cloud platforms and allow the hyperscalers to leverage telcos’ physical infrastructure for edge computing. Telcos can use partnerships with hyperscalers to utilize edge computing in their own operations as well as offer edge computing to enterprise customers. There are also partnerships seen between telcos and telecom infrastructure vendors, as the latter players can support the connectivity architecture for the edge computing network and provide edge-specific solutions. Such partnerships help telcos develop verticalized edge solutions and go-to-market channels to address the enterprise opportunity and understand each customer/industry needs & priority use cases.

The edge computing market opportunity is driven by edge data centers, edge software/platforms, and edge integration services. Edge software/platforms will drive the market opportunity by providing data intelligence and application enablement capabilities such as data analytics, IoT Edge Gateways, software-based HCI infrastructure solutions, API software, and edge security applications. Developers for edge software/platforms are key to the advancement of the edge computing market. For example, Microsoft’s Azure Edge Zones is targeted at developers and enables them to take advantage of consistent Azure APIs and tooling available in the public cloud. The telcos are also expanding their position in the edge computing market by providing not just the connectivity infrastructure, but also other services such as managed services and edge data centers.

Which are the key players in the edge computing market in AME?

Key players in the market are Alibaba Cloud, Arcelik, Argela, AT&T, AWS, Baidu, Cisco, Dell, Deutsche Telekom, Ericsson, Etisalat, Fujitsu, Hewlett Packard, Huawei, IBM, Juniper Networks, Lenovo, Microsoft, SK Telecom, and Verizon.

Edge computing market in AME, by key players

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Market report scope

Scope

• Telcos can tap into opportunities in areas including Industry 4.0, autonomous vehicles, smart cities, AI, and big data analytics by providing edge computing services.
• The manufacturing, retail banking, insurance, energy, and utilities verticals are among the top ten verticals presenting opportunities in the edge computing market. ail banking, insurance, energy, and utilities verticals are among the top ten verticals presenting opportunities in the edge computing market.
• Telcos’ activity in the edge computing space in AME has ramped up with new partnerships, services, and solution development initiatives.

Reasons to Buy

• This Insider Report provides a comprehensive examination through forward-looking analysis of AME’s edge computing market opportunity and trends in a concise analytical format to help executives build proactive and profitable growth strategies.
• The report provides extracts of GlobalData’s Edge Computing Forecast, split by products/services and top verticals, along with the key drivers behind ongoing and upcoming trends in the global edge computing markets.
• Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in the global and AME edge computing markets.
• The report is designed for an executive-level audience, with charts and tables boasting presentation quality.
• The broad perspective of the report coupled with comprehensive actionable insights will help operators, equipment vendors, and other telecom industry players better position to seize the growth opportunities in AME’s emerging edge computing market.