Edge computing services revenue to reach $214B by 2026: Omdia
A market forecast by Omdia predicts that the 2026 revenue from edge computing services will more than double the current estimate for the size of the enterprise edge services market.
The Omdia report says that the revenue from edge services will reach $214 billion by 2026, more than double the 2022 estimated revenues of $97 billion. It also predicts a compound annual growth rate (CAGR) of 20.4% for the edge services industry, with North America set to represent the largest market, accounting for 41% of the global revenue share between 2021 and 2026.
Omdia says that edge consulting services from systems integrators, telcos, ICT solutions vendors, and consulting firms will form the largest part of the enterprise edge services market at 39.3% in 2022. Analysts expect subscription-based services like cybersecurity and network management subscriptions from service providers to decline over time. Meanwhile, fully managed, cloud-delivered edge services like multi-access edge computing (MEC) and workload and database management, are believed to be increasing in popularity, with Omdia predicting edge storage and compute services will be the strongest area of growth. It also expects services to emerge as cloud services extensions to the edge through major hyperscalers, service providers and data center operators.
“As data volumes continue to grow and enterprises aim to move more workloads to the edge, they require more compute and storage capacity in the form of IaaS and PaaS at edge access points,” Omdia says.
The market research and consultancy firm sees edge locations shift from customers’ premises to point of presence, from 53% in 2022 to 38% in 2026. This will provide “key opportunities and challenges for ICT service providers.”
The report also estimates that the largest vertical to lead growth in edge services is the financial market, which could utilize AI-based analytics and cognitive systems for business decisions, market insight, risk assessment and customer service platforms. Other services could be smart meters for energy use and environmental monitoring; transport and container tracking; customer behavior analytics in retail; network efficiency; and data protection compliance and cybersecurity.
In a recommendation for service providers, systems integrators, hyperscalers, and ICT solutions vendors, Omdia encourages the development of vertical and workload-specific edge services that can be largely replicated to different customers; creating innovation hubs for edge solutions to test edge setups with customers; building consulting services; and constructing a partner ecosystem to reduce vendor lock-in for customers.
The report applies two main consumption models for edge services. The first assumes that enterprises will need consulting, systems integration and other support services to deploy physical edge infrastructure. The second assumes a cloud-based, as-a-service and fully managed approach, where services provided by hyperscalers and independent software vendors are extended to the edge using local access points or gateways.
The Omdia research comes after International Data Corporation (IDC) released its own predictions for the edge computing industry. The IDC forecasts worldwide spending on edge computing to reach $176 billion in 2022, and spending in 2025 to grow to $274 billion.
Article Topics
consulting | edge computing | market research | Omdia | revenue forecast | systems integration | telco
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