43.4 billion dollars! Telecom operators and cloud computing companies are adding edge computing

Recently, IDC released the “China’s semi annual edge computing server market (second half of 2020) tracking report”, which shows that the overall market size of China’s edge computing server in the second half of 2020 is US $1.542 billion, reaching US $2.655 billion in 2020, an increase of 16.3% compared with that in 2019. IDC predicts that from 2019 to 2024, the annual compound growth rate of China’s edge computing server market will reach 22.0%, higher than the global average growth rate of 19.6%.

From the industry point of view, the rapid growth in 2020 is the telecommunications, public utilities, energy and manufacturing industries. Among them, telecom operators are actively building edge computing platforms and leading the market development. Other industries, especially public utilities, energy and manufacturing industries, are also accelerating the adoption of edge computing, deploying edge computing dedicated servers in sites with complex environment for quality detection, automatic predictive maintenance, line / pipeline detection, and other application scenarios.

The telecom industry is expected to lead the development of the edge computing market, and there are traces to follow. According to the latest report, the global edge computing market is expected to reach US $43.4 billion by 2027, with a compound annual growth rate of 37.4% in the forecast period from 2020 to 2027. Many applications of 5g technology are changing the traffic pattern and opening up technology growth opportunities for telecom providers. This trend is also posing a threat to cloud vendors. More and more cloud computing vendors have begun to invest in edge ecosystem through cooperation with telecom companies.

More and more telecom companies adopt edge computing, which is expected to open up a new growth path in the market space of multiple access edge computing (MEC). The MEC allows enterprises to reduce network congestion and ensure high performance of applications by acquiring processing tasks and running applications near cellular customers. In addition, the continuous implementation of mobile edge nodes and base station edge computing is expected to increase the deployment of new applications and services for customers, which is expected to drive market growth. Due to the increasing number of connected devices worldwide, edge artificial intelligence (AI) continues to develop, which is expected to drive the growth of edge computing market in the next few years.

In addition, edge AI technology is expected to achieve real-time operation, such as reducing power consumption, data creation, and reducing the cost of data communication between autopilot and wearable devices, enabling edge computing to continue to heat up since 2020.

As technology companies such as Google, NVIDIA and Intel are designing processors for computing technology to facilitate reasoning. For example, ATOS se introduces high-performance servers that support AI to manage data based on edge computing technology, and the efficient application of edge computing is speeding up. In 2021, the development of edge computing industry may usher in an inflection point.

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