We just published the July 2020 Multi-Access Edge Computing (MEC) market forecast report. The industry collaboration and the momentum being achieved, our July 2020 five-year MEC forecast (2019 to 2024) has doubled from our January 2020 forecast. The market is still expected to start slow but greatly accelerates in the second half of the forecast period. We expect the China market will be leading in the scale of MEC deployments and will represent the largest regional market. Here are some key takeaways from the report
Following five consecutive years of market contraction, the NE Services market began to reverse direction, growing slightly in 2019 due to positive developments with Network Rollout Services and Consulting Services offsetting reduced demand for Managed Services. We expect the improved market sentiment in 2019 will extend through the forecast period, resulting in the market registering $46 billion in 2024.
“Taking into consideration the overall market opportunity, the likelihood various CBRS markets can move beyond the early adopter phase, and the state of the market with CBRS RAN accounting for 1 percent to 3 percent of the overall North American RAN market in 1Q 2020, we have adjusted the cumulative 2019 to 2024 CBRS RAN forecast upward,” said Stefan Pongratz, Vice President and analyst with the Dell’Oro Group.
Open RAN adoption is picking momentum and we have adjusted the forecast to reflect a more favorable outlook,” said Stefan Pongratz, Vice President at Dell’Oro Group. “The pace of innovation in the mobile infrastructure industry is developing at impressive speeds. One of the key drivers with the shift from proprietary RAN toward Open RAN is that it should ideally address the competitive landscape and increase the likelihood of a market concentration trend reversal.
Global headwinds in 2020 will result in a 7% Y/Y decline in broadband access equipment spending, as service providers try to deliver judicious bandwidth growth to satisfy increased demand from telework and online education applications, while also preserving capital for a return to growth in 2021 and beyond.
COVID-19 has not killed the radio access network (RAN) market. In fact, the Dell’Oro Group just upwardly revised its projections for the sector, saying the RAN market will grow at a healthy pace over the next three years. Cumulative investments over the 2019-2024 forecast period are expected to be over $200 billion.
But while the acquisition will no doubt open new doors for HPE, it also stands to raise Aruba’s profile in the competitive SD-WAN market, and position the vendor to directly challenge Cisco, said Shin Umeda, VP at Dell’Oro Group, in an interview with SDxCentral.
Trials are well underway around the world as the industry progresses to 5G operating in standalone mode, and “vendors and service providers are working together to learn about the intricacies of implementing 5G SA, which primarily means implementing the 5G core for 5G New Radio (NR) base stations,” Dave Bolan, research director at Dell’Oro Group, wrote in a recent report.
“Charter’s entry is a big deal because it’s the first cable operator to officially announce its intention to apply for RDOF funds,” said Dell’Oro Group’s Jeff Heynen, senior research director for broadband access and home networking, in an email to FierceTelecom. “It certainly won’t be the only cable operator to do so, but it will likely be the largest. I think there will be a number of cable operators—think NCTC members—that will also apply for RDOF funds.