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.
“From a mobile infrastructure perspective, this is an important opportunity for the RAN [radio access network] vendors,” Stefan Pongratz, an analyst with Dell’Oro Group, told Light Reading. “And clearly the incumbent RAN suppliers are well positioned not only because the C-band will be used in conjunction with the existing FDD spectrum to minimize coverage gaps and maximize performance but also because their respective Massive MIMO solutions are in good standing.”
Is 2020 the year of 400G? It’s the kind of question telecom industry observers love to ask, though it is a far too general one. It speaks to our fascination with big numbers as milestones to be reached and put in the rearview mirror as we push toward the next milestone.