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Omdia projects $7 billion to be invested in edge computing within telco networks

Omdia projects $7 billion to be invested in edge computing within telco networks

Omdia, a research and consulting company, has developed a tracker that focuses on the investments made by telecommunications companies in network edge and multi-access edge computing (MEC).

According to this tracker’s projections, global spending on edge computing infrastructure is expected to reach approximately $7 billion by 2032. This indicates that organizations and telecommunication providers are anticipated to allocate these funds towards enhancing edge computing capabilities within their networks.

“Telcos are currently building the necessary foundations for edge computing through network cloudification, both in core and RAN, and improving their technical and commercial acumen in technology development and go-to-market,” says Kerem Arsal, senior principal analyst of Networked Edge and 5G Transport.

In the past year, Omdia conducted a survey involving 500 enterprises actively implementing or in the process of introducing IoT solutions. The survey revealed that 66 percent of these enterprises either currently use or have plans to utilize 5G connectivity for their IoT deployments. This highlights a significant growth opportunity within the telecommunications sector in the field of edge computing.

According to Omdia, the allocated spending will be distributed across various components of the infrastructure. Some of the capital will be directed towards physical assets like facility construction, expenses related to server, and networking equipment procurement and maintenance. Additionally, there will be costs associated with the software utilized in edge computing solutions.

Although the adoption of networked edge and multi-access edge computing services has not been as rapid as initially anticipated, Omdia says that the advantages of incorporating edge computing into telecom networks strike a balance between the benefits of public cloud services and on-premise solutions.

Furthermore, the tracker forecasts an annual revenue potential exceeding $20 billion from Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS) within Multi-Access Edge Computing (MEC) by the end of 2032.

“When telcos offload the risk to other players in the value chain, they also offload the reward. They should be careful not to miss out on the unique positioning that the combination of connectivity and computing can bring to them,” Arsal continues.

Omdia emphasizes that the revenue opportunity is not only limited to telco companies alone but can also be extended to all service providers in the industry.

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