New market research from Informa’s Omdia predicts that revenue from the enterprise edge services market will reach $214 billion (£171bn) by 2026.
That’s more than double the current size of the market, which Omdia forecasts to reach $97 billion (£77.5bn) in 2022.
Whilst Omdia expects the global market to see a compound annual growth rate (CAGR) of 20.4% from 2021 to 2026, North America is predicted to dominate the period with a 41% share of global revenue.
In terms of market distribution, the report notes that edge consulting services from systems integrators, telcos, ICT solutions vendors, and consulting firms currently form the largest part of the market (39.3%).
Analysts expect subscription-based telco services like cybersecurity and network management subscriptions to decline over time.
In its place, Omdia expects fully managed, cloud-based edge services like multi-access edge computing (MEC) and workload and database management to increase in popularity.
The report predicts that edge storage and compute services will be the strongest area of growth, with services emerging as cloud services extensions to the edge through major hyperscalers, service providers, and data centre 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.
Looking at emerging use cases, the report expects the largest vertical to lead growth in edge services over the next five years to be the financial market.
Whilst industrial applications and IoT use cases paved the way for edge use cases, Omdia argues AI-based analytics and cognitive systems for business decisions, market insights, risk assessment, and customer service platforms will soon take over.
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.
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