The global managed edge services market is expected to grow at a CAGR of 42.23% from US$1.25 billion in 2024 to US$7.28 billion in 2029.
Rapid Adoption of Cloud-managed service in Business Operation
The growing adoption of cloud services creates a significant window of opportunity for Managed Service Providers (MSPs) to offer their specialized skills. MSPs can deliver a wide range of services, from aiding in cloud migration to ongoing infrastructure management, enhancing security and compliance, performance monitoring, and optimizing costs. By outsourcing cloud services, organizations can concentrate on their core strengths and elevate their overall efficiency. As businesses continue to transition their IT infrastructure to cloud-based solutions, they cope with the complexities of effectively managing and optimizing these environments. Consequently, the rising adoption of cloud-managed services is expected to drive substantial growth in the managed edge services market.
For instance:
In February 2023, Akamai Technologies, Inc. introduced Akamai Connected Cloud, a highly extensive edge and cloud platform tailored for cloud computing, security, and content delivery. This innovative platform is designed to bring applications and user experiences into closer proximity, while simultaneously pushing potential threats further away. Additionally, Akamai unveiled a suite of strategic cloud computing services that cater to developers, facilitating the creation, operation, and security of high-performance workloads in close proximity to the online connection points of businesses and users.
In May 2023, MATRIXX Software partnered with Blue Planet, a division of Ciena, to deliver cutting-edge intelligent automation solutions. The joint offering from Blue Planet and MATRIXX facilitates intelligent orchestration of multi-access edge computing (MEC), network, and cloud resources, enabling the configuration of connectivity for advanced consumer and enterprise services, such as mobile gaming and the utilization of commercial construction equipment. These services are made possible by the adaptability of 5G and edge networks.
Surge in Remote Work Culture
The shifting landscape of work environments brings forth substantial opportunities for the managed services market. With the proliferation of remote work and distributed teams, businesses are increasingly in need of adaptable and scalable IT solutions. Managed service providers (MSPs) are well-positioned to meet this demand by offering cloud-based services, collaboration tools, and secure remote access solutions. As organizations transition to hybrid work models, MSPs can effectively deliver specialized support for the management of diverse IT environments.
Rising Investment in Edge Computing
The surge in investments within the edge computing ecosystem is propelling the expansion of the managed edge service market. Companies, acknowledging the transformative potential of edge computing for bolstering their services and facilitating real-time data processing, have made substantial investments in the development and expansion of the edge computing infrastructure. In addition, the market growth is primarily driven by the increasing investment by the organization for enhanced network capacity, low latency, and improved network performance to support the utilization of edge computing, organizations have the capability to process and analyze data in close proximity to its source, minimizing the necessity for data transfer to the cloud.
In line with AT&T's 2023 Edge Ecosystem report, it is anticipated that network design, deployment, and maintenance will account for roughly 30 percent of the total combined investment in primary edge computing use cases for the year 2023. The second significant area of investment within the edge ecosystem is overall strategy and planning, representing 23.4% of the total, with security and applications following closely at 22%. This allocation underscores the critical role that network development and strategic planning play in shaping the future of edge computing.
Edge+Private 5G managed service
The fusion of Edge and private 5G represents a game-changing development for both customers and the industry as a whole. This integration of computing stacks and private 5G offers a distinctive solution that promises significant benefits for enterprises looking to enhance the performance and cost-efficiency of crucial applications at the network edge. It provides the minimal latency, maximum processing power, and global coverage necessary for enterprises to expedite their distinctive digital transformation initiatives. With secure application development, automated resource management, and real-time processing capabilities, along with multi-cloud and edge platforms, it creates a fully integrated Edge+Private 5G managed service.
In August 2022, NTT and VMware collaboratively developed and launched a fully managed Edge+Private 5G service, allowing enterprises to rapidly deploy, manage, and monitor applications at the network edge. This innovative offering is the result of a partnership between NTT, VMware, and Intel, focusing on cutting-edge solutions and services geared toward the edge. NTT utilizes VMware's Edge Compute Stack to drive its new Edge-as-a-Service solution, which empowers businesses to harness the advantages of edge computing more effectively.
In September 2023, Akamai Technologies which is one of the cloud companies that power and protect life online, announced that the company will be serving seven upcoming core compute in major regions including Asia, North America, Latin America, and Europe. The locations in Indonesia, California, Los Angeles, Miami, Japan, Florida, and Osaka among others are the third installation in Akamai rollout of new core compute regions since its acquisition of Lionde last year, this represents a key step in Akamai pus to redefine how cloud operates.
In June 2022, Lumen Technologies is investing in a global edge network and is expanding its edge computing solutions in Europe. The company plans to provide low latency platform for businesses needing to extend their high-bandwidth, data-intensive application out of the cloud edge.
| Report Metric | Details |
|---|---|
| Total Market Size in 2024 | USD 1.25 billion |
| Total Market Size in 2029 | USD 7.28 billion |
| Forecast Unit | Billion |
| Growth Rate | 42.23% |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2023 |
| Forecast Period | 2024 – 2029 |
| Segmentation | Deployment, Organization Size, Geography |
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies |
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