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Center for Edge Computing and 5G

Managed Edge Services Market Predicted to Explode


The key to deployment of managed edge services is the rollout of 5G services, which enable faster, more consistent services.

The demand for managed edge services will only grow as companies seek greater process efficiencies with low latency. According to a recent IDC report, revenues in the market could reach $2.8 billion worldwide by 2025.

With that kind of potential, more service providers are hoping to make it part of their next revenue opportunity. Organizations have a massive drive to improve operational efficiencies, and the edge provides a path towards that goal.

It’s a huge potential market for serious innovation in research and development, so it will be essential to watch for new opportunities. Organizations need it and will be looking for efficient solutions, and providers will have the chance to advance new solutions for fast, effective processing without sacrificing security.

The key to deployment is the rollout of 5G, enabling faster, more consistent services. Edge services could be the catalyst for Industry 4.0, and the market is following that lead.

Watch Now: What is the Edge and Why Do We Care About it So Much?

Key deployment models

IDC identified three general deployment possibilities for managed services.

  • On-premises: Some industries need edge compute services that deploy from the organization’s premises. Key industries include healthcare and AR/VR applications that require extra-low latency.
  • Service provider edge deployment: Managed edge services deployed at the provider edge come in both mobile and fixed options. IDC expects this to spread to a number of industry verticals.
  • CND edge deployment: Managed edge services deployed at CND POPS or edge locations provide a rich customer experience with personalization.

IDC predicts on-premises has the most lucrative potential as the fastest-growing segment of the three components. As providers look to break into this market, many of them will inevitably create offers that fill gaps in the on-premises sector.

Massive potential on the horizon for managed edge services

IDC forecasts $443.5 million for 2021 alone, with the potential for billions of dollars on the table. This is the first time IDC has released a report for this up-and-coming service, and the organization expects it to be on everyone’s mind in the coming years. There’s so much potential for innovation in the field, and it’s one to watch.

Elizabeth Wallace

About Elizabeth Wallace

Elizabeth Wallace is a Nashville-based freelance writer with a soft spot for data science and AI and a background in linguistics. She spent 13 years teaching language in higher ed and now helps startups and other organizations explain - clearly - what it is they do.

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