IDC: Edge management services market expected to explode

As enterprises seek greater process efficiency and low latency, demand for managed edge services will only grow. According to a recent IDC report, global market revenue could reach $2.8 billion by 2025.

With this potential, more service providers are looking to it as part of their next revenue-generating opportunity. Enterprise organizations have a strong incentive to improve operational efficiency, and edge provides a way to achieve this.

This is a huge potential market for major innovations in R&D, so it is important to watch for new opportunities. Organizations need it and will look for effective solutions, and vendors will have the opportunity to advance new solutions for fast, efficient processing without sacrificing security.

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

Key deployment models

IDC identifies three general deployment possibilities for managed services.

• On-premises: Some industries require edge computing services that are deployed from within the organization. Key industries include healthcare and AR/VR applications that require ultra-low latency.
• Service Provider Edge Deployments: Managed edge services deployed at the provider edge are available in both mobile and fixed options. IDC expects this to expand into many vertical industries.
• CND Edge Deployment: Managed edge services deployed at CND POPS or edge locations provide rich customer experience through personalization.

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

Huge potential for managed edge services is on the horizon

IDC predicts $443.5 million in 2021 alone, with the potential to reach billions. This is the first time IDC has published a report on this emerging service, and the organization hopes everyone will pay attention to it in the next few years. The potential for innovation in this area is huge and worth paying attention to.