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Dell’Oro Group: MEC Investments to Grow 140% CAGR from 2020 to 2025

August 11, 2021

MEC Specifications Need to Evolve for Federated MEC Networking

According to a newly published forecast report by Dell’Oro Group, Multi-Access Edge Computing (MEC) investments to grow at a 140 percent compounded annual growth rate (CAGR) in Servers and Packet Core User Plane Functions over the next five years.

MEC specifications need to evolve for federated MEC networking to address broader requirements in the market.

“The cumulative five-year investment in MEC is expected to be $11 B,” stated David Bolan, Research Director at Dell’Oro Group. “Though the CAGR is the same as our previous forecast, the cumulative forecast has decreased due to a slower than anticipated wide-scale launches of 5G Standalone (5G SA) networks. This may be due to 5G service providers (SPs) investigating the role that Public Cloud SPs could play in their networks.”

“Another factor may be the need for specifications for federated MEC networking,” commented Bolan. “European Telecommunications Standards Institute (ETSI) MEC committee and GSM Association (GSMA) Operator Platform Group just released their requirements for federated MEC networking, identifying seven uses cases that the SP community needs,” added Bolan.

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