The Current Status of Network Edge Deployment Globally
Network edge deployment is rapidly evolving, driven by the increasing demand for low-latency, high-bandwidth applications. According to STL Partners as of 2024, there are nearly 850 network edge data centres globally, with projections indicating this number will rise to ~2,000 by 2028. This growth is fuelled by accelerated 5G standalone (SA) deployments and growing governmental support.
Current Market Size and Projected Growth
The global edge computing market was valued at USD 16.45 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 36.9% from 2024 to 2030. By 2030, the market is projected to reach USD 155.8 billion, with significant contributions from North America, East Asia, and Europe.
Additionally STL Partners projects an edge AI related revenues as an addressable market of USD 157 billion by 2030. These revenues it predicts as being driven by computer vision, assisted and autonomous vehicles, traffic management, drone inspection, and precision monitoring and control use cases.
Key Roadblocks for Operators
Despite the promising growth, operators face several challenges in implementing a successful network edge strategy:
High Initial Investment: Deploying edge infrastructure requires substantial capital investment in hardware, software, and networking equipment. In support of edge AI use cases, this may also require more expensive GPU deployment at the distributed edge to meet the demands of these services.
Complexity in Management: Managing distributed edge nodes adds complexity to network operations, requiring advanced management tools and skilled personnel. This includes automation and self-service with evolution of an eco system of edge application providers. This needs to be part of a wider network as a service (NaaS) strategy.
Security Concerns: Edge nodes are more vulnerable to cyber-attacks due to their distributed nature, necessitating robust security measures.
Interoperability Issues: Ensuring seamless integration between edge nodes of different networks and existing core networks can be challenging, this is key to the growth of edge application provider eco system, as they need to ensure their applications can work on any access network.
Regulatory Hurdles: Navigating varying regulatory requirements across different regions can slow down deployment efforts.
Conclusion
The network edge is a critical component of the future digital infrastructure, offering significant benefits in terms of reduced latency and enhanced performance. However, operators must navigate financial, technical, and regulatory challenges to fully realize its potential.
The last article in this series, "Network edge: seizing the opportunity", concentrates on how telco's can address the issues and overcome the challenges and how Brightpath can help.
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