Edge computing is clearly moving toward commercialization and the business models are solidifying quickly, according to a new report published by research company Mobile Experts. In this report, Mobile Experts’ analysts are providing details on $10 billion in 2026 edge computing services revenue, breaking down the revenue for computing, connectivity, and site hosting.
“Drivers in the edge computing market have become stronger in the past year, while challenges to the market from business model uncertainties to technical issues have decreased in impact,” said Mobile Experts Chief Analyst Joe Madden. “Despite our allergic reaction to hype, we are optimistic about massive growth in this market. We expect to see cumulative annualized growth in the range of 55% over the next 5 years, with the strongest deployment on enterprise premises, with strong contributions in Access Edge and Regional Edge data centers.”
Multiple factors are driving this kind of market growth, according to the Mobile Experts analysts:
- Video streaming and other data-intensive applications may now be done at a lower cost
- Enterprises need data control and data sovereignty
- Automation and analytics require low latency
- Poor connectivity for branch locations that need local analytics
Edge Cloud Deployment
“Heavy investments in edge computing equipment spending, both hardware and software, will grow from $780 million this year to about $3 billion in 2026,” added Mr. Madden. “This new report breaks down the numbers and exact predictions for market shape over the next five years, with service revenue rising at almost 40% CAGR. By 2045, service revenues will be in the hundreds of billions of dollars per year.”
This research contains 35 graphs and figures that depict a comprehensive picture of the overall edge computing industry, including forecasts for data centers, servers, and CPU/GPU cores, as well as income from software and edge cloud services.
The 54-page paper forecasts how edge cloud deployment will evolve in the future for corporate applications in a variety of vertical areas, including Oil & Gas, Industrial, Manufacturing, Retail, Gaming, and Media. To properly anticipate the right business model in each vertical industry, the technical background and ROI modeling were carefully explored, according to Mobile Experts.
More information about this report can be found here.