5G Edge Cloud Network and Services Market Size, Share, and Industry Analysis, By Solution (Hardware, Software, and Services), By Enterprise Type (SMEs and Large Enterprises), By Industry (Automotive, Healthcare, Manufacturing, Transportation & Logistics, Government & Defense, Energy & Utilities, and Others), and Regional Forecast till 2032

The global 5G edge cloud network and services market is witnessing significant growth. The edge cloud network optimizes bandwidth usage by reducing the need for all data to travel to centralized cloud servers. This is particularly valuable for 5G networks, where high-speed data transfer is a priority. By processing data locally, companies can reduce transmission costs and avoid overloading the core network. Applications such as HD video streaming, AI-driven analytics, and surveillance require substantial bandwidth. 5G edge networks allow these high-bandwidth applications to run smoothly by reducing backhaul requirements and providing localized data processing. These factors play a key role in boosting the market growth.

• According to industry experts, worldwide spending on edge computing was around USD 122 billion in 2022, an increase of 14.8% over the previous year.

Impact of Generative AI on the 5G Edge Cloud Network and Services Market

The adoption of generative AI is having a significant impact on the market. Generative AI models can help aggregate and analyze data from IoT devices at the edge, reducing the amount of raw data that needs to be sent to central servers. For example, AI-generated summaries and insights can be sent to central data centers rather than raw data, reducing bandwidth usage and improving response times. Generative AI can support edge applications requiring rapid data processing, such as video analytics in smart cities or machine vision in manufacturing. This real-time processing capability is critical for low-latency applications and enables businesses to make faster decisions based on AI insights. For instance,

• In January 2024, Microsoft Corporation engaged in a partnership with Mangata Networks, a provider of edge computing solutions. Through this collaboration, Microsoft aims to develop an AI-enabled edge cloud product connected via satellite.

5G Edge Cloud Network and Services Market Driver

Growing Demand for Low Latency Applications and Real-time Processing Needs Drives Market Growth

5G edge networks are designed to support applications requiring minimal latency, such as augmented reality (AR), virtual reality (VR), autonomous vehicles, and real-time gaming. By processing data closer to the end-user, edge computing drastically reduces latency, meeting the demands for real-time processing. Sectors, such as healthcare, manufacturing, and finance benefit from near-instantaneous data processing. In healthcare, for example, remote surgeries or diagnostic imaging benefit from low-latency 5G edge networks, which can ensure high data transmission speeds for real-time responsiveness IoT and Device Explosion. For instance,

• In September 2024, Juniper Networks signed a partnership with Itential, a provider of network automation and orchestration at scale. Through this partnership, the company aims to provide 5G edge cloud network with more bandwidth and lower latency services.

5G Edge Cloud Network and Services Market Restraint

High Initial Infrastructure Costs May Hinder the Market Growth 

Setting up 5G and edge computing infrastructure involves substantial capital expenditure, especially in densely populated areas where equipment density needs to be high. For many providers and enterprises, this cost may be a barrier to entry, particularly for smaller organizations that lack the resources of larger telecom companies. Additionally, equipment, such as edge servers, 5G antennas, and IoT devices, require regular updates, further increasing costly network coverage. This factor is expected to hamper the growth of the market.

5G Edge Cloud Network and Services Market Opportunity

Growing Adoption of 5G Edge Cloud Networks and Services in IoT and Industrial Automation Aids the Market Growth

The rise of IoT devices in industries such as manufacturing and smart cities creates a high demand for low-latency and high-bandwidth solutions, making 5G edge computing a strategic fit. For example, predictive maintenance, real-time monitoring, and smart energy grids benefit from localized data processing at the edge, providing rapid feedback without overloading the central network. 5G edge computing enables AI-driven analytics to occur directly at the device level, supporting real-time data processing that benefits applications in autonomous vehicles, retail, and personalized marketing. As AI and ML technology continue to advance, edge computing can further optimize complex tasks, making edge AI a major opportunity for enterprises across sectors. For instance,

• In April 2024, Nokia Corporation signed a Memorandum of Understanding (MOU) with Ooredoo Group. Through this MoU, the company aims to enhance its 5G solutions and supply cloud interconnect solutions to UAE.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by the Key Players
• Impact of Generative AI on the Global 5G Edge Cloud Network and Services Market
• Consolidated SWOT Analysis of Key Players

Analysis by Solution

By solution, the market is divided into hardware, software, and services.

Hardware captured the largest market share. 5G edge networks depend on smart devices and IoT sensors that gather and transmit data in real-time. These devices are often equipped with processing capabilities, allowing them to pre-process data before sending it to edge servers. These devices connect different types of network environments and protocols, enabling communication between IoT devices and the edge cloud. They also handle data aggregation, filtering, and basic processing, improving efficiency and security. These factors play an important role in fueling market growth.

Analysis by Enterprise Type

By enterprise type, the market is divided into SMEs and large enterprises.

Large enterprises account for the largest proportion of the 5G edge cloud network and services market. With a 5G edge cloud network, large enterprises can track assets, shipments, and inventory in real time, reducing bottlenecks and optimizing supply chain management. This is especially beneficial for large-scale logistics and warehousing operations.

Analysis by Industry

By industry, the market is divided into automotive, healthcare, manufacturing, transportation & logistics, government & defense, energy & utilities, and others.

Manufacturing accounts for the largest market share. Manufacturers leverage 5G edge to enable autonomous robots on factory floors. These robots can perform tasks, such as sorting, packaging, and assembly, with minimal latency, boosting production speed and accuracy. In hazardous environments or areas difficult for human operators to reach, 5G allows for remote control of heavy machinery and drones, enhancing both safety and efficiency. For instance,

• In December 2023, Cisco Systems engaged in a partnership with NTT Ltd. Through this collaboration, the company aims to provide private 5G adoption across the manufacturing, automotive, healthcare, logistics, retail, and public sectors.

Regional Analysis

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In terms of geography, the global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America accounted for the largest share of the global 5G edge cloud network and services market in 2023. North America, led by the U.S., is at the forefront of deploying 5G edge solutions across sectors, such as manufacturing, healthcare, and retail. Major tech companies, telecom operators, and cloud providers are forming partnerships to deliver specialized edge computing solutions. These factors play a vital role in making the region a leader in the market. For instance,

• In February 2024, Dell Technologies, the U.S.-based company, engaged in a strategic partnership with Nokia Corporation. Through this collaboration, the company aims to use private wireless connectivity from Nokia and enhance its open network architectures in the telecom sector.

Europe is the second-largest market based on the demand for 5G edge cloud networks and services. European countries, driven by green policies and industrial initiatives, are using 5G edge to create energy-efficient and sustainable industries. For example, the European Commission’s Industry 4.0 initiative supports 5G edge adoption to enhance operational efficiency and reduce carbon emissions. For instance,

• In May 2024, Nokia Corporation engaged in a strategic partnership with CGI, a provider of IT and business consulting services firm. Through this partnership, the company aims to provide 5G private wireless networking technology for real-time and data-driven business operations.
• According to industry experts' report in 2021, the size of the EU cloud and electronic communications markets will be equivalent in 2027.

The 5G edge cloud network and services market in Japan is experiencing rapid growth. Japan’s strong manufacturing and robotics sectors are leveraging the 5G edge to improve industrial processes. Japan is advancing robotic automation, with 5G-enabled robots supporting precision tasks, especially in electronics and automotive manufacturing, where low-latency processing is essential.

Key Players Covered

The global 5G edge cloud network and services market is fragmented, with the presence of a large number of group and standalone providers. In the U.S., the top 5 players account for only around 23% of the market.

The report includes the profiles of the following key players:

• Nokia Corporation (Finland)
• Hewlett Packard Enterprise Development LP (U.S.)
• IBM Corporation (U.S.)
• Huawei Technologies Co., Ltd. (China)
• Cisco Systems, Inc. (U.S.)
• Dell Inc. (U.S.)
• Amazon Web Services, Inc. (U.S.)
• FogHorn Systems (U.S.)
• Juniper Networks (U.S.)

Key Industry Developments

• In February 2024, Nokia Corporation, A1 Austria, and Microsoft Corporation engaged in a partnership to conduct the industry’s first 5G-edge cloud network slicing trial. Through this deployment, A1 would be able to provide enterprise cloud applications with high security to mobile users.
• In February 2023, Nokia Corporation and Kyndryl, the U.S.-based provider of IT infrastructure services, extended their partnership for three years. Through this extension, they aim to develop and provide Industry 4.0 solutions, and LTE and 5G private wireless services to customers across the globe.