Edge Computing

AECC & GSMA Intelligence: Research on Edge Computing’s ROI opportunity

Edge Investments Set to Increase in 2024 According to OEMs, MNOs, Cloud Providers, and IOT Players Surveyed

The Automotive Edge Computing Consortium (AECC) today announced the release of groundbreaking edge computing research in collaboration with GSMA Intelligence titled Edge: Coming to a Place Near You. This research reveals that demand from enterprises is expanding in traditional sectors, including automotive and transportation markets, as well as new markets, including consumer electronics, media, smart cities, retail, and healthcare. Along with this research, the AECC also announced the appointment of Dr. Ryokichi Onishi, a Principal Engineer and General Manager at Toyota Motor Corporation, to AECC President and Chair.

  • Download free of charge the AECC GSMA research report and corresponding research at https://aecc.org/gsma-research/
  • Register for the Mobile World Live webinar to hear more about the report and its findings from the AECC and GSMA on March 26, 2024, at noon Eastern at https://view6.workcast.net/register?cpak=8122857641792348

The majority of surveyed companies expect a rise in capital spending, with a projected 10-15% increase in edge budgets for 2024 compared to 2023. Notably, 12% of these companies plan a more ambitious approach, aiming for a surge of 20% or more.

“Edge investments are set to increase. The research reveals a robust expansion in the demand for edge computing, primarily fueled by enterprises undergoing digital transformation. An impressive 73% of surveyed companies across five industries express their intent to increase edge investments over the next 12 months,” said GSMA Intelligence Head of Research Tim Hatt.

In the automotive sector, the report predicts significant revenue growth from the implementation of edge computing in connected vehicles over the next three years. About 15% of automakers expect a notable 16-20% increase, paving the way for innovative business models for Mobile Network Operators (MNOs), Original Equipment Manufacturers (OEMs), Cloud Providers, and App Players. These models will be driven by use cases requiring proximity to end-users. Notably, 44% of respondents, including mobile operators, IoT service providers, and systems integrators, express interest in conducting use-case analysis through AECC.

“Cross-industry collaboration is key. Understanding end-user requirements remains pivotal for the successful implementation of edge computing, especially for connected vehicle services,” emphasized Dr. Onishi, AECC President and Chair. Dr. Onishi brings 22 years of engineering experience to the AECC and a strong focus on digital infrastructure for emerging services such as data-driven vehicle design, high-definition maps, intelligent driving systems, and remote control of automated driving.

“We begin by identifying challenges, remaining receptive to solutions, and then validating promising ones through PoCs. This distinctive approach fosters a strong sense of community within AECC and establishes valuable partnerships with other enabling entities and communities. I invite organizations to join the AECC, collaborate with our member companies and utilize this research for informed strategic decision-making,” continued Dr. Onishi.

Other key findings from the GSMA Intelligence Survey include:

  • Connected Vehicle Innovation: The report reveals that the automotive industry, a catalyst for edge investments, continues to spearhead innovation in connected vehicle services. The report identifies a surge in demand for services such as intelligent driving, Mobility as a Service (MaaS), and Vehicle-to-Everything (V2X), amplifying the RoI potential. Notably, HD mapping and MaaS are recognized as key drivers for substantial revenue opportunities.
  • Who Should Pay for Infrastructure?: The survey highlights that approximately 50% of companies view telco operators as the primary group responsible for investments in edge infrastructure with two-thirds of operators validating this view themselves. IoT providers and systems integrators are next (43%) followed by the equipment vendors (31%).
  • Proof of Concepts Scale Monetization: Survey findings highlight the critical role of scaling edge computing by intensifying PoC development and testing efforts to facilitate the deployment of standardized software solutions. This approach not only caters to enterprise demands across diverse verticals but also serves as a crucial step in validating ROI projections. In fact, 61% of respondents note an increase in PoC development and testing as a first and second priority for scaling edge computing; 58% note boosting the development of compelling edge use cases as a first and second priority; and 49% prioritize strengthening cross-industry collaboration on edge infrastructure as a first and second priority.

Participate in the AECC’s Proof of Concept Program

Organizations interested in collaborating with the AECC on a POC can initiate the process by contacting ProofofConcept@aecc.org. For a glimpse into how AECC’s ongoing POCs successfully address data challenges, access POC case studies and on-demand videos at https://aecc.org/proof-of-concepts/.

Collaborate with OEMs, MNOs, Cloud Providers and App Players

All companies interested in contributing to the connected vehicle services ecosystem are encouraged to become AECC members. AECC membership is open to organizations across any business vertical. To learn more about AECC membership, visit https://aecc.org/membership/.

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