5G edge networks will drive cloud video revenues from $5 billion in 2019 to $67.5 billion by 2024, at a CAGR of 67%, according to insights from ABI Research.
At the same time, 5G and edge networks will drive 119 million cloud gaming users by 2025.
“5G edge networks bring new capabilities allowing communications service providers (CSPs) to develop innovative applications, services, and revenue streams in the media and entertainment domain,” the market research firm said in a statement.
Edge computing will play a critical role in enabling these use cases by decentralizing network traffic while centralizing processing capabilities.
5G and edge networks in the context of gaming, will unlock a fully immersive environment with multiplayer collaboration for accessing and playing the same game simultaneously, it added.
Today, most media and gaming use cases, especially cloud gaming and cloud video, are on the consumer side but 5G and edge infrastructure will also generate use cases in the enterprise segment.
“In general, the tectonic shift in the entertainment sector toward streaming of video, music, and games is exciting for CSPs to tap into. 5G edge networks integrate cellular architecture with IT and cloud infrastructure to reduce end-to-end latency for a multitude of services and use cases,” said Don Alusha, Senior Analyst, 5G Core & Edge Networks at ABI Research.
5G low latency and edge computing capabilities are crucial for many aspects of media and entertainment services as content can be produced and shared from anywhere. The content can also be processed by various users residing at various geographical locations and reused for various purposes which can reduce production costs and timescales.
Globally, Vodafone, Orange, SK Telecom, and LG Uplus are benefitting from these advantages.
5G edge networks will further drive several use cases with higher data rates and low latency, Alush said and added there are 1.5 billion AR-enabled devices today across all segments.
“With the advent of 5G and edge capabilities, 2021 and beyond will be a time in which partnerships and collaborations between hyperscalers (e.g., Amazon, Google, Microsoft) and telcos will flourish for both the enterprise and consumer markets,” Alusha added.
Alusha noted that telecom companies may collaborate with AI, VR/AR, and software developers to deliver more immersive experiences.
“The question for CSPs, hyperscalers, and network equipment vendors (NEVs) is whether they can find a reasonable commercial basis for taking action that will be predictable and positively affect top-line revenues. Knowing how to answer that is not just one aspect of the game – it is the game,” he highlighted.