The Edge Is the New Core: Global Spending To Hit USD228 Billion in 2024
- By CDOTrends editors
- September 30, 2024
Global spending on edge computing is estimated to reach USD228 billion in 2024, marking a 14% increase from 2023, according to an
International Data Corporation (IDC) analysis.
IDC’s Edge Spending Guide estimates include combined enterprise and service provider spending on hardware, software, professional services, and provisioned services for edge solutions. The forecast anticipates sustained strong growth through 2028, with spending expected to be near USD378 billion, growing at a double-digit CAGR.
IDC defines the edge as encompassing the technology-related actions outside of centralized data centers, serving as an intermediary between connected endpoints and the core IT environment.
"As the focus of AI shifts from training to inference, edge computing will be required to address the need for reduced latency and enhanced privacy," said
Dave McCarthy, research vice president of cloud and edge services at IDC.
"This trend not only optimizes operation efficiencies but also fosters new business models that were previously not possible with centralized infrastructure. Distributing applications and data to edge locations enables faster decision-making with reduced network congestion."
The edge ecosystem comprises various technologies and services, including computing infrastructure (such as servers, storage, and networking equipment), diverse software (such as system infrastructure, security, and application development and deployment), as well as professional implementation and management services and provisioned services delivering cloud-based technologies.
The IDC Edge Spending Guide segments edge spending for more than 500 named enterprise use cases related to six domains – Artificial Intelligence (AI), Internet of Things (IoT), Augmented Reality (AR), Virtual Reality (VR), Drones, and Robotics – unlocking significant opportunities across various industries.
In manufacturing, which accounts for the largest portion of spending, edge enables real-time monitoring of equipment and processes, reducing downtime and improving operational efficiency. Predictive maintenance use cases powered by AI at the edge help companies avoid costly breakdowns by identifying issues before they escalate.
In utilities, the edge continues to enable smarter, more efficient, and more efficient real-time management of critical infrastructure such as electricity, water, and gas. With the increasing deployment of renewable energy sources, smart grids, and IoT-enabled devices, the edge is a critical solution for utility companies to help process vast amounts of data quickly and securely.
Banking is the fastest-growing industry in terms of spending. Driven by the rise of AI-powered services, edge transforms how banks handle data processing, fraud detection, and customer interactions. Examples of use cases include AI-optimized operations, augmented fraud analysis and investigation, and others.
IDC expects all 19 enterprise industries profiled in the spending guide to see five-year double-digit compound annual growth rates (CAGRs) over the forecast period.
However, the service provider segment will see the largest CAGR over the forecast period.
In this domain, investments in edge service delivery are built on infrastructure spending for multi-access edge computing (MEC), content delivery networks, and virtual network functions.