New IDC Spending Guide Forecasts Edge Computing Investments Will Reach $208 Billion in 2023



THE 15TH OF FEBRUARY 2023 IN NEEDHAM, MA - $208 billion, or 13.1% more than 2022, is projected to be spent on edge computing globally in 2023. According to the Worldwide Edge Spending Guide published by International Data Corporation (IDC), enterprises and service providers are expected to continue spending at this rate of growth through 2026, when they expect to have spent close to $317 billion on hardware, software, and services for edge solutions.

The edge, which serves as a bridge between connected endpoints and the core IT environment, is defined by IDC as the technology-related operations carried out outside of the centralised datacenter. Edge is distinctively distributed, software defined, and adaptable. The value of the edge is the relocation of computer resources to the actual site where data is generated, which significantly reduces time to value and enables business operations, judgements, and insight instantly outside of the central IT system.


David McCarthy, research vice president, Cloud and Edge Infrastructure Services at IDC, declared that "Edge computing has entered the mainstream." "The majority of digital transformation projects depend heavily on their capacity to transmit apps and data to remote sites. Customers are speeding up their adoption plans as providers add new edge-specific features to current feature sets."Around 400 named use cases for edge computing have been uncovered by IDC, spanning several sectors and disciplines. Content delivery networks, virtual network functions, and multi-access edge computing (MEC), the three edge use cases that will see the most investment in 2023, are the cornerstones of service providers' edge service offerings. These three use cases taken together will represent over 20% of total edge spending this year. In 2023, service providers will spend over $44 billion on edge solutions that are enabled.

Production asset management, autonomous operations, omni-channel operations, freight monitoring, and enhanced customer service agents are the edge mentioned use cases for business adopters, including the public sector, that will receive the most funding in 2023. These use cases taken together will account for more than 10% of total edge investment this year. Emergency response, 360-degree instructional video watching, film/feature production, and lab and field work are the edge use cases expected to see the highest expenditure rise between 2021 and 2026. (K-12).

According to Alexandra Rotaru, senior research analyst at IDC's Data & Analytics department, edge computing will continue to be among the most durable and alluring investment opportunities over the next five years. Despite a number of factors that are having an influence on purchasers' purchasing habits, particularly in Europe, she continued. Metrics linked to enhanced innovation, performance, customer experience, or cybersecurity capabilities will enable businesses all over the world to boost their budgets and build new edge infrastructures.

This year, investments in edge solutions across enterprise end user industries will be concentrated in discrete and process manufacturing, followed by the retail and professional services sectors. IDC anticipates that throughout the projection period, spending would increase by double digits across all 19 industries covered in the Spending Guide, with service providers having the fastest five-year compound annual growth rate (CAGR) of 21.1%.

In 2023, professional and supplied services will account for the lion's share of spending in the edge sector. About half of this component will be made up of connectivity services, which will be followed by support and deployment services and software as a service (SaaS). Edge gateway, server, and network equipment investments will be the primary drivers of hardware spending. Throughout the projected period, software will continue to be the smallest technological category.

Geographically speaking, the United States will lead global expenditure throughout the projection period, accounting for more than 40% of the total. Western Europe and China will come in second and third, respectively. With CAGRs of 18.1% and 18.0%, respectively, South America and China will have the fastest expenditure increase throughout the five-year forecast.

By predicting corporate and service provider spending across 17 technology marketplaces, six technology domains, 19 sectors, and nine geographical areas, the IDC Global Edge Spending Guide defines the edge computing industry. Almost 400 application examples from different businesses and domains are also included of this edition of the Spending Guide (V2 2022).

The IDC Spending Guides:

IDC's Spending Guides provide a thorough overview of significant technology markets from a geographic, vertical industry, use case, buyer, and technology standpoint. The spending guidelines are offered in the form of a pivot table or through a custom query tool, allowing the user to rapidly and efficiently obtain valuable data about each market by analysing data patterns and connections.


For more information on IDC's expenditure guides, contact Monika Kumar via email at mkumar@idc.com.

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