Global spending on edge computing is on the rise. This year they will reach $176 billion, an increase of 14.8% compared to 2021. This forecast is given by specialists of the analytical company IDC. Moreover, they are confident that the growth rate will continue in subsequent years, so that in 2025 spending on hardware, software and services for edge computing will reach almost $274 billion.
The concept of edge or edge computing, where computing resources are moved from cloud centers to the edge, closer to where data is generated and consumed, is gaining popularity. It complements the cloud-based distributed computing paradigm by enabling faster response times, more efficient use of network bandwidth, significantly faster payback times, and instantaneous launch of business processes, solutions, and intelligence outside of the core IT environment. Analysts at IDC refer to its distributed, software-defined nature and flexibility as important features of the edge infrastructure.
IDC has identified more than 150 edge computing use cases across industries and areas. The two use cases in which the largest investments will be made in 2022 are content delivery networks and virtual network functions. Notably, they are fundamental to the peripheral services offered by vendors. Together, they will account for nearly $26 billion in spending this year, and in total, service providers will invest more than $38 billion in edge offerings this year.
In terms of investments in edge computing in 2022, the segments of production and production asset management, smart grids, public safety and emergency response, cargo monitoring and intelligent transportation systems will also be large.
IDC expects hardware and services to account for 85% of all spending in 2022, with the remainder going to software.
Geographically, the United States will lead the way in edge spending with a projected $76.5 billion in 2022. Western Europe and China will be in second and third place with $30.6 billion and $20.8 billion, respectively.