IDC: Global edge computing investments to hit $232bn in 2024

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Analyst firm IDC has got the abacus out again – and has forecast that worldwide spending on edge computing could hit $232 billion (£181.1bn) in 2024.

The figure is an increase of 15.4% on 2023, based on IDC’s Worldwide Edge Spending Guide, with the analyst citing artificial intelligence (AI) use cases as the primary growth driver.

IDC noted various emerging use cases to watch for, ranging from construction and utilities to retail; autonomous mining operations, site design and management, to pipeline construction, to customised product recommendations respectively. Augmented training is a use case that applies to multiple industries.

Hardware will account for approximately 40% of total spending, driven by investments in edge gateways, servers, and network equipment. By 2026 however, adoption of provisioned services by enterprises will command the lion’s share of investment; and among this bucket, connectivity, and IaaS (infrastructure as a service) will see fastest growth. In terms of five-year CAGR (compound annual growth rate), services is the top technology group at 20.4% CAGR, compared with provisioned services (18.3%) and hardware (11%).

On-premise software will remain the smallest category in terms of overall spending, though IDC notes that it is naturally a ‘critical’ component of edge infrastructure.

“Edge computing will play a pivotal role in the deployment of AI applications,” said Dave McCarthy, research vice president, cloud and edge services, at IDC. “To meet scalability and performance requirements, organisations will need to adopt the distributed approach to architecture that edge computing provides.

“OEMs, ISVs and service providers are taking advantage of this market opportunity by extending features sets to enable AI in edge locations,” added McCarthy.

Photo by Pepi Stojanovski on Unsplash

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