The global enthusiasm for artificial intelligence (AI) is set to significantly boost spending in edge computing infrastructure and services, with projections from IDC indicating a jump to $232 billion this year, marking a 15.4% increase from the previous year. This surge reflects the growing demand for technologies that facilitate faster and more efficient data processing closer to the source of data generation.
Telecommunications-related investments, including multi-access edge computing (MEC), content delivery networks, and virtual network functions (VNFs), are expected to make up about 22% of this total, translating to a substantial $51 billion. Looking ahead, IDC predicts that edge computing expenditure will continue its upward trajectory, potentially reaching $350 billion by 2027.
The integration of AI with edge computing is seen as a critical evolution, particularly within the telecom and tech industries. Dave McCarthy, a research VP at IDC, emphasized the importance of edge computing in deploying AI applications, noting the shift towards distributed architecture to meet scalability and performance demands. This shift is prompting original equipment manufacturers (OEMs), independent software vendors (ISVs), and service providers to expand their offerings to support AI at the edge.
IDC has identified several enterprise applications poised for significant investment and growth, including augmented reality for maintenance, AI-enhanced supply and logistics, and in-store marketing strategies tailored to the individual shopper. Moreover, sectors like autonomous mining and augmented training are forecasted to experience the fastest growth rates in spending.
The push towards edge computing is also seen as a strategy for businesses to bolster their infrastructure and support innovative services and processes, with connectivity and infrastructure-as-a-service (IaaS) expected to dominate edge services spending by 2026.
Geographically, North America is anticipated to lead in edge computing investments, with Western Europe and China following closely. However, China and the Middle East and Africa are projected to be the fastest-growing regions, signaling a widespread adoption of edge computing technologies across diverse markets. This trend offers a glimmer of hope for telecom equipment vendors facing market challenges, suggesting a new avenue for growth through edge computing solutions.
