Global spending on edge computing solutions is expected to reach $261 billion in 2025 and grow at a 13.8 percent CAGR to $380 billion by 2028.
Edge computing enables faster decision-making, improved security, and cost savings, with key industries including retail, manufacturing, utilities, high-tech, healthcare, and life sciences.
“We’re seeing service providers double down on investments—building out low-latency networks, enhancing AI-driven edge analytics, and forging partnerships to deliver scalable, secure infrastructure,” Dave McCarthy, research vice president, Cloud and Edge Services at IDC, said in the report.
“These efforts are critical to realizing the full potential of edge computing, enabling everything from smarter manufacturing floors to responsive healthcare systems, and ultimately driving a new wave of innovation across verticals,” Dave McCarthy said.
The retail and services sector leads edge computing investments, accounting for 28 percent of global spending in 2025, followed by the manufacturing and resources sector.
Financial services are projected to experience the fastest growth, with a CAGR exceeding 15 percent, driven by AI-based fraud detection and investigation.
Service providers are expected to invest nearly $100 billion in edge infrastructure by 2028, focusing on multi-access edge computing (MEC), content delivery networks, and virtual network functions.
Hardware is the dominant technology investment initially, driven by AI-accelerated processors and intelligent endpoints, but services spending will surpass hardware by 2028, growing at an 18 percent CAGR.
Infrastructure as a service (IaaS) is the fastest-growing provisioned services category due to increasing AI workload demands.
North America will lead edge spending, with Western Europe and China following, while Western Europe, China, and Latin America will see the highest growth rates.
InfotechLead.com News Desk
