Tuesday, February 22, 2022

Edge Computing Growth Led by Data Centers to 2025

Edge computing  products, services and solutions will grow to reach US$17.8 billion in 2025, up from an estimated US$8 billion in 2019, at a compound annual growth (CAGR) rate of 15.6 percent, according to GlobalData. 


source: Global Data 


International Data Corporation estimates are higher. IDC projects enterprise and service provider spending on edge computing will reach $40 billion in 2022 in Europe alone. 


Worldwide spending on edge computing is expected to be $176 billion in 2022, an increase of 14.8 percent over 2021, according to IDC. The two edge use cases that will see the largest investments in 2022 – content delivery networks and virtual network functions – are both foundational to service providers' edge services offerings. Combined, these two use cases will generate nearly $26 billion in spending in 2022.


Across enterprise end user industries, discrete and process manufacturing combined will invest $33.6 billion in edge solutions this year. Retail and professional services will also see spending of more than $10 billion on edge computing in 2022, says IDC. 


source: IDC 


From a geographic perspective, the United States will be the largest investor in edge solutions with spending forecast to reach $76.5 billion in 2022. Western Europe and China will be the next largest regions with spending totals of $30.6 and $20.8 billion, respectively. 


China will see the fastest spending growth over the five-year forecast with a CAGR of 19.7 percent, followed by Latin America at 19.4 percent.


By 2025, edge computing in Europe alone will reach $64 billion, IDC forecasts,  with a five-year compound annual growth rate (CAGR) of 16.4 percent.


In North America, sales of edge computing products, services and solutions will amount to US$6.85 billion by 2025, which is equivalent to 38 percent of the total global market. 


Sales in Asia Pacific and Western Europe will amount to US$4.65 billion and US$3.39 billion, respectively, equivalent to 26.4 percent and 19.3 percent of the total global market.


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