Asia Pacific’s (Apac) edge computing spending is projected to reach $84 billion by 2028, according to the latest forecast from market intelligence firm International Data Corp. (IDC).
The region is expected to see a 16.2% increase in edge computing investments in 2024, with spending set to hit $48.9 billion. Edge computing refers to processing data closer to its source, rather than relying on central data centers, improving speed and efficiency.
Edge infrastructure includes computing hardware, software solutions, and services used to support real-time data processing. IDC anticipates a 15% compound annual growth rate (CAGR) in edge spending from 2023 to 2028, driven by industries such as manufacturing, government, and telecommunications. These sectors are adopting edge solutions to improve operational efficiency and reduce latency, especially in applications like inventory management and telecom base station monitoring.
“Synergy between domains will create new use cases and drive traffic between devices, edge infrastructure, and the cloud,” Bill Rojas, research director at IDC Asia Pacific, said in a media release. “Smartphones, now equipped with advanced processors, can run smaller AI models, boosting performance and capacity needs for AI, AR, drones, and VR at the edge.”
IDC said China is expected to dominate edge investments in 2024, contributing more than 60% of the total spending, followed by Australia and New Zealand, India, and South Korea. Strategic initiatives, such as smart cities and Industry 4.0, alongside the rollout of 5G networks, are driving this growth.
In 2024, the majority of spending will focus on hardware, with services predicted to grow fastest over the next five years, at a 21.5% CAGR. As companies continue to invest in edge computing, IDC forecasts rapid adoption across all enterprise industries in the region.