Press FAQ

Publication date: 20 Sep 2023

Edge Spending in Asia/Pacific* to Reach $81 Billion in 2027, Says IDC

Contact

For more information, contact:

China Expected to be the Edge Spending Leader Until 2027

SINGAPORE, 21 September, 2023 – Asia/Pacific* spending on edge is forecasted to be $43.7 billion in 2023, an increase of 17% over 2022, according to IDC's latest Worldwide Edge Spending Guide. Enterprise and service provider spending on hardware, software, and services for edge solutions is forecast to sustain this pace of growth through 2027 when spending will reach nearly $81 billion. Businesses and industries in the region are investing on edge to harness the benefits of low latency, real-time processing, and improved efficiency in various applications.

IDC defines edge as the technology-related actions that are performed outside of the centralized datacenter, where edge is the intermediary between the connected endpoints and the core IT environment. Characteristically, edge is distributed, software defined, and flexible. The value of edge is the movement of computing resources to the physical location where data is created, dramatically reducing time to value and the instant enablement of business processes, decisions, and intelligence outside of the core IT environment.

Share the image

"Mobile edge attached to the 5G network is a strategic focus area and IDC expects to see deployments across the region in mobile edge at SPs to start to pick up. Some of the mobile edge nodes will also be located in 5G private wireless networks with single tenants" says Bill Rojas, Adjunct Research Director for IDC Asia/Pacific.

IDC has identified more than 400 named use cases for edge computing across various industries and domains. The three edge use cases that will see the largest investments in 2023 – content delivery networks, virtual network functions, and multi-access edge computing (MEC) – are foundational to service providers' edge services offerings. Combined, these three use cases will account for nearly 20% of all edge spending this year. In total, service providers will invest more than $9 billion in enabling edge offerings in 2023.

For enterprise adopters, including the public sector, the edge named use cases with the largest investments in 2023 include production asset management, autonomic operations, general infrastructure public safety & emergency response, and telecom base station remote management. Combined, these use cases will represent more than 10% of all edge spending this year. The edge use cases that are forecast to have the fastest spending growth over the 2022-2027 period include product development virtual reality, asset maintenance, logistics and package delivery management and 360-degree educational video viewing.

“Top objectives of enterprises’ edge infrastructure investment in Asia Pacific are to reduce operational costs, increase storage capacities and secure IT infrastructure,” says Sharad Kotagi, Market Analyst, IT Spending Guides, Customer Insights & Analysis, IDC Asia/Pacific.

From an enterprise end-user industries standpoint, discrete and process manufacturing will account for the largest portion of investments in edge solutions in 2023, followed by the state/local government and professional services. IDC expects all 19 industries profiled in the Spending Guide will experience double-digit spending growth over the forecast period, led by the service providers with a five-year compound annual growth rate (CAGR) of 21.2%.

Edge hardware spending will be driven by investments in edge gateways, servers, and network equipment. Services dominated by connectivity services, which represent nearly half of services spending, followed by software as a service (SaaS) and support & deployment services. Software will remain the smallest technology category over the forecast period.

From a geographic perspective, China (PRC) will be the edge spending leader throughout the forecast period delivering more than 70% of the Edge spending in the region with a five-year compound annual growth rate (CAGR) of 17.5%, followed by Asia/Pacific excluding Japan and China (APeJC).

The IDC Worldwide Edge Spending Guide quantifies the edge computing market by forecasting enterprise and service provider spending across 17 technology markets, six technology domains, 19 industries, and nine geographic regions. This version (V2 2022) of the Spending Guide also includes more than 400 use cases that were segmented across various industries and domains.

For media inquiries, please contact Michael de la Cruz at mdelacruz@idc.com or Miguel Carreon at mcarreon@idc.com.

*Asia/Pacific excluding Japan

-Ends-

About IDC Spending Guides

IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.

For more information about IDC's Spending Guides, please contact Vinay Gupta at vgupta@idc.com

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC  and LinkedIn. Subscribe to the IDC Blog  for industry news and insights.



Coverage


Regions Covered

Asia Pacific


Topics Covered