The latest IDC Worldwide Edge Spending Guide forecasts that spending on edge computing in Asia Pacific, excluding Japan (APeJ), will reach USD 84 billion by 2028, growing at a five-year CAGR of 15% over the forecast period (2023-28).
IDC expects the spending to reach $48.9 billion in 2024, increasing 16.2% over 2023.
“Asia/Pacific* will experience a surge in the adoption of edge, largely due to enterprises investing in building edge applications that necessitate faster decision-making, improved operational efficiency, and reduced latency, and the region’s rapid adoption of IoT, 5G, and AI technologies,” says Sharad Kotagi, market analyst, IT Spending Guides, IDC Asia/Pacific.
Edge investments
IDC predicts the largest investment in 2024 on edge solutions in manufacturing, followed by professional services, government, and telecommunication.
The top use cases for edge computing witnessing rapid adoption in the region include production asset management, autonomic operations, inventory intelligence, telecom base station remote management, general infrastructure, and supply chain resilience.
Rapid edge growth
IDC projects China to remain the dominant market for edge, with more than 60% in 2024, making it one of the countries with the fastest edge spending together with Indonesia.
ANZ (Australia & New Zealand), India, and South Korea are also dominant markets for edge computing.
Strategic initiatives such as smart cities, Industry 4.0, deployment of commercial 5G, and e-commerce drive rapid edge growth in the region.
