Edge computing is poised to redefine how businesses use real-time data and artificial intelligence (AI) workloads to fuel investments, particularly in artificial intelligence (AI)-accelerated processors, multi-access edge computing (MEC), content delivery networks (CDNs) and virtual network functions (VNFs), according to research from leading analyst IDC.
The Worldwide edge computing spending guide forecasts enterprise and service provider spending from 2025 to 2028 across 22 technology markets, seven technology domains, 27 enterprise industries, nine geographic regions and 24 countries, including Australia, New Zealand, Argentina, Brazil, Canada, France, Germany, India, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, Poland, China, Western Europe, Saudi Arabia, the United Arab Emirates, the UK and the US. The study examined 1,000 named enterprise use cases related to six enterprise domains: AI, internet of things (IoT), augmented reality (AR), virtual reality (VR), drones and robotics.
Putting a value on the sector, the report calculated that global spending on edge computing services would total nearly $261bn in 2025, and is projected to grow at a compound annual growth rate of 13.8%, reaching $380bn by 2028.
Regarding spending, hardware was the most significant technology investment sector at the beginning of 2025, driven by the rapid deployment of AI-accelerated processors. This evolution is being fuelled by the increasing demand for real-time data processing and the proliferation of intelligent end points that increasingly require edge-based compute, storage and network capabilities, such as those supporting agentic AI capabilities.
However, aggregate services segments (including provisioned and professional services) are estimated to surpass the hardware share by 2028, posting a five-year CAGR of more than 18%. In provisioned services, infrastructure as a service (IaaS) remains the fastest-growing category driven by the need for scalable, flexible and cost-effective services that can handle the growing computational demands of AI workloads. Infrastructure investments made by service providers to deliver services to enterprises in the form of MEC, content delivery networks and virtual network functions are expected to reach almost $100bn by 2028.
AR, followed by AI, were found to be the fastest-growing segments over the forecast period, driving increased investments in key sectors. Not surprisingly, AI was found to be a major driver, with AI workloads fuelling “massive” hardware investments, particularly in AI-accelerated processors.
In terms of vertical industries, the retail and services sector is set to account for the largest share of current investments in edge services in 2025, representing nearly 28% of total global spending. In this sector, use cases such as video analytics, dynamic real-time carrier performance and optimised operations account for the biggest spending.
The manufacturing and resources sector follows as the second-largest vertical, collectively making up a quarter of worldwide spending. Additionally, financial services are projected to experience the fastest growth in spending over the next five years, with a CAGR exceeding 15%, driven by spending related to augmented fraud analysis and investigation use case in the AI domain.
From a geographic perspective, North America will remain the edge spending leader throughout the forecast period, followed by Western Europe and China. Western Europe, China and Latin America are projected to experience the fastest spending growth over the five-year forecast.
Assessing the trends revealed in the report, Dave McCarthy, research vice-president of cloud and edge services at IDC, said: “Edge computing is poised to redefine how businesses leverage real-time data, and its future hinges on tailored, industry-specific solutions that address unique operational demands. 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.
“These efforts are critical to realising 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.”
