Global spending on edge computing solutions accounts for nearly $261-billion in 2025 and is projected to grow at a compound annual growth rate (CAGR) of 13,8%, reaching $380-billion by 2028.
This is according to the International Data Corporation (IDC) forecast for Worldwide Edge Computing Spending Guide, featuring a new enterprise industry taxonomy. The newly added structure now includes 27 industries, providing a more detailed and nuanced segmentation by region and country across key manufacturing sectors such as automotive, industrial, consumer packaged goods, life sciences, high-tech and electronics, and aerospace.
“Most industries benefit from the ability to process data closer to the source, leading to faster decision-making, improved security, and cost savings. Retail, industrial manufacturing, utilities, high-tech and electronics, healthcare, and life sciences are among the industries that require a particular understanding of their processes and investment behavior,” says Alexandra Rotaru, data & analytics manager at IDC’s Data & Analytics Group.
“ A granular view into these industries will support technology vendors better tailoring their solutions to meet the specific needs and challenges of each industry. This targeted approach enables the delivery of more relevant and effective solutions, ultimately driving growth and innovation in the edge computing landscape.”
IDC segments edge spending for more than 1000 named enterprise use cases related to six enterprise domains: AI, IoT, AR, VR, Drones, and Robotics, unlocking significant opportunities across various industries. Augmented Reality, followed by Artificial Intelligence, are the fastest growing segments over the forecast period, driving increased investments in key sectors.
In 2025, Retail & Services sector accounts for the largest share of investments in edge solutions, representing nearly 28% of total global spending. In this sector, use cases such as video analytics, dynamic real-time carrier performance and optimized operations account for the biggest spending.
The Manufacturing & Resources sector follows as the second largest, 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 compound annual growth rate (CAGR) exceeding 15%, driven by spending related to Augmented Fraud Analysis and Investigation use case in the AI domain.
The Edge Spending Guide also forecasts infrastructure investments made by Service Providers to deliver services to enterprises in the form of multi-access edge computing (MEC), content delivery networks, and virtual network functions, and are forecasted to reach almost $100-billion by 2028.
“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,” says Dave McCarthy, research vice-president: Cloud and Edge Services at IDC. “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 realizing 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.”
Regarding technology spending, Hardware is the most significant investment at the beginning of the forecast, driven by the rapidly deploying AI accelerated processors. This evolution is fueled 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 (includes Provisioned and Professional Services) are estimated to surpass the hardware share by 2028, posting a five-year CAGR of more than 18%.
Within Provisioned Services, infrastructure as a service (IaaS) remains the fastest-growing category driven by the need for scalable, flexible, and cost-effective solutions that can handle the growing computational demands of AI workloads.
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 will experience the fastest spending growth over the five-year forecast.