Edge Computing Market in Asia Pacific to Reach $48.9 Billion by 2024, Driven by AI, IoT, and 5G

The Asia Pacific region is witnessing a surge in edge computing adoption, driven by the growing demand for low latency, real-time analytics, and improved operational efficiency. According to the latest IDC Worldwide Edge Spending Guide, spending on edge computing in Asia Pacific* is projected to reach $48.9 billion in 2024, a significant increase of 16.2% compared to 2023.

IDC defines edge computing as the deployment of computing and storage resources closer to the source of data generation, enabling faster processing and reduced latency. This technology is becoming increasingly crucial for various industries, including manufacturing, professional services, government, and telecommunications.

The spending guide forecasts a five-year compound annual growth rate (CAGR) of 15% for edge computing in Asia Pacific, reaching USD 84 billion by 2028. This growth is fueled by the convergence of multiple technologies, such as artificial intelligence (AI), Internet of Things (IoT), augmented reality (AR), virtual reality (VR), drones, and robotics.

IDC expects all 19 enterprise industries profiled in the spending guide to experience double-digit CAGRs over the forecast period. Manufacturing is leading the way with the highest investment in edge solutions, followed by professional services, government, and telecommunications.

Key use cases driving edge adoption in the region include production asset management, autonomic operations, inventory intelligence, telecom base station remote management, general infrastructure PSER, and supply chain resilience. These applications benefit significantly from the low latency and real-time analytics capabilities offered by edge computing.

The service provider segment is also experiencing rapid growth, driven by investments in edge service delivery infrastructure, such as multi-access edge computing (MEC), content delivery networks, and virtual network functions.

China is the dominant market for edge computing in Asia Pacific, accounting for over 60% of spending in 2024. Other countries with strong growth include ANZ (Australia & New Zealand), India, and South Korea. The rapid adoption of edge computing in these regions is attributed to strategic initiatives like smart cities, Industry 4.0, commercial 5G deployment, and e-commerce.

From a technology perspective, hardware remains the largest spending category in 2024, followed by provisioned services. However, services are expected to be the fastest-growing technology category with a five-year CAGR of 21.5%. Software spending is projected to grow at a CAGR of 8.8% during the forecast period.

Overall, the edge computing market in Asia Pacific is poised for significant growth, driven by the increasing demand for real-time data processing, automation, and improved operational efficiency across various industries. As the region continues to adopt advanced technologies like AI, IoT, and 5G, the importance of edge computing will only increase.