IDC promises a bright future for the edge computing market in Europe. According to its projections, the turnover of the sector will increase at an average annual rate of 16.4% between 2022 and 2025 to stand at $64 billion at the end of this period. It will then have recorded an increase of more than $20 billion compared to the $40 billion ($176 billion worldwide) forecast for this year on the continent. Seduced by the “performance, innovation and cost improvement” offered by the positioning of computing resources as close as possible to the place where the data is produced, one European company in three has already planned to deploy computing solutions. edge computing in the next few years.

$8 billion in investments planned by service providers

In order to closely monitor the increase in demand, service providers will devote $8 billion in 2022 to adding offers dedicated to edge computing to their catalogs. Moreover, their expenditures are those whose growth will be the strongest until 2025. At present, they are the main providers of content distribution network and virtual network functions, towards which a good part of the expenses in edge computing will be turned this year.

Manufacturers and publishers are also in the starting blocks to take advantage of the godsend represented by the edge computing market in Europe. As IDC analyst Andrew Buss explains, “The ever-increasing interdependency between infrastructure, software, communications, and the cloud is going to be in the spotlight in the coming years. In this context, we will see more and more suppliers partnering to be able to combine all these capacities and thus offer a portfolio of end-to-end solutions and use cases”.

Service needs capture the bulk of budgets

In 2022, the majority of investments dedicated to edge computing should be consumed in services, mainly in professional services and provisioned services. This will be followed by hardware spending, driven by the adoption of small edge computing platforms. These are designed on the basis of low-power components that perform a limited or unique number of tasks in environments where electrical power and cooling capacities are limited. The rest of the allocated budgets will be directed towards software purchases, mainly in the area of ​​security to ensure the integrity of data, network endpoints and infrastructure.