Global edge server deployments are expected to accelerate significantly over the next five years, according to ABI Research.
On-premises and carrier deployment will lead the 53.8 percent CAGR, creating an addressable market of US$18.99 billion by 2027. Enterprise on-premises edge deployment, which accounted for seven percent of global spend on edge servers in 2022, should expand to 55 percent by 2027.
“This huge acceleration over the next five years will result from several factors. The first is related to edge hardware and software maturity. Ongoing innovation will likely lead to large strides in portability, energy efficiency and performance guarantees. The second is the accelerated investment in digital transformation across verticals,” said Reece Hayden, Distributed and Edge Computing Analyst of ABI Research.
The research firm expects to see sustained growth across each deployment segment. Growth over this period will be mainly driven by enterprise on-premises and carrier deployment, with CAGRs of 131.9 percent and 38.6 percent respectively.
Carrier edge server growth will be heavily supported by hyperscaler partnerships. The market is active, from AWS’ partnerships with Verizon, Bell, and Vodafone, to Microsoft Azure’s with Deutsche Telekom, BT Group, Etisalat. These partnerships, which mesh carrier infrastructure with hyper scaler cloud expertise, aim to deploy value-add services to monetise the existing infrastructure. ABI Research expects these partnerships to support significant growth, with edge server spending rising from US$250 million to US$1.5 billion in 2027 (CAGR of 43.6 percent).
Hyperscalers will use their cloud expertise to double down on the edge market. According to Hayden, ABI Research expects that AWS Outpost, Azure Private Multi-access Edge Compute, and GCP’s network edge will be expanded globally with significant growth in emerging regions.
Chinese giants will accelerate growth across the Asia Pacific region, with China becoming a global leader in edge deployments.
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