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Showing posts with the label edge computing

AI Edge Investment: Real-Time Intelligence

In the past decade, many organizations have pursued a singular vision of cloud-centric transformation; consolidating data, applications, and compute into centralized datacenters managed by hyperscalers. Yet, the explosive growth of connected devices, the rise of Applied-AI and real-time data requirements, and new operational models are reshaping that paradigm. Edge computing — the practice of processing data closer to the source where it is generated — has moved from niche experiment to strategic imperative. According to the latest market study by International Data Corporation (IDC), edge computing is now the new core in the distributed Global Networked Economy. Edge Computing Market Development IDC forecasts global spending on edge computing solutions will reach approximately $450 billion by 2029, that's up from $265 billion in 2025, driven by rapid advancements in edge-based AI workloads, distributed architectures, and enterprise transformation initiatives. Several key data poin...

Decoding the AI Infrastructure Gold Rush

We're now witnessing a seismic shift, driven by the maturity and ubiquitous adoption of Artificial Intelligence (AI). For years, AI was an application-layer phenomenon; a software challenge. Today, however, the focus has pivoted to the foundational, physical layer that powers it. The latest data from International Data Corporation (IDC) confirms what many in the business technology sector have observed firsthand: we are in the midst of an unprecedented infrastructure build-out, one that will redefine corporate IT investment strategy. The Applied-AI Initiative race is no longer merely to build an industry-leading AI model, but to possess the computational engine robust enough to train and deploy it at an exponential scale. AI Infrastructure Market Development The latest market study forecast is significant, painting a picture of an infrastructure gold rush defined by massive capital expenditure and rapid transformation. Firstly, the projected market spending on AI infrastructure wi...

AI Investment Drives Semiconductor Demand

The global semiconductor industry is experiencing a historic acceleration driven by surging investment in artificial intelligence (AI) infrastructure and computing power. According to the latest IDC worldwide market study, 2025 marks a defining year in which AI's pervasive impact reconfigures industry economics and propels record growth across the compute segment of the semiconductor market. Semiconductor Market Development IDC’s latest data reveals an insightful projection: The compute segment of the semiconductor market is on track to grow 36 percent in 2025, reaching $349 billion. This segment, which encompasses logic chips powering CPUs, GPUs, and AI accelerators, will sustain a robust 12 percent compound annual growth rate (CAGR) through 2030. These numbers underscore not only current momentum but a structural shift driven by large-scale adoption of AI workloads spanning cloud, edge, and on-premises deployment models. The scale of investment is unprecedented. As organizations ...

GenAI Smartphone Sales Rise Worldwide

The concept of "AI at the edge" redefines how artificial intelligence is delivered. Rather than relying exclusively on centralized servers in the cloud, edge AI moves inference directly onto local devices where data and information are processed. Worldwide end-user spending on Generative AI (GenAI) smartphones is set to reach $298.2 billion by the close of 2025, according to the latest market study by Gartner. This milestone signals robust growth in digital hardware sales with a shift in how mobile technology is evolving to meet the demands of a more AI-dependent, experience-driven marketplace. Smartphone AI Market Development Smartphones have long stood at the center of the modern connected life. Now, the integration of GenAI marks a new era where devices transition from reactive tools to proactive intelligent companions. Gartner’s study draws a clear line between traditional smartphones and GenAI smartphones — those equipped with dedicated neural engines (NPUs) able to run...

Agentic AI Propels Global AI Server Demand

The artificial intelligence (AI) server market stands at a crossroads, propelled by the dual engines of agentic AI and inferencing, even as it encounters the headwinds of global tariff pressures. As more organizations across industries race to harness AI's transformative power, the infrastructure underpinning these capabilities has become a focal point for investment, innovation, and strategic maneuvering. Recent findings from ABI Research underscore just how dynamic and lucrative this sector has become, forecasting robust growth and highlighting the technological and geopolitical forces at play. Agentic AI and Inferencing Market Development Agentic AI refers to AI systems capable of making independent decisions and taking actions to achieve specific goals, often with minimal human intervention. Inferencing is the process by which trained AI models generate predictions or decisions from new data inputs. Together, these advancements are driving a surge in demand for specialized serv...

Manufacturers Adopt Private Cellular Networks

As an independent advisory consultant, I've observed the rapid evolution of connectivity solutions in manufacturing. The recent survey by ABI Research highlights a significant shift towards private cellular networks, an emerging era in industrial digitization. The manufacturing sector is already undergoing a transformation, driven by the need for enhanced operational efficiency, reliability, and scalability. Wireless technology is an enabler. Private cellular networks, particularly 4G and 5G technologies, are at the forefront of this change, reshaping the connectivity landscape in factories and production facilities. Private Cellular Network Market Development The latest worldwide ABI Research survey provides compelling evidence of this trend. The study, which encompassed manufacturer decision-makers reveals some striking stats: 44 percent are already in the early stages of deploying 4G private networks. An impressive 75 percent of manufacturers are considering 5G implementation. 4...

Preparing for a $5.74 Trillion IT Market in 2025

The global Information Technology (IT) sector is poised for significant growth and transformation in the coming year, driven by new tech advancements, economic factors, and evolving digital business needs. The latest forecast from Gartner provides valuable insights into the future of IT spending and highlights key areas of opportunity for businesses and technology providers alike. According to the latest market study, worldwide IT spending will reach $5.74 trillion in 2025, a 9.3 percent increase from 2024. This growth rate is noteworthy as a significant acceleration compared to the 7.2 percent increase expected during 2024. Information Technology Market Development The robust 2025 forecast underscores the critical role that technology continues to play in driving business innovation, efficiency, and competitiveness across industries. "Current spending on Generative AI (GenAI) has been predominantly from technology companies building the supply-side infrastructure for GenAI,...

AI Drives Cloud Data Growth in Manufacturing

The global manufacturing sector stands at the cusp of a significant information technology (IT) transformation. The sector is experiencing a data explosion, driven by the use of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Generative AI (GenAI). These intelligent systems process huge volumes of data, presenting challenges and opportunities for manufacturer CIOs worldwide. AI Cloud Data Market Development Many manufacturers need help implementing AI and GenAI solutions due to data availability and quality. This gap between data generation and effective utilization represents a strategic opportunity for cloud data management providers to offer differentiated solutions. According to ABI Research , the manufacturing data management market is forecast to create $225 billion in opportunities globally. This figure underscores the importance of data management in modern manufacturing and highlights the potential for substantial growth. As manufacturer...

Shared Infrastructure Leads Cloud Expansion

The global cloud computing market is undergoing new significant growth, driven by the rapid adoption of artificial intelligence (AI) and the demand for flexible, scalable infrastructure. The recent market study by International Data Corporation (IDC) provides compelling evidence of this transformation, highlighting the accelerating growth in cloud infrastructure spending and the pivotal role of AI in shaping the industry's future trajectory. Shared Infrastructure Market Development The study reveals a 36.9 percent year-over-year worldwide increase in spending on compute and storage infrastructure products for cloud deployments in the first quarter of 2024, reaching $33 billion. This growth substantially outpaced non-cloud infrastructure spending, which saw a modest 5.7 percent increase to $13.9 billion during the same period. The surge in cloud infrastructure spending was partially fueled by an 11.4 percent growth in unit demand, influenced by higher average selling prices, primari...

Generative AI Drives Edge Computing Growth

The growing need for real-time, localized artificial intelligence (AI) processing power drives demand for Generative AI (GenAI) solutions on public cloud edge computing platforms. Worldwide spending on edge computing is forecast to reach $232 billion in 2024 -- that's an increase of 15.4 percent over 2023, according to the latest market study by International Data Corporation (IDC). Combined enterprise and service provider spending across hardware, software, professional services, and provisioned services for edge solutions will sustain strong growth through 2027 when spending is forecast to reach nearly $350 billion. Edge Computing Market Development IDC defines edge as the information and communications technology (ICT) related actions performed outside of the centralized data center, where edge computing is the intermediary between the connected endpoints and the core enterprise IT environment. Characteristically, edge computing is distributed, software-defined, and flexible. T...

The Intelligence Revolution at the Edge

Artificial intelligence (AI) is accelerating cloud-enabled transformation, but what if its true power lies at the network edge? Edge AI workloads, where processing happens on local devices, enable real-time decision-making, reduced latency, and enhanced privacy. From smart factories predicting equipment failure to autonomous vehicles analyzing road hazards, this is the exciting world of Edge AI. Explore the opportunities and challenges of running AI workloads at the edge, and discover how it's shaping the future of IT apps. Edge AI Market Development Reduced Instruction Set Computing (RISC)-V processor architectures are starting to address Edge AI workloads, and this trend is set to continue throughout the decade. According to the latest worldwide market study by ABI Research, while RISC-V's penetration into AI workloads is only just beginning, growth will be steady throughout the decade, pushing RISC-V chip shipments in Edge AI (excluding TinyML) to 129 million by 2030. "...

70 Billion Reasons to Rethink IoT Security

As new devices increasingly connect to the cloud for centralized storage, data analytics, real-time monitoring, and updates, we must ask: Are we prepared for the security implications of this brave new world? The number of Internet of Things (IoT) end-user devices and IoT edge nodes such as home appliances, personal wearables, industrial robots, and even connected drones is quickly increasing. ABI Research forecasts that by 2026, the installed base of connected devices will reach more than 70 billion installations, creating an expansive IoT attack vector in the IoT applications environment. IoT Security Market Development Most of these devices are low-power, storage limited, and with weak computational power, which means these devices are increasingly connecting to the cloud environment for centralized storage, data analytics, real-time monitoring, remote access, and updates in firmware and software. Connecting to the cloud environment creates yet another compromise vector for these de...

The Diverse Landscape of 5G App Growth

The global 5G mobile communications sector continues the remarkable progress across many key markets. As of Q3 2023, the world added 537 million 5G wireless connections, bringing global totals to 1.6 billion, which represents an increase of 71 percent over the past year. This growth trajectory suggests an optimistic outlook for the future of 5G adoption according to 5G Americas, and the latest market data from Omdia research. "The global 5G landscape shows positive momentum as innovation and collaboration continue to be the mainstays for long-term progress," said Chris Pearson, president of 5G Americas . 5G Networks Market Development Looking ahead, Omdia forecasts that the global 5G connection base will likely reach 1.8 billion by the end of 2023 and 7.9 billion by 2028, as 5G-Advanced network improvements are implemented and work towards 6G is completed. While this represents a significant expansion, it is important to note that this growth may not be linear.  Factors such ...

Digital Transformation Enabled by Wireless Apps

Wireless communication solutions in the enterprise continue to gain momentum from new technologies and associated software applications. Across all industries and geographies, the demand has increased substantially over the last couple of years. Meanwhile, the Wireless Local Area Network (WLAN) market is growing in complexity with the new Wi-Fi standards, 6 GHz spectrum availability, Internet of Things (IoT) connectivity integration, disruptive business models, and more value-added services. Enterprise WLAN Market Development Furthermore, the evolution of cellular and WLAN technologies is pushing CIOs and CTOs to consider deploying heterogeneous Wi-Fi + 5G networks that can optimize performance, cost, reliability, and enable new use cases fundamental to digital transformation. These market dynamics and innovative solutions can drive enterprise WLAN infrastructure revenues to reach $14.5 billion by 2028, according to the latest worldwide market study by ABI Research. ABI analysts will n...

Global Edge Computing Demand is Mainstream

Enterprise CIOs and CTOs continue to explore the use cases and business applications for cloud edge computing. Moreover, CEOs and CFOs continue to fund IT digital transformation initiatives that support new growth and increased profitability. Worldwide spending on edge computing will reach $208 billion in 2023 -- that's an increase of 13.1 percent over 2022. Spending on hardware, software, and services for edge solutions will sustain this pace of growth through 2026 when new investment is forecast to reach $317 billion, according to the latest global market study by International Data Corporation (IDC). Edge Computing Market Development IDC defines edge as the technology-related actions that are performed outside of the centralized data center, where the edge is the intermediary between the connected endpoints and the core IT environment. The cloud computing edge is distributed, software-defined, and flexible. The value of edge is the movement of computing resources to the physical...

Secure Microcontroller Market to Reach $2.2 Billion

In spite of the volatile global semiconductor industry being plagued by ongoing macroeconomic and political disruption issues, the secure microcontroller (MCU) market should continue to prosper. While the forecasted total available market has contracted -- especially in the smart home, retail, advertising, and supply chain spaces -- secure MCU shipments will likely be temporarily affected.  According to the latest worldwide market study by ABI Research, the secure microcontrollers market will grow to reach $2.2 billion by 2026. Secure Microcontroller Market Development "In part, this is due to the niche nature of security demand which commands a higher value proposition," says Michela Menting, research director at ABI Research . In the short term, potential supply chain issues due to trade embargoes and global COVID-19 pandemic quarantines at manufacturing sites will affect availability. Yet, demand for security, especially in general purpose microcontrollers, will ensure the...

Retail Transformation Gains New Momentum

Forward-thinking retailers now have a bright future. In contrast, those that failed to enhance their business model via digital transformation have struggled, declined, and their assets were eventually liquidated. The key difference between these two business outcomes is applied strategic foresight. Even as the world continues to emerge from a global pandemic, retail is growing at levels not seen in the last two decades. Retail sales grew by 7 percent in 2020 and by over 14 percent in 2021, which is in stark contrast to the 3.7 percent annual growth between 2010 and 2019. The increased demand for retail has put a strain on supply chains and retail operations worldwide. As a result, retailers and stakeholders are turning to automation solutions such as mobile robotics for operational ease. Retail Transformation Market Development According to the latest market study by ABI Research, worldwide commercial robot revenue in retail stores will have a Compounded Annual Growth Rate (CAGR) of o...

Information Technology, Business Services Growth

Ongoing investments in Digital Transformation projects continue across the globe. Worldwide information technology (IT) and business services revenue is expected to grow by 5.6 percent in constant currency during 2022, according to the latest market study by International Data Corporation ( IDC ). The 2022 market growth will increase by 160 basis points from IDC's October 2021 forecast. The improved market view reflects 2021 bookings and pipelines by several large services providers, an improved economic outlook, and an inflationary impact on the services market. IDC believes that the market will continue to expand throughout the next few years at a rate of 4-5 percent, representing an overall increase of 40 to 80 basis points each year, pushing the market's long-term growth rate to 4.6 percent -- that's up slightly from the previous forecast of 4.3 percent. IT and Business Services Market Development The Americas services market is forecast to grow by 5.3 percent in 2022 -...

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe...