The Edge Computing Market is Poised for Growth

The tech industry has experienced significant growth in recent years, and this trend is expected to continue with the rise of artificial intelligence (AI). However, there are other segments within the tech sector that are worth exploring, particularly cloud computing, which has a sister segment called edge computing. Edge computing differs from cloud computing in that it brings computing power to where the data is created, resulting in faster processing times and reduced latency. This is particularly important as the amount of data being created is growing exponentially, with more devices being connected to the internet.

Edge computing makes things easier for businesses as it reduces the need for data to travel long distances, which can result in slower processing times. This approach has several advantages, including reduced latency, increased security, and improved efficiency. For instance, when data is processed close to where it is created, it can be analyzed and acted upon much quicker, which is particularly important in industries such as retail, manufacturing, and finance, where real-time decision-making is critical.

The Edge Computing Market is Expected to Experience Significant Growth

The edge computing market is expected to reach $380 billion by 2028, according to a new report from IDC.
Businesses are expected to shift away from traditional on-site hardware and towards cloud-based infrastructure-as-a-service (IaaS) solutions that support AI workloads at the edge.
Global spending on edge computing is projected to reach $261 billion in 2025, with an expected growth rate of nearly 14% per year.
The main driver behind this surge is the increasing demand for powerful systems that can handle AI tasks.

The growing demand for AI is driving the edge computing market, with AI, augmented reality (AR), virtual reality (VR), robotics, and drones all expected to contribute to the market’s growth.

Industry Leaders Expect Edge Computing to Play a Significant Role

According to Alexandra Rotaru of IDC, the Internet of Things (IoT) is still the top use case for edge computing, but AI and AR are rapidly gaining ground.

“IoT is still the biggest, but AI and AR are growing fast. In about a year, AI may become the fastest-growing area,” Rotaru said.

Rotaru noted that even though the edge computing market is still in its early stages, it is expected to grow significantly, with recent surveys showing businesses are more optimistic about IT spending in 2025 than they were in 2024.

The Biggest Edge Computing Spending by Industry

Industry	Expected Spending in 2025
Retail	$24.6 billion
Manufacturing	$17.1 billion
Transportation	$13.4 billion
Utilities	$10.3 billion
Finance	$9.5 billion

The top industries for edge computing spending are expected to be retail, manufacturing, transportation, utilities, and finance, with each sector expected to spend significant amounts on edge computing in 2025.

You Might Also Enjoy: Eu Looks To Tech Sovereignty With Eurostack Amid Trade War Tensions!

Cloud Companies Capitalize on Edge Computing Growth

As the edge computing market grows, cloud companies are expected to capitalize on their existing infrastructure, shifting towards cloud-based IaaS solutions that support AI workloads at the edge.

“This shift is happening because cloud providers are becoming more capable of handling AI workloads at scale,” Rotaru said.

Our Methodology

We reviewed edge computing ETFs to compile a preliminary list of stocks and then selected the ones that were the most popular among elite hedge funds, as of Q4 2024.

We are obsessed with the stocks that hedge funds pile into, as our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds.

13 Best Edge Computing Stocks to Buy According to Hedge Funds

We have compiled a list of 13 edge computing stocks that are popular among elite hedge funds, based on their Q4 2024 holdings.

The list includes Fastly, Inc. (NYSE:FSLY), which provides edge cloud platform services, and Ambarella, Inc. (NASDAQ:AMBA), which makes software and low-power AI-chips for edge devices.