Network edge computing demand declines in the UK, STL Partners reports
The edge computing industry is experiencing a rapid evolution, driven by the surge in demand for faster data processing, reduced latency, and enhanced security in various sectors. Edge computing refers to the practice of processing data closer to its source, typically at the “edge” of the network, rather than relying solely on centralized data centers. This approach is steadily gaining traction as organizations seek to harness the potential of emerging technologies such as IoT, 5G, and AI.
However, a recent report published by STL Partners looking into the UK edge computing market found that market demand for network edge computing has been slower than expected and the market was still nascent in 2023: most edge customers (51 percent) have small (two to three servers) deployments, and 34 percent are on freemium models.
The report also notes that on-premise and regional edges are currently more mature than network edge and are driving the growth of edge infrastructure segment. On-premise edge is favored by enterprises looking to deploy analytics, IoT, and automation, mostly in verticals like mining and industrials, whereas regional edge tends to be used by verticals like media and retail. STL Partners projects that in the future, there will be a stronger move towards network edge as 5G deployments proliferate, and adds that there will be real growth across the edge domains over the next five years.
Speaking about the report findings, Tilly Gilbert, director, consulting and edge practice lead at STL Partners tells EdgeIR that embracing innovation and leveraging emerging technologies are essential to sustain growth in the UK economy.
“To realize this growth potential, the UK needs to invest in a robust network infrastructure as well as more compute capacity to support new data-intensive use cases,” she adds.
“Our study looks across the UK, providing analysis on the gap between the supply of data center infrastructure (today typically highly localized around London) and the demand for next-generation digital services across the different regions of the UK.”
Read more:
Three indications of where edge computing is headed
Edge computing market matures with $8 billion invested since 2020, STL Partners reports
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