Segment Routing (SR) leverages the source paradigm. A node. steers a packet through an ordered list of instructions, called ‘ segment ‘.State is kept in the packet header, not on the router, with Segment Routing.
Resources such as the CPU and Memory are saved.
If you have 100 Edge Routers in your network and if you enable MPLS Traffic Edge to Edge, you would have 100×99/2 = 4950 LSP states on your Midpoint LSR. This is prevalent in many MPLS TE enabled network.
If you enable Segment Routing and if you evaluate the same midpoint case (since you assign a Prefix/Node SID for every Edge router), Midpoint LSR would have 110 entries instead of 4500 entries.
As for the scalability, everything is perfect. However, there is a caveat.