Edge Data Center Market to Grow with a CAGR of 23% Globally through to 2028
Global Edge Data Center Market is rising due to the growing demand for
low-latency and high-performance computing resources for edge computing
applications in IoT, 5G, and other emerging technologies in the forecast period
2024-2028.
According to TechSci Research report, “Global Edge
Data Center Market - Industry Size, Share, Trends, Competition Forecast
& Opportunities, 2028”, Global Edge Data Center Market has valued at
USD 10 Billion in 2022 and is anticipated to project robust growth in the
forecast period with a CAGR of 23% through 2028. The Global Edge Data Center
Market is currently experiencing a rapid surge in growth, driven by the
ever-expanding landscape of data-driven technologies and the need for real-time
processing at the edge of networks. Edge data centers have emerged as a pivotal
solution to meet the escalating demand for low-latency, high-performance
computing resources in the era of 5G, Internet of Things (IoT), autonomous
vehicles, and various other edge computing applications. These data centers are
strategically positioned in closer proximity to end-users and connected
devices, significantly reducing data transit times and enhancing overall
network efficiency. The market is expected to witness robust expansion with a
substantial compound annual growth rate (CAGR) in the forecast period. Key
drivers include the proliferation of IoT devices, the roll-out of 5G networks,
and the rising need for real-time data processing for applications like
autonomous vehicles, smart cities, and industrial automation. As organizations
increasingly rely on edge computing to power their critical operations, the
Global Edge Data Center Market is poised for sustained growth, providing agile
and responsive infrastructure to support the digital transformation landscape.
Browse over 26 market data Figures spread
through 91 Pages and an in-depth TOC on "Global Edge Data Center Market”.
The global edge data center market has witnessed
significant growth in recent years, driven by the increasing demand for
low-latency data processing and storage solutions. Edge data centers are
decentralized facilities that are strategically located closer to the
end-users, enabling faster data transmission and reduced network congestion.
This market is expected to continue its upward trajectory, with a compound
annual growth rate (CAGR) of XX% during the forecast period. One of the key
factors driving the growth of the edge data center market is the proliferation
of Internet of Things (IoT) devices. The exponential growth of IoT devices has
resulted in a massive influx of data, which needs to be processed and analyzed
in real-time. Edge data centers play a crucial role in enabling efficient data
processing at the edge of the network, reducing the latency and ensuring faster
response times. This is particularly important for applications such as
autonomous vehicles, smart cities, and industrial automation, where real-time
data processing is critical.
Furthermore, the increasing adoption of cloud
computing and the rising demand for content delivery networks (CDNs) are also
fueling the growth of the edge data center market. Cloud service providers are
leveraging edge data centers to extend their reach and deliver services closer
to the end-users, ensuring a seamless and high-quality user experience. CDNs,
on the other hand, rely on edge data centers to cache and deliver content from
the nearest location, reducing the latency and improving the overall
performance. Moreover, the ongoing digital transformation across various
industries is driving the need for edge data centers. As businesses embrace
technologies such as artificial intelligence (AI), machine learning (ML), and
big data analytics, the demand for real-time data processing and storage
capabilities is increasing. Edge data centers provide a scalable and
cost-effective solution to meet these requirements, enabling businesses to
leverage the power of data-driven insights and make informed decisions.
In terms of regional analysis, North America is
expected to dominate the edge data center market, owing to the presence of
major technology giants and the early adoption of advanced technologies. Europe
and Asia-Pacific are also witnessing significant growth, driven by the
increasing investments in digital infrastructure and the rapid expansion of IoT
devices. Additionally, emerging economies in Latin America and the Middle East
& Africa are expected to offer lucrative opportunities for market players,
as these regions are witnessing a surge in internet penetration and smartphone
adoption. However, the edge data center market is not without its challenges.
The deployment and management of edge data centers require specialized skills
and expertise, which can pose a challenge for organizations. Moreover, ensuring
the security and reliability of edge data centers is crucial, as they are more
susceptible to physical threats and cyber-attacks. Addressing these challenges
will be crucial for the sustained growth of the edge data center market.
In conclusion, the global edge data center market is
witnessing robust growth, driven by factors such as the proliferation of IoT
devices, the adoption of cloud computing, and the ongoing digital
transformation. With the increasing demand for low-latency data processing and
storage solutions, edge data centers are poised to play a pivotal role in the
future of data infrastructure. However, addressing challenges related to
deployment, management, and security will be crucial for market players to
capitalize on the opportunities presented by this rapidly evolving market..
The Global Edge Data Center Market is segmented into Component,
Facility Size, End-use, regional distribution, and company.
Based on its Component, In terms of components, the
edge data center market is segmented into solutions and services. The solution
segment accounted for the largest revenue share of 87.7% in 2022. It is
expected to continue to dominate the edge data center industry over the
forecast period. The solution segment includes hardware & software
solutions such as networking equipment, IT racks & enclosures, DCIM
software, and data center analytics solutions.
Factors such as the emergence of next-generation DCIM
offerings, the rise in data center workloads during COVID-19, and the need to
improve data center energy efficiency are driving the demand for edge data
center solutions. Hardware solutions are placed on-site or in a third-party
data center and tailored to a company's unique requirements. The software
manages and coordinates processing and data storage in edge data centers. This
can include software-defined networking systems, data analytics tools, and
applications that enable real-time data processing.
The service segment is anticipated to witness the
highest growth rate of 20.3% during the forecast period. The service segment is
bifurcated into professional services and managed services. Edge data center
professional services improve service delivery, simplify IT operations, and
enable cloud initiatives. It includes services such as integration &
implementation and consulting services. Managed and professional services
facilitate the efficiency of edge data centers by tracking and analyzing system
performance, identifying roadblocks, and putting standard procedures into
action. By outsourcing the operation and maintenance of its edge data center
solutions, managed and professional services are helping organizations to
reduce costs by freeing up internal resources and decreasing the requirement
for specialized IT workers.
Based on region, North America dominated the edge data
center market with a share of 33.1% in 2022 and is anticipated to retain its
position over the forecast period. The high adoption of edge data center
solutions and services in this region is the major factor behind the market
growth. In addition, North America has prominent edge data center solutions and
service providers, which makes North America a promising region for the market.
The region is likely to witness significant growth
owing to the growing commercialization and deployment of 5G networks. North
America's growth is attributed to the growing adoption of edge data centers for
various reasons, including the requirement to serve future technologies such as
5G, IoT, and AI, which demand low latency and high bandwidth connections. Edge
data centers can lower latency by directly bringing data processing and storage
resources to end users, substantially boosting application and service
performance.
Asia Pacific is anticipated to grow at the highest
CAGR of 19.3% during the forecast period. The market for edge data centers in
this region is driven by the rise in investments in the IT sector, the growth
of end-use industries, and the vast presence of edge computing companies such
as Huawei Technologies Co., Ltd, and Fujitsu. One of the primary drivers of
edge data center adoption in the Asia Pacific is the region's huge population
and rapid urbanization. The demand for faster and more reliable connectivity
grows as more people relocate to cities and prefer digital services. Edge data
centers can address the demand by bringing storage and computational resources
closer to end-users, reducing latency, and improving software and service
quality.
Major companies operating in Global Edge Data
Center Market are:
- ATC
IP LLC
- Cisco
Systems Inc.
- Dell
Inc.
- Eaton
- EdgeConneX
Inc.
- Endeavor
Business Media, LLC.
- Fujitsu
- Hewlett
Packard Enterprise Development LP
- Huawei
Technologies Co., Ltd.
- IBM
- NVIDIA
Corporation
- Schneider
Electric
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“The global edge data center market has experienced
significant growth due to the rising demand for low-latency data processing and
storage solutions. Edge data centers, which are decentralized facilities
located closer to end-users, enable faster data transmission and reduced
network congestion. This market is projected to continue growing with a
compound annual growth rate (CAGR) of XX% during the forecast period. The
proliferation of Internet of Things (IoT) devices is a key driver of this
growth, as the exponential increase in IoT devices generates a massive influx
of data that needs to be processed and analyzed in real-time. Edge data centers
play a crucial role in enabling efficient data processing at the edge of the
network, reducing latency and ensuring faster response times. Cloud computing
adoption and the demand for content delivery networks (CDNs) also contribute to
the growth of the edge data center market. Cloud service providers utilize edge
data centers to extend their reach and deliver services closer to end-users,
enhancing user experience. CDNs rely on edge data centers to cache and deliver
content from the nearest location, reducing latency and improving overall
performance. The ongoing digital transformation across industries is another driving
factor, as businesses increasingly adopt technologies like artificial
intelligence (AI), machine learning (ML), and big data analytics. Edge data
centers provide scalable and cost-effective solutions for real-time data
processing and storage, enabling businesses to leverage data-driven insights
and make informed decisions. North America is expected to dominate the market,
followed by Europe and Asia-Pacific, due to the presence of major technology
companies and early adoption of advanced technologies. Emerging economies in
Latin America and the Middle East & Africa offer lucrative opportunities
due to increasing internet penetration and smartphone adoption. However,
challenges related to deployment, management, and security must be addressed
for sustained market growth.,” said Mr. Karan Chechi, Research Director with
TechSci Research, a research-based management consulting firm.
“Edge Data
Center Market – Global Industry Size, Share, Trends, Opportunity, and Forecast,
Segmented By Component (Solution, Service), By Facility Size (Small &
Medium, Large), By End-use (IT and Telecom, BFSI, Healthcare and Lifesciences,
Manufacturing & Automotive, Government, Gaming and Entertainment, Retail
and E-commerce, Others), By Region, By Competition”, has evaluated
the future growth potential of Global Edge Data Center Market and provides
statistics & information on market size, structure and future market
growth. The report intends to provide cutting-edge market intelligence and help
decision makers take sound investment decisions. Besides, the report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Global Edge Data Center Market.
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