Edge Data Center Market Analysis and Forecast by Size, Share, Growth, Trends 2031

Coverage: Edge Data Center Market covers analysis By Component (Solution and Services), By Facility Size (Small And Medium Facility and Large Facility), Vertical (BFSI, IT and Telecommunication, Government, Retail, Others), and Geography (North America, Europe, Asia Pacific, and South and Central America)

  • Report Code : TIPTE100000281
  • Category : Technology, Media and Telecommunications
  • No. of Pages : 150
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The Edge Data Center market is projected to grow from US$ 11.96 billion in 2023 to US$ 41.02 billion by 2031; it is expected to expand at a CAGR of 16.7% from 2023 to 2031. The surge in Internet of Things (IoT) devices and the rise of edge computing are expected to be key trends in the market.

Edge Data Center Market Analysis

The edge data center market has witnessed significant growth in recent years, driven by technological advancements, and the huge adoption of edge data centers among various industry verticals, including BFSI, IT and telecommunication, government, retail, and others, is driving the market. These industries use edge data centers to provide their customers with lower latency, higher security, and greater control over their data. Furthermore, edge data centers have numerous benefits to the user, such as processing data locally, faster processing of time-sensitive data, quick delivery of services with minimal latency, and reducing the volume of traffic flowing to and from central servers. These benefits offered by the edge data center to the users are projected to fuel the global edge data center market during the forecast period. The integration of advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), machine learning (ML), and 5G are creating lucrative growth opportunities for market growth.

Edge Data Center Market Industry Overview

Edge data centers for computing are continuously evolving and have become more cutting-edge in recent years. As a result, computing and data centers will integrate more thoroughly by empowering services and applications to operate more effectively and with lower latency. The development in the existing technology is creating the need for high-speed data with low latency in the coming years. Service providers are migrating to the cloud, and companies are adopting digital transformation to grow their brands and compete with the competitors. This requires high-tech tools with highly efficient data centers at the edge for managing IT operations and data storage.

Strategic Insights

Edge Data Center Market Driver and Opportunities

Increasing Investment in 5G Technology to Favor Market Growth

Growing demand for 5G technology among consumers for high-speed networks with increased bandwidths increases its deployment across the globe. 5G is a transformative advancement in the mobile communication industry that significantly offers faster data speeds, increased network capacity, lower latency, and the ability to support many connected devices. The network technology represents a significant leap from 4G/LTE technology. 5G technology is revolutionizing various industries and their applications by faster transferring data between devices, increasing consumer adoption. Thus driving the market.

Moreover, the deployment of 5G networks is increasing the demand & adoption of edge data centers. 5G technology provides lower latency and higher bandwidth to deliver data among users. Edge data centers are necessary to support 5G applications, as the edge data center helps the user process data locally by reducing the backhaul traffic to the core data centers. Integrating 5G and the edge data center enhances the capabilities and potential of both technologies. 5G technology and edge data centers address and fulfill the demands of modern applications and services. Combining both technologies enables quick data transfer from connected devices to nearby edge data centers by supporting real-time processing and responses, increasing its adoption and driving market growth.

Growth in Edge Data Centers

Edge computing is changing the technique data is processed by moving it closer to end-users and distributing the workload across numerous devices. This is a major shift from traditional centralized data centers, as it allows for faster decision-making and improved user experiences. Edge computing plays a vital role in ensuring instant responses in situations such as real-time vehicle navigation, manufacturing data reporting, and unified experiences in virtual reality applications. Thus, the growth of edge data centers is expected to boost the market growth during the forecast period.

Edge Data Center Market Report Segmentation Analysis

The key segments that contributed to the derivation of the Edge Data Center market analysis are coverage component, facility size, and vertical.

  • Based on component, the edge data center market is segmented into solutions and services.
  • The solution segment is anticipated to expand during the forecast period due to the growing demand for DCIM software in edge data centers.
  • The solution segment includes a variety of hardware & software solutions such as networking equipment, DCIM software, IT racks & enclosures, and data center analytics solutions.

Edge Data Center Market Share Analysis By Geography

Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America.

North America held a significant edge data center market share in 2023. High technology adoption trends in the industries in North America have fueled the growth of the edge data center market. The region is witnessing substantial growth owing to the growing commercialization and deployment of 5G networks. Growing adoption of edge data centers among customers to serve future technologies such as 5G, the Internet of Things (IoT), and artificial intelligence (AI) demand low latency and high bandwidth connections. Edge data centers are used to lower latency by immediately bringing data processing and storage resources closer to end users, significantly enhancing application and service performance.

Edge Data Center Market Report Scope

Edge Data Center Market News and Recent Developments

The Edge Data Center market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Edge Data Center Market are listed below:

  • Dell Technologies, Inc. announced a collaboration with Airspan to deliver a pre-integrated solution for wireless edge deployments. This solution combines Dell Technologies, Inc.'s modular data center and Airspan’s advanced wireless networking technology to provide a seamless and efficient solution for wireless edge deployments. (Source: Dell Technologies, Press Release, July 2023)

Edge Data Center Market Report Coverage & Deliverables

The Edge Data Center market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Edge Data Center Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-

  • Edge Data Center Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
  • Edge Data Center Market trends, as well as market dynamics such as drivers, restraints, and key opportunities
  • Detailed PEST/Porter’s Five Forces and SWOT analysis
  • Edge Data Center Market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
  • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments in the Edge Data Center Market
  • Detailed company profiles.
REGIONAL FRAMEWORK

Edge Data Center Market Report Analysis

Edge Data Center Market

  • CAGR (2023 - 2031)
    16.7%
  • Market Size 2023
    US$ 11.96 Billion
  • Market Size 2031
    US$ 41.02 Billion

Report Coverage

  • Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
  • Key future trends
  • Detailed PEST/Porter’s Five Forces and SWOT analysis
  • Industry landscape and competition analysis & recent developments
  • Detailed company profiles
  • Global and regional market analysis covering key market trends, major players, regulations, and recent market developments

Key Players

  • 365 Data Centers
  • Compass Datacenters
  • Dell Technologies, Inc.
  • Eaton Corporation
  • Edgeconnex Inc.
  • Edgepresence
  • Flexential Corporation
  • Fujitsu Ltd.
  • Huawei Technologies Co., Ltd.
  • NVIDIA

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

By Component
  • Solution and Services
By Facility Size
  • Small and Medium Facility
  • Large Facility
By Vertical
  • BFSI
  • IT and Telecommunication
  • Government
  • Retail
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
MARKET PLAYERS

Edge Data Center Market Report Scope

Report Attribute Details
Market size in 2023 US$ 11.96 Billion
Market Size by 2031 US$ 41.02 Billion
Global CAGR (2023 - 2031) 16.7%
Historical Data 2021-2022
Forecast period 2024-2031
Segments Covered By Component
  • Solution and Services
By Facility Size
  • Small and Medium Facility
  • Large Facility
By Vertical
  • BFSI
  • IT and Telecommunication
  • Government
  • Retail
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • 365 Data Centers
  • Compass Datacenters
  • Dell Technologies, Inc.
  • Eaton Corporation
  • Edgeconnex Inc.
  • Edgepresence
  • Flexential Corporation
  • Fujitsu Ltd.
  • Huawei Technologies Co., Ltd.
  • NVIDIA
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    This text is related
    to segments covered.

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    This text is related
    to country scope.

    Frequently Asked Questions


    What is the expected CAGR of the Edge Data Center market?

    The global Edge Data Center market was estimated to grow at a CAGR of 16.7% during 2023 - 2031.

    What are the future trends of the Edge Data Center market?

    The surge in Internet of Things (IoT) devices and the rise of edge computing is the major trend in the market.

    Which are the leading players operating in the Edge Data Center market?

    365 Data Centers, Compass Datacenters, Dell Technologies, Inc., Eaton Corporation, Edgeconnex Inc., Edgepresence, Flexential Corporation, Fujitsu Ltd., Huawei Technologies Co., Ltd., NVIDIA, Equinix, HPE, Cisco, Eaton, IBM, Vertiv Group, Sunbird, Panduit, Rittal, and Vxchnge are the major market players.

    What are the options available for the customization of this report?

    Some of the customization options available based on the request are additional 3–5 company profiles and a country-specific analysis of 3–5 countries of your choice. Customizations are to be requested/discussed before making final order confirmation, as our team would review the same and check the feasibility.

    What are the deliverable formats of the Edge Data Center market report?

    The report can be delivered in PDF/PPT format; we can also share an Excel dataset based on the request.

    What are the driving factors impacting the Edge Data Center market?

    Increasing investment in 5G technology and decentralization of IT infrastructure are the major factors that drive the global Edge Data Center market.

    The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

    1. Data Collection and Secondary Research:

    As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

    Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

    1. Primary Research:

    The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

    For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

    A typical research interview fulfils the following functions:

    • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
    • Validates and strengthens in-house secondary research findings
    • Develops the analysis team’s expertise and market understanding

    Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

    • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
    • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

    Below is the breakup of our primary respondents by company, designation, and region:

    Research Methodology

    Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

    1. Data Analysis:

    Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

    • 3.1 Macro-Economic Factor Analysis:

    We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

    • 3.2 Country Level Data:

    Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

    • 3.3 Company Profile:

    The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

    • 3.4 Developing Base Number:

    Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

    1. Data Triangulation and Final Review:

    The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

    We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

    We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

    Your data will never be shared with third parties, however, we may send you information from time to time about our products that may be of interest to you. By submitting your details, you agree to be contacted by us. You may contact us at any time to opt-out.

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