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

MARKET PLAYERS

Edge Data Center Market Report Scope

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• Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.