Edge Data Center Market Size, Share, And Growth Analysis by 2032

Edge Data Center Market Size

According to Zion Market Research, the global Edge Data Center Market was worth USD 11.40 Billion in 2023. The market is forecast to reach USD 74.54 Billion by 2032, growing at a compound annual growth rate (CAGR) of 23.2% during the forecast period 2024-2032.

The report offers a comprehensive analysis of the market, highlighting the factors that will determine growth, potential challenges, and opportunities that could emerge in the Edge Data Center Market industry over the next decade.

Request Free Sample

Edge Data Center Market: Overview

Edge computation not only reduces latency but it also helps to improve the consumer experience by processing data and associated services close to the end user. Arrival of the 5G technology, increasing data gap, proliferation of IOT devices and increasing demand for streaming of videos along adoption of augmented reality and virtual reality technologies are the factors that are driving development of the Edge Data Center Market. Big data, Cloud, artificial intelligence, and technology workloads based on IOT are among the innovations that vendors are focusing on in this market.

COVID-19 Impact Analysis

COVID- 19 has had a positive impact on the Edge Data Center Markets because of the increased access to internet-related resources, as well as nation-wide lockdowns enforced by policymakers around the world, demand for data centers has increased. Since people spend the majority of their time on digital platforms, the COVID-19 pandemic has greatly boosted internet traffic. Organizations, like government entities, have increased their use of cloud-based technology when they are migrating, storing, and securing sensitive data and information during the past one year.

Edge Data Center Market: Growth Factors

Through the introduction of the 5G technology, these small cell networks with edge data centres will be able to offer lower cost and lower latency coverage. Furthermore, as more IoT devices and sensors are increasingly deployed in businesses and homes, low latency edge processing becomes vital for the management of the growing data.

In addition, the 64 zettabyte gap between usable data generated and global data centre traffic will be closed by the adoption of these low-cost edge centers that will help filter data close to the source. Enterprise users and customers are on a look out for edge data centers that are low-cost and that can minimize streaming latency and deliver with efficiency.

Request Free Sample

Edge Data Center Market: Segmentation

Data Center Size Segment Analysis Preview

Micro Data Center segment will grow at a CAGR of over 20 % from 2021 to 2028. This is attributable to a strong demand for self-sufficient enclosures with an embedded hardware that can support the capability of vital IT modules with management and monitoring software devices. As compared to traditional bulkier data centers, a micro data centre is a physical infrastructure that provides a unified a solution by greatly cuts project timeline.

Increased adoption of edge computation technologies due to demand from applications that are computation intensive such as Artificial Intelligence and IOT is expected to boost micro data center segment revenue. The demand has increased for high-performance driven data centers as a result of increased digital service use, which has resulted in a significant increase in data.

End Use Industry Segment Analysis Preview

BSFI segment held a share of around 20% in 2020. This is attributable to the fact that edge computing is revolutionizing the banking and finance industry with its efficiency, cost management, and improved user interface, with security being the most critical factor in banking. The banking and financial industries place a premium on security. Edge data centers handle data close to the point of generation, reducing the need for data transfers.

Request Free Sample

Hedge funds and other high-volume financial companies cannot afford even a millisecond of delay. A significant financial loss could result from such a delay. In this case, time-to-user is critical for survival, so complex service provisioning is the way to go. This drives the demand for edge data centers.

Edge Data Center Market: Report Scope

Edge Data Center Market: Regional Analysis

The European region held a share around 10% in 2020. This is attributable to the fact that the manufacturing sector in Europe is strong, and implements a variety of advanced technologies such as IoT, 5G, robotics, and machine learning being to improve productivity. The German government's Industry 4.0 program seeks to accelerate digitization of the industrial sector.

Edge data centers operators are capitalizing on the European market's developing automotive industry. The industry demand for high capacity edge data centers to minimize latency and bandwidth costs would be fueled by the increasing demand to manage surging volumes of data from the industrial and automotive industries.

Request Free Sample

The Asia Pacific region is projected to grow at a CAGR of 20% over the forecast period. This surge for robust edge data centers for effective data management is due to the increasing popularity of Over The Top (OTT) platforms in various countries in the region. A number of social media platforms have grown in popularity in countries like South Korea, especially among the country's youth. People post their content (videos or images) on platforms such as Instagram and Facebook. This region's market growth will be fueled by an increasing demand for faster processing of data.

Edge Data Center Market: Competitive Players

Some of the leading players in the global market include

• EdgeConneX Inc.
• Fujitsu Ltd.
• Panduit Corporation
• Eaton Corporation
• Hewlett Packard Enterprise Company
• Rittal GmbH & Co. Kg.
• Huawei Technologies Co. Ltd.
• Schneider Electric SE
• IBM Corporation
• Vertiv Co.

Players in the edge data centre industry are focused on research and development in order to integrate the new technology into their products and bring novel solutions to the market. To ensure effective operation and optimum efficiency, they are incorporating new technology into edge data centers.

The global Edge Data Center Market is segmented as follows:

By Data Center Size

• Micro Data Centers
• Hyperscale Data Center
• Others

By End Use Industry

• BFSI
• Energy
• Healthcare
• Manufacturing
• IT and Telecom
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa