Edge Data Center Market Forecasts to 2030 - Global Analysis By Component, By Deployment, Organization Size (Large Enterprises and Small and Medium-Sized Enterprises ), Application, End User and By Geography

According to Stratistics MRC, the Global Edge Data Center Market is accounted for $11.2 billion in 2023 and is expected to reach $41.3 billion by 2030 growing at a CAGR of 20.4% during the forecast period. Edge Data Center is a compact and localized facility designed for processing and storing data near the source of generation, reducing latency and enhancing real-time data processing. Positioned closer to end-users or IoT devices, it facilitates faster access to information. Edge Data Centers support applications requiring low-latency responses, such as IoT, cloud computing and content delivery, ensuring efficient data handling in proximity to where it is needed.

According to USITC, as of 2022, there are approximately 8000 physical data centres present across the globe.

Market Dynamics:

Driver:

Rise of big data and artificial intelligence (AI)

The rise of big data and artificial intelligence is a significant driver in the edge data center market. As organizations increasingly leverage data-intensive applications and deploy AI algorithms, there's a growing demand for real-time processing and reduced latency. Edge data centers, positioned closer to the data source, enable quick data analysis and decision-making. This proximity enhances the efficiency of big data analytics and AI applications, fostering the development of advanced technologies and driving the adoption of edge computing solutions.

Restraint:

High upfront costs and complex deployment

The initial investment required for establishing edge data centers, including infrastructure, networking and security measures, can be prohibitive for some organizations. Additionally, the intricacies of deploying and managing distributed computing infrastructure at the edge pose challenges, demanding specialized expertise. These factors may hinder widespread adoption, especially for smaller enterprises, despite the growing demand for low-latency, high-performance computing closer to end-users.

Opportunity:

Proliferation of 5G and other advanced networks

Increasing adoption of 5G technology enhances data transfer speeds and reduces latency, creating a contributing environment for edge computing applications. Edge Data Centers, positioned closer to end-users, can leverage these high-speed networks to deliver low-latency and real-time services. This synergy facilitates the seamless integration of edge computing with 5G, unlocking new possibilities for enhanced connectivity, improved performance and support for emerging technologies.

Threat:

Lack of skilled professionals and standardized solutions

The shortage of skilled professionals and the absence of standardized solutions pose significant threats. The rapid growth of edge computing demands specialized expertise for deployment and management. The shortage of skilled professionals can hinder the effective implementation of edge data centers. Additionally, the lack of standardized solutions may lead to interoperability challenges and hinder seamless integration.

Covid-19 Impact:

The COVID-19 pandemic has accelerated the demand for edge data centers as businesses and industries shift towards remote work, digital services and increased reliance on cloud computing. The need for low-latency and high-performance computing closer to end-users became crucial, driving the adoption of edge computing solutions. The pandemic underscored the importance of resilient and distributed data infrastructure, prompting organizations to invest in edge data centers to enhance connectivity and scalability and support emerging technologies like IoT and autonomous systems.

The software segment is expected to be the largest during the forecast period

The software segment is poised to be the largest during the forecast period due to its pivotal role in advancing edge data center functionalities. Businesses prioritize data-driven decision-making and real-time analytics, the demand for software solutions supporting edge computing data processing and analytics is escalating. With the growing complexity of edge computing environments, the software segment is expected to witness substantial growth, making it a key contributor to the edge data center market.

The small and medium-sized enterprises (SMEs) segment is expected to have the highest CAGR during the forecast period

The small and medium-sized enterprises (SMEs) segment is anticipated to experience the highest growth over the forecast period. This growth is driven by increasing digitalization efforts among SMEs, rising adoption of cloud-based solutions and the need for scalable and cost-effective data management. SMEs, recognizing the advantages of edge data centers in enhancing operational efficiency, are likely to invest more in these solutions, contributing to the segment's accelerated growth in the coming years.

Region with largest share:

The North American region is expected to dominate the market during the forecast period due to widespread adoption of advanced technologies, robust IT infrastructure and a surge in data-intensive applications. Increasing demand for low-latency processing, edge computing applications and the rapid growth of IoT devices contribute to the region's leadership. Additionally, the presence of key market players, coupled with substantial investments in data center infrastructure, positions North America as a significant contributor to the expanding market share of edge data centers.

Region with highest CAGR:

The Asia-Pacific region is poised for substantial growth in the market. This surge is fueled by increasing digitization, the rapid adoption of IoT devices and escalating demand for low-latency data processing. The region's expanding cloud infrastructure, burgeoning data traffic and supportive government initiatives contribute to its prominence. As businesses strive for improved connectivity and real-time data access, the Asia Pacific stands as a key market for edge data centers, showcasing significant growth potential.

Key players in the market

Some of the key players in Edge Data Center Market include Akamai Technologies, AT&T, Compass Datacenters, CoreSite, CyrusOne, Dell, EdgeConneX, EdgePresence, Equinix, Flexential, Hivelocity, Nokia, Nvidia, Siemon , Stack Infrastructure, Telefonaktiebolaget LM Ericsson, Vapor IO, Verizon and Zenlayer.

Key Developments:

In July 2023, Siemon launched new EagleEye Red software for managing data center and LAN networks. Its multi-tiered network discovery protocols allow users to quickly scan and find all IP-based devices within their network and position assets at their correct locations.

In June 2023, Dell has recently expanded its Dell Private Wireless Program, aiming to offer secure enterprise connectivity for edge locations. The program now supports Airspan and Druid wireless solutions, providing businesses with enhanced options for reliable wireless connectivity at the edge.

In May 2023, NVIDIA launched a new class of large-memory AI supercomputer, the NVIDIA DGX. The NVIDIA GH200 Grace Hopper Superchips and the NVIDIA NVLink Switch System drive this powerful system. It facilitates the development of massive, next-generation models for generative AI language applications, recommender systems, and data analytics workloads.

Components Covered:

• Hardware
• Software
• Services

Deployments Covered:

• On-premise
• Cloud-based
• Hybrid

Organization Sizes Covered:

• Large Enterprises
• Small and Medium-Sized Enterprises (SMEs)

Applications Covered:

• Autonomous Vehicles
• Content Delivery Networks (CDNs)
• Industrial Automation
• Internet of Things (IoT)
• Smart Cities
• Other Applications

End Users Covered:

• Energy
• Healthcare
• IT and Telecom
• Retail
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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