USD 9.33 billion
Edge Data Center Market Size, Share, Growth Analysis, By Component (Solutions, Services), By Organization Size (Large Enterprises, SMEs), By End User Industry, By Location, By Application, By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45C2086 |
Region:
Global |
Published Date: December, 2024
Pages:
187
|Tables:
87
|Figures:
71
Edge Data Center Market Insights
Global Edge Data Center Market size was valued at USD 9.33 billion in 2022 and is poised to grow from USD 11.05 billion in 2023 to USD 42.66 billion by 2031, growing at a CAGR of 18.4% during the forecast period (2024-2031).
The network's edge is greatly expanded by edge data center as they provide processing and sending data to local end users, thus making it possible for them to have access to cloud computing resources and cached streaming content in smaller energy efficient structures. Due to the edge snagging effect, edge data centres are closer to local end users and are mainly used in the IT infrastructure as well as communication. This allows them to provide speedier services with lower latency. IoT edge computing devices, or edge data centres, are essential to the financial and healthcare industries, which depend on high-frequency data-driven services.
To achieve effective network performance and robust security, edge data center provides advantages that make it impossible for a single disruption to bring down the network. Positioning edge data centres closer to end users reduces the possibility of network issues in remote regions and enables businesses to target lucrative markets without incurring costly infrastructure expansion costs. As a result of ongoing developments in this region, which aid businesses in optimizing their networks and offer advantages over highly centralized traditional cloud computing networks, it is expected that the market share of edge data centres will expand rapidly in the years to come.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Solution
Fastest Growth
Services
Growth Rate
18.4% CAGR
Global Edge Data Center Market ($ Bn)
Country Share by North America (%)
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Edge Data Center Market Segmental Analysis
Global Edge Data Center Market is segmented by component, organization size, end user industry, location, application and region. Based on component, the market is segmented into solutions (hardware, software) and services (installation and integration, managed services, consulting services). Based on organization size, the market is segmented into large enterprises and small and medium-sized enterprises (SMEs). Based on end user industry, the market is segmented into it and telecom, banking, financial services, and insurance (BFSI), healthcare, retail, manufacturing, energy and government. Based on location, the market is segmented into urban and rural. Based on application, the market is segmented into internet of things (IoT), artificial intelligence (AI), content delivery, smart cities and autonomous vehicles. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by Component
As per categorization by component, the market is classified as solution and services. Among these, solution earned the largest share and continues to dominate the market. The need for real-time analytics, improved data security, and low-latency processing is propelling the edge data centre industry's rapid innovation worldwide. In addition, the market is dominated by such scalable and efficient solutions as modular infrastructure systems and AI-managed services that can serve IoT applications as well as 5G needs.
The increased need for managed services, maintenance, and support is driving the services category in the global edge data centre market to develop at the quickest rate. The industry will see substantial development due to the emphasis on service integration, consultancy, and security as businesses look to improve reliability and optimize operations.
Analysis by Facility Size
Big facilities are bringing new ideas to the global edge data centre industry with energy-efficient designs, sophisticated security measures, and cutting-edge cooling technology. This competence arises from their ability to hold massive quantities of data processing and storage applicable for high-demand applications including the likes of artificial intelligence (AI), huge datasets as well as up-to-the-minute analytics used in different sectors.
Due to their flexibility, lower operating costs, and capacity for rapid resource deployment, small and medium-sized facilities are expected to grow at the quickest rate in the global edge data centre market. The requirement for such amenities may expand as numerous firms adopt edge processing for nearby data processing, enabling swift creativity and enlargement.
Global Edge Data Center Market By Component (%)
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Edge Data Center Market Regional Insights
Due to a number of important factors, including its highly developed technological infrastructure, high internet penetration rates, and the existence of significant cloud service providers, North America is now leading the global edge data centre market. The increase in the demand for Edge Computing solutions has been huge as a result of significant investments made into 5G technology and Internet of Things applications by the region which allow faster data processing and better user experience. Further, organizations build edge data centers for operational efficiency and compliance as a result of the legal environment and the focus on data protection and confidentiality. North America plays a leading role in the edge data center market due to its innovative approach, major funding, and readiness for the market.
In today’s world, the growing demand for low-latency apps and IoT devices, has made Europe the fastest growing region in the global edge data centre market. The region’s commitment to sustainability and green energy programs, however, encourages investments in energy efficient edge data centres that are in line with legislation aimed at reducing carbon footprints. More importantly, since 5G networks are getting established across European countries thus promoting better user experience and delivery of services; therefore, the demand for localized processing of data becomes more pressing. In addition, various actors within Europe’s different sectors—ranging from banking and finance to medical services—are embracing edge computing solutions so as to enhance performance as well as ensure cybersecurity hence driving the growth of this market.
Global Edge Data Center Market By Geography
- Largest
- Fastest
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Edge Data Center Market Dynamics
Drivers
- Advantageous Function of the 5G Rollout
The term "5G deployment" describes the spread and application of 5G, the fifth generation of wireless technology. The advent of 5G will fundamentally change mobile telecommunications. It promises much higher data rates, lower latency, more network capacity, and support for vast numbers of connected devices. It is a significant improvement over the older 4G/LTE technology and will change various industries and applications.
- Growing Interest in Edge Data Centres as Services
With the help of the Edge Data Centre as a Service (EDCaaS) model, companies and organisations may take use of edge data centres' capabilities without having to construct and maintain their own specialised edge infrastructure. EDCaaS vendors make it simpler for businesses to take advantage of edge data centre advantages without having to make large upfront investments by providing edge computing resources and services on a subscription or pay-as-you-go basis.
Restraints
- Adherence to Regulations
Due to their dispersed nature, Edge data centres are subject to a complicated network of local, state, federal, and international regulations pertaining to the processing and storing of data. Data privacy regulations vary by regions and countries, such as the US CCPA, Singapore PDPA and EU GDPR. This legislation imposes strict principles on how personal data is collected, processed, retained or disclosed.
- Limitations on High-Speed Network Connections in Remote Locations
Enabling dependable and quick network connections for edge data centres situated in remote locations is the problem. Edge data centres are located adjacently to end-users, data sources and network access points. This reduces the distance that the data must travel hence decreasing latency between generation and processing. However, absence of strong network infrastructures in rural regions makes it difficult to establish fast connections.
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Edge Data Center Market Competitive Landscape
The competitive environment in the global edge data centre market is defined by prominent competitors forming strategic alliances and quick innovation. Businesses like Google, Microsoft, and Amazon Web Services are setting the standard for cutting-edge edge computing technologies. There are some remarkable competitors such as Equinix, IBM, and Oracle that are growing their service offerings through the process of acquisition and merger. The need for fast response times has led to rapid technological advancements as businesses require data processing solutions that are both cost-effective and efficient.
Top Player’s Company Profiles
- Cisco Systems Inc.
- Dell Technologies Inc.
- Hewlett Packard Enterprise Development LP (HPE)
- Huawei Technologies Co., Ltd.
- IBM Corporation
- Schneider Electric SE
- Vertiv Group Corp.
- Eaton Corporation
- Fujitsu Limited
- Nokia Corporation
- Equinix, Inc.
- Digital Realty Trust, Inc.
- EdgeConneX
- Vapor IO
- 6WIND
- ADLINK Technology Inc.
- AT&T Inc.
- Crown Castle International Corp.
- EdgeMicro
- Flexential Corp
Edge Data Center Key Market Trends
- Surging Demand for Low-Latency Solutions: The growing demand for low-idleness data handling and stockpiling at the edge of the organization is driving significant growth and improvement in the edge data center market. The development of IoT devices, autonomous cars, and the growing need for ongoing data analysis across many businesses all fit this pattern.
- Crucial Role of Edge Data Centers in Low-Latency Data Processing: The emergence of 5G organizations is one of the major market trends in the Edge Data Centre industry. 5G's deployment is pushing the need for edge processing capacity to support super-low idleness apps and handle the massive growth in data traffic. By completing capacity and putting assets closer to customers, edge data center plays a major role in helping 5G organizations.
Edge Data Center Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the smaller, more energy-efficient designs of edge data centres allow them to expand the edge of the network by bringing cloud computing capabilities closer to nearby end users. They are essential for industries like IT, communications, finance, and healthcare due to their close proximity, which lowers latency and speeds up services.
Edge data centres offer unprecedented benefits to organizations by reducing the risk of network disruptions in remote places and allowing them to target profitable markets without incurring major infrastructure costs. The need for real-time data processing and compliance with strict security standards is driving continual improvements in this industry, which indicates significant growth in the edge data centre market in the upcoming years.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 9.33 billion |
| Market size value in 2031 | USD 42.66 billion |
| Growth Rate | 18.4% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Edge Data Center Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Edge Data Center Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Edge Data Center Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Edge Data Center Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Edge Data Center Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Edge Data Center Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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