The Edge Data Center Market Size is valued at USD 16.6 Bn in 2023 and is predicted to reach USD 61.2 Bn by the year 2031 at an 18.1% CAGR during the forecast period for 2024-2031.
An Edge Data Center is a small-scale data center strategically located near end-users or devices to bring computing power, storage, and network services closer to where data is generated and consumed. Its primary purpose is to reduce latency, improve performance, and enable faster data processing by avoiding the need to send information to distant, centralized data centers. Typically positioned near population centers or within local networks, edge data centers minimize data travel time. These smaller, more distributed centers often work alongside larger, centralized cloud data centers and are designed to scale based on demand, especially in areas with high user density. Unlike traditional data centers, edge data centers support localized workloads without requiring massive infrastructure.
Implementing robust security measures, such as access controls, encryption, and physical security, is essential to protect sensitive data and infrastructure in edge data centers from cyber threats and unauthorized access. With stricter data privacy regulations like the General Data Protection Regulation (GDPR) and the Central Consumer Protection Authority (CCPA), the need for enhanced security at the edge has become more pressing. Key measures, including data encryption, access controls, and regular security audits, are critical for safeguarding data processed at the edge. For example, in May 2023, Vertiv Group introduced modular data centers designed for rapid deployment and scalability, addressing the growing demand for flexible and agile edge solutions.
Micro data centers are also gaining popularity for edge deployments, offering compact and efficient solutions for specific use cases. As businesses prioritize digital transformation projects to support advanced applications and technologies, investments in edge infrastructure are likely to increase. In response to rising concerns over data breaches and regulatory compliance, edge data centers are expected to implement stronger security measures, enhancing consumer trust. Additionally, the need for edge computing solutions to reduce latency and boost performance is expected to drive market growth, as user experience becomes a key differentiator for businesses.
Competitive Landscape
Some of the Major Key Players in the Edge Data Center market are
- ATLASEDGE DATA CENTRES
- ATC TRS V LLC
- Cologix
- Vapor IO
- DartPoints
- Digital Realty
- Edge Centres
- EdgeConneX
- Ubiquity Management, LLC
- Leading Edge Data Centres
- Proximity Data Centres
- Switch
- Vertiv Group Corp
- Evoque Data Center Solutions
- Flexential
- DELL
- EATON
- IBM
- NVIDIA
- Schneider Electric
- Fujitsu
- Cisco
- Huawei
- 365 Data Centers
- Rittal
- Panduit
- Equinix
- Sunbird
- Vertiv Group
- Huber+Suhner
- Siemon
Market Segmentation
The Edge Data Center market is segmented based on end-use industry, and data center type. Based on the end-use industry, the market is divided into IT and telecom, banking, financial services, insurance (BFSI), government and public sector, healthcare, manufacturing, automotive, retail, and others. Based on the data center type, the market is divided into on-premise edge, network edge, and regional edge.
The IT and Telecom Segment is Expected to Have the Highest Growth Rate During the Forecast Period
Based on the end-use industry, the market is divided into IT and telecom, banking, financial services, insurance (BFSI), government and public sector, healthcare, manufacturing, automotive, retail, and others. Among these, the IT and telecom segment is expected to have the highest growth rate during the forecast period. This sector has the highest demand for edge data centers due to the rapid expansion of 5G networks, increased data consumption, and the growing need for faster data processing and reduced latency to support cloud services, video streaming, IoT applications, and other digital services.
The telecom industry, in particular, leverages edge data centers to enhance network efficiency, provide low-latency communication, and ensure seamless connectivity. The IT and telecom sectors generate massive volumes of data from smartphones, IoT devices, cloud services, and content delivery networks (CDNs). Edge data centers help handle this data by processing it locally, reducing the load on centralized data centers, and minimizing latency. The proliferation of IoT devices, especially in telecom, requires localized data processing. Edge data centers facilitate faster data analysis and decision-making for connected devices, enhancing real-time monitoring and control.
The Network Edge Based Segment Dominates the Market
Based on the data center type, the market is divided into on-premise edge, network edge, and regional edge. Among these, the rising demand for video streaming, online gaming, and other bandwidth-heavy services is best served by the Network Edge. By caching content closer to users, Network Edge data centers improve performance, reduce buffering, and enhance the user experience. Network Edge data centers allow for local data processing and reduce the burden on centralized data centers, ensuring quicker response times and supporting large-scale IoT deployments. The Network Edge is crucial for telecom operators and IT service providers, as it supports the infrastructure needed for low-latency applications and efficient network management. As these sectors grow, the need for network-edge data centers continues to rise.
North America Has the Largest Market Share During the Forecast Period.
North America, particularly the United States, is a leader in the early adoption of advanced technologies like 5G, IoT, and cloud computing, which are key drivers for edge data center deployment. The rapid deployment of 5G networks across the U.S. and Canada is increasing the demand for edge data centers to support low-latency, high-bandwidth applications, such as autonomous vehicles, smart cities, and AR/VR. a high adoption rate of IoT devices across various industries, including healthcare, automotive, and manufacturing. This creates a need for localized processing power, driving the demand for edge data centers.
Recent Developments:
- In Jan 2024, IBM and American Tower collaborated on a multi-cloud, hybrid computing platform at the Edge. Through the partnership, Red Hat OpenShift and IBM Hybrid Cloud technologies will be available within the American Tower Access Edge Data Center ecosystem. Clients will get access to network automation, AI, 5G, IoT, and Edge technologies.
- In February 2022, Equinix, Inc., introduced five new nations to its network edge service offering: France, Finland, Italy, Ireland, and the Netherlands. Further propelling market expansion is the use of edge data centers to preserve data privacy and sovereignty under the EU's stringent data protection regulations, such as the General Data Protection Regulation.
Edge Data Center Market Report Scope
|
Report Attribute |
Specifications |
|
Market Size Value In 2023 |
USD 16.6 Bn |
|
Revenue Forecast In 2031 |
USD 61.2 Bn |
|
Growth Rate CAGR |
CAGR of 18.1% from 2024 to 2031 |
|
Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
|
Historic Year |
2019 to 2023 |
|
Forecast Year |
2024-2031 |
|
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
|
Segments Covered |
By End-Use Industry, and Data Center Type |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South Korea; South East Asia |
|
Competitive Landscape |
ATLASEDGE DATA CENTRES, ATC TRS V LLC, Cologix, Vapor IO, DartPoints, Digital Realty, Edge Centres, EdgeConneX, Ubiquity Management, LLC, Leading Edge Data Centres, Proximity Data Centres, Switch, Vertiv Group Corp, Evoque Data Center Solutions, Flexential, DELL, EATON, IBM, NVIDIA, Schneider Electric, Fujitsu, Cisco, Huawei, 365 Data Centers, Rittal, Panduit, Equinix, Sunbird, Vertiv Group, Huber+Suhner, Siemon |
|
Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing and Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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