Edge Data Center Market Size By Component (Solution [Cooling, Power {UPS}, IT Racks & Enclosures, Networking Equipment, DCIM] Service [Installation & Integration, Managed, Consulting]), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 – 2025

Published Date: Oct 2019  |  Report ID: GMI2421  |  Authors: Ankita Bhutani, Pallavi Bhardwaj

Report Format: PDF   |   Pages: 275   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Edge Data Center Market size was over USD 4.5 billion, globally in 2018 and is estimated to grow at 20.5% CAGR between 2019 and 2025.
 

Edge Data Center Market

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Edge data centers refer to data centers which are positioned closer to end-users, delivering faster services with minimal latency. They help in enhancing the efficiency of content delivery and bringing cloud computing resources and cached streaming content to local end-users. These data centers are normally smaller facilities that extend edge of a network and deliver cached streaming content to local end-users. They control data processing at the edge of a network compared to keeping in cloud or a centralized warehouse. These facilities are mainly used to support applications that demand a high amount of bandwidth, are latency-sensitive, and require rapid response times.
 

The edge data center market growth is attributed to factors such as the increasing adoption of smartphones and rising internet penetration in several regions. The introduction of 5G smartphones by global players is resulting in the increasing demand for advanced facilities for enhancing data traffic management. For instance, in August 2019, Samsung Electronics, Co. Ltd. announced the launch of its Galaxy Note 10 Plus 5G in South Korea. 5G mobile networks require efficient local data services that reduce internet traffic and core network loads. Edge facilities help redirect data traffic away from carrier networks to local public internet networks by effectively using scarce carrier network resources.
 

Another factor leading to edge data center market growth is the rising trend of IoT devices such as sensors, actuators, self-driven cars, and robots, which is compelling service providers to place facilities closer to the network edge. The growing adoption of these devices results in generating massive amounts of data, which needs to be effectively stored and accessed. SMBs and large enterprises are investing in these data centers to reduce latency and increase the speed of delivering services and data. Edge facilities provide secure data storage and aid enterprises to keep pace with real-time processing and low-latency responsiveness. The rise in data traffic and the increasing adoption of IoT technology is boosting the industry demand globally.
 

Companies in the edge data center market are focusing on transforming their traditional facilities to edge networking to save additional expenses and reduce overall operational costs. In addition, players are adopting advanced technologies such as automation & robotics, preventative maintenance. Predictive maintenance techniques are being mainly adopted by manufacturers for gathering real-time information on the status of industrial equipment. With growing technological advancements and increasing adoption of cloud computing services the demand for these solutions will increase in the coming years. However, high initial investments and rising data security and privacy concerns are restricting the entry of new players in the market.
 

Edge Data Center Market Report Coverage
Report Coverage Details
Base Year: 2018 Market Size in 2018: USD 4.5 Billion
Historical Data for: 2015 to 2017 Forecast Period: 2019 to 2025
Forecast Period 2019 to 2025 CAGR: 20.5% 2025 Value Projection: USD 16 Billion
Pages: 275 Tables, Charts & Figures: 377
Geographies covered (20): U.S., Canada, UK, Germany, France, Spain, Poland, Benelux, China, India, Japan, Singapore, Australia, Brazil, Mexico, Colombia, Chile, Argentina, South Africa, GCC
Segments covered: Component, Service, Application
Companies covered (15): 365 Operating Company LLC, Eaton Corporation, EdgeConneX, Inc., Flexential Corporation, Fujitsu Ltd., Hewlett Packard Enterprise Company, Hitachi Vantara Corporation, Huawei Technologies Co., Ltd., IBM Corporation, Panduit Corporation, Rittal Gmbh & Co. KG, Schneider Electric SE, Vapor IO, Inc., Vertiv Co., vXchnge Holdings LLC
Growth Drivers:
  • North America & Europe
    • Increasing usage of online services
    • Growing demand for edge computing across several industrial sectors
    • Deployment and commercialization of 5G network connectivity
    • High investment in data center upgrades
  • Asia Pacific
    • Widespread adoption of cloud computing and IoT
    • Increase in organizational and consumer data
    • Rise in the number of SMEs
    • Increasing deployment of data center facilities
  • Latin America
    • Growing penetration of colocation data centers
    • Increase usage of mobile data
    • Flourishing service industry
    • Demand for high-speed internet connectivity
  • MEA
    • Rising consumer demand for high bandwidth services
    • Rise in urbanization and digitization
Pitfalls & Challenges:
  • High initial investments
  • Security issues in green storage technologies

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Growing concerns of data security in the North America BFSI sector

North America Edge Data Center Market Size, By Application, 2018 & 2025 (USD Million)
North America Edge Data Center Market Size, By Application, 2018 & 2025 (USD Million)

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The North American BFSI sector is witnessing high adoption of edge facilities owing to the rising demand for securely storing and processing customer data. Several financial institutions are highly focusing on IT facilities that are close to their operational centers for effectively implementing advancements and modifications in these devices. These facilities offer several benefits, such as reducing losses due to frauds and cyber-attacks, enabling speedy intelligence and lowering data transmission time. These advantages are encouraging banking institutes to shift to advanced facilities, driving the North American edge data center market growth. Moreover, the adoption of big data analytics by BFSI companies for ensuring government compliance and assessing credit risk is being witnessed.
 

Rise in adoption of UPS to provide instant power back-up and enhance the power quality

Based on component, the edge data center market has been segmented into solutions and services. Solutions include products such as cooling, power, UPS, IT racks & enclosures, networking equipment, and DCIM software, while services include installation & integration, managed, and consulting services. The edge data center UPS market will witness growth of over 10% CAGR over the forecast timespan owing to the increasing demand for battery backup in data centers. Global cloud providers are focusing on manufacturing advanced UPS technologies to deliver cost-effective protection for edge data centers. The adoption of three-phase UPS is helping improve efficiency, connectivity, and modularity with reduced cost of ownership and footprint. Players in the market are shifting to modern UPSs, which are 25% smaller compared to legacy counterparts. Moreover, manufacturers are designing these systems with airflow perforations on the side, allowing them to be placed alongside other equipment to save space.
 

High investments in Asia Pacific for upgrading and modernizing data center infrastructure

Asia Pacific Edge Data Center Market Size, By Region, 2025 (USD Million)
Asia Pacific Edge Data Center Market Size, By Region, 2025 (USD Million)

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Asia Pacific will expand at over 22% CAGR during the forecast timespan owing to the rising establishments of these facilities in the region. Enterprises are highly investing in constructing these data centers in rapidly developing countries including China, Japan, and India for providing big data solutions and cloud services. For instance, in January 2019, Equinix Inc., announced the launch of its fourth edge data center in Singapore. The rise in the adoption of IoT, 5G technology, AI, and wearable devices in the region is increasing the demand for high computing power, driving market growth. Moreover, the growing government initiatives for smart city and availability of high-speed internet will propel the edge data center market demand.
 

Product launches and partnerships remain key growth strategies

Players operating in the industry are adopting several strategies, such as partnership & collaborations, new service launches, and product developments, to enhance their offerings and target a wider customer base. For instance, in September 2017, EdgeConneX, Inc., launched its edge facility in Toronto, Canada for enhancing connectivity to its customers in the metropolitan area. The new facility will offer high-density power in a redundant and reliable facility, offering extensive fiber, density, and peering options to customers.
 

Some of the major companies operating in the edge data center market share are Eaton Corporation, 365 Operating Company LLC, EdgeConneX, Inc., Hewlett-Packard Enterprise Company, Hitachi Vantara, Flexential Corporation, Fujitsu Ltd., Huawei Technologies Co., Ltd., IBM Corporation, Panduit Corporation, Schneider Electric SA, Rittal GmbH & Co. KG, Vertiv, Co., Vapor IO, Inc., and vXchnge Holdings, LLC.
 

The edge data center market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue in USD from 2014 to 2025, for the following segments:

Edge Data Center Market, By Component

  • Solution
    • Cooling
    • Power
      • UPS
    • IT racks & enclosures
    • Networking equipment
    • DCIM
  • Services
    • Installation & integration
    • Managed
    • Consulting

Edge Data Center Market, By Application

  • BFSI
  • Colocation
  • Energy
  • Government
  • Healthcare
  • Manufacturing
  • IT & telecom
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Poland
    • Benelux
  • Asia Pacific
    • China
    • India
    • Japan
    • Singapore
    • Australia
  • South America
    • Brazil
    • Colombia
    • Chile
    • Argentina
  • MEA
    • GCC
    • South Africa

Frequently Asked Questions (FAQ) :

Edge data center market in Asia Pacific will expand at over 22% CAGR during the forecast timespan as rise in the adoption of IoT, 5G technology, AI, and wearable devices in the region is increasing the demand for high computing power.
The edge data center UPS industry will witness growth of over 10% up to 2025 owing to increasing demand for battery backup in data centers.
The North American BFSI sector is witnessing high adoption of edge facilities due to rising demand for securely storing and processing customer data. Several financial institutions are highly focusing on IT facilities that are close to their operational centers for effectively implementing advancements and modifications in these devices.
The industry size of edge data centers exceeded a valuation of USD 4.5 billion, globally in 2018, as estimated by GMI analysts.
According to this report by GMI, the edge data center market is estimated to grow at a massive CAGR of around 20.5% between 2019 and 2025

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