Home > Electronics & Media > Edge Data Center Market

Edge Data Center Market Size By Component (Solution [Cooling, Power {UPS}, IT Racks & Enclosures, Networking Equipment, DCIM], Service [Installation & Integration, Managed, Consulting]), By Data Center Size (Micro Data Centers, Hyperscale/Enterprise Data Center), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032

  • Report ID: GMI2421
  • Published Date: Nov 2022
  • Report Format: PDF

Industry Statistics

Edge Data Center Market size valued at USD 9 billion in 2022 and is projected to grow at over 15% CAGR from 2023 to 2032.
 

Significant technological advancements in smart computing, storage, and networking have lifted the demand for data centers around emerging nations. The continuous data transfer from private servers to cloud-based resources is anticipated to fuel industry growth in varied end-use verticals. Furthermore, the soaring data generation across different sectors, such as automotive, manufacturing, healthcare, IT & telecom, BFSI, energy, and government, is set to provide lucrative development opportunities for the industry.
 

Get more details on this report - Request Free Sample PDF
 

Notably, the growing consumer base that uses online services for shopping and other financial transactions due to snowballing smartphone penetration is augmenting the demand for high-quality streaming services. This has resulted in a positive inclination of companies toward edge data centers. For instance, in January 2022, RailTel, an Indian railways subsidiary, announced its plans to build edge data centers in 102 developed locations across the country.
 

Limited internet access may restrain industry progression

The limited availability of broadband internet in rural areas is a primary factor restraining market growth. Easy access to high-speed internet in urban areas creates a digital divide between the rural and urban regions, which hinders the deployment of edge data centers in remote areas. Moreover, ongoing government initiatives to promote digitalization in under-developed areas are slated to drive product penetration in rural regions.
 

Surging prominence of data center maintenance & optimization to push service segment growth

In terms of component, the service segment held more than 20% of the edge data center market share in 2022. Organizations face challenges associated with the installation, operation, and modification of advanced technologies, which is accelerating the demand for edge data center services. Additionally, several players in the IT industry are engaging with service providers to optimize and maintain data centers, thereby impelling segment uptake.
 

Growing presence of SMEs to boost demand for micro data centers

Get more details on this report - Request Free Sample PDF
 

With respect to data center size, the edge data center market from micro data centers segment is estimated to exhibit over 20% growth rate between 2023 and 2032. This growth is attributed to the swelling number of SMEs. The mounting adoption of IoT solutions in SMEs is enhancing the need for high bandwidth, superior reliability, low latency, and robust security.
 

Rising emphasis on reducing data center expenses to favor colocation segment

The colocation application segment is anticipated to reach nearly USD 18 billion by 2032. The increased focus of companies on reducing expenses linked to the maintenance and construction of data centers is bolstering the demand for data center solutions. Colocation facilities offer server security, storage, cooling, power, and networking equipment, which is poised to foster segment outlook.
 

Flourishing telecom sector to aid North America emerge as a prominent revenue pocket

Get more details on this report - Request Free Sample PDF
 

North America edge data center market recorded around USD 4 billion in revenue in 2022 as a result of significant efforts by organizations to enhance technological power through the integration of big data analytics and cloud solutions. In addition, the booming BFSI, telecom, and education industries in the region are foreseen to present beneficial opportunities for market progress.
 

Lucrative partnerships to benefit the business outlook

Top participants operating in the industry are Schneider Electric SE, Vertiv Group Co., IBM Corporation, Dell Inc., Hewlett Packard Enterprise Company, Huawei Technologies Co., Ltd., Eaton Corporation, EdgeConneX, Inc., and NVIDIA Corporation. These leaders are engaging in strategic alliances with key OEMs to address prevalent consumer demand and deliver improved product offerings, strengthening their business standing. For instance, in March 2022, electric services specialist Vertiv and Elea Digital, a major firm in the sector, partnered to develop edge data center services in Brazil in a move to expand their continent-wide footprint.
 

Impact of COVID-19 on the market trends

The edge data centers industry witnessed a negative impact on the development & investment of data center solutions during the COVID-19 pandemic. Strategic investments in building new edge data centers owing to stringent lockdowns and the decline in demand for IT solutions in firms hampered market progression. However, in the post-pandemic scenario, burgeoning penetration of smartphones across regions is foreseen to supplement the need for edge data centers in the future.
 

The edge data center market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032, for the following segments:

Market Insights, by Component

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

Market Insights, by Data center size

  • Micro data centers
  • Hyperscale/enterprise data center
  • Others

Market Insights, by Application

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

The above information is provided on a regional and country basis for the following:

North America

  • U.S.
  • Canada
  • Mexico

Europe

  • UK
  • Germany
  • France
  • Spain
  • Poland
  • Benelux

Asia Pacific

  • China
  • India
  • Japan
  • Australia
  • Singapore

South America

  • Brazil
  • Argentina
  • Colombia
  • Chile

MEA

  • South Africa
  • GCC
     
Authors: Preeti Wadhwani, Komal Sharma

Frequently Asked Questions (FAQ) :

The market size of edge data center crossed USD 9 billion in 2022 and is set to progress at over 15% growth rate during the next 10 years owing to prevalent smartphone penetration and an upsurge in technological advancements in smart computing, storage, and networking.
The colocation application segment is primed to surpass USD 18 billion in revenue by the end of 2032 backed by the surging emphasis of companies on reducing expenditure related to the maintenance and construction of data centers.
The micro data centers segment is estimated to grow at over 20% CAGR between 2023 and 2032 as a result of the mounting adoption of IoT solutions in SMEs, which is boosting the need for high bandwidth, superior reliability, low latency, and robust security.
The North America market hold at more than USD 4 billion in 2022 on account of efforts made by organizations towards enhancing technological power via the inclusion of big data analytics and cloud solutions in the region.

Buy Now


Premium Report Details

  • Base Year: 2022
  • Companies covered: 20
  • Tables & Figures: 401
  • Countries covered: 24
  • Pages: 400
  • Upcoming Report: Details can be customized to meet your information and data needs. Feel free to share your detailed research requirements via this form.

Get a report that explains COVID-19 impact on this market

 Request Free Sample

Budget constraints? Get in touch with us for special pricing

Request Discount