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Colocation Edge Data Center Market worth over $25bn by 2028

  • Published Date: February 15, 2022

Colocation Edge Data Center Market Size is set to surpass USD 25 billion by 2028, according to a new research report by Global Market Insights Inc.

The increasing adoption of digital technologies in the healthcare industry is driving the demand for high-performance edge data centers. The advent of telehealth & telemedicine technologies is growing the medical data volume. Telehealth systems enhance healthcare quality and offer convenience for doctors by providing instant access to patient information, better decision assistance, medical alerts, and real-time quality reporting.

The increasing penetration of digital medical record, healthcare information management, and remote monitoring systems in the market will fuel the demand for efficient colocation edge data centers. The surging acceptance of these technologies requires powerful IT infrastructure for data management, thereby prompting healthcare organizations to use edge colocation data centers. Healthcare organizations in the market are updating their legacy systems with new technologies to enhance & improve their remote diagnostics service offerings. These factors are increasing the demand for cost-effective colocation edge data centers.

The COVID-19 pandemic positively impacted the market growth. The industry witnessed a surge in demand for additional data centers owing to the rising number of companies shifting to a work-from-home environment. Rising digitalization trends and the proliferation of modern technologies including big data and cloud boosted the demand for colocation services. This encouraged telecom operators to offer stable networks and uninterrupted internet services to customers by using edge data centers. This factor is increasing the demand for powerful IT infrastructures, thereby expanding the industry.

The increasing usage of cloud technologies by leading players will accelerate the market demand for wholesale colocation services

Germany Colocation Edge Data Center Market, By Type

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The wholesale colocation edge data center market will observe growth as several major technology companies including Alphabet Inc., Microsoft Corporation, Oracle Corporation, and IBM Corporation are adopting cloud solutions. For instance, in February 2021, Oracle Corporation expanded its hybrid cloud portfolio with the Oracle roving edge infrastructure. With Roving Edge Devices (REDs), a scalable server node and fundamental infrastructure functions are brought to the edge. Organizations can operate cloud workloads in remote locations by utilizing this infrastructure, thereby increasing the demand for edge data centers in the market for power resiliency & building efficiency in IT environments. Leading technology companies in the market have large customer bases that generate massive amounts of data and necessitate the need for large commercial spaces to host their servers, fostering the wholesale colocation need.

Browse key industry insights spread across 300 pages with 221 market data tables and 28 figures & charts from the report, “Colocation Edge Data Center Market Size, By Type (Retail Colocation, Wholesale Colocation), By End-use (SMEs, Large Enterprises), By Application (BFSI, Energy, Government & Defense, Healthcare, IT & Telecom, Manufacturing, Retail), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028” in detail along with the table of contents:


Growing government initiatives to support SMEs are helping in market expansion

The market is registering a high demand for colocation services credited to the rising number of government initiatives to support SMEs and startups. For instance, in December 2021, the Government of Australia expanded its SME recovery loan scheme. It is working with lenders to ensure that eligible SMEs have access to finance to maintain & expand their businesses. Owing to financial limitations, SMEs are focusing on cost reductions while planning IT infrastructure expansion. The use of edge data centers allows SMEs operating in the market to save money on operational & fixed expenses. They acquire the ability to better safeguard companies and their customer data. Colocation services enable SMEs to use modern technological capabilities while saving costs and improving their ROI.

Digitalization in the manufacturing industry is augmenting the market progression

Manufacturing industries are optimizing their operations by using advanced technologies including Artificial Intelligence (AI), cloud computing, and Internet of Things (IoT). Efficient data collection & storage is critical in the manufacturing industry for ensuring smooth real-time operations and improving productivity. This is impelling the demand for edge data centers that aid in fast data processing at optimum costs.

Strong automotive industry in Europe is influencing the market revenue

Europe colocation edge data center market is poised to showcase 20% growth rate through 2028 led by the development in the automotive sector. The Automobile manufacturers are using modern technologies, such as IoT, AI, and machine learning, to optimize their fleets and determine the conditions that impact performance. Leading manufacturers, such as BMW and Mercedes-Benz, are employing advanced digital technologies at their manufacturing facilities, thereby propelling the demand for colocation edge data center services in data management.

Manufacturing plants require continuous & fast data processing to make critical decisions based on predictive analysis. Data center downtime is expected to impact operations at facilities, leading to huge losses. This is increasing the demand for high-performance edge facilities that ensure optimum data management by mitigating component overheating risks.

Strategic mergers & acquisitions form a key strategy among market players

The prominent participants operating in the market include China Telecom Global Limited, Digital Realty Trust, Inc., Eaton Corporation PLC, Emtel, Equinix, Inc., Fujitsu Limited, Hewlett-Packard, IBM Corporation, KDDI Corporation, NTT Communications Corporation, Ltd., Rackspace Inc., Schneider Electric SE, Singapore Telecommunications Limited, Teraco Data Environments, Verizon Communications Inc., and Vertiv Group Corp. Market leaders are focusing on undertaking strategic mergers & acquisitions to enhance their service portfolios.

Authors: Preeti Wadhwani, Saloni Gankar