Edge Data Center Market size worth over $20bn by 2026

Edge Data Center Market size is set to surpass USD 20 billion by 2026, according to a new research report by Global Market Insights, Inc.
 

Increasing penetration of compute-intensive technologies, such as IoT and AI, is driving the market demand for edge data centers to provide faster network response to customers. According to Intel Corporation, the IoT ecosystem is expanding rapidly from two billion devices in 2006 to a projected 200 billion by 2020. The rising computing power and growth of IoT devices have resulted in expansion of data centers to the network edge to meet the demands of AI and IoT applications.

 

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Edge computing enables data to be processed and analyzed closer to the point of data creation. As data does not traverse over a network to a data center or a cloud to be processed, latency is considerably reduced. The growing adoption of emerging applications among several industry verticals is encouraging the market leaders to shift toward edge computing technologies to locate their facilities close to end use.
 

The rise in the number of applications moving to the cloud has surged the need for high-performance edge data centers. With significant expansion of endpoints, mobility, and nomadic computing, the data volumes used for machine learning, analytics, and automation result in high processing costs to central data center locations for processing. Edge computing performs computations that augment the capabilities of devices and reduce the data transmission costs. Multiple cloud deployments by service providers, such as Amazon Web Services and Microsoft Corporation, stressing the need to modernize traditional data center architectures will impel the market growth.
 

The ongoing coronavirus (COVID-19) pandemic is projected to provide significant growth opportunities to the edge data center market. Video streaming platforms, such as Netflix, Hulu, YouTube, Hotstar, and Amazon Prime, witnessed high adoption during COVID-19 pandemic as most people were confined to stay at home. In March 2020, Amazon Inc. reported 31% growth in viewership with watched hours reaching 43 million in the third week of March 2020. Companies, such as Facebook and Microsoft, reported 50% increase in their services in April 2020. Rise in the usage of content delivery applications is creating the demand for edge data centers to process and store data in real time. However, disruption in the global supply chain will remain a major challenge for the edge data center industry with factories closing or operating in restricted hours.
 

Rising concerns over power consumption will boost the demand for energy-efficient cooling solutions

India Edge Data Center Market By Data Center

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Rise in enterprise workloads with IoT, cloud, and AI applications has resulted in constant increase of chip and rack power densities, encouraging edge data center operators to focus on energy-efficient cooling alternatives. The heat profile for GPU-based servers in AI applications is double that of traditional servers, thereby surging the demand for efficient cooling equipment. Companies are relying on immersion cooling techniques that circulate the liquid fluid on the surface of heat generating components in edge data centers, resulting in better efficiency and performance.
 

Browse key industry insights spread across 375 pages with 416 market data tables and 35 figures & charts from the report, “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), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/edge-data-center-market
 

Expanding data center colocation industry will surge the demand for efficient edge data centers for optimum data traffic management

High costs involved in the construction of a new data center restrict several businesses from developing their own data centers. Colocation data centers reduce the overall IT infrastructure costs and additional expenses incurred for cooling and power equipment. The growing adoption of colocation services for convenience and efficient infrastructure management will fuel the demand for high-quality edge data centers. Several colocation providers are strengthening their offerings to enhance market presence. For instance, in June 2020, Vapor IO and Digital Realty collaborated to announce the availability of a joint core-to-edge solution in the U.S. metro areas. The solution connects Vapor IO’s Kinetic Edge services with Digital Realty’s PlatformDIGITAL, enabling joint customers to deliver low-latency edge applications.
 

Advanced technology infrastructure in North America will propel the market revenue

North America edge data center market size will observe substantial growth during the forecast timeline owing to the presence of a large number of edge data center service providers focusing on enhancing their offerings and solidifying their market positions in the region. In May 2020, IBM Corporation collaborated with Red Hat to develop and launch edge computing solutions for 5G technology. The partnership aims to enable enterprises and telecom operators to deploy and manage IoT, AI, and analytics workloads at the edge. In addition, rapid growth in the incorporation of automation and advent of 5G technologies in the U.S. will create the need to efficiently manage complex network infrastructures, contributing to the establishment of several edge data centers in the country.
 

Strategic alliance with technology providers to launch enhanced solutions and strengthen market presence

Some of the prominent players operating in the edge data center market are Eaton Corporation, EdgeConnex Inc., Fujitsu Ltd., Hewlett Packard Enterprise Company, Huawei Technologies Co. Ltd., IBM Corporation, Panduit Corporation, Rittal GmbH & Co. Kg., Schneider Electric SE, and Vertiv Co.
 

The edge data center industry is moderately competitive with players focusing on enhancing their offerings and undertaking strategic business expansion initiatives to strengthen market presence. For instance, iIn July 2020, EdgePresence announced collaboration with Colo Atl, a subsidiary of American Tower, to build a new edge data center in Atlanta. American Tower aims to boost the -edge deployment model into several markets based in the U.S. The edge facility is in suburban Atlanta in Ben Hill, Georgia. This is a micro edge data center housed in a container-style enclosure.
 

 

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