Edge Data Center Market Size was valued at USD 7.6 billion in 2022. The edge data center market industry is projected to grow from USD 8.914 Billion in 2023 to USD 31.951 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 17.30% during the forecast period (2023 - 2032). A strong inclination towards online services and the escalating data generation in metro areas and remote locations are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
As more sectors adopt cutting-edge technologies like the Internet of things, big data, artificial intelligence, cloud, streaming services, and 5G, there is expected to be an increase in the demand for edge data centers globally. Most major players have migrated to evolving data centers that use virtualization and software-defined networks, co-location facilities, public and private clouds, edge clouds, and other technologies. The move toward edge data centers is being made for various reasons, including smart agility, practicality, and affordability. Edge data centers are relatively smaller than large cloud data centers, so they must be close to busy intersections. It has decentralized facilities with power and cooling infrastructure that enable computing and storage in a location closer to where data is generated and/or used.
Edge data centers come in two flavors: mobile and metro. They are typically placed at the base of cell towers, are the size of a shipping container, and offer important support to the IoT (Internet of Things) and autonomous vehicle sectors to boost processing capacity and improve customer experience. Additionally, they are assisting mobile network operators (MNOs) in providing mobile subscribers with faster content services and prefabricated modular edge data centers, perfect for various industries requiring hyper-local computing and storage capability. The demand for edge data center solutions and services is ultimately driven by the high data volumes that these technologies produce in the network, which create new performance and computing demands in the data center. The demand for low operating costs, real-time data analysis, decreased network traffic, improved application performance, and business agility will also hasten market expansion. Thus, driving the edge data center market revenue.
The edge data center market segmentation based on components includes hardware, software, and service. The hardware segment dominated the market, The large market share of this segment is attributed to the increasing demand for IoT deployments across various industry verticals for a variety of applications, the growing demand for edge gateways and hyper-converged infrastructure, and the surge in consistent investments from industry players in incorporating edge data solutions in their operations and product or service offerings. However, the software segment is anticipated to record the highest CAGR during the forecast period.
The edge data center market segmentation, based on service, includes professional service, support and maintenance service. The professional service category generated the most income. Professional services in edge data centers refer to various specialized services created to support the deployment, administration, and upkeep of edge data centers.
These services are targeted at assisting businesses in selecting the best edge data center solution for their particular requirements. Site evaluation, network design, hardware picks, and software setup may all fall under this category.
Based on organization size, the edge data center market segmentation includes small enterprises and medium enterprises. The medium enterprises segment dominated the market. The market for edge data centers is anticipated to be dominated by large businesses in 2023. The widespread use of cutting-edge technologies like 5G and IoT, which directly impact revenue growth, the increased emphasis on creating strategic IT initiatives, and the regular rollout of solutions to increase businesses' data center capabilities are all credited with the segment's large market share. The edge data centers market is anticipated to expand fastest for small and mid-sized businesses during the projected period.
Based on verticals, the edge data center market segmentation includes banking, IT and telecommunication. The IT and telecommunication segment dominated the market, The adoption of edge data centers by telecommunications companies is responsible for the significant market share of this sector because edge enables them to utilize their geographically distributed infrastructure, which is made up of devices like gateways, smartphones, and other items with built-in storage and computing power. Demand for data services is increasing, as is the number of users generating data traffic, adopting cloud computing, and using high-density networks. This segment is expanding due to the telecom industry's technological advancements, including the development of 5G technology and the spread of IoT-capable devices. The industry segment for healthcare, however, is anticipated to have the highest CAGR during the forecast period.
Figure 1: Edge Data Center Market, by Verticals, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American edge data center market area will dominate this market, The presence of several important edge computing technology vendors in this area and the early adoption of cutting-edge technologies by a variety of end users are both credited with the region's large market share. Additionally, many businesses in the area are implementing edge data centers to improve their IT infrastructure and take advantage of cutting-edge innovations like 5G and IoT. The region's work on cutting-edge ideas like autonomous vehicles is also anticipated to fuel the edge data centers market growth in North America.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: EDGE DATA CENTER MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe’s edge data center market accounts for the second-largest market share because of increased internet use and significant funding from the government for enhancing the IT infrastructure. Further, the German edge data center market held the largest market share, and the UK edge data center market was the fastest-growing market in the European region.
The Asia-Pacific Edge Data Center Market is expected to grow at the fastest CAGR from 2023 to 2032 at the time of the forecast. The growth of end-use industries, the expansion of the IT sector's investment base, and the prevalence of numerous edge computing firms like Huawei Technologies Co. are the main factors driving this region's market for edge data centers, Ltd., including Fujitsu. Moreover, China’s edge data center market held the largest market share, and the Indian edge data center market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the edge data center market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The edge data center industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the edge data center industry to benefit clients and increase the market sector. The edge data center industry has offered some of the most significant advantages in recent years. Major players in the edge data center market, including Huawei Technologies Co. Ltd. (China), Cisco Systems Inc. (U.S.), Elliptical Mobile Solutions (U.S.), Rittal (Germany), and others, are attempting to increase market demand by investing in research and development operations.
Huawei Technologies Co. Ltd. (China), Beijing Huawei Technologies Co. Ltd. 's Shenzhen, Guangdong, China headquarters house this multinational technology company. Ren Zhengfei established it in 1987 with the primary goal of producing phone switches. Since then, though, it has broadened its operations to cover a variety of telecommunications tools and services, including mobile devices, tablets, wireless networks, cloud computing, and artificial intelligence. One of the biggest telecom equipment producers, Huawei is also a significant force in the smartphone industry.
Cisco Systems Inc. (U.S.), Networking giant Cisco Systems, Inc., more commonly known as Cisco, is an American multinational digital communications technology conglomerate corporation headquartered in San Jose, California. In addition to other high-tech services and goods, Cisco develops, produces, and markets networking hardware, software, telecommunications equipment, and other items. With cutting-edge products like Webex, OpenDNS, Jabber, Duo Security, and Jasper, Cisco is a leader in specialized tech markets like the Internet of Things (IoT), domain security, videoconferencing, and energy management. With over $51 billion in annual revenue and close to 80,000 employees, Cisco is one of the biggest technology companies in the world, coming in at number 74 on the Fortune 100.
Huawei Technologies Co. Ltd. (China)
Cisco Systems Inc. (U.S.)
Elliptical Mobile Solutions (U.S.)
Rittal (Germany).
In March 2022: Cisco and Kyndryl announced a technology partnership to help enterprise customers transition to data-driven businesses powered by Cisco solutions and Kyndryl-managed services. Cisco and Kyndryl will collaborate to support companies in transforming their operations by utilizing cloud computing technologies that simplify complex hybrid IT management with increased manageability, visibility, and flexibility.
January 2022: Hewlett Packard Enterprise unveiled plans to expand its venture capital financing program, Hewlett Packard Pathfinder, to support the acceleration of HPE's edge-to-cloud strategy. With new investments that tackle three significant client challenges cloud, edge, and data, Pathfinder plans to significantly increase the rate of its investments over the upcoming year.
Hardware
Software
Service
Professional Service
Support Service
Maintenance Service
Small Enterprises
Medium Enterprises
Banking
IT and Telecommunication
US
Canada
Germany
France
UK
Italy
Spain
Rest of Europe
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 7.6 billion |
| Market Size 2023 | USD 8.914 billion |
| Market Size 2032 | USD 31.951 billion |
| Compound Annual Growth Rate (CAGR) | 17.30% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Components, Service, Organization Size, Vertical and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Huawei Technologies Co. Ltd. (China), Cisco Systems Inc. (U.S.), Elliptical Mobile Solutions (U.S.), Rittal (Germany) |
| Key Market Opportunities | The escalating generation of data in metro areas and remote locations |
| Key Market Dynamics | A strong inclination towards online services |
Edge Data Center Market Highlights:
Frequently Asked Questions (FAQ) :
The edge data center market size was valued at USD 7.6 Billion in 2022.
The market is projected to grow at a CAGR of 17.30% from 2023 to 2032.
North America had the largest share of the market
The key players in the market are Huawei Technologies Co. Ltd. (China), Cisco Systems Inc. (U.S.), Elliptical Mobile Solutions (U.S.), and Rittal (Germany).
The hardware dominated the market in 2022.
The professional service had the largest share in the market.
Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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