Edge Data Center Market Size to grow by USD 22.11 billion between 2024-2028
According to a research report “ Edge Data Center Market” by End-user (IT and telecommunication, Manufacturing and automotive, BFSI, Healthcare and life sciences, Others) Component (IT infrastructure, General construction, Power management systems, Cooling systems, Others) Geography (North America, APAC, Europe, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 22.11 billion, at a CAGR of 23.57% during the forecast period. The proliferation of smartphones and expanding Internet connectivity is driving a significant surge in demand for video streaming services. Providers of these services are investing heavily in creating original, in-house content to differentiate themselves in a competitive market. Genres such as drama, comedy, sitcoms, action, and documentaries are popular among viewers on OTT platforms like Netflix and YouTube. In April 2019, Netflix revealed plans to release ten new original films specifically for the Indian market, showcasing a diverse range of subjects and genres. The majority of this content is consumed on mobile devices, underscoring the importance of optimizing streaming experiences for smaller screens..
Browse market data tables, figures, and in-depth TOC on “Edge Data Center Market” by End-user (IT and telecommunication, Manufacturing and automotive, BFSI, Healthcare and life sciences, Others) Component (IT infrastructure, General construction, Power management systems, Cooling systems, Others) Geography (North America, APAC, Europe, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By End-user, the IT and telecommunication segment is projected to dominate the market size in 2024
The BFSI segment of the global edge data center market signifies the adoption of edge infrastructure designed to cater to the unique demands and complexities of the financial services industry. Edge data centers, which are smaller-scale facilities situated near end-users, deliver high-performance, low-latency computing capabilities at the network's edge. In the BFSI sector, edge data centers play a pivotal role in facilitating real-time transaction processing, ensuring minimal latency and enhancing customer experience. Additionally, these data centers enable regulatory compliance by providing secure, locally-stored data, adhering to stringent data privacy and storage regulations prevalent in the financial services industry.
By Component, IT infrastructure segment is expected to hold the largest market size for the year 2024
In the dynamic edge data center market, the IT infrastructure segment assumes a pivotal role. This segment encompasses the essential hardware, software, network components, and systems that empower organizations to deliver IT services effectively within their data center ecosystems. The IT infrastructure segment within the edge data center market prioritizes providing the requisite computing resources, storage, and networking capabilities to facilitate edge data processing, storage, and delivery. Strategically positioned at the network's edge, edge data centers optimize data processing, minimize latency, and enhance user experience by being closer to end-users or generating devices.
North America is forecasted to hold the largest market size by region in 2024
The edge data center market in North America is experiencing significant growth due to the increasing trend of enterprises in the US and Canada adopting cloud services to minimize capital and operational expenses associated with on-premises data centers. Hyper-scale cloud providers, such as Amazon Web Services (AWS), Microsoft, and Oracle, are popular choices for enterprises seeking to meet their computing capacity demands at minimal cost. Furthermore, the region's established data centers by enterprises, including Apple Inc.'s 11 data centers, six of which are located in North America, add to the market's momentum. The adoption of high-performance computing (HPC) systems by industries like government, BFSI, healthcare, and others, is another significant driver fueling the demand for edge data centers in North America.
The Edge Data Center Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Edge Data Center Market is experiencing significant growth due to the increasing demand for remote operations and the need to process data closer to the source. Edge data centers are designed to address the challenges of vibration, heat, and dust in remote sites, production floors, branch offices, and other non-traditional data center locations. Companies like Dell Technologies are leading the way with edge infrastructure solutions that leverage natural language processing, machine learning, and AI applications for video streaming, autonomous automobiles, industrial automation, and data processing. Edge data centers are crucial for businesses that require low latency and high performance, such as Walmart, e-commerce platforms, and streaming services. The integration of 5G and cloud technologies is enabling real-time data analysis and reducing operating costs. Edge data centers are also essential for businesses that need to ensure business agility and application performance in the face of increasing network traffic. The future of edge data centers lies in the intersection of artificial intelligence, big data, and the Internet of Things, making them a key component of the digital transformation journey for businesses across industries.
Market Research Overview
The Edge Data Center Market is witnessing significant growth due to the increasing demand for low-latency data processing and real-time data analysis in various industries such as Gaming & Entertainment, Retail & E-commerce, Healthcare & Life Science, Government, BFSI, IT & Telecom, and Logistics. The Large Facility Segment is expected to dominate the market due to the growing need for high-performance computing and data processing. Key players in the market include vXchnge, EdgeConneX Inc, and Equinix Inc. They offer Managed Services and Professional Services to cater to the diverse needs of businesses. Components such as DCIM software, IT racks & enclosures, and Modular Data Centers are essential for building and managing edge data centers. The Edge Data Center Market is also driven by the adoption of AI applications in industries like Gaming & Entertainment, Retail & E-commerce, and BFSI for Natural Language Processing, Machine Learning, and AI applications. The market is also witnessing the deployment of edge data centers in remote sites, production floors, branch offices, and even in industrial automation, autonomous automobiles, and streaming services. The Edge Data Center Market is challenged by factors such as Vibration, Heat, and Dust, which require specialized infrastructure to ensure optimal performance. Dell Technologies is a significant player in the market, offering solutions for Edge Infrastructure and Data Processing. The adoption of 5G and Cloud technologies is expected to further fuel the growth of the Edge Data Center Market. The Edge Data Center Market is crucial for businesses seeking to provide a superior streaming experience, reduce latency, and improve business agility. Real-time data analysis and network traffic management are essential for industries like Walmart and E-commerce platforms to optimize their operations and provide better services to their customers. Operating costs are a significant concern, and edge data centers offer a cost-effective solution for data processing and analysis at the source.
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Technavio Research
Jesse Maida
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Email: media@technavio.com
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