Authored By: Sarah
13 Feb 2025

Latest News- Edge Data Center Market: IT and telecommunication is expected to lead the End-user segment during 2025-2029

The Edge Data Center Market is being driven by Rising demand for video streaming services

The Edge Data Center Market is expected to grow at a CAGR of 32.8% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 45102 million. Edge data centers are optimizing energy efficiency through the implementation of Artificial Intelligence (AI) technology. By analyzing the performance of servers, power systems, and cooling systems, AI enables faster decision-making and improved efficiency. Edge data center service providers are integrating AI into data center automation software to reduce human intervention and facilitate energy-efficient operations. Additionally, AI facilitates effective cooling management by optimizing mechanical cooling processes, resulting in the efficient use of power throughout the data center infrastructure. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

  • 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
      • Canada
      • US
    • APAC
      • China
    • Europe
      • Germany
      • UK
    • South America
      • Middle East and Africa

      According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

      • Rising demand for video streaming services
      • Rise in adoption of multi-cloud and network upgrades to support 5G
      • Increasing mobile data traffic

      However, the market also witnesses some limitations, which are as follows:

      • Monitoring edge data center equipment across multiple locations
      • Cybersecurity issues
      • High maintenance costs of edge data centers

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      Market Scope in Edge Data Center Market Research Report

      Market Scope

      Report Coverage

      Details

      Page number

      224

      Base year

      2024

      Historic period

      2019-2023

      Forecast period

      2025-2029

      Growth momentum & CAGR

      Accelerate at a CAGR of 32.8%

      Market growth 2025-2029

      USD 45102 million

      Market structure

      market_structure.ucfirst

      YoY growth 2024-2025(%)

      24.8

      Key countries

      US, Germany, China, Canada, UK, US, Germany, China, Canada, UK, Japan, Mexico, France, Brazil, and India

      Competitive landscape

      Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

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      Find out which segment is leading the market by accessing the free PDF report

      Research Analysis Overview

      The Edge Data Center Market is experiencing significant growth due to the increasing demand for real-time data analysis from industries such as e-commerce, manufacturing, and autonomous vehicles. Drivers include the integration of big data, artificial intelligence, and 5G technology. Cloud, streaming services, and business agility are key benefits. Operating costs are reduced through decentralized data processing at branch offices, production floors, and remote sites. Network traffic is managed effectively, ensuring optimal streaming experience. Dell Technologies addresses challenges like dust, heat, and vibration in edge data centers for AI applications, machine learning, and natural language processing. Industrial automation and real-time performance are crucial for industries like Walmart and e-commerce platforms. Latency is minimized, ensuring seamless video streaming and remote operations.

      Market Research Overview

      In the dynamic Edge Data Center Market, businesses leverage various inputs to optimize their operations and gain a competitive edge. These inputs encompass land, financing, local transportation services, equipment suppliers, and skilled labor. Establishing long-term relationships with suppliers and implementing advanced inventory management systems are crucial for efficient stock control. In today's data-driven business landscape, companies meticulously source and evaluate diverse data sources, such as big data, artificial intelligence, cloud, streaming services, and 5G, to address internal and external business challenges. By maintaining an inventory of data sources and associated metadata, organizations can make informed decisions and drive innovation.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.


      Contacts

      Technavio Research
      Jesse Maida
      Media & Marketing Executive
      US: +1 844 364 1100
      UK: +44 203 893 3200
      Email: media@technavio.com
      Website: www.technavio.com/

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