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Key Influencer in the Colocation Edge Data Center Market 2025: 5G Adoption Fuels Growth In The Colocation Edge Data Center Market Driver
Colocation Edge Data Center Market Size
The colocation edge data center market is expected to grow from $9.88 billion in 2024 to $12.44 billion in 2025, with a CAGR of 26.0%. Increased investment in digital transformation, the rise of cloud-based solutions, expansion of the IT and telecom industries, and the need for new data center facilities are driving this growth.
The colocation edge data center market is expected to grow exponentially in the next few years, reaching $31 billion by 2029, with a CAGR of 25.6%. This growth is driven by the adoption of 5G networks, the rising demand for edge data centers as a service, advanced technology usage, increased cloud service adoption, and a growing number of data centers and edge computing solutions. Key trends include the need for improved data handling and customer services, edge solutions usage, innovation in hybrid cloud infrastructure, greater integration of cloud-based solutions, and advanced technology implementation in existing systems.
What Factors Are Propelling the Expansion of the Colocation Edge Data Center Market?
The increasing adoption of 5G networks is expected to propel the growth of the colocation edge data center market. 5G networks provide faster data speeds, lower latency, and greater network capacity, essential for technologies like IoT, autonomous vehicles, and smart cities. Colocation edge data centers facilitate this growth by offering low-latency, high-performance computing resources at the network edge. These facilities enable the infrastructure needed for edge computing and the adoption of 5G. According to 5G Americas, global 5G wireless connections grew by 76% from 2021 to 2022, reaching 1.05 billion connections, signaling the accelerating adoption of 5G technology.
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Which Businesses Are at the Forefront of Colocation Edge Data Center Market Development?
Major companies operating in the colocation edge data center market are Verizon Communications Inc., Dell Inc., Huawei Technologies Co. Ltd., NTT Communications Corporation, Hitachi Ltd., China Telecom Global Limited, International Business Machines Corporation, Cisco Systems Inc., KDDI Corporation, Schneider Electric SE, Fujitsu Limited, Hewlett Packard Enterprise Company, NVIDIA Corporation, NEC Corporation, Eaton Corporation PLC, Inventec Corporation, ASUSTeK Computer Inc., Singapore Telecommunications Limited, Equinix Inc., Vertiv Group Corporation, Super Micro Computer Inc., Digital Realty Trust Inc., Rackspace Inc., Arm Ltd., Inspur Co. Ltd., Arrcus Inc.
How Is the Colocation Edge Data Center Market Segmented?
The colocation edge data center market covered in this report is segmented -
1) By Type: Retail Colocation, Wholesale Colocation
2) By Application: Banking, Financial Services And Insurance (BFSI), Energy, Government And Defense, Healthcare, Information Technology And Telecom, Manufacturing, Retail, Other Applications
3) By End-Use: Small And Midsize Enterprise (SMEs), Large Enterprises
Subsegments:
1) By Retail Colocation: Single Rack Or Cabinet Leasing, Customized Space Solutions For Small To Medium Businesses, Managed Services With Colocation, Cloud Connectivity Solutions For Retail Colocation, Colocated Infrastructure For Enterprises And SMBs, Scalable And Flexible Rack Space Options
2) By Wholesale Colocation: Large-Scale Data Center Leasing, Dedicated Space For Large Enterprises And Service Providers, High-Density Colocation Solutions, Direct Connectivity To Cloud Providers, Customized Power, Cooling, And Rack Configurations, Cross-Connects And Interconnection Services For Wholesale Clients
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Where Is the Colocation Edge Data Center Market Growth Most Prominent?
North America was the largest region in the colocation edge data center market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the colocation edge data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
What Is Covered In The Colocation Edge Data Center Global Market Report?
- Market Size Analysis: Analyze the Colocation Edge Data Center Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Colocation Edge Data Center Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Colocation Edge Data Center Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Colocation Edge Data Center Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.
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