Key Influencer in the Colocation Edge Data Center Market 2025: 5G Adoption Fuels Growth In The Colocation Edge Data Center Market Driver

What combination of drivers is leading to accelerated growth in the colocation edge data center market?
The surge in the usage of 5G networks is anticipated to further the expansion of the colocation edge data center market. 5G network technology, the fifth iteration of cellular network technology, denotes a considerable evolution from its forerunners, including 2G, 3G, and 4G/LTE (Long-Term Evolution). The increasing adoption of 5G can be attributed to the demand for higher data transmission speeds, reduced latency, and enhanced network capacity that can meet the escalating requirements of IoT, streaming services, nascent tech like autonomous vehicles, and smart cities. By providing low-latency, high-performing computing resources at the network's periphery, colocation edge data centers facilitate the widespread implementation of 5G tech. They further afford edge computing, scalability, reliability, and support IoT deployments, thereby offering the infrastructure required for the optimal use of 5G networks. For example, 5G Americas, a trade organization based in the US, reported a substantial 76% increase in the worldwide 5G wireless connections, from the close of 2021 to the conclusion of 2022, amounting to an aggregate of 1.05 billion connections. Consequently, the rise in the use of 5G networks is propelling the colocation edge data center market's growth.

Get Your Colocation Edge Data Center Market Report Here:
https://www.thebusinessresearchcompany.com/report/colocation-edge-data-center-global-market-report

What is the projected compound annual growth rate (CAGR) of the colocation edge data center market from 2025 to 2034, and what factors influence it?
In recent times, there has been remarkable expansion in the colocation edge data center market size. It's set to surge from $9.88 billion in 2024 to a substantial $12.44 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 26.0%. The growth witnessed in the previous span can be credited to a surge in digital transformation investments, increased applications of cloud-based solutions, growth in IT and telecom sectors, inception of new data center facilities, and a rise in the use of online services.

Anticipations suggest that the colocation edge data center market will experience significant expansion in the coming years, escalating to a value of $31 billion by the year 2029, progressing at a compound annual growth rate (CAGR) of 25.6%. The predicted rise during the forecast period is linked to the increasing embrace of 5G technology, the growing requirement for edge data centers as a service, the need for new technology, expanding utilization of cloud services, and an augmentation in data center and edge computing solutions. Major predicted trends throughout the forecasted timeframe comprise the enhanced need for data management and customer service improvement, application of edge solutions, innovation in hybrid cloud infrastructure, mounting integration of cloud-based solutions, and adopting novel technologies in current systems.

Get Your Free Sample Now - Explore Exclusive Market Insights:
https://www.thebusinessresearchcompany.com/sample.aspx?id=14678&type=smp

What are the emerging trends shaping the future of the colocation edge data center market?
Leading firms in the colocation edge data center market are increasingly focusing on creating innovative solutions suited for specific applications, such as high-density colocation aimed at AI workloads, in an attempt to gain a competitive advantage. These high-density colocation solutions for AI workloads deliver specialized data center capabilities addressing the demanding computational and storage requirements of AI programs, using scalable setups and advanced power management techniques. For instance, DCX, a fledgling enterprise based in the US and operating in the data center industry, debuted in October 2022 with a specific focus on high-density colocation designed for AI workloads. Their goal is to meet the advanced prerequisites of digital infrastructure. Their debut facility, DCX Goodyear 1, situated in the Greater Phoenix vicinity, has been designed to aid AI and machine learning (ML) related applications. The facility, located in Goodyear, an emerging data center hotspot in Phoenix, is housed on a six-acre plot and operates two active suites capable of supporting up to six megawatts of power, with scope for growth up to 12 megawatts. Each suite has a capacity range of 700 kW to 1 megawatt and accommodates essential infrastructure components such as uninterruptible power supply (UPS) systems and non-water cooling mechanisms.

What are the major segments of the colocation edge data center market and their role in driving growth?
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

Unlock Exclusive Market Insights - Purchase Your Research Report Now!
https://www.thebusinessresearchcompany.com/purchaseoptions.aspx?id=14678

Which regions are key players in the growth of the colocation edge data center market?
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.

Who are the key firms paving the way for growth in the colocation edge data center market?
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.

Customize Your Report - Get Tailored Market Insights!
https://www.thebusinessresearchcompany.com/sample.aspx?id=14678&type=smp

What Is Covered In The Colocation Edge Data Center Global Market Report?

• Market Size Forecast: Examine the colocation edge data center market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the colocation edge data center market for a structured understanding.
• Key Players Overview: Analyze major players in the colocation edge data center market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the colocation edge data center market.
• Segment Contributions: Evaluate how different segments drive overall growth in the colocation edge data center market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the colocation edge data center market.
• Industry Challenges: Identify potential risks and obstacles affecting the colocation edge data center market.
• Competitive Landscape: Review strategic developments in the colocation edge data center market, including expansions, agreements, and new product launches.

Connect with us on:
LinkedIn: https://in.linkedin.com/company/the-business-research-company,
Twitter: https://twitter.com/tbrc_info,
YouTube: https://www.youtube.com/channel/UC24_fI0rV8cR5DxlCpgmyFQ.

Contact Us
Europe: +44 207 1930 708,
Asia: +91 88972 63534,
Americas: +1 315 623 0293 or
Email: mailto:info@tbrc.info

Learn More About The Business Research Company
With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

This release was published on openPR.