Press release
Strong Growth Ahead: Edge Data Center Market Size To Grow At Arecord 28.5% Cagr By 2029
Edge Data Center
How Big Is the Edge Data Center Market Size Expected to Be by 2034?
The expansion of the edge data center market has been remarkable in the most recent years, with predictions of its size escalating from $13.56 billion in 2024 to $16.64 billion in 2025, translating to a Compound Annual Growth Rate (CAGR) of 22.7%. Factors such as the necessity for low latency, the upsurge in bandwidth-intensive applications, concerns around data sovereignty and privacy, and the growing need for real-time insights through edge analytics, and edge security and compliance significantly contributed to the growth observed in the past.
The market size of edge data centers is anticipated to witness substantial expansion in the forthcoming years. The expected market value is forecasted to rise to $45.3 billion by 2029, with a compound annual growth rate (CAGR) of 28.5%. Factors contributing to this projected growth during the forecast period include edge-native applications, smart city integrations, and edge infrastructure, retail sector-based edge data centers, their energy efficiency, and containerization at the edge. Coming trends for this period suggest content delivery networks (CDN) at the edge, solutions for edge security, the use of micro data centers for edge deployments, interconnectivity of edge data centers, management tools for edge data centers, and edge data analytics.
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What Are the Emerging Segments Within the Edge Data Center Market?
The edge data center market covered in this report is segmented -
1) By Component: Solution, Service
2) By Product Type: General construction, Power management systems, Cooling systems, Security solutions, Racks, Other Product Types
3) By Data Center Size: Micro Data Centers, Hyperscale or Enterprise Data Center, Other Data Center Sizes
4) By Application: Banking, Financial Services and Insurance, Telecommunication and IT, Government, Healthcare, Manufacturing, Media and Entertainment, Transportation and Logistics, Hospitality, Other Applications
Subsegments:
1) By Solution: Hardware, Software
2) By Service: Professional Services, Managed Services
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What Long-Term Drivers Are Shaping Edge Data Center Market Trends?
The proliferation of internet access and the swift progression of digital conversion are anticipated to fuel the expansion of the edge data center market in the future. Internet penetration is defined as the correlation between a country's number of internet users and its demographic data, while digitization refers to the conversion of information into a format readable by a computer. Edge data centers have the role of establishing a connection between various digital and electronic gadgets through the internet. Serving as a bridge between two geographically isolated networks connected via the internet is the key function of an edge data server. For example, in 2022, approximately 5.2 billion individuals were recorded as active internet users, which comprises 66% of the worldwide population, based on the figures released by the National Center for Biotechnology Information, a governmental organization from the US, in March 2023; the largest volume of online users coming from Asia. Consequently, the increasing internet penetration and digitalization are instrumental in propelling the growth of the edge data center market.
Who Are the Top Competitors in Key Edge Data Center Market Segments?
Major companies operating in the edge data center market include 365 Data Centers Services LLC, Compass Datacenters LLC, DC BLOX Inc., Eaton Corporation PLC, Fujitsu Limited, Huawei Investment and Holding Co. Ltd., Rittal GmbH and Co. KG, Schneider Electric S. E., Vertiv Group Corp., vXchnge operating LLC, Panduit Corp., Hewlett Packard Enterprise Development LP, Hitachi Ltd., International Business Machines Corp., Flexential Corp., Vapor IO Inc., Microsoft Corporation, Anixter International, Wave-2-Wave Solution Corporation, Cisco Systems Inc., Elliptical Mobile Solutions, Zellabox DC, Dell Inc., Equinix Inc., EdgeMicro, AtlasEdge Data Centres, EdgeConneX Inc., Juniper Networks, Amazon Web Services Inc.
What Edge Data Center Market Trends Are Gaining Traction Across Different Segments?
Key players in the edge data center market are shifting focus towards lessening their environmental footprint. This involves harnessing energy-conserving technologies and measures for reducing environmental damage, all the while improving performance and reliability at the network border. For instance, nLighten, a digital infrastructure platform owned by I Squared Capital, a US-based infrastructure investor, unveiled its edge data centers in Germany in February 2023. The network will provide capacity at 10 sites across Germany. The company's infrastructure model collaborates with the utilities sector to lower emissions via grid stability, heat recovery, and distribution to the local community.
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Which Regions Are Becoming Hubs for Edge Data Center Market Innovation?
North America was the largest region in the 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 edge data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Edge Data Center Market?
2. What is the CAGR expected in the Edge Data Center Market?
3. What Are the Key Innovations Transforming the Edge Data Center Industry?
4. Which Region Is Leading the Edge Data Center Market?
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