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Internet Penetration And Digitalization Driving Edge Data Center Market Driving Market Acceleration in the Edge Data Center Industry, 2025
Edge Data Center
How Large Will the Edge Data Center Market Size By 2025?
In the past few years, the market size for edge data centers has witnessed exponential growth. It is anticipated to increase from $13.56 billion in 2024 to $16.64 billion in 2025, reflecting a compound annual growth rate (CAGR) of 22.7%. The factors contributing to this remarkable growth during the historic period can be associated with requirements for low latency, applications demanding high bandwidth, data sovereignty and privacy, edge analytics that provide real-time insights, and compliance and security at the edge.
How Big Is the Edge Data Center Market Size Expected to Grow by 2029?
The market size for edge data centers is predicted to witness substantial expansion in the forTH*Coming years, with an estimated worth of $45.3 billion by 2029 and a compound annual growth rate (CAGR) of 28.5%. This anticipated growth for the forecast period is credited to factors such as the application of edge-native algorithms, the development of smart cities and edge infrastructure, the use of edge data centers in the retail sector, a focus on energy efficiency in edge data centers, and the implementation of containerization at the edge. Key trends projected for the forecast period encompass content delivery networks (CDN) at the edge, solutions for edge security, the use of micro data centers in edge rollouts, interconnectivity within edge data centers, tools for managing edge data centers, and edge data analytics.
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Which Key Market Drivers Powering Edge Data Center Market Expansion and Growth?
The increasing access to the internet and quick digitization are predicted to fuel the expansion of the edge data center market in the future. Internet penetration refers to the correlation between the number of internet users per country and their demographic data, while digitization is the conversion of data into a format that can be read by a computer. Edge data centers facilitate the integration of various digital and electronic gadgets through the internet. They also function as a bridge between two geographically distant networks linked via the internet. In March 2023, for example, the US-based National Center for Biotechnology Information reported that in 2022 about 5.2 billion individuals or 66% of the global population were active internet users, with Asia accounting for the majority of these users. Thus, the uptick in internet penetration and digitization is stimulating the growth of the edge data center market.
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Which Fast-Growing Trends Are Poised to Disrupt the Edge Data Center Market?
Key players in the edge data center market are emphasizing on decreasing their ecological footprint. This involves leveraging energy-saving technologies and procedures to lessen environmental harm while boosting performance and dependability at the network periphery. For example, in February 2023, the digital infrastructure platform, nLighten, which belongs to I Squared Capital, a US-based infrastructure investment firm, revealed their plans to establish edge data centers in Germany. This network is set to provide capacity at 10 sites across Germany. The firm's infrastructure scheme collaborates with the utility sector to diminish emissions via grid stability, heat recovery, and distribution to the local community.
What Are the Emerging Segments in 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, HealTH*Care, 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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Who Are the Global Leaders in the Edge Data Center Market?
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.
Which are the Top Profitable Regional Markets for the Edge Data Center Industry?
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
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