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Top Market Shifts Transforming the Edge Data Center Market Landscape: Key Insights
Edge Data Center
What Is the Expected CAGR for the Edge Data Center Market Through 2025?
The market size for edge data centers has experienced remarkable expansion in the past few years. The market, which will increase from $13.56 billion in 2024 to an estimated $16.55 billion in 2025, will reflect a compound annual growth rate (CAGR) of 22.1%. This historical growth can be ascribed to various factors such as the need for low latency, applications requiring high bandwidth, data sovereignty and privacy concerns, edge analytics providing immediate insights, and edge security and compliance.
What's the Projected Size of the Global Edge Data Center Market by 2029?
In the coming years, the edge data center market size is projected to undergo fast-paced expansion. The market is slated to reach the value of $44.45 billion by 2029, growing at a compound annual growth rate (CAGR) of 28.0%. Growth factors for the forecast period are anchored on edge-native applications, smart cities and edge infrastructure, edge data centers deployment in retail spaces, energy-efficiency features in edge data centers, and edge containerization. The forecast period also anticipates trends such as content delivery networks (CDN) integrated at the edge, edge security solutions, micro data centers designed for edge deployments, interconnectivity of edge data centers, edge data center management tools, and edge data analytics.
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Top Growth Drivers in the Edge Data Center Industry: What's Accelerating the Market?
The surge in internet usage and swift advancement in digitization are projected to fuel the expansion of the edge data center market in the forthcoming period. Internet penetration refers to the correlation between the quantity of internet users in each country and its demographics, while digitization is the progression of converting data into a format readable by computers. Edge data centers play a key role in assimilating a range of digital and electronic devices through the internet. An edge data server acts as a bridge between two geographically distinct networks linked via the internet. For example, in March 2023, the US-based National Center for Biotechnology Information reported that approximately 5.2 billion individuals were internet users in 2022, which is 66% of the world's population. Asia recorded the highest count of online users among them. Consequently, the increasing internet penetration and digitization are propelling the growth of the edge data center market.
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What Trends Will Shape the Edge Data Center Market Through 2029 and Beyond?
Leading businesses in the edge data center market are prioritizing the reduction of their ecological footprint. This effort involves adopting and enhancing energy-efficient technology and methods to not only boost their performance and reliability at the network edge but also lower their impact on the environment. For example, in February 2023, nLighten, a digital infrastructure arm of the US-based infrastructure investment firm, I Squared Capital, unveiled the establishment of its edge data centers in Germany. The forthcoming network will provide capacity across ten locations within Germany. The infrastructure model of the company collaborates with the utility sector to lower emissions via grid stability and by recovering and exporting heat to the local community.
What Are the Main Segments in the Edge Data Center Market?
The edge data centermarket 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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Which Top Companies are Driving Growth 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 Regions Will Dominate the Edge Data Center Market Through 2029?
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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