Press release
Edge Infrastructure Market Set for Explosive Growth to US$ 32.97 Billion by 2032, Led by North America's 38% Market Share | Key Players - Cisco, HPE, Dell Technologies
Edge Infrastructure Market
Market growth is driven by the convergence of AI workloads, 5G expansion, and widespread IoT adoption, with over 60% of enterprises deploying edge computing solutions by 2024 for low-latency processing. Data sovereignty regulations, cybersecurity needs, and demand for real-time analytics in industries like automotive, healthcare, and telecom are accelerating adoption.
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Key Industry Developments
United States:
✅ January 2026: HPE launched a next-generation edge server portfolio with integrated AI accelerators and enhanced security features, designed for telecom and industrial IoT applications to enable low-latency processing and robust data protection.
✅ November 2025: Dell Technologies expanded its edge computing solutions with micro-modular data centers optimized for 5G and AI workloads, supporting rapid deployment in remote enterprise environments.
✅ October 2025: HPE completed the acquisition of an AI-focused edge infrastructure company, bolstering its AI-optimized servers for industrial and enterprise edge deployments.
Asia Pacific / Japan:
✅ September 2025: Digital Edge launched a network-dense, low-latency facility in central Tokyo, optimized for edge use-cases including AI, connectivity, and local service applications to meet surging demand.
✅ August 2025: EdgeConneX established its second data center site in Greater Osaka/Yawata regions, expanding platform capacity for cloud and AI edge infrastructure with sustainability focus.
Strategic Mergers and Acquisitions:
✅ iXAfrica Data Centres and EdgeNext formed a strategic partnership in June 2025 to integrate edge platforms with hyperscale data centers, accelerating East Africa's digital infrastructure growth.
✅ Edge Centres expanded U.S. colocation and bare metal services by acquiring QuadraNet, enhancing geographical footprint in edge computing networks.
✅ nLighten grew its European presence by acquiring seven edge data centers from EXA Infrastructure, targeting advanced digital infrastructure development.
Key Players:
Cisco | Hewlett Packard Enterprise | Dell Technologies | Huawei | Nokia | Amazon Web Services | Microsoft Azure | IBM | Schneider Electric | Equinix
Strategic Leadership Report: Top 5 Players in Edge Infrastructure Market 2026
-Cisco Systems: Launched the Cisco Nexus HyperFabric AI, a turnkey edge infrastructure solution delivering pre-integrated compute, networking, and storage for rapid AI/ML workloads at the edge, enabling enterprises to deploy scalable infrastructure clusters in under an hour.
-Hewlett Packard Enterprise (HPE): Introduced HPE Aruba Networking EdgeConnect, an SD-WAN-powered edge platform with built-in 5G connectivity and zero-touch provisioning, optimizing application performance and security for distributed edge sites in manufacturing and retail.
-Dell Technologies: Unveiled PowerEdge XE9785 servers optimized for edge AI inference, featuring NVIDIA L40S GPUs and integrated liquid cooling, supporting real-time analytics and generative AI processing directly at remote locations like factories and hospitals.
-Nokia Corporation: Released Nokia MX Industrial Edge, a cloud-native platform combining compute, storage, and private wireless for Industry 4.0, providing one-click deployment of industrial apps like high-accuracy positioning and automated management for energy and transportation sectors.
-Schneider Electric: Advanced EcoStruxure Machine Edge Advisor, an IIoT edge platform with embedded AI for predictive maintenance and energy optimization, enabling real-time data processing on shop-floor devices to boost operational efficiency in smart factories.
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Market Drivers and Key Trends:
-IoT Proliferation: Explosive growth of IoT devices demands localized data processing for seamless connectivity and efficiency.
-5G Deployment: Widespread 5G rollout enables ultra-low latency applications, driving edge nodes closer to end-users in telecom and smart cities.
-AI Integration: Edge AI optimizes operations by processing machine learning models on-site, reducing cloud dependency in manufacturing and healthcare.
-Low-Latency Demand: Real-time apps like autonomous vehicles and AR/VR require edge infrastructure to minimize delays and enhance performance.
-Sustainability Push: Energy-efficient edge solutions support green data management, aligning with ESG goals in energy and utilities sectors.
-Market Hurdles: Security vulnerabilities in distributed setups, high deployment costs, and integration complexities with legacy systems pose key challenges.
Regional Insights:
-North America holds the dominant position in the Edge Infrastructure Market with approximately 38% share in 2026, driven by hyperscale cloud providers, advanced telecom infrastructure, and early enterprise adoption.
-Asia Pacific follows at around 27%, as the fastest-growing region fueled by rapid IoT deployments, 5G rollout, and digital transformation in China and India.
-Europe accounts for about 21%, supported by steady investments in digital infrastructure and early tech adoption alongside North America.
-Rest of World (including South America, Middle East & Africa): 14% (Emerging growth from expanding telecom and IoT in key markets).
Market Opportunities & Challenges: Edge Infrastructure Market 2026
Edge Infrastructure Market sees surging demand from 5G rollout and AI workloads at the edge. Governments worldwide fund smart city projects and industrial IoT for real-time processing.
-Opportunities
Southeast Asian governments in Singapore, Indonesia, and Malaysia invest in smart factories, logistics hubs, and connected ports powered by edge nodes.
Japan and South Korea build edge-native ecosystems supporting autonomous mobility, robotics, and next-gen retail experiences.
Distributed cloud and Multi-access Edge Computing (MEC) integration with cellular networks enable low-latency apps in manufacturing, energy, and healthcare.
-Challenges
High capital costs for edge deployment strain budgets in distributed setups.
Network connectivity gaps risk unreliable links between edge devices and core systems.
Data privacy and security concerns escalate with proliferated edge nodes across industries.
-Strategic Verdict
Edge-native ecosystems in Asia-Pacific and MEC for smart infrastructure drive 2026 leadership.
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Market Segmentation Analysis:
-By Component: Hardware Leads with Robust Demand
Hardware dominates at 45% market share in 2024, providing essential servers, edge devices, and networking gear for low-latency processing in real-time applications.
Software/Platforms follow at 30%, enabling data analytics, orchestration, and AI at the edge for scalable operations.
Services capture 25%, offering integration, maintenance, and consulting to optimize deployments.
-By Organization Size: Large Enterprises Hold Majority
Large enterprises command 60% share, leveraging edge infrastructure for global-scale IoT, 5G, and analytics in complex environments.
SMEs account for 40%, adopting cost-effective solutions for localized data processing and agility.
-By End-User: IT & Telecom Spearheads Growth
IT & Telecom leads at 25%, driving 5G networks and low-latency services.
BFSI takes 15%, enhancing secure transaction processing; Manufacturing 12% for smart factories; Energy & Utilities 10% for grid monitoring; Healthcare 10% for remote diagnostics; Automotive 8% for connected vehicles; Retail 7% for real-time inventory; Government 8%; Media 3%; Others 2%.
-By Deployment: Hybrid Gains Traction
On-Premises holds 40%, favored for data sovereignty and control.
Cloud-Based secures 35%, offering scalability; Hybrid at 25% combines both for flexibility.
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