Edge Data Center Market by Components (Services, Solutions), Facility Size (Large Facility, Small & Medium Facility), Verticals - Global Forecast 2024-2030

Edge Data Center Market by Components (Services, Solutions), Facility Size (Large Facility, Small & Medium Facility), Verticals - Global Forecast 2024-2030

The Edge Data Center Market size was estimated at USD 9.17 billion in 2023 and expected to reach USD 10.83 billion in 2024, at a CAGR 19.15% to reach USD 31.28 billion by 2030.

Edge data centers refer to smaller facilities located close to the customers they serve. They are an extension of traditional data centers and cloud networks designed to deliver data and applications to users with minimal latency. The primary goal of an edge data center is to bring the computing power and data storage closer to the end-user to reduce response times and bandwidth usage. Growth in the edge data center market is driven by factors such as the exponential growth in data consumption, the need for low latency in various applications, and the rapid expansion of IoT devices. Moreover, the shift towards 5G networks amplifies the demand for edge computing solutions to handle the vast influx of data efficiently. However, the edge data center market faces challenges, including the complexities associated with the management and interconnectivity of distributed architectures. Additionally, security concerns associated with the possibility of cyberattacks and data breaches impede the utilization of edge data centers. However, key players are investing in key areas, including improving energy efficiency and thermal management, developing advanced security protocols, and offering scalable solutions to accommodate varying sizes and demands of businesses to improve data security, sustainability, and integration capabilities. Research in automation for maintenance and deployment, along with AI integration for operational enhancement, also stands out as promising areas that could propel industry growth.

Regional Insights

The Americas region, particularly the U.S. and Canada, represents an advanced region for edge data centers due to the presence of a developed technological architecture, innovations in data center solutions by key players, and constant advancements in the field of 5G and AI technologies. Consumer need in this region is largely propelled by the rising demand for real-time data processing and low-latency networking required for applications such as IoT, autonomous vehicles, and AI-driven analytics. EU countries exhibit a keen interest in edge data centers due to stringent data sovereignty laws and initiatives for digital transformation. Investments in regions such as the Nordics are bolstered by the availability of renewable energy sources and favorable climate conditions for data center cooling. EU initiatives, such as the General Data Protection Regulation (GDPR), have profound implications on data processing and storage, thereby influencing customer choices. There is also an increase in smart city initiatives and the adoption of smart manufacturing practices, which require edge computing for optimal performance. The APAC region, including China, Japan, and India, is a rapidly advancing sector for edge data centers due to the vast population and burgeoning technology industry. The presence of a robust startup ecosystem also requires the services of edge data centers. Government initiatives for digitalization and automation also drive innovation in the field of edge data centers.

Market Insights

• Market Dynamics
  
  The market dynamics represent an ever-changing landscape of the Edge Data Center Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
  • Market Drivers
    • Rising IP Traffic Worldwide Necessitates Improved Broadband and Internet Mediums
    • Growing Adoption of Colocation Services from SMEs to Avoid Large Upfront Costs
    • Market Restraints
      • Issues in Connecting to Edge Data Centers
      • Market Opportunities
        • Favorable Investment and Rapid Commercialization of 5G Infrastructure Investment
        • Growing Popularity of Online Streaming and Gaming Services
        • Market Challenges
          • Concerns Associated with Data Privacy and Security Breaches in Edge Data Centers
          • Market Segmentation Analysis
            • Components: Advancements to improve the solutions of edge data centers
            • Facility Size: Preference for large facility data centers to process large amounts of data
            • Verticals: Expanding demand for edge data centers in the IT & telecom sector to facilitate data-intensive operations
            • Market Disruption Analysis
            • Porter’s Five Forces Analysis
            • Value Chain & Critical Path Analysis
            • Pricing Analysis
            • Technology Analysis
            • Patent Analysis
            • Trade Analysis
            • Regulatory Framework Analysis
            FPNV Positioning Matrix
            
            The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Edge Data Center Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
            
            Market Share Analysis
            
            The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Edge Data Center Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
            
            Recent Developments
            • American Tower and IBM to Bring Edge Cloud Services to Enterprises for Enhanced Innovation and Customer Experiences
              
              IBM has formed an alliance with American Tower Corporation, the global provider of wireless communications infrastructure, to expedite the adoption of edge computing services through a comprehensive hybrid, multi-cloud platform. This collaboration aims to enhance American Tower's Access edge data centers by integrating IBM's Hybrid Cloud solutions and leveraging the power of Red Hat OpenShift. The initiative is aimed at fueling enterprise innovation and enhancing customer experiences by offering support for technologies including IoT, 5G wireless networks, artificial intelligence (AI), and network automation.
              
              Ubiquity Acquires Data Center Solution Provider EdgePresence, Accelerating Delivery of Sustainable Last-Mile Digital Solutions
              
              Ubiquity, a company in the realm of digital infrastructure investment, has expanded its portfolio through the acquisition of EdgePresence, a player data center sector. The EdgePresence acquisition complements Ubiquity's digital resource network with modular edge data centers (EDCs) that are architected for targeted deployment. These EDCs encompass essential elements such as reliable power sources, environmental monitoring, advanced security measures, and effective cooling systems.
              
              SBA Communications Launches Edge Data Center At Tower Site In Arlington, Texas
              
              SBA Communications, a tower company, has expanded its infrastructure with the introduction of an edge data center in Arlington, Texas, within the Dallas-Fort Worth metroplex. These centers are designed to resemble conventional wireless shelters, providing a seamless aesthetic in their deployments. Initially equipped with the capacity for two to three racks, the innovative installations would measure either 6x12 feet or 10x20 feet, catering to the scalability essential for evolving data needs.
            Strategy Analysis & Recommendation
            
            The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Edge Data Center Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
            
            Key Company Profiles
            
            The report delves into recent significant developments in the Edge Data Center Market, highlighting leading vendors and their innovative profiles. These include 365 Data Centers, Amazon Web Services, Inc., American Tower Corporation, AtlasEdge Data Centres, Broadcom, Inc., Cisco Systems, Inc., CommScope Holding Company, Inc., Compass Datacenters, DartPoints, Dell Inc., Digital Realty Trust Inc., Eaton Corporation PLC, Edge Centres Pty Ltd., EdgeConneX, Inc., EdgePresence by Ubiquity, Equinix, Inc., Flexential Corporation, Fujitsu Limited, Google LLC by Alphabet Inc., H5 Data Centers, Hewlett Packard Enterprise Company, HostDime Global Corp., Huawei Technologies Co., Ltd., International Business Machines Corporation, Lumen Technologies, Inc., Microsoft Corporation, NEC Corporation, Nvidia Corporation, Oracle Corporation, Penta C.V., Rittal GmbH & Co. KG, SAP SE, Schneider Electric SE, The Siemon Company, Vapor IO, Inc.​, Vertiv Group Corporation, and Zhejiang Dusun Electron Co., Ltd..
            
            Market Segmentation & Coverage
            
            This research report categorizes the Edge Data Center Market to forecast the revenues and analyze trends in each of the following sub-markets:
            • Components
              • Services
                • Consulting
                • Integration & Implementation
                • Managed
                • Solutions
                  • Cooling System
                  • Data Center Infrastructure Management & Analytics
                  • Networking Equipment
                  • Power Management
                  • Facility Size
                    • Large Facility
                    • Small & Medium Facility
                    • Verticals
                      • Automotive
                      • Banking Financial Services & Insurance
                      • Gaming & Entertainment
                      • Government & Education
                      • Healthcare & Lifesciences
                      • IT & Telecom
                      • Manufacturing
                      • Retail & eCommerce
                      • Region
                        • Americas
                          • Argentina
                          • Brazil
                          • Canada
                          • Mexico
                          • United States
                            • California
                            • Florida
                            • Illinois
                            • New York
                            • Ohio
                            • Pennsylvania
                            • Texas
                            • Asia-Pacific
                              • Australia
                              • China
                              • India
                              • Indonesia
                              • Japan
                              • Malaysia
                              • Philippines
                              • Singapore
                              • South Korea
                              • Taiwan
                              • Thailand
                              • Vietnam
                              • Europe, Middle East & Africa
                                • Denmark
                                • Egypt
                                • Finland
                                • France
                                • Germany
                                • Israel
                                • Italy
                                • Netherlands
                                • Nigeria
                                • Norway
                                • Poland
                                • Qatar
                                • Russia
                                • Saudi Arabia
                                • South Africa
                                • Spain
                                • Sweden
                                • Switzerland
                                • Turkey
                                • United Arab Emirates
                                • United Kingdom
                                
                                
                                Please Note: PDF & Excel + Online Access - 1 Year