Edge Data Center Market Size By Component (Solution [Cooling, Power {UPS}, IT Racks & Enclosures, Networking Equipment, DCIM], Service [Installation & Integration, Managed, Consulting]), By Data Center Size (Micro Data Centers, Hyperscale/Enterprise Data

Edge Data Center Market Size By Component (Solution [Cooling, Power {UPS}, IT Racks & Enclosures, Networking Equipment, DCIM], Service [Installation & Integration, Managed, Consulting]), By Data Center Size (Micro Data Centers, Hyperscale/Enterprise Data Center), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 - 2032

The global edge data center market is poised to garner robust growth through 2032 owing to the increasing demand for edge computing.

The major market players operating in the edge data center industry are increasingly vying for partnerships and acquisitions to expand their products and services in the overseas market. The development of infrastructure for autonomous and connected vehicles is anticipated to drive the market for edge data centers throughout the analysis timeframe. For instance, in May 2022, Red Hat and General Motors signed a strategic partnership to support the edge of advanced software-defined vehicles. Through this partnership, both firms are likely to properly provide their customers with more useful features in a fraction of the time it often takes to develop them.

The edge data center market has been divided in terms of component, data center size, application, and region.

Based on component, the solution segment is expected to grow exponentially through the forthcoming years due to the rising use of IoT technologies in IT and telecoms to support automated and digitalized capabilities.

With respect to application, the BFSI segment is set to witness a CAGR of 15% from 2023 to 2032 credited to the growing concerns over the security and protection of information, these services are being widely adopted in the BFSI sector. A secure environment must be used to store and handle the growing volume of private consumer data.

Meanwhile, the energy segment recorded around 5% market share in 2022 and is anticipated to propel significantly over the review period driven by the growing demand for data center solutions for managing oil & gas, energy output, as well as petroleum seismic processing data.

On the other hand, the manufacturing segment was valued at about $12 billion in 2022 and is projected to capture a big market share by the end of the research duration because of the increasing outsourcing activity and rapid industrialization.

From the regional perspective, the Europe edge data center industry is estimated to grow significantly over 2023 and 2032, attributed to the flourishing industrial sector, which is aiding edge data centers deployment in the area. The region's outdated energy networks have made it necessary to update Europe's power infrastructure.

Meanwhile, the South America edge data center market is speculated to attain around $1 billion valuation by 2032 ascribed to the rapid penetration of smartphones and better network connectivity in the area. Players like Equinix and Ascenty will help Brazil's industry flourish as a result of their presence there.