1. What is the projected Compound Annual Growth Rate (CAGR) of the Edge Data Center Market?
The projected CAGR is approximately 19%.
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Edge Data Center Market by Component (Solution, Services), by Data Center Size (Micro data centers, Hyperscale/enterprise data center, Others), by Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom, Others), by North America (U.S., Canada, Mexico), by Europe (UK, Germany, France, Spain, Poland, Benelux, Rest of Europe), by Asia Pacific (China, India, Japan, Singapore, Australia, Rest of Asia Pacific), by South America (Brazil, Colombia, Chile, Argentina, Rest of South America), by MEA (GCC, South Africa, Rest of MEA) Forecast 2025-2033
The size of the Edge Data Center Market was valued at USD 10.6 Billion in 2024 and is projected to reach USD 35.82 Billion by 2033, with an expected CAGR of 19% during the forecast period. The Edge Data Center market emphasizes the creation and installation of compact, localized data centers aimed at processing data nearer to the end-user or data source, which decreases latency and lessens the requirement for extensive data transmission. These data centers are strategically positioned at the "edge" of networks, often in urban regions or close to IoT devices, to facilitate applications that need real-time processing, including autonomous vehicles, smart cities, remote monitoring, and content delivery networks. The market is propelled by the increasing need for low-latency services, the swift growth of 5G networks, and the emergence of data-heavy technologies such as artificial intelligence (AI) and the Internet of Things (IoT). Edge data centers enhance network performance by alleviating pressure on centralized cloud data centers, providing quicker processing times and increasing reliability. Moreover, as sectors place greater emphasis on data privacy, security, and compliance, edge data centers offer a solution for local data storage and processing. Due to the continuous need for real-time data processing and the rise of connected devices, the Edge Data Center market is projected to see substantial growth, bolstering the infrastructure required for the next generation of digital services.
The Edge Data Center Market exhibits a fragmented competitive landscape with a plethora of established players. The industry is characterized by the presence of both local and global vendors. Market dynamics such as product innovation, regulatory compliance, product substitutes, end-user concentration, and mergers and acquisitions impact the market's overall growth. The industry is experiencing a surge in M&A activities as companies seek to expand their market share and strengthen their competitive position.
The Edge Data Center Market is witnessing several key trends:
Region: North America is poised to dominate the Edge Data Center Market, driven by the presence of major data center operators and a high concentration of technology companies.
Segment: The Hyperscale/enterprise data center segment is expected to account for the largest share of the market due to the increasing demand for cloud computing and high-performance computing.
This report provides comprehensive insights into the Edge Data Center Market, including:
The Edge Data Center Market is experiencing significant growth, primarily driven by the increasing demand for low-latency data processing and the proliferation of connected devices. The market is characterized by the presence of both traditional data center providers and specialized edge data center operators. The adoption of cloud computing, IoT, and AI technologies is fueling the growth of the edge data center market.
Aspects | Details |
---|---|
Study Period | 2019-2033 |
Base Year | 2024 |
Estimated Year | 2025 |
Forecast Period | 2025-2033 |
Historical Period | 2019-2024 |
Growth Rate | CAGR of 19% from 2019-2033 |
Segmentation |
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Note* : In applicable scenarios
Primary Research
Secondary Research
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The projected CAGR is approximately 19%.
Key companies in the market include Dell, Eaton, Fujitsu Ltd., HPE, Huawei, IBM, NVIDIA, Rittal, Schneider, Vertiv, Co..
The market segments include Component, Data Center Size, Application.
The market size is estimated to be USD 10.6 Billion as of 2022.
Increasing usage of online services globally. Growing demand for edge computing in autonomous vehicle in Europe. Rising investment in telecommunication sector in Asia Pacific. Growing penetration of colocation data centers in South America.
N/A
High initial investments. Security issues in green storage technologies.
In February 2024, NTT DATA, a global player in IT infrastructure and services, and Schneider Electric, partnered to unveil a first-of-a-kind co-innovation that empowers enterprises to harness the power of edge computing. The strategic partnership introduces a unique solution that seamlessly integrates Edge Data Centers, providing unparalleled connectivity and supporting the computational demands of Generative AI applications deployed at the edge.
Pricing options include single-user, multi-user, and enterprise licenses priced at USD 4,850, USD 5,350, and USD 8,350 respectively.
The market size is provided in terms of value, measured in Billion and volume, measured in K Tons.
Yes, the market keyword associated with the report is "Edge Data Center Market," which aids in identifying and referencing the specific market segment covered.
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