PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1347341
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1347341
The market size of edge data centers is projected to grow from USD 10.4 billion in 2023 to USD 29.6 billion by 2028 at a CAGR of 23.2% during the forecast period. The rising demand for edge computing and decentralization of IT infrastructure drives the edge data center market's growth.
As per facility size, the small & medium facility segment holds a higher CAGR during the forecast period.
The edge data center market by facility size bifurcates into small & medium, and large facilities. During the forecast period, 2023-2028, the small & medium facility segment holds the highest CAGR. Organizations increasingly adopt hyperlocal edge deployments, where small and medium facilities house edge data centers. This trend focuses on distributing computing resources closer to the end-users or devices, enabling ultra-low latency applications and services. IoT devices are driving the need for edge computing. Small and medium facilities are equipped with edge data centers to process and analyze data from IoT devices in real time, enabling responsive and intelligent applications.
As per vertical, the automotive vertical holds the highest CAGR during the forecast period.
The verticals studied in the report are IT & telecom, BFSI, healthcare & life sciences, manufacturing, government, automotive, gaming & entertainment, retail & e-commerce, and others (mining and agriculture). During the forecast period, 2023-2028, the automotive vertical segment holds the highest CAGR. Edge data centers play a crucial role in supporting autonomous vehicles by processing data from sensors and making real-time decisions, contributing to the safety and functionality of self-driving cars. As vehicles become more connected, edge data centers can handle data generated by in-car systems, infotainment, telematics, and communication with other vehicles, enabling advanced features and services. Edge data centers can analyze traffic patterns in real-time, helping improve traffic management, reduce congestion, and enhance navigation systems.
As per region, Europe holds the second-largest market share during the forecast period.
The edge data center market includes an analysis of five regions. Europe holds the second-largest market share in 2023 and will have similar dominance over the forecast period. Europe has diverse business needs, as several large retailers and manufacturing companies demand robust and scalable IT infrastructure solutions. The region has always been a challenging market for cloud providers due to the stringent regulations and security standards regarding user data privacy. In Europe, there is a growing demand for hyperscale data center facilities and data center colocation owing to the availability of green power and favorable climatic conditions. As per findings, the Netherlands has the most advanced hyperscale data center facilities and hosts online services of major cloud providers.
Note: Others include sales managers, marketing managers, and product managers
Note: The rest of the World consists of the Middle East & Africa, and Latin America
Note: Tier 1 companies have revenues of more than USD 100 million; tier 2 companies' revenue ranges from USD 10 million to USD 100 million; and tier 3 companies' revenue is less than 10 million
Source: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis
The key technology vendors in the market include Dell (US), Eaton (Ireland), IBM (US), NVIDIA (US), Schneider Electric (France), Fujitsu (Japan), HPE (US), Cisco (US), Huawei (China), 365 Data Centers (US), Rittal (Germany), Panduit (US), Equinix (US), Sunbird (US), Vertiv Group (US), HUBER+SUHNER (Switzerland), CommScope (US), Siemon (US), Flexential (US), EdgeConneX (US), Compass Datacenters (US), Zenlayer (US), Vapor IO (US), Zella DC (Australia), Smart Edge Data Centers (UK), Ubiquity (US), DartPoints (US), Edge Centres (Australia), and SBA Edge (US). Most key players have adopted partnerships and product developments to cater to the demand for edge data centers.
The market study covers the edge data center market across segments. The study aims to estimate the market size and the growth potential of the edge data center market across different market segments, including components (solutions, services), vertical, facility size, and region analysis. It includes an in-depth competitive intelligence analysis of the key players in the market, company profiles, observations related to products, services, business offerings, recent developments, and key market strategies.