How Has The Edge Data Center Market Size Evolved Historically?
The edge data center market has seen considerable growth due to a variety of factors.
• The market size of edge data centers has remarkably surged in the last few years. An expansion is projected from its value of $13.56 billion in 2024 to reach $16.64 billion in 2025, indicating a compound annual growth rate (CAGR) of 22.7%.
The growth seen in the historical period is the result of factors such as increased low latency demands, data-intensive applications, data sovereignty, privacy concerns, edge analytics providing on-the-spot insights, as well as edge security and compliance.
What Will Be The Edge Data Center Market Size In The Future?
The edge data center market is expected to maintain its strong growth trajectory in upcoming years.
• There is an anticipated surge in the edge data center market in the coming years, with estimated growth to $45.3 billion in 2029 at a 28.5% compound annual growth rate (CAGR).
This surge can be credited to several factors such as edge-native applications, the emergence of smart cities and edge infrastructure, the use of edge data centers in retail, energy-efficiency in edge data centers and containerization at the edge. The forecast period is expected to witness several trends including content delivery networks (CDN) at the edge, solutions for edge security, the use of micro data centers for edge deployments, edge data center interconnectivity, management tools for edge data centers, and edge data analytics.
What Key Factors and Trends are Driving the Growth of the Edge Data Center Market?
The surge in internet usage and swift digital transformation are predicted to fuel the expansion of the edge data center market in the future. Internet penetration, which signifies the correlation between the number of internet users per country and its demographic data, and digitization—the conversion of information into a digital, computer-readable format—are key factors at play. Edge data centers function to connect various digital and electronic devices via the internet. They serve as a bridge between two geographically distant networks connected via the internet. For example, reports from the National Center for Biotechnology Information, a government agency based in the US, in March 2023 revealed that about 5.2 billion people, comprising 66% of the global population, were active internet users in 2022, Asia being the continent with the most internet users. As such, the escalating internet penetration and digital transformation trends are significantly contributing to the growth of the edge data center market.
What are the Market Segments in the Edge Data Center Market?
The edge data center market covered in this report is segmented –
1) By Component: Solution, Service
2) By Product Type: General construction, Power management systems, Cooling systems, Security solutions, Racks, Other Product Types
3) By Data Center Size: Micro Data Centers, Hyperscale or Enterprise Data Center, Other Data Center Sizes
4) By Application: Banking, Financial Services and Insurance, Telecommunication and IT, Government, Healthcare, Manufacturing, Media and Entertainment, Transportation and Logistics, Hospitality, Other Applications
Subsegments:
1) By Solution: Hardware, Software
2) By Service: Professional Services, Managed Services
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What Trends are Shaping the Edge Data Center Market?
Leading enterprises in the edge data center market are aiming to lower their ecological footprint. This involves implementing more technologies and practices that are energy-efficient to lessen the harm to the environment while also boosting performance and dependability at the network edge. For example, nLighten, a digital infrastructure platform from I Squared Capital, an infrastructure investor based in the US, revealed in February 2023 that it would be debuting edge data centers in Germany. This network will provide capacity at ten different locations across Germany. The framework adopted by the company collaborates with the utility sector to bring down emissions via grid stability, heat recovery, and exporting to the community.
Who Are the Key Players in the Edge Data Center Market?
Major companies operating in the edge data center market include:
• 365 Data Centers Services LLC
• Compass Datacenters LLC
• DC BLOX Inc.
• Eaton Corporation PLC
• Fujitsu Limited
• Huawei Investment and Holding Co. Ltd.
• Rittal GmbH and Co. KG
• Schneider Electric S. E.
• Vertiv Group Corp.
• vXchnge operating LLC
• Panduit Corp.
• Hewlett Packard Enterprise Development LP
• Hitachi Ltd.
• International Business Machines Corp.
• Flexential Corp.
• Vapor IO Inc.
• Microsoft Corporation
• Anixter International
• Wave-2-Wave Solution Corporation
• Cisco Systems Inc.
• Elliptical Mobile Solutions
• Zellabox DC
• Dell Inc.
• Equinix Inc.
• EdgeMicro
• AtlasEdge Data Centres
• EdgeConneX Inc.
• Juniper Networks
• Amazon Web Services Inc.
What are the Regional Insights into the Edge Data Center Market?
North America was the largest region in the edge data center market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the edge data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
