Redding, California - July 29, 2024
Edge Data Center Market to be Worth $48.3 Billion by 2031
Edge Data Center Market Size, Share, Forecast, & Trends Analysis by Type (Metro, Mobile), Component, Deployment, Organization, Application (AI, IoT, 5G & 4G, AR/VR), and End-use Sector (IT & Telecommunication, Automotive, Transportation & Logistics)—Global Forecast to 2031
Meticulous Research®— a leading global market research company, published a research report titled, ‘Edge Data Center Market by Type (Metro, Mobile), Component, Deployment, Organization, Application (AI, IoT, 5G & 4G, AR/VR), End-use Sector (IT & Telecommunication, Automotive, Transportation & Logistics), and Geography - Global Forecast to 2031.’
According to this latest publication from Meticulous Research®, the Edge Data Center market is projected to reach $48.3 billion by 2031, at a CAGR of 20.9% from 2024 to 2031.The growth of this market is attributed to the rising need for Edge Data Centerfor industrial IoT applications, the growing demand for low-latency processing and real-time automated decision-making solutions, and the increasing utilization of Edge Data Centerin online video streaming.
The high upfront capital expenditure required to implement Edge Data Center restrains the growth of this market. The emergence of autonomous vehicles and the commercialization of 4G technology are expected to generate growth opportunities for the players in this market. However, data privacy and security concerns are a major challenge for market growth.
The rising adoption of IoT devices across industries and the growth in 5G networks are prominent trends in the Edge Data Center market.
The global Edge Data Center market is segmented by type (metro Edge Data Center and mobile edge data center), component (hardware, software, and services), deployment mode (on-premise deployments and cloud-based deployments), organization size (large enterprises and small & medium-sized enterprise), application (artificial intelligence (AI), internet-of-things (IoT), AR/VR, telemedicine, 5G & 4G infrastructure, autonomous vehicles, video/live streaming, network functions virtualization (NFV), and other applications), end-use sector (IT & telecommunications, automotive, transportation & logistics, healthcare, energy & utilities, manufacturing, government & defense, retail, and other end-use sectors), and geography (Asia-Pacific, Europe, North America, Latin America, and the Middle East & Africa). The study also evaluates industry competitors and analyses the market at the country and regional levels.
Based on type, the global Edge Data Center market is broadly segmented into metro Edge Data Center and mobile edge data center. In 2024, the metro Edge Data Center segment accounted for the larger share of over 60.8% of the global Edge Data Center market. The large market share of this segment is mainly attributed to the growing deployment of 5G networks, increasing data traffic, and the need to provide localized cloud computing resources for businesses & organizations are supporting the segment's growth. Metro Edge Data Center are an essential part of the distributed computing infrastructure, as they bring computing resources closer to the source of data generation, consumption, and processing. These centers are designed to provide low-latency, high-bandwidth connectivity and computing resources to support local applications and services. Metro Edge Data Centertypically have a power capacity of around 5+ megawatts and occupy an area of 50,000+ square feet. They are strategically located in suburban (Tier II/III) markets. These data centers are characterized by smaller footprints, lower power requirements, and fewer server racks than larger data centers.
However, the mobile Edge Data Center segment is projected to record the higher CAGR during the forecast period. The growth of this segment is attributed to factors such as the increasing demand to reduce latency in mobile applications, enhance user experience, enable real-time functionalities, optimize network bandwidth, and alleviate congestion by processing data locally. Mobile Edge Data Center are an important component of the evolving edge computing ecosystem, catering to the growing demands of emerging technologies. Also referred to as spoke edge data center, mobile edge computing, or mobile edge clouds, MEC is designed to be agile and deployable at various locations to address specific use cases and events. These data centers typically have a power capacity ranging from 50 to 150+ kilowatts, occupying hundreds of square feet per site.
Based on component, the global Edge Data Center market is segmented into hardware, software, and services. In 2024, the software accounted for the largest share of over 46.4% of the global Edge Data Center market. The large share of this segment is mainly attributed to the increasing demand for workload orchestration, resource allocation, real-time data analysis, and insight extraction at the edge drive the growth of the software segment. Edge data center software plays a critical role in enabling efficient data processing, resource allocation, security, and connectivity within edge computing environments. This software encompasses applications, platforms, and tools utilized to manage, orchestrate, and optimize the operations of edge data center. It is responsible for the centralized management and coordination of edge data centers' resources. The software provides real-time monitoring, alerts, and remote administration of the edge data centers' infrastructure
Additionally, the software segment is also projected to record the highest CAGR during the forecast period.
Based on deployment mode, the global Edge Data Center market is segmented into on-premise deployments and cloud-based deployments. In 2024, the cloud-based deployments segment accounted for the larger share of over 54.7% of the global Edge Data Center market. This segment is projected to record the highest CAGR during the forecast period. The large share of this segment is mainly attributed to the increasing need to efficiently allocate resources, rapidly deploy applications and services closer to end users, and reduce latency while improving performance. Cloud computing technology has transformed businesses, enabling scalable and cost-effective data storage, processing, and delivery. Cloud-based deployments for Edge Data Centeroffer a powerful solution that brings new efficiency and agility to data management and service delivery across various industries.
Additionally, the cloud-based deployments segment is projected to record the highest CAGR during the forecast period.
Based on organization size, the global Edge Data Center market is segmented into large enterprises and small & medium-sized enterprise. In 2024, the small & medium-sized enterprise segment accounted for the larger share of over 55.6% of the global Edge Data Center market. The large share of this segment is mainly attributed to the increasing demand for real-time processing and localized data management; enabling a competitive edge, optimizing operations, and accelerating the digital transformation journey. Edge Data Center have emerged as a game-changing solution for small & medium-sized enterprises, addressing unique challenges and offering significant advantages. SMEs often experience rapid growth and changing business needs, which can require substantial upfront investments and ongoing operational expenses. Edge Data Center provide SMEs with the ability to leverage localized computing resources without the need for significant infrastructure investments. This empowers organizations to embrace innovation and leverage emerging technologies for process automation, real-time analytics, and personalized customer experiences.
Additionally, the small & medium-sized enterprise segment is projected to record the highest CAGR during the forecast period.
Based on application, the global Edge Data Center market is segmented into artificial intelligence (AI), internet-of-things (IoT), AR/VR, telemedicine, 5G & 4G infrastructure, autonomous vehicles, video/live streaming, network functions virtualization (NFV), and other applications. In 2024, the 5G & 4G infrastructure segments accounted for the largest share of over 26.2% of the global Edge Data Center market. The large market share of this segment is mainly attributed to the rising demand for ultra-low latency applications, growing adoption of 5G networks, and growing adoption of Edge Data Center for high bandwidth in 5G infrastructure. Edge Data Center play a crucial role in enhancing performance, hosting cri tical functions, and enhancing the efficiency of both 5G & 4G infrastructures. 5G & 4G refer to generations of wireless network technology and their infrastructure, including the hardware and software components that make these networks function. The rollout of 5G & 4G networks requires higher bandwidth and lower latency capabilities. Edge Data Centerhelp to meet these stringent latency requirements by bringing compute capabilities into the network closer to the end user.
However, the artificial intelligence (AI) segment is projected to record the highest CAGR during the forecast period. The growth of this segment can be attributed to factors such as the increasing need for real-time analytics, enhanced data privacy, and reduced network costs. Edge artificial intelligence, or AI at the edge, refers to the deployment of artificial intelligence within an edge computing framework. This approach enables computations to occur at the location where data is collected, rather than relying on centralized cloud computing facilities or remote data centers. By processing data locally, only relevant insights or aggregated results are sent back to the central cloud, reducing the amount of data that needs to be transmitted.
Based on end-use sector, the global Edge Data Center market is segmented into IT & telecommunications, automotive, transportation & logistics, healthcare, energy & utilities, manufacturing, government & defense, retail, and other end-use sectors. In 2024, the IT & telecommunications segment is expected to account for the largest share of over 41.1% of the global Edge Data Center market. The large share of this segment is mainly attributed to the increasing demand for low-latency and high-bandwidth communication, real-time data processing, and the need to reduce the risk of data breaches during transmission while ensuring compliance with data protection regulations in the IT & telecommunications sector. Edge Data Center are revolutionizing the IT & telecommunications sector by facilitating connectivity, ensuring continuous operations, minimizing downtime, and enabling seamless global communication. These facilities provide decentralized computing power, enabling rapid data processing and reducing latency.
Additionally, the IT & telecommunications segment is projected to record the highest CAGR during the forecast period.
Based on geography, the global Edge Data Center market is segmented into North America, Europe, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of over 36.2% of the Edge Data Center market, followed by North America, Europe, Latin America, and the Middle East & Africa. The large share of the Asia-Pacific market is attributed to the growing demand and adoption of advanced technologies, such as IoT and cloud computing, increasing adoption of internet-of-things (IoT) devices, and rising mobile data traffic and over-the-top (OTT) traffic across the region. IoT adoption has accelerated in Asia-Pacific countries. IoT and Edge Data Center are integral components of the modern digital ecosystem. They work together to address the challenges posed by the massive influx of data from IoT devices and enable real-time, low-latency applications across various industries. High investments in smart factories, AR/VR, satellite IoT devices, and 5G IoT are expected to drive the demand for edge data center.
Moreover, Asia-Pacific is also projected to register the highest CAGR of 22.5% during the forecast period.
Key Players
The key players operating in the global Edge Data Center market are Dell Technologies Inc. (U.S.), Cisco Systems, Inc. (U.S.), Eaton Corporation plc (Ireland), Fujitsu Limited (Japan), Schneider Electric SE (France), Hewlett-Packard Enterprise Company (U.S.), Huawei Technologies Co., Ltd. (China), IBM Corporation (U.S.), NVIDIA Corporation (U.S.), Mitsubishi Electric Corporation (Japan), Equinix, Inc. (U.S.), American Tower Corporation (U.S.), Cyxtera Technologies, Inc. (U.S.), ABB (Switzerland), Nxtra Data Limited (India) (a subsidiary of Bharti Airtel Limited), Zenlayer Inc. (U.S.), Switch, Inc. (U.S.), Vertiv Holdings Co. (U.S.), Nokia Corporation (Finland), EdgeConneX, Inc. (U.S.), Reichle & De-Massari AG (Switzerland), Ubiquity Management, LLC (U.S.), and Vapor IO, Inc. (U.S.).
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Key Questions Answered in the Report:
- Which are the high-growth market segments in terms of type, component, deployment mode, organization size, application, and end-use sector?
- What is the historical market size for the Edge Data Center market?
- What are the market forecasts and estimates for 2024–2031?
- What are the major drivers, restraints, opportunities, challenges, and trends in the Edge Data Center market?
- Who are the major players in the Edge Data Center market, and what are their market shares?
- What is the competitive landscape like?
- What are the recent developments in the Edge Data Center market?
- What are the growth strategies adopted by major market players?
- What are the key market trends, and which are the high-growth countries?
- Who are the local emerging players in the Edge Data Center market, and how do they compete with the other players?
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