Global Edge Data Center Market Overview
The key driver impacting the edge data center market is the growing usage of internet services and the increasing number of connected devices. The ever-increasing IoT device usage gives rise to bandwidth-intensive applications. This also created a high demand for edge data centers to achieve high performance IT & network infrastructure solutions, boost the edge data center market size in the forecast period. By establishing data centers near to the point of application one can achieve complete control over data storage and data processing at the edge of a network than installing it in a centralized warehouse. For instance, The Federation of American Scientists (FAS) estimations show that global IoT is predicted to grow by 37% from 2017 to $1,567B by 2025. Also, the number of active IoT devices is estimated to rise from 9.9 billion in 2019 to 21.5 billion in 2025. As per International Energy Agency(IEA), the number of Internet of Things (IoT) connections is likely to get double from 12 billion to 25 billion. Global internet traffic is estimated to get double by the end of 2022 and reached 4.2 zettabytes annually. Mobile internet users number is estimated to augment from 3.8 billion in 2019 to 5 billion by 2025. Moreover, the expanding adoption and high investment on data center technology are expected to be a significant factor that adds growth to the market. Whereas with regards to volume,the market was calculated XX Units in 2020 and foreseen to grow with a CAGR of XX% during 2021-2027.
According to Value Market Research, the global edge data center market size was valued at around USD 5750 million in 2020 and is projected to grow at a CAGR of about 20% during the forecast period of 2021 to 2027.
The rising consumer usage of OTT platforms, including Amazon Prime Video, Netflix, and Hulu, and live streaming channels, increases OTT traffic. Thus, it creates enormous consumer demand for high bandwidth services and is estimated to augment edge data center demand in the forecast period. For instance, MAGNET Global Network report, around 70%of consumers have at least one major OTT subscription, such as Amazon Prime Video, Netflix, or Hulu. Around hundreds of small and medium-sized businesses launch OTT apps every single day. OTT video ranks 2nd in compound annual growth to virtual reality (VR), with a stable 14% expected growth during 2020. Besides, OTT app usage will develop to a $120 billion industry by 2022 and $200 billion by 2024, and beating out pay-TV in coming years. However, high initial investment and installation costs may hamper the global edge data center market in the long run. Also, the security issues in green storage technologies are negatively impacting the market. The current industry trends, such as the rising trend of colocation by SMEs and the high demand for high computational power, are expected to provide market players with new market opportunities.
The edge data center market is vast, with many local and global players. The key leaders follow numerous strategies to increase their market share, such as acquisitions, amalgamation, extending product portfolio, expansions, contracts,, and product upgrades to raise their market share across the globe. For instance, in May 2020, Nvidia Corporation introduced the EGX A100 and Jetson Xavier NX for its EGX edge AI platform. The EGX A 100 is made for larger servers, while the Jetson Xavier NX is for micro-edge servers that offer secure AI processing at the edge. The major players in the report are 365 Operating Company LLC, IBM Corporation, Eaton Corporation, Dell Technologies, Inc., EdgeMicro, EdgeConneX, Inc., EdgePresence, Flexential Corporation, Hewlett Packard Enterprise (HPE) Company, Fujitsu Ltd, Huawei Technologies Co., Ltd., Netrality Properties LP, NVIDIA Corporation, Panduit Corporation, Rittal Gmbh & Co. KG, Panduit Corporation Schneider Electric SE, Systel, Inc.Servtech Inc., Smart Edge Data Centres Limited, Vapor IO, Inc., vXchnge Holdings LLC, Vertiv Group Co., Zella DC.
In this research report, the edge data center market is segmented by data center size, industry, and region.
Analysis by Data Center Size:
By data center size, the report is categorized into micro data centers, hyper-scale/enterprise data centers, and others. The Hyperscale/Enterprise Data Center segment dominates the data center size segment with over 50% share in 2020. It is due to the rising demand owing to a rapid rise in the size of IT facilities to sustain the extensive business operations and growing adoption of Web 2.0, cloud computing, big data, cloud computing, and Hadoop. Moreover, the rising integration of many servers and storage devices needs adequate network infrastructure to make certain the devices can efficiently share and communicate enterprise data, driving demand for hyper-scale data centers in the forecast period.
Analysis by Industry:
By industry, the report is categorized into banking financial services, and insurance (BFSI), IT and telecom, government and defense, research and academics, retail, healthcare, manufacturing, media and entertainment, and others (transportation and logistics and energy and utilities). The BFSI segment dominates the application segment with over 20% share in 2020. It is because edge computing is transforming the banking and finance industry by the high speed, the cost it controls, and the improved user experience. Also, edge data centers process the data near the generation points, reducing the requirement to transfer data to a public cloud, and make data more secure and safe, thus creating more adoption across the banking sector in the coming years. Moreover, the growing implementation of emerging digital technologies in the banking sector to serve their customers better contributes to the high market demand in the BFSI industry in the forecast period.
Analysis by Region:
In the regional outlook of the global edge data center market, the North America region dominates with over 30% market share during the forecast period. The increasing technological development, growing data traffic, rapid deployment of 5G is driving regional growth. Moreover, the presence of significant players, technical awareness amongst the users in countries like the U.S. and Canada, and government initiatives supporting edge data centers contribute to the development of the edge data center market in North America.
Market Segmentation covered in the Report:
By Data Center Size
- Micro Data Centers
- Hyperscale/Enterprise Data Center
- Banking, Financial Services, and Insurance (BFSI)
- IT and Telecom
- Research and Academics
- Government and Defense
- Media and Entertainment
- Others (energy and utilities, and transportation and logistics)
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.