The Global Edge Data Center Market size is expected to reach $21.4 billion by 2027, rising at a market growth of 19.9% CAGR during the forecast period.
Due to the relative freshness of edge data centers as an established trend, individual data center experts may describe them differently based on their positions, industry, or goals. It is defined as data storage and access systems that are situated close to the end-user to improve the efficiency of their data delivery system. It can be a single or two racks, or a small computer unit close to a 5G antenna, but it could also be a space with 100 to 200 KW of power and greater IT power. They build well-organized habitats on the outskirts of cities, far from the typical city centers.
Additionally, rather than storing data processing control in a centralized warehouse or the cloud, edge data centers transfer it to the network's edge. It has all of the same elements as a standard data center but in a significantly smaller space. In a complex network, an edge data center is one of many, including a central business data center. These centers are handled remotely and are located near the locations they serve. They usually connect to a bigger central data center or a number of them. Edge computing reduces latency and improves the customer experience by processing data and services as near to the end-user as possible.
In an edge computing infrastructure, time-sensitive data is handled at the origin point by an embedded server that is close to the client geographically. The goal is to deliver content as quickly as possible to any end device that might require it, with as reduced latency as possible. Less time-sensitive data can be transferred to a larger data center for historical evaluation, big data analytics, and long-term storage. Edge data centers work on the same principle as traditional data centers, but instead of simply having one intermediate server in close proximity to the client, they're a small data center.
Moreover, organizations all over the world changed the way they purchase and sell products & services as a result of the COVID 19 outbreak. Amid and post the COVID-19 lockdown, several studies and survey organizations, including large enterprises and SMEs, increased their marketing spending.
The major strategies followed by the market participants are Partnership. Based on the Analysis presented in the Cardinal matrix; Huawei Technologies Co., Ltd. is the forerunners in the Edge Data Center Market. Companies such as IBM Corporation, Hewlett Packard Enterprise Company, NVIDIA Corporation are some of the key innovators in the Market
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Dell Technologies, Inc., Eaton Corporation PLC, NVIDIA Corporation, Schneider Electric SE, Hewlett Packard Enterprise Company, Huawei Technologies Co., Ltd., IBM Corporation, Vertiv Holdings Co., Fujitsu Limited, and Equinix, Inc.
Due to the relative freshness of edge data centers as an established trend, individual data center experts may describe them differently based on their positions, industry, or goals. It is defined as data storage and access systems that are situated close to the end-user to improve the efficiency of their data delivery system. It can be a single or two racks, or a small computer unit close to a 5G antenna, but it could also be a space with 100 to 200 KW of power and greater IT power. They build well-organized habitats on the outskirts of cities, far from the typical city centers.
Additionally, rather than storing data processing control in a centralized warehouse or the cloud, edge data centers transfer it to the network's edge. It has all of the same elements as a standard data center but in a significantly smaller space. In a complex network, an edge data center is one of many, including a central business data center. These centers are handled remotely and are located near the locations they serve. They usually connect to a bigger central data center or a number of them. Edge computing reduces latency and improves the customer experience by processing data and services as near to the end-user as possible.
In an edge computing infrastructure, time-sensitive data is handled at the origin point by an embedded server that is close to the client geographically. The goal is to deliver content as quickly as possible to any end device that might require it, with as reduced latency as possible. Less time-sensitive data can be transferred to a larger data center for historical evaluation, big data analytics, and long-term storage. Edge data centers work on the same principle as traditional data centers, but instead of simply having one intermediate server in close proximity to the client, they're a small data center.
COVID-19 Impact Analysis
The outbreak of the COVID-19 pandemic caused a severe impact on the edge data center market. Various businesses all over the world were significantly devastated. In addition, due to the emergence of the COVID-19 pandemic, several economies all over the world were substantially demolished. Moreover, governments across the world were forced to enforce country-wide lockdowns, due to which, various manufacturing units were shut. Moreover, due to the travel restrictions around the world, the worldwide supply chain was majorly disrupted, which played a major role in hauling the production of numerous productsMoreover, organizations all over the world changed the way they purchase and sell products & services as a result of the COVID 19 outbreak. Amid and post the COVID-19 lockdown, several studies and survey organizations, including large enterprises and SMEs, increased their marketing spending.
Market driving Factors:
Increasing adoption of the IoT sector
Because of the growth of IoT, enterprises are increasingly relying on centralized cloud computing and storage solutions to manage their data. In addition, the IoT industry is also estimated to rapidly develop in the coming years. Migrating the complete IT infrastructure to the cloud raises concerns about latency and cost. As a result, businesses that use actuators, IoT sensors, and other IoT devices are rapidly turning to edge computing solutions such edge devices, nodes, and hyper-localized data centers. Edge computing includes a comprehensive cloud paradigm by integrating data processing with the data source, allowing businesses to make quick and informed decisions.Offers enhanced data management
Data collected at the network edge is extremely significant since it provides insight into user behavior. In addition, a significant amount of the data is irrelevant noise, necessitating the employment of sophisticated analytics tools to shift unstructured data and identify important trends. All data gathered at the edge is often sent back to centralized servers capable of sorting through enormous troves of big data. A well-designed edge computing network, on the other hand, can better manage that data by combining local devices with edge data center resources. Instead of sending entire data back to the origin, edge networks can analyze the majority of it locally and only send certain sorts of data that are required to be evaluated by the core.Marketing Restraining Factor:
High capital expenditure
Edge-enabled software platforms and hardware devices require significant capital expenditure for research and development, which increases the initial cost of using edge data centers. With the deployment of edge computing, this investment is essential to serve a variety of important applications and operations, considering the diversity of hardware and platforms, as well as capacity. Due to a lack of network and digitalization infrastructure, the initial capital along with professional expertise for leveraging critical infrastructure is considerably higher in emerging nations. Edge technology investment typically has to compete with other IT expenditures in the organization. Companies that require the deployment of edge technology must invest considerably in edge devices, nodes, and edge data centers.Component Outlook
Based on Component, the market is segmented into Solution (Networking Equipments, DCIM & Analytics, Power, Cooling, and Others) and Services (Integration & Implementation, Consulting, and Managed). In 2020, the solution segment acquired the largest revenue share of the edge data centers market. the growth of this segment is attributed to the increasing popularity of edge data center solutions in the field service landscape. In addition, to alleviate the excessive IT burden, an edge data center serves as a data-aggregation and caching point between consumers and bigger data centers. IT workers are encountering hurdles in line with technological solutions as the necessity for data along with accessible information grows increasingly vital to enterprises. Several companies supply various data center solutions, like DCIM and analytics, cooling, networking equipment, power, and others, to tackle these difficulties. Networking solutions assist organizations to improve data centers by allowing them to choose from a range of unique, industry-standard network applications, operating systems, and hardware.Facility Size Outlook
Based on Facility Size, the market is segmented into Large and Small & Medium. In 2020, the small and medium facility segment recorded a substantial revenue share of the edge data center market. Small and medium facilities are defined as those with 1 to 12 racks with a power usage of 6 to 12 KW per rack or cabinet. The demand for these data centers is due to their advantages in terms of mobility along with ease of application. Micro mobile data centers with up to 20 rack units are available from various companies like Schneider Electric, Huawei, Rittal, Zellabox, Panduit, and several others.Vertical Outlook
Based on Vertical, the market is segmented into IT & Telecom, BFSI, Retail & E-commerce, Government, Healthcare & Life Sciences, Manufacturing, Gaming & Entertainment, Automotive, and Others. In 2020, the BFSI segment registered a significant revenue share of the edge data center market. The increasing growth of this segment is owing to the constantly rising demand for edge data center services and solutions from the banking sector amid the COVID-19 pandemic. Moreover, fintech startups are utilizing artificial intelligence (AI) and machine learning (ML) to enable data-driven budgeting processes, credit lending, and risk management, redefining the capabilities of financial institutions. Edge computing has become one of the basic computing paradigms supporting this technology transformation in financial services, with the worldwide pandemic holding banking customers locked at their homes and encouraging migration out of densely crowded urban areas.Regional Outlook
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, North America held the largest revenue share of the edge data center market. The increasing growth of the regional market is attributed to the rapidly growing automotive industry across the region. North America is one of the regions with the most significant It and automotive industries all over the world. Due to the large automotive industry of the region, the requirement for edge data centers is constantly rising in the sector. Moreover, the market players across the region are significantly increasing their efforts in order to meet the rising and constantly evolving requirements of the customers across the region. Therefore, the growth of the regional market is anticipated to flourish over the forecasting period.The major strategies followed by the market participants are Partnership. Based on the Analysis presented in the Cardinal matrix; Huawei Technologies Co., Ltd. is the forerunners in the Edge Data Center Market. Companies such as IBM Corporation, Hewlett Packard Enterprise Company, NVIDIA Corporation are some of the key innovators in the Market
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Dell Technologies, Inc., Eaton Corporation PLC, NVIDIA Corporation, Schneider Electric SE, Hewlett Packard Enterprise Company, Huawei Technologies Co., Ltd., IBM Corporation, Vertiv Holdings Co., Fujitsu Limited, and Equinix, Inc.
Partnerships, Collaborations and Agreements:
- Jan 2022: Huawei entered into a partnership with China Mobile, a vendor of international telecommunication services & high-quality cloud computing solutions. Following this partnership, the companies is expected to develop a modular data center across the Chinese city of Xi'an to deal with outrage in mobile data caused by tourists.
- Jan 2022: Huawei partnered with Huawei Hatten Land, a property developer in Malaysia. Under this partnership, the companies is expected to develop data centers and other digital infrastructure across Malaysia. Moreover, the companies is expected to also develop eco-friendly data centers in Melaka in order to help Hatten in meeting the rising demand for data centers from cloud service providers around the region.
- Jan 2022: Vertiv partnered with RISE Research Institutes, a Swedish state-owned research institute. Following this partnership, Vertiv is expected to help RISE in the Infrastructure and Cloud research & test Environment, and demonstrations and publications by RISE, and engagement in small research and development activities.
- Dec 2021: Equinix entered into a multi-year partnership with Nasdaq, an American stock exchange company. This partnership aimed to scale the Equinix NY11 data center in Carteret in order to support build throughout Nasdaq's cloud infrastructure.
- Nov 2021: Schneider Electric partnered with Chilldyne, a leader in liquid cooling solutions for data centers. Under this agreement, Schneider is expected to integrate the Negative Pressure Liquid Cooling Solution of Chilldyne into its Uniflair cooling and chiller solutions portfolio in order to increase data center efficiency and sustainability.
- Oct 2020: Schneider Electric entered into a partnership with EdgePresence along with Accu-Tech. Through this partnership, the companies aimed to implement edge points-of-presence to support enterprises in leveraging the capabilities of edge to grow a digital business.
- Sep 2021: IBM teamed up with Exium, an American full-stack cybersecurity and 5G clean networking company. Under this collboration, Exium is expected to become IBM's network-as-a-service partner for companies utilizing IBM cloud to examine data from edge devices spread over enterprise data centers as well as remote locations.
- Sep 2021: Fujitsu partnered with Juniper Networks, a leader in secure AI-driven networks. Under this partnership, Juniper Networks is expected to provide high-performance ethernet switches for Fujitsu Storage ETERNUS, Fujitsu Server PRIMERGY, and Fujitsu Integrated System PRIMEFLEX offerings in the EMEA region.
- Jul 2021: IBM joined hands with Colt Technology Services, a multinational telecommunications company. Following this collaboration, the companies is expected to encourage and support customers to adopt edge technology and 5G solutions.
- Jun 2021: Schneider Electric partnered with Stratus Technologies, a world leader in protected, simplified, autonomous Edge Computing platforms. Under this partnership, Schneider launched its EcoStruxure Micro Data Center on Stratus's Edge Computing platforms in order to bring conventional traditional data center capabilities to factories and facilities.
- May 2021: Dell joined hands with Equinix, an American multinational company. Under this collaboration, Dell is expected to provide its new storage-as-a-service across the world via Equinix's data center chain with the purpose to expand on-demand cloud services for both companies.
- Mar 2021: Vertiv entered into a partnership with Green Revolution Cooling, a leader in liquid immersion cooling for data centers. Following this launch, the companies is expected to introduce Liebert VIC liquid immersion cooling solution to fulfill the demand for high density data centers.
- Nov 2020: Fujitsu teamed up with EdgeUno, a network service provider. Under this partnership, the companies aimed to install the Fujitsu 1FINITY platform in Colombia in order to fulfill the constricted timeline of a new business service level agreement.
- Sep 2020: Hewlett Packard entered into a partnership with Schneider Electric and StorMagic. Through this partnership, the companies aimed to develop Edge in a Box, which is a micro data center that can be mounted on the wall to offer IT systems for edge environments.
- Jul 2020: IBM joined hands with Verizon, an American wireless network operator. Following this collaboration, the companies is expected to focus on edge computing and 5G innovation.
- Jun 2020: Fujitsu extended its Partnership with NetApp, an American hybrid cloud data services and data Management Company. This partnership aimed to offer a data management infrastructure with the ability to make more efficient management along with rapid utilization of the data that expedites customers' businesses.
- Jan 2020: Fujitsu joined hands with Qumulo, a leader in hybrid cloud file storage. Following this collaboration, the companies is expected to deliver an impeccable integration of dependability and security of on-premises scale-out NAS storage with the cost advantages and flexibility of the cloud storage
- Jan 2020: Schneider Electric came into a partnership with Cisco, an American multinational technology conglomerate corporation. Through this partnership, the companies aimed to introduce a new edge computing solution integrated with Cisco's HyperFlex Edge hyperconverged infrastructure along with Schneider's 6U Wall Mount EcoStruxure Micro Data Center.
Acquisitions and Mergers:
- Dec 2021: Equinix took over MainOne, a leading vendor of innovative telecom services and network solutions. Following this acquisition, the company is expected to offer continental edge data center services to the companies demanding to build enterprise-grade clouds outside of Europe and North America.
- Nov 2021: Vertiv took over E&I Engineering, a leading provider of electrical switchgear and power distribution systems. Through this acquisition, the company aimed to expand its in-building power train portfolio for data centers along with the vital industrial and commercial markets. Moreover, this acquisition is expected to complement Vertiv's vision.
- Sep 2021: Equinix acquired GPX Global Systems India, an Indian unit of GPX Global Systems. Following this acquisition, the company is expected to add GPX's two world-class, highly interconnected data centers to its portfolio in order to unlock the opportunities for expansion across the country.
- Sep 2021: Hewlett Packard took over Zerto, a leader in cloud data management and protection. Through this acquisition, the company aimed to strengthen the position of HPE GreenLake edge-to-cloud platform across the high-growth data protection market with an excellent solution and further increases HPE's storage business into a cloud-native, software-defined data services business.
- Jun 2021: Eaton acquired 50% stakes of Jiangsu YiNeng Electric's busway. This acquisition is expected to allow Eaton to offer an enhanced customer experience to its customers across premier commercial markets and high-growth data centers.
- Mar 2021: Eaton took over Tripp Lite, an American manufacturer of power protection and connecting electrical devices. This acquisition is expected to improve the bandwidth of Eaton's distributed IT and edge computing product offerings, as well as expand its single-phase UPS business.
- Sep 2020: Hewlett Packard completed its acquisition of Silver Peak, a leader in SD-WAN. This acquisition aimed to integrate Silver Peak in Hewlett Packard's Aruba in order to enhance the Aruba Edge Services Platform.
- Apr 2020: NVIDIA acquired Mellanox Technologies, an Israeli-American multinational supplier of computer networking products. With this acquisition, the company aimed to achieve end-to-end technologies ranging from AI computing to networking, a full-stack portfolio spanning from processors to software, as well as significant scale to advance next-generation data centers.
- Mar 2020: Equinix acquired Packet, a leading bare metal automation platform. Through this acquisition, the company aimed to provide an agile and alternate way to install and leverage private digital infrastructure. In addition, this acquisition is expected to also allow Equinix's customers to extract greater value from its global reach, rich ecosystems, and interconnection platform.
- Jan 2020: Equinix took over three data centers from Axtel S.A.B. de C.V, a manufacturer of building materials. This acquisition is expected to complement Equinix's vision of strengthening its position in lucrative significant-growth markets.
Product Launches and Product Expansions:
- Oct 2021: Schneider Electric introduced Easy Micro Data Center Series into its Micro Data Center solutions offerings. The new range comprises and offers all compute storage and essential infrastructure to deliver edge computing applications, reliability, combining speed, and affordability.
- Oct 2021: Vertiv released Vertiv Liebert DM, a novel range of thermal management solutions. The new product range is expected to offer enterprise-level cooling functions for small computer rooms and network closets in order to prevent overheating and reduce downtime of IT equipment.
- Oct 2021: Dell introduced edge innovations in its PC portfolio. This product expansion aimed to facilitate organizations to deploy and capture additional value from data produced and processed outside the conventional public data center and public cloud
- Sep 2021: Vertiv rolled out Vertiv Avocent ADX Ecosystem. an advanced IT management platform. The new product aimed to fulfill the rapidly evolving demands of data centers from cloud, edge, enterprise, and colocation environments.
- Sep 2021: Huawei rolled out a new L3.5, an autonomous driving network solution for data centers. The new solution comprises a range of advanced technologies including an open and programmable framework, the industry's unique service designers, and a unified database. Moreover, the solution also includes high-level E2E network automation capabilities.
- Jun 2021: Schneider Electric unveiled EcoStruxure Modular Data Center, a liquid-cooled all-in-one module. The new product aimed to fulfill the requirement for the deployment of compute-intensive processing power in a secure, compact, and dedicated edge environment.
- May 2021: Schneider Electric introduced 43U, a new product in its EcoStruxure Micro Data Center C-Series. The new product aimed to offer increased capacity to companies with the ability to switch among three cooling modes in accordance with the concurrent requirements of the system.
- May 2021: Hewlett Packard rolled out a data services platform. The new platform is developed to eliminate the data explosion edge-to-cloud issue, collapse the silos and complications that outbreak data environments, enhance innovation and agility, and minimize business risks.
- May 2021-May Vertiv released Vertiv VRC-S, a fully factory-assembled micro data center. The new product aimed to offer an easy and quick deployment at the edge of the network as well as other small IT sites. In addition, the new Vertiv VRC-S incorporates UPS, PDU, along with monitoring and cooling systems in a highly-efficient IT solution that facilitates and fastens installation.
- Apr 2021: NVIDIA rolled out NVIDIA Bluefield-3 DPU, a next-generation data processing unit of the company. This launch aimed to offer robust software-defined networking, cybersecurity, and storage acceleration for data centers.
- Apr 2021: IBM unveiled IBM Spectrum Fusion, an advanced Storage Solution. The new solution is expected to fuse the general parallel file system technology of IBM and its data protection software to provide businesses and their applications a less complex method to access data impeccably within the data center, at the edge as well as across hybrid cloud environments.
- Mar 2021: Equinix launched a new data center for edge computing in Bordeaux, France. With this launch, the company aimed to establish its footprint in the digital infrastructure market to offer interconnection services as key subsea cable routes expand to new destinations.
- Nov 2020: Huawei introduced the Smart Modular Data Center 5.0, a new version of its microdata center range. The new product builds next-level data center intelligence by fully leveraging Huawei's SmartLi.
- May 2020: Fujitsu launched Fujitsu Storage ETERNUS DSP. The new product is expected to allow businesses to control rapidly increasing data volumes by deploying a highly-automated, intelligent, scalable, and agile storage-as-a-service approach that ranges from data center and other relevant locations to the existing and legacy infrastructure.
- Feb 2020: Dell launched a new line of software and hardware. The new product range is expected to help businesses in building and managing edge data centers as well as examine data in rugged, cramped, or remote locations for edge computing.
Geographical Expansions:
- Nov 2020: Equinix expanded its geographical footprint in Perth by expanding PE3 Platform Equinix with a third International Business Exchange data center. With this geographical expansion, the company aimed to fulfill the rising demand for digital infrastructure along with low-latency networking capabilities across Western Australia.
Scope of the Study
Market Segments Covered in the Report:
By Component
- Solution
- Networking Equipments
- DCIM & Analytics
- Power
- Cooling
- Others
- Services
- Integration & Implementation
- Consulting
- Managed
By Facility Size
- Large
- Small & Medium
By Vertical
- IT & Telecom
- BFSI
- Retail & E-commerce
- Government
- Healthcare & Life Sciences
- Manufacturing
- Gaming & Entertainment
- Automotive
- Others
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Dell Technologies, Inc.
- Eaton Corporation PLC
- NVIDIA Corporation
- Schneider Electric SE
- Hewlett Packard Enterprise Company
- Huawei Technologies Co., Ltd.
- IBM Corporation
- Vertiv Holdings Co.
- Fujitsu Limited
- Equinix, Inc.
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Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market Overview
Chapter 3. Competition Analysis - Global
Chapter 4. Global Edge Data Center Market by Component
Chapter 5. Global Edge Data Center Market by Facility Size
Chapter 6. Global Edge Data Center Market by Vertical
Chapter 7. Global Edge Data Center Market by Region
Chapter 8. Company Profiles
Companies Mentioned
- Dell Technologies, Inc.
- Eaton Corporation PLC
- NVIDIA Corporation
- Schneider Electric SE
- Hewlett Packard Enterprise Company
- Huawei Technologies Co., Ltd.
- IBM Corporation
- Vertiv Holdings Co.
- Fujitsu Limited
- Equinix, Inc.
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 359 |
| Published | March 2022 |
| Forecast Period | 2020 - 2027 |
| Estimated Market Value ( USD | $ 6492.5 Billion |
| Forecasted Market Value ( USD | $ 21420.8 Billion |
| Compound Annual Growth Rate | 18.6% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
