Hyperscale Edge Computing Global Market Report 2024

The hyperscale edge computing market size has grown exponentially in recent years. It will grow from $3.43 billion in 2023 to $4.58 billion in 2024 at a compound annual growth rate (CAGR) of 33.4%. The growth observed in the historical period can be attributed to various factors, including the demand for real-time decision-making, the development of edge infrastructure, the augmentation of cloud services with edge computing, the prevalence of latency-sensitive applications, and heightened concerns regarding data privacy and security.

The hyperscale edge computing market size is expected to see exponential growth in the next few years. It will grow to $15 billion in 2028 at a compound annual growth rate (CAGR) of 34.5%. The anticipated growth in the forecast period can be attributed to the expansion of 5G networks, the proliferation of IoT (Internet of Things), integration of AI (Artificial Intelligence) and machine learning, adoption of edge data analytics, and the development of autonomous vehicles and smart cities. Major trends expected in the forecast period include the emergence of edge-native development platforms, decentralized data processing, the integration of edge AI and machine learning, the availability of edge-optimized cloud services, and the rise of Edge-as-a-Service (EaaS).

The growth of the hyperscale edge computing market is anticipated to be driven by the increasing number of edge data centers. These decentralized facilities, known for offering computing and storage closer to the source of data generation, reduce latency and maximize bandwidth, enabling the development of new applications. Hyperscale edge computing enhances the scalability of IT infrastructure in edge data centers, addressing the demands for comprehensive data analysis, resulting in improved insights, quicker response times, and enhanced user experiences. A survey by the Uptime Institute in May 2021 revealed that over 90% of respondents in North America plan to utilize more than five edge data centers in the next two to three years, with the U.S. and Canada leading in the intention to use more than 20 edge data centers. The Asia-Pacific region and China follow as the second and third contenders. Consequently, the surge in edge data centers is a key driver for the growth of the hyperscale edge computing market.

The expansion of cloud services is poised to further boost the hyperscale edge computing market. Cloud services, involving a network of remote servers on the Internet, play a crucial role by providing the scalable infrastructure, storage, and processing capabilities necessary for supporting edge computing applications. In December 2021, Eurostat reported a 5% increase in EU enterprises utilizing cloud computing, with 41% using it primarily for hosting e-mail systems and storing electronic files. Large enterprises exhibited a high adoption rate of 72%, marking a 7% increase from 2020. Medium and small enterprises also experienced growth in cloud computing usage. The majority of businesses, specifically 66%, utilized cloud computing for file storage, while office software, security applications, and database hosting also contributed to the increased adoption. Thus, the expansion of cloud services is a significant driver for the hyperscale edge computing market.

Strategic partnerships emerge as a notable trend driving the popularity of the hyperscale edge computing market. Major companies in this market are actively engaged in forming partnerships and collaborations to strengthen their market position. In February 2021, Hewlett Packard Enterprise Company partnered with Microsoft Corporation to deliver edge computing, artificial intelligence (AI), and Azure cloud computing capabilities on the International Space Station (ISS). In December 2021, Verizon Communications Inc. collaborated with Google LLC and Ericsson to build a 5G edge computing ecosystem, offering a dedicated private network and on-premises edge computing infrastructure. These strategic partnerships enhance the capabilities of companies in the hyperscale edge computing market, catering to diverse industries.

Leading companies in the hyperscale edge computing market are focused on introducing innovative computing solutions to gain a competitive edge. In June 2023, Pulsant, a UK-based digital company, launched PlatformEdge, a new edge computing platform designed to facilitate digital transformation across the UK. This platform seamlessly integrates cloud services and edge computing capabilities to deliver scalable and efficient processing, storage, and networking resources at the network's edge. PlatformEdge provides a regional data center network with low-latency connectivity, distributed compute, and storage platforms for edge workloads and hyperscale cloud integrations. This platform offers promising opportunities for businesses to leverage data-intensive applications for their digital transformation needs, including video analytics, IoT, VR gaming, autonomous vehicles, and remote monitoring.

In June 2023, Ahead, a US-based software company, acquired MBX Systems to enhance its ability to provide custom solutions for edge and hyperscale requirements. This acquisition positions Ahead to better meet the expanding needs of its clients in the realm of edge and hyperscale solutions. MBX Systems, known for its expertise in advanced engineering, logistics, and operational transparency, aligns with Ahead's strategy to accelerate its capabilities in the edge and hyperscale computing space.

Major companies operating in the hyperscale edge computing market report are Hewlett Packard Enterprise, Amazon Web Services Inc., Cisco Systems Inc., Dell Inc., Google LLC, Huawei Technologies Co. Ltd., International Business Machines Corporation, Intel Corporation, Microsoft Corporation, ADLINK Technology Inc., SAP SE, Celestica Inc., Capgemini SE, ClearBlade Inc, Digi International Inc., Yokogawa Electric Corporation, Rittal GmbH & Co. KG, Siemens AG, eInfochips Inc, Signify Holding, Gavita International B V, GE Lighting, ams-OSRAM AG, Heliopsetra AB, California LightWorks, Valoya Oy, EYE Hortilux, Hortilux Schréder, BIOS Lighting, GrowGeneration, Kroptek, SANlight GmbH, Kind LED Grow Lights, Platinum LED.

Asia-Pacific was the largest region in the hyperscale edge computing market in 2023. The regions covered in the hyperscale edge computing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hyperscale edge computing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main components of hyperscale edge computing include hardware, software, and services. Hardware encompasses both internal and external components that facilitate essential operations such as input, output, storage, communication, and processing. These services are utilized by small and medium-sized enterprises (SMEs) as well as large enterprises across various applications, including industrial IoT, content delivery, augmented reality (AR) or virtual reality (VR), remote monitoring, and more. Industries such as information technology (IT) and telecommunications, government, healthcare, banking, financial services, and insurance (BFSI), retail, utilities, manufacturing, and others employ these services to meet their diverse needs.

The hyperscale edge computing market research report is one of a series of new reports that provides hyperscale edge computing market statistics, including hyperscale edge computing industry global market size, regional shares, competitors with a hyperscale edge computing market share, detailed hyperscale edge computing market segments, market trends and opportunities and any further data you may need to thrive in the hyperscale edge computing industry. This hyperscale edge computing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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