Hyperscale Edge Computing Market Report 2025

The hyperscale edge computing market size has grown exponentially in recent years. It will grow from $4.5 billion in 2024 to $6 billion in 2025 at a compound annual growth rate (CAGR) of 33.3%. The growth in the historic period can be attributed to demand for real-time decision making, edge infrastructure development, cloud augmentation with edge computing, latency-sensitive applications, data privacy and security concerns.

The hyperscale edge computing market size is expected to see exponential growth in the next few years. It will grow to $19.49 billion in 2029 at a compound annual growth rate (CAGR) of 34.2%. The growth in the forecast period can be attributed to 5g network expansion, IoT proliferation, AI and machine learning integration, edge data analytics, autonomous vehicles and smart cities. Major trends in the forecast period include emergence of edge-native development platforms, decentralized data processing, edge AI and machine learning, edge-optimized cloud services, rise of edge-as-a-service (EaaS).

The growing number of edge data centers is expected to significantly drive the hyperscale edge computing market in the future. Edge data centers are smaller, decentralized facilities that provide computing and storage closer to where data is generated and utilized. By reducing latency and maximizing bandwidth, these facilities enable new applications. Hyperscale edge computing is utilized in edge data centers to enhance the scalability of IT infrastructure, thereby increasing the computational power of data centers, networking infrastructure, or storage resources. This scalability helps meet the demands for comprehensive data analysis, leading to better insights, faster response times, and improved user experiences. For example, in February 2022, the Korea Data Center Council (KDCC), an organization focused on advancing the data center industry in Korea, reported that the total capacity of colocation data centers reached an IT load of 430 MW, representing 11% of the total IT load in the Asia-Pacific region. Projections from Savills Korea indicate that the total commercial data center IT load in Korea is expected to grow by 700 MW between 2021 and 2023, accounting for 15% of the overall Asia-Pacific capacity. Thus, the increasing number of edge data centers is driving growth in the hyperscale edge computing market.

The expansion of cloud services is anticipated to further propel the growth of the hyperscale edge computing market. The cloud consists of a network of remote servers hosted on the Internet, which store, manage, and deliver data, applications, and services to users and organizations. Cloud services are crucial to hyperscale edge computing as they provide the scalable infrastructure, storage, and processing capabilities necessary to support edge computing applications. For instance, in December 2023, the European Union reported that the percentage of businesses in the EU purchasing cloud computing services increased by 4.2 percentage points in 2023 compared to 2021. Therefore, the expansion of cloud services is a key driver of growth in the hyperscale edge computing market.

Leading companies in the hyperscale edge computing market are concentrating on partnerships and technological advancements, such as edge AI processing and distributed systems, to provide real-time analytics and low-latency solutions that enhance operational efficiency. A hyperscale AI data center is a large-scale, high-performance computing facility designed to accommodate artificial intelligence workloads, distinguished by its capacity to scale efficiently to meet significant demands for data storage, processing power, and advanced networking. These centers often utilize AI-specific hardware, such as GPUs and TPUs. For example, in September 2024, Zettabyte, an EdTech company based in England, announced its strategic partnership with Wistron Corporation, a technology firm from Taiwan. Through this collaboration, they plan to construct Taiwan's first hyperscale AI data center, a groundbreaking initiative aimed at transforming AI computing in the Asia Pacific region. This partnership is a significant achievement as Zettabyte capitalizes on Wistron’s cutting-edge products, services, and extensive expertise in ICT technology.

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 include 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., Celestica Inc., Capgemini SE, ClearBlade Inc, Digi International Inc., Yokogawa Electric Corporation, Rittal GmbH & Co. KG, Siemens AG, eInfochips Inc, Aarna Networks, Pulsant, ZEDEDA.

Asia-Pacific was the largest region in the hyperscale edge computing market in 2024. 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.

Hyperscale edge computing refers to the extension of edge computing through the integration of computing and hyperscale data centers. This extension enhances scalability by augmenting processing power, memory, networking capabilities, or storage resources, aligning with the requirements of edge computing. The combination of hyperscale edge computing and edge computing itself enables in-depth data analysis, leading to improved insights, reduced reaction times, and enhanced user experiences.

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 hyperscale edge computing market consists of revenues earned by entities by providing services such as data processing, analysis, data storage, network optimization and IoT deployment and management. The market value includes the value of related goods sold by the service provider or included within the service offering. The hyperscale edge computing market also includes sales of computers, CPU, GPU, memory storage, IoT devices and solid-state drives (SSDs) or hard drives (HDDs), which are used in providing hyperscale edge computing services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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