The research report provides in-depth analysis of edge data centers market across five major geographies and emphasizes on the current market trends, market sizes, market shares, recent developments, and forecasts till 2030.
The global edge data centers market is expected to reach $46.4 billion by 2030, growing at a CAGR of 20.9% during the forecast period of 2023-2030.
The growth of the edge data centers market is mainly attributed to the increasing need for edge data centers for industrial IoT applications, the growing demand for low-latency processing and real-time automated decision-making solutions, and the increasing utilization of edge data centers in online video streaming. The high upfront capital expenditure required to implement edge data centers restrains the growth of this market.
Additionally, the emergence of autonomous vehicles and the commercialization of 4G technology are expected to generate growth opportunities for the players in this market. Data privacy and security concerns are a major challenge for market growth. Furthermore, the rising adoption of IoT devices across industries and the growth in 5G networks are prominent trends in the edge data centers market.
Based on type, the global edge data centers market is broadly segmented into metro edge data centers and mobile edge data centers. In 2023, the metro edge data centers segment accounted for the larger share of the global edge data centers market. The large 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 and organizations. However, the mobile edge data centers segment is projected to grow at the highest CAGR during the forecast period.
Based on component, the global edge data centers market is segmented into hardware, software, and services. In 2023, the software accounted for the largest share of the global edge data centers market. The large share of this segment is mainly attributed to the increasing demand for workload orchestration, resource allocation, real-time data analysis, and rising demand for ultra-low latency applications. This segment is projected to record the highest CAGR during the forecast period.
Based on deployment mode, the global edge data centers market is segmented into on-premise deployments and cloud-based deployments. In 2023, the cloud-based deployments segment accounted for the larger share of the global edge data centers market. This segment is projected to record the highest CAGR during the forecast period. The segment's large share can be attributed to the increasing need to efficiently allocate resources, rapidly deploy applications and services closer to end users, and reduce latency while improving performance. This segment is projected to record the highest CAGR during the forecast period.
Based on organization size, the global edge data centers market is segmented into large enterprises and small & medium-sized enterprises. In 2023, the small & medium-sized enterprise segment accounted for the larger share of the global edge data centers market. This segment is projected to record the highest CAGR during the forecast period. The segment's large share can be 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.
Based on application, the global edge data centers market is segmented into artificial intelligence, Internet of things, AR/VR, telemedicine, 5G & 4G infrastructure, autonomous vehicles, video/live streaming, network functions virtualization, and other applications. In 2023, the 5G and 4G infrastructure segments accounted for the largest share of the global edge data centers 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 centers for high bandwidth in 5G infrastructure. However, the artificial intelligence segment is projected to record the highest CAGR during the forecast period.
Based on end-use sector, the global edge data centers market is segmented into IT & telecommunications, automotive, transportation & logistics, healthcare, energy & utilities, manufacturing, government & defense, retail, and other end-use sectors. In 2023, the IT & telecommunications segment is expected to account for the largest share of the global edge data centers 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 sector. This segment is projected to record the highest CAGR during the forecast period.
Based on geography, the global edge data centers market is segmented into North America, Europe, Latin America, and the Middle East & Africa. In 2023, Asia-Pacific is expected to account for the largest share of the edge data centers market, followed by North America, Europe, Latin America, and the Middle East & Africa. The Asia-Pacific region is projected to register the highest CAGR during the forecast period. The major factors driving the market's growth are the rising adoption of advanced technologies, such as IoT and cloud computing, increasing demand for low-latency applications, the need to alleviate network congestion, improve overall network efficiency, and the increasing need for real-time analytics.
The key players operating in the global edge data centers 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 Group Corporation(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.).
The global edge data centers market is expected to reach $46.4 billion by 2030, growing at a CAGR of 20.9% during the forecast period of 2023-2030.
The growth of the edge data centers market is mainly attributed to the increasing need for edge data centers for industrial IoT applications, the growing demand for low-latency processing and real-time automated decision-making solutions, and the increasing utilization of edge data centers in online video streaming. The high upfront capital expenditure required to implement edge data centers restrains the growth of this market.
Additionally, the emergence of autonomous vehicles and the commercialization of 4G technology are expected to generate growth opportunities for the players in this market. Data privacy and security concerns are a major challenge for market growth. Furthermore, the rising adoption of IoT devices across industries and the growth in 5G networks are prominent trends in the edge data centers market.
Based on type, the global edge data centers market is broadly segmented into metro edge data centers and mobile edge data centers. In 2023, the metro edge data centers segment accounted for the larger share of the global edge data centers market. The large 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 and organizations. However, the mobile edge data centers segment is projected to grow at the highest CAGR during the forecast period.
Based on component, the global edge data centers market is segmented into hardware, software, and services. In 2023, the software accounted for the largest share of the global edge data centers market. The large share of this segment is mainly attributed to the increasing demand for workload orchestration, resource allocation, real-time data analysis, and rising demand for ultra-low latency applications. This segment is projected to record the highest CAGR during the forecast period.
Based on deployment mode, the global edge data centers market is segmented into on-premise deployments and cloud-based deployments. In 2023, the cloud-based deployments segment accounted for the larger share of the global edge data centers market. This segment is projected to record the highest CAGR during the forecast period. The segment's large share can be attributed to the increasing need to efficiently allocate resources, rapidly deploy applications and services closer to end users, and reduce latency while improving performance. This segment is projected to record the highest CAGR during the forecast period.
Based on organization size, the global edge data centers market is segmented into large enterprises and small & medium-sized enterprises. In 2023, the small & medium-sized enterprise segment accounted for the larger share of the global edge data centers market. This segment is projected to record the highest CAGR during the forecast period. The segment's large share can be 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.
Based on application, the global edge data centers market is segmented into artificial intelligence, Internet of things, AR/VR, telemedicine, 5G & 4G infrastructure, autonomous vehicles, video/live streaming, network functions virtualization, and other applications. In 2023, the 5G and 4G infrastructure segments accounted for the largest share of the global edge data centers 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 centers for high bandwidth in 5G infrastructure. However, the artificial intelligence segment is projected to record the highest CAGR during the forecast period.
Based on end-use sector, the global edge data centers market is segmented into IT & telecommunications, automotive, transportation & logistics, healthcare, energy & utilities, manufacturing, government & defense, retail, and other end-use sectors. In 2023, the IT & telecommunications segment is expected to account for the largest share of the global edge data centers 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 sector. This segment is projected to record the highest CAGR during the forecast period.
Based on geography, the global edge data centers market is segmented into North America, Europe, Latin America, and the Middle East & Africa. In 2023, Asia-Pacific is expected to account for the largest share of the edge data centers market, followed by North America, Europe, Latin America, and the Middle East & Africa. The Asia-Pacific region is projected to register the highest CAGR during the forecast period. The major factors driving the market's growth are the rising adoption of advanced technologies, such as IoT and cloud computing, increasing demand for low-latency applications, the need to alleviate network congestion, improve overall network efficiency, and the increasing need for real-time analytics.
The key players operating in the global edge data centers 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 Group Corporation(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.).
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 for edge data centers across the globe?
- What are the market forecasts and estimates from 2023-2030?
- What are the major drivers, restraints, and opportunities in the global edge data centers market?
- Who are the major players in the global edge data centers market, and what shares of the market do they hold?
- Who are the major players in various countries, and what shares of the market do they hold?
- How is the competitive analysis?
- What are the recent developments in the global edge data centers market?
- What strategies are adopted by the major players in the global edge data centers market?
- What are the geographical trends and high-growth countries?
- Who are the local emerging players in the global edge data centers market, and how do they compete with the other players?
Scope of the Report:
Edge Data Centers Market Assessment - by Type
- Metro Edge Data Centers
- Mobile Edge Data Centers
Edge Data Centers Market Assessment - by Component
- Hardware
- Software
- Services
- Training & Support
- Consulting Services
Edge Data Centers Market Assessment - by Deployment Mode
- On-premise Deployments
- Cloud-based Deployments
Edge Data Centers Market Assessment - by Organization Size
- Large Enterprises
- Small & Medium-sized Enterprise
Edge Data Centers Market Assessment - by Application
- Artificial Intelligence (AI)
- Internet of Things (IoT)
- AR/VR
- Telemedicine
- 5G & 4G Infrastructure
- Autonomous Vehicles
- Video/live Streaming
- Network Functions Virtualization (NFV)
- Other Applications
Edge Data Centers Market Assessment - by End-use Sector
- IT & Telecommunications
- Automotive
- Transportation & Logistics
- Healthcare
- Energy & Utilities
- Manufacturing
- Government & Defense
- Retail
- Other End-use Sectors
Edge data centers Market Assessment - by Geography
- North America
- U.S.
- Canada
- Asia-Pacific
- Japan
- China
- India
- South Korea
- Rest of Asia-Pacific
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Rest of Europe
- Latin America
- Middle East & Africa
Table of Contents
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Insights
5. Edge Data Centers Market Assessment - by Type
6. Edge Data Centers Market Assessment - by Component
7. Edge Data Centers Market Assessment - by Deployment Mode
8. Edge Data Centers Market Assessment - by Organization Size
9. Edge Data Centers Market Assessment - by Application
10. Edge Data Centers Market Assessment - by End-use Sector
11. Edge Data Centers Market Assessment - by Geography
12. Competition Analysis
13. Company Profiles
14. Appendix
Companies Mentioned
- 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 Group Corporation(U.S.)
- Nokia Corporation (Finland)
- EdgeConneX Inc. (U.S.)
- Reichle & De-Massari AG (Switzerland)
- Ubiquity Management LLC (U.S.)
- Vapor IO Inc. (U.S.).
