Edge Data Center Market Highlights

• Global edge data center market revenue is poised to garner USD 56.7 billion by 2032 with a CAGR of 20.5% from 2024 to 2032
• North America edge data center market value occupied around USD 3.67 billion in 2023
• Asia Pacific edge data center market growth will record a CAGR of more than 21.4% from 2024 to 2032
• Among component, the solution sub-segment generated 87% of the market share in 2023
• Based on facility size, large facility sub-segment generated 79% of market share in 2023
• The manufacturing and automotive sub-segment accounted for 21% of the market share based on application
• Growing focus on energy efficiency and sustainability, with advancements in cooling and power management is the edge data center market trend that fuels the industry demand

Edge data centers are access systems and data storage facilities that are located close to the end user and improve the effectiveness of their data delivery network. Edge data centers create organized ecosystems at the outskirts of cities, far from traditional core centers. Edge data centers process data at the network's edge rather than in a centralized warehouse or cloud. The worldwide edge data center market is expected to increase over the forecast period. Furthermore, market participants are largely focused on developing new innovative technologies to support the growth of the edge data center market.

Global Edge Data Center Market Dynamics

Market Drivers

• Increasing demand for low-latency processing and real-time data analysis
• Growing adoption of IoT devices and 5G networks
• Rising need for edge computing to support AI and machine learning applications

Market Restraints

• High initial investment and operational costs
• Limited infrastructure and skilled workforce in remote locations
• Security and data privacy concerns associated with edge deployments

Market Opportunities

• Expansion of smart cities and autonomous vehicle networks
• Integration of edge computing with cloud services for hybrid solutions
• Development of advanced cooling and energy-efficient technologies for edge data centers

Edge Data Center Market Report Coverage

Edge Data Center Market Insights

The rapid growth in demand for over-the-top (OTT) high-quality content, the proliferation of IoT, the mounting need for secure computing environments, growing data storage requirements in metro areas and the rise in CDN traffic are some of the fundamental factors driving the edge data center market growth globally. The rapid increase in demand for high-quality over-the-top (OTT) content is prompting firms to build network services at edge locations. These capabilities include networking modules, self-contained data centers that connect with computers, and the ability to run applications and store data in a secure computing environment.

A number of telecom and service companies are experiencing increased demand for edge facilities as the demand for high processing capacity grows. Furthermore, multiple service providers are rapidly offering personalized offerings, creating attractive potential in the edge data center sector.

The increased prevalence of IoT is driving service providers to move their offerings closer to the network edge. A number of telecom and service companies are experiencing increased demand for edge facilities as the demand for high processing capacity grows. However, the high costs connected with the facilities may impede the growth of the global edge data center market.

Edge Data Center Market Segmentation

The worldwide market for edge data center is split based on component, facility size, application, and geography.

Edge Data Center Component

• Solution
  • Cooling
  • Power
    • UPS
  • IT racks & enclosures
  • Networking equipment
  • DCIM
• Service
  • Installation & integration
  • Managed
  • Consulting

According to the edge data center industry analysis, solution component dominates in market. This component is essential for processing and managing data closer to the source, lowering latency and enhancing real-time decision-making. As more enterprises implement IoT and AI-powered applications, demand for comprehensive and integrated solutions continues to drive market growth. The capacity of these solutions to provide scalability, security, and efficiency strengthens their position in this rapid evolving market.

Edge Data Center Facility Size

• Small and Medium Facility
• Large Facility

The large facility segment is the largest facility size category in the edge data center market, due to its ability to support extensive data processing and storage needs closer to end-users, thereby reducing latency and improving efficiency. These facilities are typically located in strategic areas to handle high data volumes, making them essential for industries requiring rapid data access, such as telecommunications and cloud services. Their scalability and capacity to handle diverse workloads make them the preferred choice for enterprises looking to enhance their edge computing capabilities.

Edge Data Center Application

• IT and Telecom
• BFSI
• Healthcare and Lifesciences
• Manufacturing & Automotive
• Government
• Gaming and Entertainment
• Retail and E-Commerce
• Others

The edge data center market is largely driven by the manufacturing and automotive sectors due to their need for real-time data processing and reduced latency. These industries rely on edge computing to support advanced automation, predictive maintenance, and efficient operations. By deploying edge data centers closer to their facilities, they can handle vast amounts of data locally, leading to faster decision-making and enhanced performance. This localized infrastructure helps them meet the growing demand for quick, reliable data processing and analysis.

Edge Data Center Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Edge Data Center Market Regional Analysis

For several reasons, North America is the largest revenue-generating region in the global edge data center market. North America is expected to develop at a rapid pace during the forecast period due to the increased adoption of advanced computing technologies and the presence of a significant number of global players in the IT and telecom sectors in the area. For instance, in January 2024, IBM and American Tower teamed up to improve cloud services at the edge for businesses. They plan to create a combined cloud platform that works across different systems, using their expertise in digital infrastructure and cloud technologies. Several economies, including the United States and Canada, are installing these facilities to improve the efficacy and productivity of company operations across various industry verticals.

The Asia-Pacific region's edge data center market is expanding rapidly due to increased digital transformation, rising internet penetration, and the proliferation of IoT devices. For instance, According to a survey by the China Internet Network Information Center (CNNIC), China had 1.09 billion internet users by the end of December 2023, which is a 1.9% increase compared to the previous year. The internet penetration rate in China reached 77.5%. Countries such as China, India, and Japan are leading the demand boom, which is being driven by the need for low-latency data processing and the expansion of cloud services.

Edge Data Center Market Players

Some of the top edge data center companies offered in our report include Eaton Corporation, Huawei Technologies Co., Ltd., Hewlett-Packard Enterprise Company, Rittal GmbH & Co. KG, IBM Corporation, 365 Operating Company LLC., Flexential Corporation, Schneider Electric SA, Fujitsu Ltd., Vapor IO, Inc., Panduit Corporation and EdgeConneX, Inc.