04-09-2025 10:24 AM CET |
Press release from: Insightace Analytic Pvt Ltd.
Edge Data Center Market
InsightAce Analytic Pvt. Ltd. Announces the release of a market assessment report on the "Edge Data Center Market"-, By End-Use Industry (IT and Telecom, Banking, Financial Services, Insurance (BFSI), Government and Public Sector, Healthcare, Manufacturing, Automotive, Retail, Others), By Data Center Type (On-Premise Edge, Network Edge, Regional Edge), and Global Forecasts, 2024-2031 And Segment Revenue and Forecast To 2031."
The Edge Data Center Market is estimated to reach over USD 61.2 billion by 2031, exhibiting a CAGR of 18.1% during the forecast period.
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Edge data centers are smaller, decentralized facilities designed to bring computational power closer to the data source, thereby improving user experience by reducing latency and enhancing response times through local data processing. Various industries, including smart cities, healthcare, and telecommunications, are increasingly adopting edge data centers to optimize service efficiency. These centers enable the real-time handling and analysis of data, which is essential for applications such as augmented reality, autonomous vehicles, and the Internet of Things (IoT).
The growing demand for edge computing solutions underscores the need for data-driven decision-making in businesses. Key drivers of the expansion of edge data centers include the demand for low-latency services and the large volumes of data generated by connected devices. As more organizations undergo digital transformation, substantial investments in edge infrastructure are expected. As a result, edge data centers are poised to play a crucial role in data processing and management, enabling businesses to maintain competitiveness in the rapidly evolving digital landscape.
The banking, financial services, and insurance (BFSI) sector, which requires real-time processing for activities such as transaction verification, fraud detection, and market data analysis, benefits from the capabilities of edge data centers, which minimize latency through localized data processing. Given the sector's handling of sensitive data and the need to comply with stringent data privacy regulations, edge data centers enhance security by keeping data close to its source, thereby supporting regulatory compliance. The anticipated deployment of 5G networks is expected to further increase the demand for edge data centers, as ultra-low latency and high-speed connectivity are critical for optimal performance.
Additionally, the integration of artificial intelligence (AI) into edge data centers is expected to improve operational efficiency by enabling real-time analytics and decision-making. With growing emphasis on sustainability, the industry is also witnessing a shift toward energy-efficient technologies and renewable energy sources in data center operations. Furthermore, the increasing adoption of hybrid cloud models is driving the demand for edge data centers, as organizations seek to integrate on-premises infrastructure with cloud capabilities to enhance agility. The expanding use of IoT applications is also likely to accelerate the growth of edge data centers, as they are essential for supporting localized data processing for a wide range of connected devices.
List of Prominent Players in the Edge Data Center Market:
•ATLASEDGE DATA CENTRES
•ATC TRS V LLC
•Cologix
•Vapor IO
•DartPoints
•Digital Realty
•Edge Centres
•EdgeConneX
•Ubiquity Management, LLC
•Leading Edge Data Centres
•Proximity Data Centres
•Switch
•Vertiv Group Corp
•Evoque Data Center Solutions
•Flexential
•DELL
•EATON
•IBM
•NVIDIA
•Schneider Electric
•Fujitsu
•Cisco
•Huawei
•365 Data Centers
•Rittal
•Panduit
•Equinix
•Sunbird
•Vertiv Group
•Huber+Suhner
•Siemon
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Market Dynamics:
The global rollout of 5G networks serves as a primary catalyst for the growth of edge data centers, as these networks demand low-latency, high-speed connections for optimal functionality. Edge data centers provide the essential infrastructure to meet the needs of 5G, particularly for applications such as the Internet of Things (IoT), connected devices, and high-bandwidth content delivery. As the volume of data generated by digital services continues to rise, edge data centers are increasingly critical for managing and processing this data efficiently. By localizing data processing, these centers help alleviate the burden on traditional cloud data centers, enhancing overall system performance. Additionally, there is a growing emphasis on sustainability within data center operations. Edge data centers, being smaller and more localized, offer a more energy-efficient alternative to traditional large-scale centralized data centers, contributing to a reduction in energy consumption and carbon footprints. These centers are also designed to be modular and scalable, enabling businesses to expand their infrastructure in a cost-effective manner without necessitating significant overhauls to centralized systems.
Challenges:
One of the key challenges hindering the deployment and maintenance of edge data centers is the shortage of qualified professionals in critical areas such as edge computing, artificial intelligence (AI), cybersecurity, and infrastructure management. This skills gap poses a significant barrier for businesses seeking to implement and manage edge solutions effectively.
Regional Trends:
North America is expected to maintain the largest market share throughout the forecast period, driven by a high adoption rate of cloud services and the increasing use of hybrid cloud models. The need for seamless integration with central cloud infrastructure further fuels demand for edge data centers. As a leading market for financial services and healthcare, North America places a strong emphasis on regulatory compliance (e.g., GDPR, CCPA) and data security, making edge data centers essential for ensuring data protection and regional data processing. In contrast, the Asia-Pacific region is witnessing rapid growth, particularly in industries such as manufacturing, retail, and telecommunications, which are driving the demand for edge computing solutions. The proliferation of IoT devices, particularly in sectors such as automotive, manufacturing, and smart homes, is a major factor accelerating the adoption of edge data centers in this region. Many countries within Asia-Pacific are investing heavily in digital infrastructure, with edge data centers playing a vital role in ensuring network efficiency and performance.
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Recent Developments:
•In March 2024, Schneider Electric announced a collaboration with NVIDIA to streamline data center infrastructure and open the door for revolutionary developments in digital twin and edge artificial intelligence (AI) technologies. Schneider Electric will release the first AI data center reference designs that are openly accessible by utilizing its knowledge of data center architecture and NVIDIA's cutting-edge AI technologies. These designs will signal a critical turning point in the development of the industry by redefining the standards for AI deployment and operation within data center ecosystems.
•In June 2023, Dell, extended its Dell Private Wireless Program with the goal of providing edge locations with secure enterprise connectivity. Businesses now have more alternatives for dependable wireless connectivity at the edge thanks to the program's support for Airspan and Druid wireless solutions.
•In April 2023, Leonardo and Cisco signed a Memorandum of Understanding (MoU). Under the terms of the MoU, activities will be supported by specialized working groups that will periodically and collaboratively identify business opportunities and areas of technical cooperation to meet market demands, especially in the areas of cloud edge computing, cybersecurity, secure networking, IoT, and digital workplace.
Segmentation of Edge Data Center Market.
Global Edge Data Center Market- By End-Use Industry
•IT and Telecom
•Banking, Financial Services, and Insurance (BFSI)
•Government and Public Sector
•Healthcare
•Manufacturing
•Automotive
•Retail
•Others
Global Edge Data Center Market - By Data Center Type
•On-Premise Edge
•Network Edge
•Regional Edge
Global Edge Data Center Market - By Region
North America-
•The US
•Canada
•Mexico
Europe-
•Germany
•The UK
•France
•Italy
•Spain
•Rest of Europe
Asia-Pacific-
•China
•Japan
•India
•South Korea
•Southeast Asia
•Rest of Asia Pacific
Latin America-
•Brazil
•Argentina
•Rest of Latin America
Middle East & Africa-
•GCC Countries
•South Africa
•Rest of the Middle East and Africa
About Us:
InsightAce Analytic is a market research and consulting firm that enables clients to make strategic decisions. Our qualitative and quantitative market intelligence solutions inform the need for market and competitive intelligence to expand businesses. We help clients gain competitive advantage by identifying untapped markets, exploring new and competing technologies, segmenting potential markets and repositioning products. Our expertise is in providing syndicated and custom market intelligence reports with an in-depth analysis with key market insights in a timely and cost-effective manner.
Contact us:
InsightAce Analytic Pvt. Ltd.
Visit: www.insightaceanalytic.com
Tel : +1 551 226 6109
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info@insightaceanalytic.com
This release was published on openPR.
