Global Edge Data Center Market Insights, Forecast to 2028

Edge Data Center Market Statistics 2028

Due to the COVID-19 pandemic and Russia-Ukraine War Influence, the global market for Edge Data Centers estimated at USD 1275 million in the year 2022, is projected to reach a revised size of USD 2354.1 million by 2028, growing at a CAGR of 10.8% during the forecast period 2022-2028. The Edge Data Center Market is expanding as a result of the adoption of SDN and NFV technology, video streaming, AR/VR, the emergence of 5G, the proliferation of IoT, and the widening data gap.

Edge Data Center Market Trends

As users move to take advantage of the advantages of field service solutions, such as expansions and lower costs, the COVID-19 pandemic has increased the adoption of edge data center solutions across industry verticals. Despite the global economic downturn, the majority of subscription businesses are expanding at a similar rate, with no adverse effects from the COVID-19 epidemic. This element is anticipated to fuel the Edge Data Center Market.

The introduction of 5G, the development of IoT, the widening data gap, the uptake of SDN and NFV technology, video streaming, and AR/VR are all predicted to fuel the growth of the edge data center market. Decentralized small cell networks at the edge data centers provide low-cost, low-latency support for 5G use cases needing a lot of devices. Low-latency edge processing is necessary to handle the increasing volume of data as the Internet of Things (IoT) sensors and devices are installed in residential and business settings. Thanks to software-defined networking and network function virtualization, expensive specialized hardware can be replaced by data center software. Edge data centers that are decentralized and affordably provide the performance that customers and business users need while decreasing streaming latency.

Edge data centers are also used in the banking, financial services, and insurance industries to improve fraud detection and prevention. By processing data closer to where it is created, these industries can reduce the risk of data breaches and protect private customer information. The market for edge data centers will continue to expand as a result of this factor.

Smart factories employ edge computing to process sensor data in real time and alter manufacturing lines as necessary. Companies may become more adaptable and responsive to changes in demand with less waste and increased efficiency. In the logistics and transportation industry, edge data centers are used to track items in real-time, allowing businesses to optimize delivery routes and reduce costs. Additionally, edge data centers can be utilized to monitor environmental conditions during delivery, shielding delicate commodities from extreme heat or humidity. This element is anticipated to fuel the edge data center market.

Smart factories employ edge computing to process sensor data in real time and alter manufacturing lines as necessary. Companies may become more adaptable and responsive to changes in demand with less waste and increased efficiency. In the logistics and transportation industry, edge data centers are used to track items in real-time, allowing businesses to optimize delivery routes and reduce costs. Additionally, edge data centers can be utilized to monitor environmental conditions during delivery, shielding delicate commodities from extreme heat or humidity. Thus, the growing use of edge data centers in logistics, transportation, and smart factories will further propel edge data center market growth.

Edge Data Center Market Share Analysis

The market for edge data centers will increase throughout the forecast period due to the sector providing data center solutions. IT specialists are having trouble coming up with technological fixes as the importance of having access to data and information for businesses keeps expanding. To address these issues, numerous vendors provide a range of data center solutions, including DCIM and analytics, power, cooling, networking equipment, and others. 

APAC is anticipated to have the fastest growth rate. Throughout the projection period, APAC is anticipated to have the quickest CAGR because of its advanced and rapid adoption of new technologies. Additionally, businesses in the region are gradually increasing their IT expenditures, which is expected to lead to a rise in the deployment of edge data centers. 

Segment by Type

• Data Center Solutions
• Data Center Service

Segment by Application

• BFSI
• Energy
• Government
• Healthcare
• Manufacturing
• IT & Telecom
• Other

BY COMPANY

• 365 Data Centers
• EdgeConneX
• Huawei
• Schneider Electric
• vXchnge

BY REGION

• North America
• United States
• Canada
• Europe
• Germany
• France
• UK
• Italy
• Russia
• Nordic Countries
• Rest of Europe
• Asia-Pacific
• China
• Japan
• South Korea
• Southeast Asia
• India
• Australia
• Rest of Asia
• Latin America
• Mexico
• Brazil
• Rest of Latin America
• Middle East & Africa
• Turkey
• Saudi Arabia
• UAE
• Rest of MEA

Scope of the Edge Data Center Market Report