Edge Data Center Market Worth $19.1 Billion By 2026 - Report by MarketsandMarkets™

·9 min read
MarketsandMarkets Research Pvt. Ltd.
MarketsandMarkets Research Pvt. Ltd.

Chicago, Aug. 19, 2022 (GLOBE NEWSWIRE) -- Edge Data Center Market size is expected to grow from USD 7.2 billion in 2021 to USD 19.1 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 21.4% during the forecast period according to a new report by MarketsandMarkets™. Edge data center solutions and services are rapidly gaining acceptance globally by large enterprises as well as mid-sized enterprises and small enterprises due to various benefits, growing adoption of automation and digitalization and the increase in adoption of BYOD and advent of 5G network to deliver instant communication experiences. The presence of many edge data center providers has made the market competitive. Many emerging players providing niche and differentiated offerings for target customers have come to the forefront.

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Browse in-depth TOC on "Edge Data Center Market
169 - Tables
59 - Figures
197 - Pages

Scope of the Report

Report Metrics

Details

Market size available for years

2020-2026

Base year considered

2020

Forecast period

2021-2026

Forecast units

Value (USD Million)

Market Value in 2021

USD 7.2 billion

Forecast Value in 2026

USD 19.1 billion

Segments covered

Component (Solutions and Services), Solutions (DCIM and analytics, power, cooling, networking equipments, and others (IT racks and enclosures)), Services (integration and implementation, consulting, and managed), Facility Size (small and medium, and large facility), Verticals, and Regions

Regions covered

North America, Europe, APAC, MEA, and Latin America

Companies covered

Cisco (US), Dell Technologies (US), Eaton (Ireland), Fujitsu ( Japan), HPE (US), Huawei (China), IBM (US), NVIDIA (US), Schneider Electric (France), Vertiv Group (Ohio), CommScope (US), Compass Datacenters (US), 365 Data Centers (US), EdgeConnex (US), and EdgeMicro (US)

The solutions of edge data center is gaining popularity in the field service landscape and is expected to account for the largest market size during the forecast period. In this IT-intensive world with heavy data traffic, an edge data center acts as a caching and data-aggregation point between users and larger data centers to ease the overwhelming IT load. As the demand for data and accessible information continues to become more critical to businesses, IT professionals are facing challenges in terms of technology solutions. To overcome these challenges, several vendors provide various data center solutions such as DCIM and analytics, power, cooling, networking equipment, and others (IT racks and enclosures).

The networking equipment solution is likely to share large revenues in the estimated year. Networking solutions help optimize data centers based on an open ecosystem where organizations can pick from innovative, industry-standard network applications, OS, and hardware. It enables organizations to take their pick from innovative, industry-standard network applications, network operating systems, and network hardware. Open networking solutions enable IT managers to build an application-agnostic infrastructure and simplify data center management with standard automation tools and standards-based open platforms. Networking equipment provides virtual network services that run on a modular infrastructure platform, optimized for instant deployment and interconnection of network services and enables users to select, deploy, and connect to various virtual network services. It is used to deploy network services in proximity to the cloud providers and end users; unlock new use cases that core IT deployment models can’t handle such as IoT, machine learning, AI, and more.

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The integration and implementation services are likely to share large revenues in the estimated year. The proper deployment of edge data center solutions is important for various network systems and network infrastructure. Trained professionals are required for deploying a solution. Integration service providers aim at providing seamless integration of the platform with other tools such as CRM, analytics tools, AI-powered matchmaking assistance to enhance engagement, and networking opportunities of like minded individuals. Implementation and integration services help reduce the complexities in configuring the edge data center solutions.

The large facility size is likely to share large revenues in the estimated year. The large facility segment includes facilities with 12-49 or above racks with a power draw of 12 to 14 kw/rack or cabinet. These large facility data centers are ideal for businesses with several branch offices, as they easily support and expand the data center capabilities of organizations. They are also ideal for space-saving, require less time for deployment, and provide means for cost saving.

The IT and Telecom vertical accounts for the largest market share during the forecast period. The IT and telecom sector is witnessing fast growth as several users are connecting to the internet every day. Telecom users are using social media to post real-time events, further fueling the growth in data center traffic. Service providers are witnessing a surge in demand for data services, which has resulted in an exponential growth in the demand for an efficient mobile computing platform. Moreover, as the number of users generating data traffic within a region is increasing, the setting up of high-density networks is inevitable. These data centers come as a complete IT solution for the telecom and IT industry, integrated with high-end equipment and network technologies for high-density network zones. Micro mobile data centers work as a network hub for Internet Service Providers (ISPs) and can be used for enhancing the speed of data transfer. Owing to their benefits in terms of portability and scalability, edge data centers are witnessing a growing adoption for mobile computing and in high-density networks. Micro mobile data centers reduce response times and lower the operational costs. Hence, these solutions are witnessing increased adoption in the IT and telecom industry. Companies such as IBM and Vapor IO are providing edge data centers to cater to the demand from the IT and telecom vertical.

APAC is projected to witness the fastest growth rate in the coming years. APAC has witnessed the advanced and dynamic adoption of new technologies and is projected to record the highest CAGR during the forecast period. In addition, IT spending across organizations in the region is gradually increasing, which is projected to lead to a surge in the adoption of edge data center. APAC is expected to experience extensive growth opportunities in the next few years due to the rising adoption of advanced technologies, such as IoT and cloud computing. It is a base to various global telecommunications and edge network companies, including Huawei, Telstra, Vodafone, Optus, China Telecom, Vodafone, and NTT Docomo, which acts as a growth factor for the Edge Data Center Market. However, the adoption of edge data centers in APAC is low compared to North America and Europe. This is due to the lack of awareness among various small and medium-sized companies in the region (according to a survey by Vertiv, a cloud computing technology provider). The survey also exhibited that the adoption of edge data centers is expected to increase massively in the region in the next 3–5 years, due to a shift among Asian retail and BFSI companies toward edge technologies.

According to Statista, the internet user penetration in APAC is growing year-on-year, and in 2019, it is supposed to reach 48.8% of the combined population in the region. APAC would witness fast growth due to the rapid investments in digital transformation and cloud initiatives in countries, such as India, Japan, and especially China. According to a State of The Edge report, in 2020, APAC has the largest edge computing equipment footprint 1 of 187 MW – the highest among regions. The growing demand for hyperscale and hyper-converged infrastructure, coupled with the increasing number of internet-connected users, also fuels the growth of the micro mobile data center market in the region. Leading companies, including Google, Amazon Web Services, and Microsoft, are investing heavily in APAC and are building data center facilities in the region. These heavy investments are further contributing to the growth of the APAC Edge Data Center Market. Owing to the significant technological opportunities provided by the APAC region, various vendors are entering the regional market with their solutions and services.

Key Market Players

The Edge Data Center Market is dominated by companies such as Cisco (US), HPE(US), Huawei (China), IBM (US), Dell Technologies (US), Nokia (Finland), Litmus Automation (US), AWS(US), Foghorn (US), Microsoft (US), VMWare (US), SixSq (Switzerland), EdgeIQ (US), Saguna (Isreal), and Vapour IO (US). These vendors have a large customer base and strong geographic footprint along with organized distribution channels, which helps them to increase revenues.

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