Edge Data Center Market to Reach $20B by 2026

November 10, 2020

The Edge data center market will surpass $20 billion by 2026 annually, according to a recent study from market research firm Global Market Insights.

Propelling market growth, Verizon Wireless launched the 5G mobile service in 2019 in more than 30 cities. The emergence of 5G wireless infrastructure has urged data center operators to opt for edge computing infrastructure to work with networks offering lower latency and higher resiliency.

The edge data center market comprises smaller facilities connected to larger data centers or multiple data centers that work to render cached content and cloud computing services to end-users. The demand for efficient data centers will be augmented by many factors including the introduction of 5G technology across the globe and the growing trend of autonomous or self-driving vehicles and smart cities.

Reportedly, nearly 85 percent of households in the United States own a computer, out of which 70 percent are connected to the internet. As the majority of the population in the United States are connected to a data network, the demand for data centers in the region is poised to grow substantially.

Deployment of technologies like Content Distribution Networks (CDN) and IoT has led to reduced telecommunications latency and bandwidth costs by distributing data centers near the points of utilization. Telecom operators are shifting their preferences towards edge computing to improve network latency and coverage. Furthermore, there is an augmenting demand from compute-intensive applications for efficient data centers.

The developing IT and telecom sector in several countries globally will foster substantial growth for the edge data center market. The launch of 5G network services in the United States and Europe will positively influence the need of acquiring efficient data storage solutions in the region. The high-speed 5G networks rely heavily on efficient data availability and storage facility. To cater to the rising data processing requirements, major telecommunication companies are incorporating edge data center solutions.

Edge computing ensures faster response time and enhanced experience of the customers by enabling efficient data analysis. A large number of connected devices have created unprecedented network traffic and complexity of data. To cope-up with the current crisis of network bandwidth and the complexity of managing an abundance of data, the edge data center solutions are witnessing considerable demand, especially from the telecom industry.

The edge data center market in the Middle East and Africa will observe a lucrative growth on account of the rapid industrialization and digitalization in the region. The governments in the region are emphasizing on establishing a globally integrated market environment and building of modern economies by initiating several programs such as Abu Dhabi Economic Vision 2030 and UAE Vision 2021. The surging number of businesses incorporating advanced digital techniques will boost the demand for edge data center equipment.

Digital Realty and Equinix Inc., major colocation providers, have entered the data center business in the Middle East & Africa. The extensive growth of online businesses and IoT in the region has propelled the adoption rate of edge data centers.

The advancement of information technology and rapid development across all sectors has led to the introduction of various innovative products and services to enhance the lifestyles of the human being. Rapid advancements in the IT sector have encouraged the need for edge data centers that store, compute, and retrieve data as per requirements.

Key Companies covered in edge data center market are 365 Operating Company, Dell Technologies, Eaton Corporation, EdgeConneX, EdgeMicro, EdgePresence, Flexential Corporation, Fujitsu Ltd., Hewlett Packard Enterprise (HPE), Huawei Technologies, IBM Corporation, Netrality Properties LP, NVIDIA Corporation, Panduit Corporation, Rittal Gmbh & Co. KG, Schneider Electric SE, Servtech, Smart Edge Data Centres, Systel, Vapor IO, Vertiv Group, vXchnge Holdings, Zella DC.

Source: Global Market Insights