The expansion of 5G networks and advancements in technology are anticipated to fuel the demand for edge data centers. The proliferation of cloud computing and the evolution of the internet are also expected to be key drivers behind the growth of edge data centers.
In 2022, the edge data center market generated revenue of US$ 9.7 billion. Analysts predict that this global market will expand significantly and reach a value of US$ 57.8 billion by 2031. Over the period from 2023 to 2031, the edge data center market is expected to grow at a compound annual growth rate (CAGR) of 22.1%. This indicates a strong and sustained growth trajectory for the edge data center industry in the coming years.
There has been a boom in data center demand as businesses and economies around the world increasingly rely on digital infrastructure. Using cloud computing, cloud-native applications will benefit from scalability, agility, and cost savings. A microservices architecture and container technology are used to create these applications, and they can be deployed across multiple cloud environments easily and quickly.
To enhance the performance of applications such as streaming video, telemedicine, and factory automation, various entities including enterprises, cloud service providers, and telecom companies are making significant investments in digital edge data centers (DCs). These data centers play a crucial role in supporting emerging technologies like augmented reality (AR), virtual reality (VR), and autonomous cars.
For example, RailTel, a government-owned public sector unit (PSU) in India, has plans to establish 102 edge data centers in tier-2 and tier-3 cities. Additionally, Cloud Technologies and NxtGen Datacenter have committed to building 236 edge data centers. In parallel, the Telecom Regulatory Authority of India (TRAI) is nearing the completion of a 5G spectrum trial, while the Department of Telecommunications (DoT) is actively promoting 5G auctions.
These developments highlight the growing recognition of the importance of edge data centers in enabling faster and more efficient digital services, as well as the efforts being made to advance the deployment of 5G technology to further enhance connectivity and enable new use cases.
Key Findings of the Market Report
– Edge computing demand is an extremely promising market opportunity that will likely boost edge data center market share over the next few years.
– Edge data centers are expected to gain popularity as the demand for real-time agility increases.
– Several users around the world are connecting to the internet, fueling rapid growth in the IT and telecom sector.
– A growing number of SMEs and large enterprises are expected to increase the demand for edge data centers in the coming years.
– A surge in data center maintenance and optimization capabilities will propel the growth of the service segment.
Global Edge Data Center Market – Growth Drivers
– The proliferation of smartphones has led to increased internet usage for activities like online banking and shopping, making streaming services more prevalent. This, along with the impact of cloud computing, the internet, the internet of things (IoT), and the COVID-19 pandemic, has accelerated the growth of the data center industry.
– Organizations are increasingly migrating their workloads to the cloud due to the benefits of cloud computing and the rise of remote working. The IoT enables the collection and exchange of data between connected devices, and edge data centers play a vital role in storing and processing this data, allowing for real-time analytics and insights.
– The introduction of 5G networks brings faster data processing, lower latency, and more reliable connections compared to traditional 4G networks. This opens up new possibilities for connected cars, smart cities, and IoT applications.
– Artificial intelligence (AI) plays a significant role in leveraging data for autonomous decision-making by machines. Edge data centers prove beneficial for AI applications such as machine learning, natural language processing, and computer vision, enabling efficient processing and analysis of data at the edge of the network.
Analysis of Key Players
– The market research report on the edge data center industry provides comprehensive profiles of major service providers. These profiles are based on various parameters including financials, key product offerings, recent developments, and strategies employed by the companies.
– Leading manufacturers in the edge data center market include 365 Data Centers, Eaton Corporation plc, EdgeConneX Inc., Vertiv Group Corp., Reichle & De-Massari (R&M), Dätwyler Cabling Solutions AG, L&T Smart World, Siemon, Rittal GmbH & Co. KG, H5 Data Centers, and NEXTDC LTD. These companies have established themselves as key players in the market.
– Service providers are actively adapting to the latest trends in the edge data center market to explore new opportunities and maintain a competitive edge. By staying updated with emerging technologies and market demands, these providers strive to position themselves at the forefront of the industry.
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