Edge Data Center Market Overview:
Wireless networking has made the process faster and more efficient, with IT administrators able to add more storage space and computing power. Edge computing is focused on optimizing data by performing data processing, collection, and reporting. Edge data centers are used as storage systems. It can improve the efficiency of content delivery of the infrastructure. Edge data centers handle the control of data processing at the edge of a network instead of keeping it in could warehouse. The growing use of Internet services with the rise in do the number of devices has increased the demand for bandwidth-intensive applications. The use of digital services across many industries is changing the way data centers are deployed.
With the increasing distance from the data center, it takes time to deliver the digital services to the customers, so establishing data centers closer to the point of application gives complete control over data processing and storage. With the advancement of technology, the need for reduced traffic networks, low operational cost, real-time data analysis, and performance of the application is increasing, and with it, the data center market is also growing. The edge data center Industry has helped businesses to reach small cities and locations with the growth of IT and telecommunication, healthcare, energy sectors, and banking fueling the edge data center market. The edge data centers helping the business to increase customer experience.
This report shows the edge data center market is expected to grow $1,740 million with a CAGR rate of 13% by 2023. The popularity of online streaming services is increasing, and it is helping the global edge data center market to grow. The servers need high-quality and high bandwidth services to meet the customer requirements. The edge data center works the same as the traditional data center, but it has a smaller size. The data centers are placed near the location they serve, and they can be managed remotely. It is a small computing unit next to a 5G antenna, and it can be extended to a room with 100 to 200 KW. These edge data center has fire protection, cooling system, and great security systems, and it offers great features such as uninterrupted UPS, board cooling, storage systems, and these features boost the edge data center market growth.
Edge Data Center Market Covid-19 Analysis:
The covid-19 pandemic has impacted the global economy, and it was a great challenge for the edge data center market demand. The global edge data center market is affected by the covid-19. Due to the covid-19 pandemic, the lockdown was imposed in many countries. Many big companies were shut down to maintain social distance, and it affected edge data center business. The first half of the covid-19 pandemic reduced the market demand, but growth can be seen in the second half of the pandemic. But as the businesses were shut down, they depended mostly on online activities that increased the data, and data centers worked to increase the channel bandwidth. So, the edge data center market had a mixed impact due to the covid-19 pandemic. After the pandemic, the market is expected to back to its normal growth, and it is expected to grow more.
The EDC market drivers are driving the demand of the market. The Increasing Demand for efficient content delivery among users is one of the major drivers in the market. The Increase adoption of advanced technology, big data, the internet of things, 5G deployment, cloud, and streaming devices is expected to boost the demand of the market. These technologies create a huge amount of data, and it is fueling demand for edge data center solutions. The need for businesses to meet their customers faster is also one of the major drivers in the market. Increasing mobile devices and mobile data traffic is a major factor boosting the global edge data center market. Organizations are investing highly to upgrade their data centers will boost the demand in the coming years. Rising demand to increase the quality, channel capacity, and compatibility to drive the market growth during the forecast period.
Many organizations are adopting edge data center solutions to make their business smooth and more efficient and to reach their customers faster. Enterprises are moving toward digitalization to improve their business efficiently, and it is bringing opportunities to the market. The number of mobile devices has increased rapidly in the past years, and it will help the market to grow.
Edge data center can give so many advantages to businesses, but investing in the edge data center can cost businesses too much money. To take the benefits of the edge data center, the companies need to invest heavily, and this has become a restraint in the edge data center market. After high installation cost, the edge data center needs high installation cost as well, so many businesses are not ready to spend a huge amount of money in the edge data center, and it is reduced the edge data center business demand.
Just like other sectors, the best data center market also faces different challenges that affect its growth. Many organizations are still using the same traditional methods, and they are not upgrading to an edge data center, and it has become one of the biggest challenges for the market to make the organization adopt advanced technology. The high installation cost and maintenance cost is another challenge for the market as it is stopping the edge data center market growth. But the drivers and edge data center market players are trying to overcome the challenges to boost the market demand.
Cumulative Growth Analysis:
The need for edge data centers in enterprises is increasing, and with the adoption of advanced technology, the edge data center market size is expected to grow more in the upcoming years. The market is expected to grow at approximately USD 1,740 million with a CAGR rate of 13% in the forecast period with the increasing need for efficient business operations.
Edge Data Center Market Segment Overview:
The edge data center market segments are on the basis of components, organization size, vertical, and regions.
Edge Data Center Market Regional Analysis:
The major regions of the global edge data center market are North America, Europe, Asia Pacific, and other regions. North America has the highest edge data center market share, and it dominated the market in 2019 due to the great economy, Increasing deployment, commercialization in the region. The Increasing number of online services and growing demand for IT Infrastructure are the major reasons behind the edge data center market in this region.
Europe had a share of 10% in 2019, and it is expected to show 20% growth by 2026. Europe has strong manufacturing sectors that lunch advanced technology such as 5G, robotics, and loT devices. With the increasing adoption of connected devices, the European region is expected to show rapid growth. Europe has many big automotive Industries that produce advanced vehicles that need fast processing of a large amount of data in real-time. And it will drive the growth in this region.
The Asia Pacific is showing faster growth, and it is expected to register the highest CAGR rate in the forecast period. Many online video streaming platforms are expected to boost the demand for edge data center solutions in this region. The Increasing population and an increasing number of mobile devices, with the adoption of cloud solutions, will boost the growth edge data center market share in this region.
Edge Data Center Market Competitive Landscape:
Major edge data center market key players are
|Market Size||USD 1,740 Million (2023)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Components, By Service, By Organization Size|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Rittal (Germany),Cisco Systems, Inc. (U.S.), Elliptical Mobile Solutions (U.S.), Huawei Technologies Co. Ltd. (China), Panduit Corp (U.S.), Anixter International (U.S.), Wave-2-Wave Solution Corporation (U.S.), Zellabox (Australia), Dell Inc. (U.S.), Silicon Graphics, Inc. (U.S.)|
|Key Market Opportunities||Rising complexities within the IT infrastructure, growing data traffic and increasing complexities within data centers are driving the edge data center market.|
|Key Market Drivers||The edge data center are resistant to rough weather that is key feature driving micro mobile data center market.|
Frequently Asked Questions (FAQ) :
The emerging trend in the edge data center industry is directed towards the high level of computing and network infrastructure used for operating IoT software. These are also boosting the market.
North America will be leading the edge data center market than other regions in terms of market share.
The futuristic valuation of the market is calculated for USD 1,740 Million by 2023.
components, organization size and vertical are the segments involved in the segmental analysis of the market.
Huawei Technologies Co. Ltd. (China) Cisco Systems, Inc. (U.S.), Elliptical Mobile Solutions (U.S.), Rittal (Germany), are the key players investing in the market share significantly.