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Edge Data Center Market is Projected to Reach USD 20 Billion by 2026

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Edge Data Center Market is Projected to Reach USD 20 Billion by 2026

According to a recent study from market research firm Global Market Insights, the edge data center market will surpass US$20 billion by 2026 with regard to annual valuation. Mentioned below are some factors propelling market growth. Verizon Wireless launched the 5G mobile service in 2019 in more than 30 cities in the U.S.A. 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. Multi-access Edge Computing (MEC) tool aids network services to closely connect to the users.

Edge data center market are 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% of households in the U.S. own a computer, out of which 70% are connected to the internet. As the majority of the population in the U.S. is 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 U.S. 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 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 the edge data center market are 365 Operating Company LLC, Dell Technologies, Inc., Eaton Corporation, EdgeConneX, Inc., EdgeMicro, EdgePresence, Flexential Corporation, Fujitsu Ltd., Hewlett Packard Enterprise (HPE) Company, Huawei Technologies Co., Ltd., IBM Corporation, Netrality Properties LP, NVIDIA Corporation, Panduit Corporation, Rittal Gmbh & Co. KG, Schneider Electric SE, Servtech Inc., Smart Edge Data Centres Limited, Systel, Inc., Vapor IO, Inc., Vertiv Group Co., vXchnge Holdings LLC, Zella DC.