Dublin, Aug. 08, 2023 (GLOBE NEWSWIRE) -- The "Edge Data Center Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts - 2023 to 2031" report has been added to ResearchAndMarkets.com's offering.
The global edge data center market is poised to experience rapid growth, with a projected Compound Annual Growth Rate (CAGR) of 22% from 2023 to 2031.
This growth is driven by the increasing demand for low-latency data processing and storage solutions, leading to the adoption of edge data centers. Edge data centers are decentralized facilities strategically located closer to end-users, enabling faster data processing and reduced network congestion.
These data centers play a critical role in supporting emerging technologies such as 5G, the Internet of Things (IoT), and artificial intelligence (AI), which require real-time data processing capabilities. The market revenue for edge data centers is expected to reach several billion dollars in the coming years due to the growing adoption of edge computing solutions across various industries.
Key Drivers of Market Growth
- Increasing Demand for Low-Latency Applications: With the proliferation of data-intensive technologies like IoT, 5G, and AI, there is a growing need for real-time data processing and analysis. Edge data centers bring processing power closer to end-users, reducing latency and enabling faster response times. This is crucial for applications requiring real-time analytics, such as autonomous vehicles, smart cities, and remote healthcare monitoring.
- Surge in Data Generation: The exponential growth in data generation from connected devices, IoT sensors, and digitalization has resulted in an unprecedented amount of data being generated. Edge data centers play a critical role in processing and analyzing this massive volume of data closer to the source, facilitating predictive maintenance, and optimizing production processes, among other applications.
- Growing Adoption of Edge Computing: Edge computing brings computation and data storage closer to edge devices, reducing the need for sending data to centralized data centers or the cloud for processing. This decentralized approach offers advantages such as reduced network congestion, lower latency, improved security, and enhanced reliability. As industries embrace edge computing for various use cases, the need for edge data centers increases.
Challenges to Market Growth
- Limited Infrastructure and Connectivity: One major restraint facing the edge data center market is the limited infrastructure and connectivity in certain regions. In remote or underdeveloped areas, the availability of adequate power supply, high-speed internet connectivity, and network infrastructure may be limited, hindering the effective deployment and operation of edge data centers.
Market Segmentation
The edge data center market is segmented based on components, data center size, and verticals.
- Components: The market includes solutions (such as DCIM and analytics, power, cooling, networking equipment, and others) and services (including integration and implementation, consulting, and managed services).
- Data Center Size: Segments include micro data centers, hyperscale/enterprise data centers, and others.
- Verticals: Industries like IT and Telecom, BFSI, Healthcare and Lifesciences, Manufacturing, Government, Automotive, Gaming and Entertainment, Retail and E-commerce, and others are covered.
Regional Outlook
- North America: The region dominated the market in 2022, driven by the presence of established technology companies, increased data generation, and the need for low-latency computing infrastructure.
- Europe: Strong demand for edge computing solutions in countries like Germany, the UK, and France is driving the market's growth.
- Asia Pacific: Rapid growth in countries like China, Japan, and India is expected, with factors like increasing population, rising smartphone penetration, and the emergence of smart cities contributing to the demand for edge data centers.
- Latin America: The region is projected to witness significant growth, driven by the growing adoption of IoT devices, digital transformation initiatives, and real-time data processing needs.
Competitive Landscape
The edge data center market is highly competitive, with key players such as:
- Schneider Electric SE
- Vertiv Co.
- Hewlett Packard Enterprise Development LP
- Huawei Technologies Co., Ltd.
- IBM Corporation
These companies are focusing on innovation, product development, and offering comprehensive services to maintain their competitive edge.
The study represents an analysis of each segment from 2021 to 2031, with a CAGR estimation for each segment during the forecast period of 2023 to 2031.
For more information about this report visit https://www.researchandmarkets.com/r/ey3107
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