Edge Data Center Market Size and Future Scope

Edge Data Center are small data centers located near the network’s edge. They provide the same devices as traditional data centers, but with a smaller footprint and closer proximity to end users and other devices. Edge data centers, as the name implies, are located at the network’s edge. They are located near the people they serve and are relatively small facilities. They are also in charge of providing cloud computing resources and caching material to end users.

Today in this article, we will be studying the Edge Data Center Market Size & future scope.

We are aware that the capacity to create an amazing client experience anytime, anyplace powers the modern digital world. This calls for fast information access and a fundamental change in how customers view data centers. The majority of the major companies have migrated to evolving data centers using virtualization and software-defined networks, co-location spaces, public and private clouds, and edge clouds. The move toward Edge Data Centers is being made because of their smart agility, practicality, and affordability. More than 90% of IT firms believe that their environment has become complicated and impenetrable, according to Grand View Research.

According to a survey from the Irish analytics company ResearchAndMarkets.com, the market for edge data center services and equipment will expand at a compound annual rate of 17% over the following five years, pushing the market’s overall size above $18 billion by 2026.

According to the report, edge data centers—which are described as “small data centers located close to the edge of a network”—are currently a $9.3 billion global market that the researchers predict will nearly double in size in the following five years. Edge data centers are closer to the end-user than public clouds.

From 2021 to 2028, the Edge Data Center market is anticipated to expand at a CAGR of 23.5%. From USD 8330.2 Million in 2021, it is anticipated to increase to USD 36502.6 Million by 2028.

The adoption of edge data centers across a variety of industry verticals has increased as a result of the Coronavirus pandemic, in part because of the benefits of utilizing field service solutions, such as expansion and lower cost. In the upcoming years, the global edge data center market is anticipated to grow at a good rate. This market has been expanding undisturbed by the Coronavirus outbreak despite the general slowdown.

Size changes in data center development have recently occurred. As edge data centers, certain data centers have shrunk and dispersed. Edge data centers must be situated close to areas where people gather and move around because they are smaller than massive cloud data centers. It has decentralised facilities that offer computation and storage in a place nearer to where data is generated and/or used. These facilities are outfitted with power and cooling infrastructure.

The Internet of Things (IoT) and the autonomous vehicle segment receive significant support from two different types of edge datacenters (Metro and Mobile), which are typically the size of a shipping container, are situated at the base of cell towers, and improve customer experience by boosting processing capacity. Additionally, they are assisting mobile network operators (MNOs) in offering mobile consumers speedier content services, as well as prefabricated modular Edge data centers that are perfect for a range of businesses that require hyper-local computing and storage capacity. For greater clarity, the following features are often used to identify edge data centers:

Trends Driving the Edge Data Center Market:

  • High device density use cases include smart cities and industries, linked devices, and IoT have increased as a result of the spread of 5G networks. Small-edge data centers provide these applications with minimal latency, affordable options, and a lot of bandwidth, ensuring seamless connectivity.
  • The growth of IoT sensors and devices in commercial and residential settings generates a tremendous stream of data that edge data centers manage through low latency processing.
  • The growing data cap of 64 zettabytes between useful data generated and data center traffic is made possible by inexpensive edge data centers.
  • Network Function Virtualization (NFV) and Software-Defined Networking (SDN) are utilized in edge data centers to replace the expensive hardware found in traditional data centers, improving performance and lowering costs.
  • Businesses and customers benefit from improved performance thanks to the decentralisation of edge data centers, particularly those engaged in the AR/VR and video streaming industries.

Competitive Analysis 

Cisco, HPE, Huawei, IBM, Dell Technologies, Nokia, Litmus Automation, AWS, Foghorn, Microsoft, VMWare, SixSq, EdgeIQ, Saguna, and Vapour IO are a few of the major edge data center market players in 2022. These businesses innovate their products and pursue cutting-edge technologies in order to provide their clients with a more secure framework.

Other Key Players:

  • Eaton Corporation
  • Hitachi Vantara
  • Rittal GmbH & Co. KG
  • Vertiv, Co.,
  • Flexential Corporation
  • Schneider Electric SA
  • 365 Operating Company LLC
  • vXchnge Holdings, LLC
  • Panduit Corporation
  • Fujitsu Ltd.
  • Others

Market Opportunity

By 2025, the market for edge data centers is anticipated to nearly treble, according to GVR. Be grateful for the opportunity that these more compact, regional data centers present to cut latency, handle recurrent connections, and store and process data close to the customer. Organizations, however, use various timing and strategy to open up business opportunities in their respective markets.

In the coming years, the global market for edge data centers is expected to grow significantly due to rising mobile data traffic demand. Additionally, because they are experiencing strong digitalization and providing online services that require data-intensive applications, SMEs are anticipated to quickly embrace edge data center solutions in the upcoming years. According to GVR, APAC will have the fastest rate of development by 2030, rising at a rate of 25.4%, with North America still heavily dominating the region.

Key Players

  • 365 Operating Company LLC
  • Eaton Corporation
  • EdgeConneX, Inc.
  • Flexential Corporation
  • Fujitsu Ltd.
  • Hewlett-Packard Enterprise Company
  • Hitachi Vantara
  • Huawei Technologies Co., Ltd.
  • IBM Corporation
  • Panduit Corporation
  • Rittal GmbH & Co. KG
  • Schneider Electric SA
  • Vapour IO, Inc.
  • Vertiv, Co.
  • vXchnge Holdings, LLC

Segmentation Analysis

The end user analysis reveals that the market is becoming more and more popular in the field service environment and will hold the largest share of the market in the upcoming years. The edge data center serves as a data-aggregation and caching point between the users and a bigger data center with the purpose of lessening the burdensome IT load in a world that is IT-intensive and has a high data flow.

The need for data and readily available information is much more crucial for firms now that IT specialists are having trouble finding technological solutions. Different data center solutions, including the DCIM as well as analytics, cooling, power, and networking equipment, are offered by manufacturers to help with issues. In the upcoming years, the biggest integration and implementation services will see significant revenue growth.

By Component:

  • IT Infrastructure
  • Networking
  • Server
  • Storage
  • Support Infrastructure
  • Cooling
  • Security
  • Power
  • Others

By Type:

  • Small and Medium Enterprises
  • Large Enterprises

By Application:

  • BFSI
  • IT and Telecom
  • energy
  • Healthcare
  • Manufacturing
  • Media and Entertainment
  • Transportation and Logistics
  • Hospitality
  • Others

Edge Data Center Market: Regional Analysis

According to regional research on the edge data center market, the Asia Pacific region would experience the quickest pace of growth over the coming years. The adoption of modern technology has been observed in the Asia Pacific area, which will experience the fastest growth rate over the next several years. Additionally, this region’s businesses will spend more on IT, which will drive a spike in the use of edge data centers.

Additionally, there is a significant growth arc that will be seen in cutting-edge technologies like cloud computing and the Internet of Things, which will significantly expand the industry. Companies like Vodafone, Telstra, China Telecom, and NTT Docomo will play a significant role in this market’s growth. However, the present acceptance is higher in places like North America, Europe, and some other nations where the understanding of digital edge data centers is much higher and some of the most significant businesses are thriving. The possibilities for growth, though, are better in nations like China and India.

Edge Data Center Market is growing rapidly in the below regions and will continue to do so:

North America

  • U.S
  • Canada


  • Germany
  • France
  • The U.K.
  • Italy
  • Rest of Europe


  • China
  • India
  • South Korea
  • Australia
  • Rest Of APAC

Latin America

  • Mexico,
  • Brazil
  • Rest of Latin America

The Middle East and Africa

  • Saudi Arabia,
  • UAE
  • South Africa
  • Rest Of MEA

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