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Edge Data Center Market To Generate Revenue Worth $53.1 Billion by 2030

Published Date:   July 2020

The growing mobile data traffic and over-the-top (OTT) traffic are the key factors positively impacting the growth of the edge data center industry. Owing to these factors, the global edge data center market size is set to reach $53.1 billion by 2030, growing at a CAGR of 25.4% during the forecast period (2020–2030). The major edge data center industry trends are 5G commercialization and internet of things (IoT) proliferation, which are expected to strongly influence the market growth in the coming years.

COVID-19 Impact Analysis

The ongoing COVID-19 pandemic has led to an increase in the demand for data centers, owing to a sudden rise in the number of firms following the work-from-home model during the lockdown. The COVID-19 pandemic has resulted in the stopping of the deployment of edge data centers across the world, due to the halted supply of raw material and unavailability of labor. For instance, Facebook has halted the construction of its two data centers, one in Ireland and one in Alabama, U.S., on which the company had already invested more than $16.0 billion in 2019.

Solutions To Hold Larger Share in Market till 2030

Till 2030, the solutions category is expected to continue dominating the market, based component, owing to the increasing deployment of edge data centers across the globe. Within solutions, the cooling category is to be the fastest growing category during the forecast period. The adoption of cooling technologies among edge data centers is projected to be the widest, to maintain optimal temperature in the data center facility. The increasing adoption of high-end cooling technologies in the data centers is thus driving the category growth in the edge data center industry.

Large enterprises were the more-significant users of edge data centers in 2019, due to the heavy investments by such organizations on data centers and rising amount of unstructured data being generated by large enterprises. For instance, in May 2020, Microsoft Corporation publicized plans to make an investment of $1.0 billion for the development of data centers in Poland, to support the network of enterprises, entrepreneurs, and government in the country.

The IT & telecom category held the largest share in the edge data center market in 2019, on the basis of application. The increasing IT spending worldwide and growing need for efficient IT services are the major factors responsible for the category’s dominance. Besides, the banking, financial services, & insurance (BFSI) category is set to expand at the highest CAGR in the market during the forecast period. This would be because of the growing focus of financial institutions on the expansion of the digital services offered, such as online banking, digital transactions, and digital trade management, and increasing demand for securely storing and processing customers’ data.

Currently, North America is the highest revenue contributor to the edge data center market in 2019. 5G commercialization and the growing government financial incentives to establish data centers, along with the rising data traffic, are the major factors for the region’s dominance. In the near future, the fastest growth would be witnessed in Asia-Pacific (APAC), owing to the rapid digitization and rising internet penetration in the region. Moreover, the growing IoT adoption and government initiatives, such as those centered around smart cities, are further projected to contribute toward the regional market growth.

Product Launches and Facility Expansions Empowering Players to Strengthen Their Position in Industry

In a bid to strengthen their position in the edge data center market, key players are engaging in product launches and facility expansions. For instance, in November 2019, Fujitsu Limited launched a new storage ETERNUS AF 150 S3. The aforementioned product delivers affordable all-flash storage and achieves maximum input/output operations (per second) and scalability in data center with low latencies.

Similarly, in October 2019, Schneider Electric SE launched the EcoStruxure data center solution, which brings together cooling, power, racks, and management, to support the deployment of IT networks in all atmospheres. The EcoStruxure data center solutions include EcoStruxure micro-data centers, EcoStruxure row data centers, EcoStruxure pod data centers, and EcoStruxure modular data centers.

Browse report overview with detailed TOC on "Edge Data Center Market Research Report: By Component (Solutions, Services), Organization (Large Enterprises, SMEs), Application (Retail, BFSI, Logistics & Transportation, Healthcare, Government, IT & Telecom) - Global Industry Analysis and Growth Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/edge-data-center-market-analysis

Some of the key market players in the global edge data center market are 365 Operating LLC, EdgeConneX Inc., Huawei Technologies Co. Ltd., Eaton Corporation, Microsoft Corporation, Fujitsu Ltd., Hewlett Packard Enterprise Company, Hitachi Vantara, IBM Corporation, Panduit Corporation, Schneider Electric SE, Vapor IO Inc., and Vertiv Holdings LLC.