TMCnet News

Edge Data Center Market is driven by the increasing mobile data traffic - Technavio
[November 16, 2023]

Edge Data Center Market is driven by the increasing mobile data traffic - Technavio

NEW YORK, Nov. 16, 2023 /PRNewswire/ -- In a recent analysis by Technavio, titled "Edge Data Center Market Analysis - North America, APAC, Europe, South America, Middle East and Africa - Size and Forecast 2024-2028," the dynamic evolution of edge data centers in various industries takes a significant position. The market is expected to witness a substantial growth, estimating a CAGR of 23.57% between 2023 and 2028, and a forecasted increase of USD 22.10 billion. Request sample report. Request sample report

The market is primarily driven by several factors including the increasing demand for video streaming services, escalated adoption of multi-cloud frameworks, network upgrades to accommodate 5G, and the escalating mobile data traffic. An edge data center, essentially a collection of IT assets moved closer to end-users, significantly streamlines operations and is primarily serviced from a cloud data center. Key components integral to edge data centers encompass IT infrastructure, general construction, power and cooling management systems, security systems, racks, and data center infrastructure management (DCIM).

North America is estimated to contribute 48% to the growth of the global market. One of the primary factors driving the surge in the North American edge data center market is the widespread adoption of cloud services across diverse industries in the US and Canada.

Technavio highlights the emerging trends of Edge Data Center Market:

Cost Reduction and Savings:

  • Cost savings of up to 30% achievable through consolidation.
  • Enhanced security by up to 35% due to streamlined operations.
  • Improved efficiency by 50% from optimized resource utilization.
  • Reduced power consumption by 55%, promoting sustainability.

Adoption of New Strategies:

  • Embracing high-density storage solutions and virtualization.
  • Decreased server count for enhanced operational efficiency.
  • Shift towards wholesale colocation facilities for reener operations.

Impact on Market Growth:

  • Commencement of consolidation initiatives years ago.
  • Increasing migration to colocation edge data centers.
  • Rising adoption of cloud-based services for streamlined operations.

Prominent companies are actively immersing themselves in the trend

365 Data Centers operates in 20 strategic markets, delivering comprehensive edge data center solutions encompassing network connectivity, colocation, and managed hosting services. Meanwhile, Compass Datacenters LLC specializes in designing, installing, and maintaining over 200 major cloud and content provider telecom shelters. Additionally, DC BLOX Inc. stands out with data centers constructed to a tier III basis of design and a 100 percent power service level guarantee. These companies collectively contribute to the evolving landscape of edge data centers, offering diverse services, robust infrastructure, and reliability, thereby significantly impacting the expansion and enhancement of edge data center capabilities.

The edge data center market report extensively covers market segmentation by end-users (IT and telecommunication, manufacturing and automotive, BFSI, healthcare and life sciences, and others), components (IT infrastructure, general construction, power management systems, cooling systems, and others), and geographies (North America, APAC, Europe, South America, and Middle East and Africa). Buy the full report here

According to Technavio's findings, the Edge Data Center Market is expected to witnesses a boost from increased digitalization, automation, and IoT proliferation, driving the deployment of edge data centers to alleviate congestion and enhance service efficiency. Despite promising trends like consolidation and green data center adoption, challenges in monitoring diverse edge locations persist. Notably, North America leads this growth with widespread cloud service adoption, fostering the development of numerous data centers and high-performance computing systems. Key players such as 365 Data Centers, Compass Datacenters LLC, and DC BLOX Inc. are instrumental in advancing edge data center solutions, ensuring market resilience and innovation amid evolving technological landscapes and industry demands.


Related reports:

High End Server Market 

IT Services Market 

Companies Covered

  • Dell Technologies Inc.
  • Digital Realty Trust Inc.
  • Eaton Corp. Plc
  • EdgeConneX Inc.
  • Equinix Inc.
  • Flexential Corp.
  • Friedhelm Loh Stiftung and Co. KG
  • Fujitsu Ltd.
  • Hewlett Packard Enterprise Co.
  • Hitachi Ltd.
  • Huawei Technologies Co. Ltd.
  • International Business Machines Corp.
  • Johnson Controls International Plc
  • Panduit Corp.
  • Schneider Electric SE
  • Vapor IO Inc.
  • Vertiv Holdings Co.

Regions Covered

  • North America
  • APAC
  • Europe
  • South America
  • Middle East and Africa

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]

Cision View original content to download multimedia:

SOURCE Technavio

[ Back To's Homepage ]