The global Edge Data Center Market size is expected to reach USD 34.91 billion by 2030 and is set to expand at a CAGR of 18.4% from 2023 to 2030, according to a new report by Grand View Research, Inc. Increasing adoption of Internet of things across various end-use industries, the rapid growth of mobile and IoT applications, and the rising popularity of online streaming and e-commerce services are major drivers of market growth. It is anticipated that factors including the increasing adoption of 5G technology to improve communication, rising spending on data center technology, increasing demand to reduce data center complexity, and development in the AR/VR technology, will also contribute to the market's growth.
Moreover, COVID-19 has increased the penetration of technologies such as 5G, IoT, cloud, and edge computing. Owing to the global adoption of the work-from-home policy, the demand for edge data centers has witnessed a remarkable rise during the pandemic period. The pandemic has forced the major workforce to work remotely, which has resulted in a growing number of companies investing additional resources in IT services. The need for data centers has increased over the past few years as a result of this expanding digitization.
The companies in the edge data center industry have been involved in various strategic initiatives to gain better traction in the market. For instance, in March 2023, AtlasEdge announced a partnership with PacketFabric to offer customers cloud connectivity. The partnership would enable AtlasEdge to use PacketFabric’s TruNaaS Converge Platform. PacketFabric has deployed high availability 100GB private network in 2 locations AtlasEdge which are in Hamburg and Berlin. This initiative has helped enable companies to reach a wider audience, thereby driving the growth of the edge data center industry.
As edge data centers are typically smaller than centralized data centers, their scalability is limited. This can be a major limitation for applications that demand a high level of scalability, such as cloud-based apps or data-intensive workloads. However, edge data centers are expected to develop in the anticipated period because they are well-positioned to meet the growing demand for localized computing and storage resources, as well as upcoming technologies such as 5G and IoT. Edge data centers can assist in improving speed, reducing latency, and providing greater security, making them an essential component of the digital infrastructure.
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Edge Data Center Market Segmentation
For the purpose of this study, Grand View Research has segmented the global edge data center market based on component, facility size, end-use, and region:
Edge Data Center Component Outlook (Revenue, USD Billion, 2018 - 2030)
Edge Data Center Facility Size Outlook (Revenue, USD Billion, 2018 - 2030)
Edge Data Center End-use Industry Outlook (Revenue, USD Billion, 2018 - 2030)
Edge Data Center Regional Outlook (Revenue, USD Billion, 2018 - 2030)