The Edge Data Center Market is expanding as demand for low-latency processing grows, driven by IoT, 5G, and real-time data analytics.

AUSTIN, TX, UNITED STATES, February 18, 2025 /EINPresswire.com/ -- According to the SNS Insider report, the Edge Data Center Market was valued at USD 10.82 billion in 2023 and is projected to reach USD 57.29 billion by 2032, growing at a CAGR of 20.39% from 2024 to 2032. The increasing adoption of 5G, IoT, and AI-driven applications is driving the need for edge data centers, enabling faster, decentralized data processing and reducing network congestion.

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Keyplayers:
Amazon Web Services (AWS) –( Dell Technologies, Cisco Systems)
Microsoft Azure – (Hewlett Packard Enterprise (HPE), Lenovo)
Google Cloud – (NVIDIA, Cisco Systems)
IBM – (NetApp, Lenovo)
Cisco Systems – (Arista Networks, Dell Technologies)
EdgeConneX – (Schneider Electric, Vertiv)
Equinix – (Nokia, Corning)
Digital Realty – (Fujitsu, Siemens)
Alibaba Cloud – (Huawei Technologies, Inspur)
Hewlett Packard Enterprise (HPE) – (Arista Networks, Dell Technologies)
Vertiv – (Schneider Electric, Eaton)
Fujitsu – (NEC Corporation, Hitachi)
Huawei Technologies – (ZTE Corporation, Inspur)
NTT Communications – (Cisco Systems, Juniper Networks)
Oracle – (Dell Technologies, NetApp)
Vantage Data Centers – (Vertiv, Schneider Electric)
CyrusOne – ((Cisco Systems, Dell Technologies)
Glesys – (DigitalOcean, Linode)
Iron Mountain – (Vertiv, Schneider Electric)
StackPath – (Akamai Technologies, CenturyLink)

By Component: Solution Dominated, Services Register Fastest CAGR
The Solution segment dominated the market and held the larger market share in 2023 as enterprises are constantly investing in hardware and software solutions to boost the edge computing infrastructure. Micro data centers, edge servers, and AI-based analyzers are among the solutions that are way up in demand in every industry.

The service segment is expected to register the fastest CAGR during the forecast period, driven by the growing uptake of managed services, cloud-based edge computing solutions, and AI-driven monitoring tools. Demand for professional and managed services is increasing as businesses look to outsource the deployment, maintenance, and management of security of edge data centers.

By Facility Size: Large Facility Dominated, Small and Medium Facility Registers Fastest CAGR
The Large Facility segment dominated the market and accounted for a significant revenue share in 2023 because large enterprises and cloud providers are investing in edge data centers with high performance to process artificial intelligence workloads, 5G networks, and IoT applications. They provide scalability, improved processing power, and advanced data storage capabilities.

The Small and Medium facility segments are expected to register the fastest CAGR, on account of enterprises, telecom providers, and local businesses deploying smaller, modular edge data centers for local processing. With the demand for smart cities, industrial automation, and remote work solutions growing, miniaturized and low-energy edge data centers have also seen upsurging market demand.

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By End-Use: IT and Telecom Dominated, Manufacturing & Automotive Registers Fastest CAGR
IT and Telecom segment accounted for the largest revenue of the market, Due to the increasing number of users in 5g, cloud-based services, and AI-driven applications. Telecom providers are doing this by deploying edge data centers for 5G infrastructure to minimize the distance data has to travel, reducing the congestion of networks.

The Manufacturing & Automotive segment is anticipated to register the fastest CAGR during the forecast period, With real-time data processing in smart factories and autonomous vehicle technologies. Edge data centers assist automotive companies with connected vehicle data management, predictive maintenance optimization, and advanced driver-assistance systems.

Key Regional Developments: North America Dominated, Asia-Pacific Registers Fastest CAGR
In 2023, North America dominated the market and held the largest share of the AI-driven edge market, owing to the continued investments attributed to the growing AI-driven edge data center, 5G expansion, and growing adoption of IoT applications within the North America region. Demand is also being driven by cloud providers, telecom companies, and AI-driven enterprises in the U.S. and Canada.

The fastest CAGR is anticipated in the Asia-Pacific region as China, India, Japan, and South Korea invest in smart city projects, AI-driven infrastructure, and 5G-enabled edge computing solutions. Adoption is being spurred on by the growing industrial automation across the region, the expansion of e-commerce, and the increasing demand for low-latency cloud applications.

Recent Developments in 2024
January 2024: Microsoft launched Azure Edge Zones, expanding edge computing capabilities for AI-driven applications and 5G networks.
March 2024: Amazon Web Services (AWS) announced a new edge computing solution for automotive manufacturers, enhancing real-time vehicle data processing.

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