The global edge data centers market is expected to witness significant growth in the coming years, with a projected value of $46.4 billion by 2030. This growth is driven by the increasing demand for edge data centers for industrial IoT applications, low-latency processing, and real-time automated decision-making solutions. The adoption of edge data centers in online video streaming is also contributing to this surge in demand.
Asia-Pacific is poised to lead the market share, followed by North America, Europe, Latin America, and the Middle East & Africa. The Asia-Pacific region is expected to experience the highest compound annual growth rate (CAGR) during the forecast period. Factors such as the adoption of IoT and cloud computing technologies, the need for low-latency applications, and the demand for real-time analytics are driving this growth.
Noteworthy trends in the edge data centers market include the emergence of autonomous vehicles, the commercialization of 4G technology, and the increasing privacy and security concerns related to data. The rising adoption of IoT devices across various industries and the expansion of 5G networks are also shaping the landscape of edge data centers.
The market is segmented into metro edge data centers and mobile edge data centers. In 2023, metro edge data centers accounted for the larger market share, driven by the deployment of 5G networks and the need for localized cloud computing resources. However, the mobile edge data centers segment is projected to experience the highest CAGR during the forecast period.
Key components of the edge data centers market include hardware, software, and services. Software currently holds the largest share of the market, fuelled by the demand for workload orchestration, real-time analysis, and ultra-low latency applications. The deployment modes comprise on-premise and cloud-based deployments, with the latter expected to grow at a higher CAGR due to the need for efficient resource allocation and reduced latency.
Small & medium-sized enterprises dominate the market in terms of organization size, signifying a growing demand for real-time processing and localized data management. Artificial intelligence, 5G & 4G infrastructure, and video/live streaming are the prominent applications driving the adoption of edge data centers, with 5G & 4G infrastructure leading the market.
Lastly, the end-use sectors of the edge data centers market include IT & telecommunications, automotive, transportation & logistics, healthcare, energy & utilities, manufacturing, government & defense, retail, and others. The report also features a Porter’s Five Forces Analysis and a comparison between traditional data centers and edge data centers.
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