Rising espousal of over-the-top (OTT) video, smartphone and wearable device availability and usage, and demand for bandwidth-hungry data content are creating intense need for moving the data and access closer to the users. Further, 5G deployments, IoT, Connected Systems, etc. are fueling the growth, which is clearly reflected from the mobile data traffic estimated to reach around 600 Exabyte annually by 2023. Closer proximity of data centers to the user will facilitate better services and will enhance customer satisfaction. Building something that can be truly called an “edge data center” requires a different set of considerations than building standard colocation facility. It’s said to be about creating interconnection ecosystems in cities away from the traditional core markets.

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Edge data centers are data storage and access systems that are placed in proximity to the end-user, enhancing the efficiency of their content delivery infrastructure. Edge data centers create interconnected environments within the boundary of cities, and much distant from the traditional core centers. Edge data centers bring the control of data processing at the edge of a network, rather than keeping it in a cloud or a centralized warehouse.

Edge Data Center Market: Drivers and Challenges

As people watch more and more of their video online versus cable TV or satellite services, and as businesses consume more and more cloud services versus buying hardware boxes and software licenses, the physical nature of internet infrastructure is changing. Edge data centers are gaining increased attention nowadays, majorly due to the rising demand for mobile data, convenient data services, and very low latency. Cloud infrastructure as well is experiencing significant load due to the high amount of content generated, and continuously increasing number of smart and intelligent applications across various industries. Deployment and commercialization of 5G is also significantly impacting the market, since the 5G infrastructure will require edge data centers, so that the data can be processed in proximity to the base stations. Inspite of considerable adoption in the coming years, the edge data centers market is expected to experience security and privacy concerns, which might influence the growth of market in a negative manner.

Edge Data Center Market: Segmentation

The global edge data center market can be segmented on the basis of type, infrastructure, end-user, and verticals.

On the basis of Type, the global edge data center market can be segmented as:

  • Centralized Modules Type
  • Disaggregated Modules Type

The segmentation by type says about the difference in the types o modules with which the product is sold in the market.

On the basis of Infrastructure, the global edge data center market can be segmented as:

  • IT Infrastructure Server Storage Networking
  • Support Infrastructure Power Cooling Security Others

The segmentation by infrastructure says about the difference in the basic infrastructure of the edge data centers by which they are sold in the market.

On the basis of End-User, the global edge data center market can be segmented as:

  • Small and Medium Enterprises (SMEs)
  • Large Enterprises

The segmentation by End-User says about the difference in the revenue generation area for the edge data center market.

On the basis of Vertical, the global edge data center market can be segmented as:

  • Banking, Financial Services and Insurance
  • Telecommunication and IT
  • Government
  • Healthcare
  • Manufacturing
  • Media and Entertainment
  • Transportation and Logistics
  • Hospitality
  • Others

The segmentation by Verticals says about the different verticals in which edge data centers are used.

Edge Data Center Market: Key Players

Examples of some of the key players of the global edge data center market are Schneider Electric, Rittal, EdgeConneX, APC, ABB, HPE, Sun Microsystems, Eaton, Delta Power Solutions, vXchange, 365 Data Centers, and Vertiv, among others.

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Edge Data Center Market: Regional Overview

By geography, the global edge data center market can be segmented as North America, Latin America, Western Europe, Eastern Europe, SEA and other APAC, China, Japan and Middle East & Africa. Edge data centers are majorly adopted in North America, followed by Western Europe. In the coming years, countries in SEA and Other APAC and China are expected to foresee significant adoption of edge data centers mainly because of high number of 5G deployment planned in this region.

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