The edge data center market size is projected to exceed $50 billion by 2032. The rapid growth of the IT and telecommunications sectors and rising consumer demand will drive the industry growth. Additionally, the escalating generation of data in metro areas and remote locations is foreseen to accelerate the market demand as these infrastructure facilities are deployed closer to local areas, requiring effective management solutions for accessing and storing the data, thereby promoting the adoption of small to medium business (SMBs) and other enterprises.
IT and telecommunications
In 2022, the solution segment's revenues exceeded $7 billion. The demand for edge data center solutions is being fueled by the IoT's explosive growth in support of automated and digitalized capabilities in IT and telecommunications. Organizations are being encouraged to employ these solutions by the development of the IT teleandcom industries in nations like the U.S., China, and Germany.
The government applications industry accounted for 10% market share of edge data centers in 2022. The utilization of edge data centers in this sector is anticipated to remain high in the forthcoming years. The burgeoning digitalization trend is foreseen to boost product demand. The segment growth is set to be further complemented by significant demand from citizens for improved transparency and accountability in the government sector, which has raised the amount of data generated.
The hyperscale/enterprise edge data centre market is anticipated to surpass $20 billion by 2032, driven by the ongoing need for cloud computing services for effective data storage. Due to a strong preference for online services, like gaming websites, social networks, and live channels that produce a lot of data, there is a high need for hyperscale or business data centres.
Asia Pacific (APAC)
The APAC industry is poised to grow at a 20% compound annual growth rate (CAGR) from 2023 to 2032. The region may emerge as a major hub for this industry owing to surging internet usage and high investment by government authorities toward improving IT infrastructure. Furthermore, emerging economies, including China, India, Australia, and Singapore, are strongly supporting data centers and colocation providers, which is likely to expedite regional growth.
The strategic landscape of the edge data center market is slated to showcase a series of efforts, mergers, and collaborations by participants. Some of the leading players profiled include Vertiv Group Co., IBM Corp., Dell Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., and Eaton Corp., among others.