Edge Data Center Market Outlook – 2027 

Edge data centers are generally smaller facilities with more efficient architecture that extend edge of the network to deliver cloud computing resources and cached streaming content by transferring and processing data to local-end users. Edge data centers are primarily used in the IT infrastructure and communication sector and are positioned closer to local end-users to deliver faster services with minimum latency, owing to edge latching. 

The financial and healthcare industry relying on high-frequency data-driven services depend on IoT edge computing devices or edge data centers to gain efficient network performance and security advantages that makes it difficult for any single disruption to take down the network. Edge data centers being positioned closer to end users offer less chance of network problem in distant location as well as help companies target desirable markets without having to invest in expensive infrastructure expansion. 

Ongoing advancements in this field helps companies optimize their networks and its advantages over highly centralized traditional cloud computing networks implies that the edge data center market share would undergo exponentially high growth in the coming years. 

The global edge data center market is segmented on the basis of component type, industry vertical, and region. Based on component type, the edge data center market is bifurcated into solution and services. The solution segment is further divided into cooling, power (UPS), IT racks and enclosures, networking equipment, and DCIM. The services segment is also further segmented into installation & integration, managed, and consulting. 

In terms of industry vertical, the edge data center market is categorized into IT & telecommunication, BFSI, energy & power, government, industrial, healthcare, and others. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).

Key players operating in the global edge data center industry include 365 Operating Company LLC, Eaton Corp., Compass Datacenters, EdgeConneX Inc., Huawei Technologies Co. Ltd., Hewlett-Packard Enterprise Company, Fujitsu Ltd., Schneider Electric, DC BLOX Inc., and Flexential Corp. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global edge data center market. 

Top Impacting Factors

Rise in adoption of IoT devices such as sensors, actuators, self-driven cars, robots in home, or industrial settings requiring service providers to place facilities closer to network to manage increase in volume of data propels the edge data center market growth. However, high initial investments, high maintenance cost of edge data centers as well as rise in data security and privacy concerns restricting entry of new players, which hamper the market growth.

On the contrary, increase in organizational and consumer data traffic requiring high bandwidth services and adoption of software-defined network and network function virtualization over costly-specialized hardware further boosts the edge data center market revenue. Commercialization of 5G technology and development of AR (Augmented Reality) to construct edge facilities is anticipated to present new pathways to the industry.

New Product Launches to Flourish the Market

Global leading edge data center market players adopt necessary methods to develop new solutions to help enterprises and telecommunication companies speed their transition to edge computing in the 5G era. In 2019, Craig Huffman and Vance Kenney co-founded the edge data center named MetroEdge in Chicago. The micro data center product of MetroEdge is a modular unit that comprises of 8 to 25 cabinets in a 300-1,000sqft steel-mesh enclosure. These units can be deployed in office buildings, college campuses and industrial sites. This startup intends to use software-defined networking with a view to connect micro data centers to its NOC and link them together into a nationwide grid. In March 2019, MetroEdge entered into a partnership with ClearSky Data to deliver storage-as-a-service from micro data centers that will offer primary storage, backup and cloud disaster recovery as a unified service.

Surge in Use in Industrial and Automotive Applications

With rise in push toward data sovereignty and rules to safeguard data privacy worldwide, companies are able to keep data close at hand through edge data centers that are ideally positioned to meet these requirements by virtue of physical proximity, while still fulfilling IT requirements. Elimination of latency and connectivity issues provides greater reliability, which benefits enterprises to function smoothly ensuring efficient productivity within organizations.

In May 2020, IBM Business Partners launched a number of new edge services including IBM Edge Application Manager, IBM Telco Network Cloud Manager and a portfolio of edge-enabled applications such as IBM Visual Insights, IBM Connected Manufacturing, and IBM Asset Optimization. 

IBM Edge Application Manager is an autonomous management solution powered by Open Horizon that enables AI, IoT enterprise workloads, and 100 edge nodes to be deployed and remotely monitored by a single administrator delivering real-time analysis at scale. 

IBM Telco Network Cloud Manager runs on Red Hat OpenShift to deliver smart automotive capabilities to arrange virtual and container network functions in minutes. These solutions are designed to accelerate the utility of edge computing which will be able to support crucial cases such as emergency response, robotic surgery, connected vehicle features that benefit from few milliseconds latency saved by not having to send workloads to a centralized cloud. 

Key Benefits of the Stakeholders

• The study gives an analytical overview of edge data center market forecast with current trends and future estimations to determine imminent investment pockets.
• The report provides information related to key drivers, restraints, and opportunities along with detailed edge data center market analysis.
• The current edge data center market trends are quantitatively analyzed from 2020 to 2027.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 

Market Scope and Structure Analysis

COVID-19 Scenario Analysis

• COVID-19 outbreak in Wuhan, China is certain to create a demand lapse as China is the largest consumer and supplier of electronic components. Prices of communication infrastructure tend to flatten, owing to shortage of products caused by halt in manufacture during this worldwide lockdown scenario. This disruption in demand-supply chain will cause the edge data center market shares to undergo slight temporary shortfall, owing to travel restriction on global basis.
• In contrast to related consumer electronics and semiconductor industry, the data center infrastructure industry facilitating high speed data transmission is expected to be more buoyant with strategic investments made to support increase in data traffic for remote working of organizations amidst COVID-19 pandemic. Demand for communication services has witnessed unprecedented rise during lockdown scenario, owing to necessity of students to attend virtual classroom as well as government to communicate virus updates. Wireless digital services including telemedicine is expected to remain in high demand even after lockdown restrictions are lifted thereby ensuring strong growth in edge data center industry.

Edge Data Center Market Key Segments

Questions Answered in the Edge Data Center Market Research Report

• Who are the leading players in the edge data center market?
• What would be the detailed impact of COVID-19 on the edge data center market size?
• What are the current trends that would influence the market in the next few years?
• What are the driving factors, restraints, and opportunities in the market?
• What are the projections for the future that would help in taking further strategic steps?