Edge Data Center Market: Trends and Growth Opportunities by
2032

The Global Edge Data Center Market will record over 19% CAGR
through 2032, propelled by the surge in online services like cloud computing,
streaming, e-commerce, and digital communications. As businesses and consumers
increasingly turn to online platforms, the demand for data processing and
storage at the network's edge intensifies.

By positioning edge data centers closer to users, delays are
minimized, service quality is enhanced, and overall user experiences are
improved. This proximity not only bolsters real-time applications and
accelerates data transfers but also alleviates the burden on central data
centers.

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For example, in January 2024, TA Realty inaugurated a
specialized hyperscale data center development division, marking a significant
stride in the digital infrastructure realm. Spearheading this initiative is Tim
Shaheen, a veteran with over two decades in the data center and IT sectors,
previously holding top positions at EdgeConneX and Aligned Data Centers.

The overall edge data center market is categorized based on
Component, Data Center Size, Application, and Region.

Rising demand for hyperscale/enterprise data centers

The market categorizes data centers into micro data centers,
hyperscale/enterprise data centers, and others. In 2023, hyperscale/enterprise
data centers captured approximately 45% of the market share. With the expansion
of edge computing, the significance of distributed data processing is on the
rise.

Hyperscale data centers, recognized for their vast size and
capacity, adeptly manage extensive data processing and storage, underpinning
global cloud services. By situating processing power nearer to end users, these
centers facilitate real-time data management with minimal delays. Responding to
the burgeoning market demand, key players are unveiling innovative solutions.

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IT
and telecom to gain traction

The edge data center market segments applications into BFSI,
colocation, energy, government, healthcare, manufacturing, IT & Telecom,
and more. In 2023, the IT and telecom sector generated approximately USD 2.8
billion in revenue. The advent of 5G networks amplifies the demand for edge
computing, given 5G's reliance on swift, low-latency data processing.

By situating computing resources nearer to users, edge data
centers curtail data travel distance, facilitating the ultra-low latency
essential for 5G applications like augmented reality, real-time streaming, and
autonomous vehicles.

North America to emerge as a lucrative market

North America led the global edge data center market
landscape with a commanding share exceeding 40% in 2023. This dominance is
fueled by hefty investments from leading tech firms and data center operators.
These industry giants are channeling substantial funds into the development and
deployment of edge infrastructure, with the dual goals of enhancing data
processing capabilities and curtailing latency.

Such financial commitments have spurred the establishment of
numerous edge data centers throughout the region, paving the way for superior
performance and localized data management, especially for cutting-edge
technologies like 5G and IoT.

Edge Data Center Market Share

The major players operating in the edge data center industry
are Dell, Eaton, Fujitsu Ltd., HPE, Huawei, IBM, NVIDIA, Rittal, Schneider, Vertiv,
Co.

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