Global edge data center market will significantly expand with a higher demand for 5G technology across various countries, together with the inclining preference for autonomous vehicles and smart cities. Fast deployment and reliability are some of the benefits rendered by edge data centers. They also provide scalability and minimize data center downtime risks, further offering fast deployment time, simplified management, as well as lower maintenance and capital costs to enterprises.

Deployment of technologies like Content Distribution Networks (CDN) and IoT has led to reduced telecommunications latency and bandwidth costs by distributing data centers near the points of utilization. Telecom operators are shifting their preferences towards edge computing to improve network latency and coverage. Furthermore, there is an augmenting demand from compute-intensive applications for efficient data centers.

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Verizon Wireless launched the 5G mobile service in 2019 in more than 30 cities in the U.S.A. The emergence of 5G wireless infrastructure has urged data center operators to opt for edge computing infrastructure to work with networks offering lower latency and higher resiliency. Multi-access Edge Computing (MEC) tool aids network services to closely connect to the users. As per a Global Market Insights, Inc. report, edge data center market size could hit USD 20 billion worldwide by 2026 in terms of annual remuneration.

Rising accessibility to a diverse range of racks to assist in the optimum functioning of IT devices will drive the adoption of IT rack & enclosure solutions. Edge data center providers are equipping themselves with racks with various frame sizes and designs to meet explicit end-user requirements. Numerous IT applications make use of 19-inch racks that are regulated with standards enforced by the Electronics Industry Alliance (EIA) that are managed by the Electronic Components Industry Association (ECIA).

There is a rise in investments by edge data center operators in innovative racks & enclosures to safeguard the equipment as well as protect the sensitive data. Application across the expanding IT & telecom sector in global economies is a prominent growth driver for the edge data center market. Increasing penetration of 5G owing to large data availability and storage demand in the U.S. and Europe has resulted in the need for efficient data storage solutions.

Various telecommunication companies are opting for edge data center market to meet the rising data processing requirements as they offer faster data analysis, besides ensuring faster response times as well as enhanced customer experiences. A gradual shift from traditional network and infrastructure to mitigate complexities of data from connected devices will add impetus to the industrial growth.

Middle East and Africa will witness significant demand for the edge data centers considering the rise in industrialization and digitalization in the regions. Abu Dhabi Economic Vision 2030 and UAE Vision 2021 are government initiatives in MEA that have been imposed to build modern economies and establish a globally integrated business environment. Several businesses are using advanced digital techniques, further stimulating the adoption of edge data center architectures for efficient data storage and processing.

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Colocation providers like Digital Realty and Equinix Inc., have intensified their market presence in Middle East & Africa. Higher demand for edge data center market for fast deployment of highly distributed and latency-sensitive workloads will drive the regional landscape. Development of internet infrastructure in Asia Pacific, North America, and Europe will additionally boost the demand for edge data centers with the growth in connected end-points leading to an enormous amount of digital data.

Edge data center companies are keen on technological advancements and strategic approaches to gain a competitive edge and strengthen their product offerings. For instance, Vapor IO is in the process of establishing its Kinetic Edge platform across more than 36 markets by 2021, albeit the ongoing COVID-19 pandemic. It is mainly aimed at assisting its customers to deploy edge computing solutions in top metropolitan U.S. markets.

Table of Contents (ToC) of the report:

Chapter 1    Methodology & Scope

1.1    Scope & definitions

1.2    Methodology and forecast parameters

1.3    Data sources

1.3.1    Secondary

1.3.2    Primary

Chapter 2    Executive Summary

2.1    Edge data center market 360⁰ summary, 2016 - 2026

2.1.1    Business trends

2.1.2    Component trends

2.1.3    Data center size trends

2.1.4    Application trends

2.1.5    Regional trends

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