Edge Data Center: Introduction
- Edge data center is a type of data center situated close to an organization, delivering faster services with minimal latency. Edge data centers easily deliver cloud computing resources and cached content to end-users. Edge data centers connect to a larger central data center or multiple data centers.
- Structured data and unstructured data is increasing at a rapid pace across the globe. Many data centers are currently at maximum capacity. Hence, data center operators require a technique or method to increase speed, channel bandwidth, reduce the latency, and improve the customer experience. This is likely to increase the demand for edge data centers during the forecast period.
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Global Edge Data Center Market: Dynamics
Global Edge Data Center Market: Key Drivers
- Demand for enhancing the efficiency of content delivery among end-users is expected to create demand for edge data centers during the forecast period.
- Increase in adoption of emerging technologies such as Big Data, Internet of Things, cloud and streaming services, and 5G deployment by various sectors is estimated to boost the demand for edge data centers across the globe. This is primarily because adoption of these technologies creates huge amounts of data in the network, creating new computing and performance demands in the data center, which indirectly generates demand for edge data center solutions.
- Increasing demand from end-users to access devices, applications, services, and data from anywhere, anytime is anticipated to boost the edge data center market in the forthcoming years.
- Increasing mobile data traffic is a major factor projected to accelerate the global edge data center market in the next few years.
- Increasing investment by organizations for data center upgrades is also projected to augment the edge data center market in the upcoming years
- Rising demand to increase channel capacity, quality, and compatibility is also estimated to propel the global edge data center market during the forecast period.
- However, high maintenance costs of edge data centers is expected to hamper the market during the forecast period.
Impact of COVID-19 on the Global Edge Data Center Market
- Increasing cases of COVID-19 across the globe is resulting in economic slowdown. Developed countries are strongly affected by this pandemic. COVID-19 has a positive impact on the edge data center market. Currently, people are focusing majorly on online activities such as e-commerce and using OTT platforms, which is anticipated to increase the data worldwide. Therefore, data centers are upgrading their capacity and increasing channel bandwidth to manage the huge amount of data. Hence, edge data centers help end-users to work more efficiently.
North America to Hold Major Share of the Global Edge Data Center Market
- In terms of region, the global edge data center market can be divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America.
- North America dominated the global edge data center market in 2019, due to increasing deployment and commercialization of 5G networks in the region. Increasing usage of online services and growing demand for agile IT infrastructure is anticipated to boost the edge data center market in the region.
- The edge data center market in Asia Pacific is projected to expand at a rapid pace during the forecast period. This can be attributed to rapid adoption of cloud computing and IoT in China, Japan, India, and South Korea, thus generating demand for edge data center equipment in the region.
