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According to a research report Edge Data Center Market with Covid-19 Impact Analysis by Component(Solutions, Services), Facility Size(Small and Medium Facilities, Large Facility), Vertical and Region (North America, Europe, APAC, Latin America, Middle East) – Global Forecast to 2026″, size is expected to grow from USD 7.2 billion in 2021 to USD 19.1 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 21.4% during the forecast period. The growing adoption of IoT across industries, exponentially increasing growth of mobile and IOT applications and growing popularity of online streaming classes are a few factors driving the growth of the edge data center market.

Browse and in-depth TOC onEdge Data Center Market

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Services, including consulting, product support, integration, updates, and maintenance, are required at various stages, starting from pre-sales requirement assessment to post-sales product deployment and execution, thus enabling the client to get maximum RoI.

The services form an integral part of the hardware and software deployment and execution life cycle. Services, including consulting, product support, integration, updates, and maintenance, are required at various stages, starting from pre-sales requirement assessment to post-sales product deployment and execution, thus enabling the client to get maximum RoI. Services involve consulting and training, integration, and support and maintenance services. The services constitute an integral part in deploying the solution on-board, imparting training, and handling and maintaining the software solution. Companies offering these services encompass consultants, solution experts, and dedicated project management teams that specialize in the design and delivery of critical decision support software, tools, and services. The services segment constitutes professional and managed services. The various services offered in the edge data center market include consulting, integration and implementation, and managed services

The data center cooling solution is essential to maintain stability in the business. Thus, for efficient growth, data center cooling is required for the stability of the business

Heat dissipation and inherent heat problems in edge computing require modular climate control systems. Variables such as temperature, humidity, the velocity and pressure of air flows, and the heat losses of the installed components are considered in development. An energy-efficient and advanced climate control and cooling concept for edge computing takes into account these variables. Datacenter cooling can add up to 45% to the electricity expenses, which increases the overall cost for any firm to maintain. Also, it has been estimated by various sources that the data center accounts for 2% to 5% of the global Green House Gas (GHG) emissions. Cooling systems are responsible for almost 40% of the power consumption in a data center. The data center cooling is essential to maintain stability in the business. Thus, for efficient growth, data center cooling is required for the stability of the business.

The implementation and integration services help reduce the complexities in configuring the edge data center solutions.

The proper deployment of edge data center solutions is important for various network systems and network infrastructure. Trained professionals are required for deploying a solution. Integration service providers aim at providing seamless integration of the platform with other tools such as CRM, analytics tools, AI-powered matchmaking assistance to enhance engagement, and networking opportunities of like minded individuals. Implementation and integration services help reduce the complexities in configuring the edge data center solutions.

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Small and Medium facility size data centers are witnessing extensive demand from customers owing to their benefits in terms of agility and ease of deployment are choosing edge computing due to ease of operations and enhanced scalability

The small and medium facility segment includes facilities with 1-12 racks with a power draw of 6 to 12 KW/rack or cabinet. These data centers are witnessing extensive demand from customers owing to their benefits in terms of agility and ease of deployment. Companies, such as Schneider Electric, Rittal, Huawei, Panduit, Zellabox, and others, offer micro mobile data centers that support up to 20 rack units.

Data centers are at the core of the automotive industry as the AI-driven computing infrastructure and expected energy-efficient performances have become the need for autonomous vehicles

The era of edge computing is reshaping the automotive sector, thereby increasing the efficiency of vehicles through technical advancements. Training and operating vehicles require optimization of data; thus, edge data centers are likely to become the cornerstone of the automobile industry. The strong automotive industry in the UK, Germany, and Italy with the presence of leading companies, such as BMW, AG, and Volkswagen, is driving the trend of autonomous vehicles that require fast processing of a large amount of data in real-time. Edge data center providers are capitalizing on the growing automotive sector in the European market. The growing demand to handle the surging amount of data from manufacturing as well as automotive sectors will propel the market demand for high performance edge data centers to reduce latency and bandwidth costs. Vehicle-to-vehicle data transmission aims at reducing traffic issues in major metro areas, which makes it the key factor in the automotive industry. Vehicles are expected to have an integration of location-aware applications while they are also expected to streamline the speed, acknowledge traffic lights, ease backups, and converge with toll plazas. Data centers are at the core of the automotive industry as the AI-driven computing infrastructure and expected energy-efficient performances have become the need for autonomous vehicles. If connected cars are here to stay, data centers have a long way to go in this industry. The data centers market may not have become advanced enough to meet all the automobile data storage requirements; however, it is evolving gradually.

North America to dominate the edge data center market in 2021

North America is one of the most technologically advanced regions in the world. It comprises the US and Canada and accounts for the largest share of the global edge data center market due to the early adoption of the by the US markets. The increased pace of digitalization in SMEs across verticals is boosting the adoption of edge data center solutions and services. The region has a presence of large edge data center vendors and customers, which is also driving the market growth in the region.

The increasing number of alliances and partnerships among edge data center and other technology providers for continuous technological innovations and advancements in edge computing have further added to the growth of the global edge data center market in North America. For example, SAS, an edge analytics solution provider, and HPE, an edge computing infrastructure provider, collaborated to launch comprehensive IoT analytics solutions. Similarly, Dell Technologies, an edge computing infrastructure provider, and AT&T, a telecommunications company, collaborated to develop an open-source edge computing and 5G software infrastructure. IoT is trending in North America; with more IoT devices getting connected, the region’s market has seen broader adoption of edge data center solutions across all verticals. The presence of connectivity networks will act as a driving factor to facilitate the adoption of edge data centers. The average number of digital devices available to the citizen is increasing exponentially. People are better connected with enhanced access to brands and content. Gaming and eCommerce markets are booming in this region. This would widen the opportunities for edge data centers.

The edge data center market is dominated by companies such as Cisco(US), HPE(US), Huawei(China), IBM(US), Dell Technologies(US), Nokia(Finland), Litmus Automation(US), AWS(US), Foghorn(US), Microsoft(US), VMWare(US), SixSq(Switzerland), EdgeIQ(US), Saguna(Isreal), and Vapour IO(US). These vendors have a large customer base and strong geographic footprint along with organized distribution channels, which helps them to increase revenues.

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