Research Nester’s recent market research analysis on “Colocation Edge Data Center Market: Global Demand Analysis & Opportunity Outlook 2035” delivers a detailed competitors analysis and a detailed overview of the global Colocation Edge Data Center market in terms of market segmentation by type, end-use, application, and by region.
Increasing Deployment of 5G Technology to Promote Global Market Share of Colocation Edge Data Center
The need for edge data centres will increase as 5G networks were implemented. For 5G technology to reach its maximum potential, low latency and increased bandwidth are necessary. Because they can process data locally and cut down on backhaul traffic to the main data centres, edge data centres are crucial for supporting 5G applications. The market for edge data centres and 5G integration works together to improve both technologies' potential and capabilities. Edge data centres and 5G work together to meet the needs of contemporary services and applications. The extremely low latency of 5G technology is ideal for edge data centres. Fast data transfer from connected devices to adjacent edge data centres is made possible by this combination, allowing for real-time processing and reaction.
Some of the major growth factors and challenges that are associated with the growth of the global Colocation Edge Data Center market are:
Growth Drivers:
· Increasing Need for Edge Data Center as a Service
· Rising Implementation of Advanced Technologies
Challenges:
The proximity of edge data centers to end users, data sources, and network access points reduces the latency between the generation and processing of data since there is less distance for data to traverse. However, establishing quick connections is difficult in rural locations due to the lack of a robust network infrastructure.
High start-up and maintenance costs and growing concerns over carbon emissions from data centers are other factors that may hamper the growth of the colocation edge data center market.
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By type, the global Colocation Edge Data Center market is segmented into retail, and wholesale. The retail segment is anticipated to hold a share of 54% by the end of 2036. Without having to purchase and maintain their own data centres, retail colocation enables companies to increase their infrastructure as needed. Additionally, retail colocation facilities are frequently well-connected to a variety of network providers, allowing companies to connect with one another and have high-speed internet access. In addition, there is a growing need for adaptable and scalable IT infrastructure solutions. For example, Cisco remained the leading manufacturer of enterprise network infrastructure in 2022 with a 41% market share. Businesses can rent space in a shared data center through retail colocation, which enables them to rapidly scale up or down in response to changing demands. Cost-effectiveness is a further factor contributing to the expansion of retail colocation. Businesses can steer clear of these costs and instead choose to use retail colocation.
By region, the North America Colocation Edge Data Center market is poised to hold a share of 35% during the foreseen period. The colocation edge data center market is primarily driven by the increasing usage of cloud services by US and Canadian organizations across a range of industries. Companies are using cloud solutions to reduce the upfront and ongoing expenditures of building on-site data centers. Enterprises are increasingly turning to cloud solutions from hyper-scale providers like AWS, Microsoft, and Oracle to meet their computing capacity requirements at the lowest possible cost. Furthermore, enterprises in the area have already established several data centers. As a result, these elements are quickening the market's expansion in the region.
This report also provides the existing competitive scenario of some of the key players of the global Colocation Edge Data Center market which includes company profiling of DataBank, Colt Data Centre Services, Eurazeo, H5 Data Centres, IBM Corporation, Internet Initiative Japan Inc., NTT Data, Panasonic Corporation, Toshiba Corporation, Fujitsu Limited and others.
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