Research Nester’s recent market research analysis on “Edge Data Center Market: Global Demand Analysis & Opportunity Outlook 2035” delivers a detailed competitors analysis and a detailed overview of the global edge data center market in terms of market segmentation by component, organization, application, and by region.
Growth in Adoption of IoT to Boost the Growth of Global Edge Data Center Market
The global edge data center market is expected to expand as IoT use grows. The use of IoT has significantly increased during the last ten years. As of 2015, there were roughly 14 billion installed devices; by 2022, that figure would almost triple to almost 41 billion. IoT and edge computing combine to offer a more effective method of collecting and managing data. Real-time data processing at the edge reduces network latency and congestion, boosts productivity, and enhances user experience. Additionally, IoT devices might serve as cloud gateways, enabling even more data collection and processing. IoT and edge computing work together to offer a thorough method for analyzing and managing data. Therefore, it is expected that as IoT use grows, so would the need for edge data centers.

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Additionally, it is predicted that throughout the course of the forecast period, the government's expanding endeavors to digitally enrich their country would accelerate market growth. For instance, RailTel, a central government PSU in India, was entrusted with constructing "edge data center’s" at railway facilities in 102 different locations, predominantly in tier-2 and tier-3 cities around the country. According to estimates, RailTel would open the "edge data center’s" with partners. Additionally, the automotive, medical, and telecommunication industries have all benefited from edge data centers.
Some of the major growth factors and challenges that are associated with the growth of the global edge data centers market are:
Growth Drivers:
• Rise in Demand for Robotic Surgeries
• Surge in Demand for Autonomous Vehicles

Challenges:
The initial cost of using edge data centers is certain to increase given the requirement for major capital investment in the research and development of hardware and software frameworks that support the edge. This investment is required to support a variety of important applications and workloads by accounting for the heterogeneity of hardware and platforms as well as the capacity with the coming of edge. Given the lack of digitalization and network infrastructure, emerging economies require a far greater initial capital expenditure to leverage the necessary expertise and infrastructure. Edge technology initiatives are regularly evaluated against other IT investments made within the firm. Hence, this factor is expected to restrain the growth of the market.

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By organization, the market for edge data center is segmented into large enterprise, and SMEs. Out of these segments, the SMEs segment is anticipated to garner the largest revenue by the end of 2035. The increase in SMEs companies is responsible for the segment's growth. Globally, there were anticipated to be roughly 330 million SMEs in 2021, which is a slight rise from the estimated 325 million in 2019. Additionally, SMEs have a strong adoption of edge computing. One of edge computing's benefits to SMEs is its quickness. By removing the need to send data elsewhere for analysis, such as a centralized cloud, edge computing lowers latency. This allows small and medium-sized businesses a chance to compete with larger companies that have access to considerably more powerful computing resources. SMEs are also continuously worried about cybersecurity. Edge computing allows organizations to maintain control over their data by allowing them to decide which data should be transferred to centralized processing units and which should be maintained locally. This safeguards both confidential individual information and business-related data. The market for edge data center is therefore anticipated to grow.
By region, the North America edge data center market is expected to generate the largest revenue by the end of 2035, supported by an increase in government initiatives to build data centers and an increase in data traffic. The amount of monthly data traffic in North America is predicted to reach 18 exabytes (EB) by 2027. In 2021, the average monthly data traffic was close to 4 EB. Additionally, it is anticipated that businesses, telecommunications firms, and cloud service providers would invest more heavily in edge data centers in this region over the next few years in order to speed up applications such as streaming video, factory automation, and telemedicine as well as enable new technologies including autonomous vehicles and augmented and virtual reality (AR/VR).
This report also provides the existing competitive scenario of some of the key players of the global edge data center market which includes company profiling of Cisco Systems Inc., Dell Inc., Flexential Corporation, Rittal GmbH & Co. KG, Vapor IO, Inc., Eaton, Fujitsu, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., IBM Corporation, and others.

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