The edge data center market is expected to witness significant growth from 2019 to 2025, owing to the rapid growth in the demand for Over-The-Top (OTT) services, according to a new research report by Global Market Insights. The edge data center market size would actually represent a value of around $16 billion by 2025.

Edge data centers would offer higher bandwidth to these OTT services and provide better experiences to users. Several telecom providers are witnessing increased requirements for these facilities and moving data processing to the edge of the network to speed-up response times and reduce latency. OTT would encourage enterprises to invest in network facilities at edge locations.

Edge facilities enable to run applications in a secure computing environment and are ideally positioned for high-density networks, stated Global Market Insights. Traditional data centers located at several geographical areas would risk experience congestion and weak connection issues, encouraging enterprises to shift to edge facilities.

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Global Market Insights

Data Generation

High data generation is impacting data center investments across various regions. The rising number of smartphone and Internet users coupled with the increasing demand for cloud-based services is propelling the edge data center market growth.

Increasing data generation is forcing enterprises to scale up to modern operational requirements. Edge computing facilitates real-time data analysis by storing data on a local device rather than in the cloud. It would provide several benefits, including reduced network traffic, low operating cost, and improved application performance. Moreover, factors, such as increasing digitalization and data localization laws in countries, would encourage enterprises to invest in the construction/deployment of these edge data centers.

North America accounted for a majority of the edge data center market share – owing to the high adoption of cloud services, growing popularity of big data analytics and increasing investments in the ICT infrastructure. Enterprises in the U.S. and Canada are implementing these edge facilities for improving productivity and effectiveness in business operations across various industrial sectors.

As the demand for edge data centers increases, the competitive landscape is expected to become more intense, according to Global Market Insights, encouraging vendors to focus on several pricing and technology development strategies to remain competitive in the market.

The report can be found here.