Increasing adoption of the internet of things across various end-use industries, the rapid growth of mobile and IoT applications, and the rising popularity of online streaming and e-commerce services are major drivers of the market. It is anticipated that factors including the increasing adoption of 5G technology to improve communication, rising spending on data center technology, increasing demand to reduce data center complexity, and development in the AR/VR technology will also contribute to the market growth.
- By component, the solution segment accounted for the largest revenue share of over 85.0% in 2021 and is anticipated to maintain its dominance over the forecast period. Surged use of hardware and software solutions such as networking equipment, DCIM, analytics, IT racks, enclosures, and power and cooling systems in data centers is contributing to the market growth.
- The service component is expected to register the highest growth rate of 19.8% during the forecast period as they provide organizations with an understanding of the transformation roadmap. In addition, professional services improve service delivery and simplify IT operations.
- In terms of facility size, the large facility segment dominated the market and captured a revenue share of over 75.0% in 2021. The growth can be attributed to the massive availability and use of edge data center facilities with 12 to 49 racks with a power draw of 12 to 14 kW/rack.
- The small and medium facility size is expected to exhibit the highest growth rate of 18.7% during the forecast period. The small and medium facility segment includes facilities with 1 to 12 racks with a power draw of 8 to 12 kW/rack.
- In terms of the end-use industry, the IT and telecom segment accounted for the largest revenue share of over 35.0% in 2021 and is anticipated to maintain its dominance over the estimated timeframe. The rapidly growing IT and telecom industry across the globe is creating more demand for edge data centers.
- The manufacturing and automotive segment is expected to expand at a CAGR of 20.4% during the forecast period. The rapid adoption of industrial IoT and the growth of autonomous vehicles are boosting segment growth.
- North America held the largest share of over 30.0% in 2021 and is expected to retain its position over the forecast period. The high adoption of edge data center solutions and services in this region is the major factor behind the market growth.
- Asia Pacific is expected to expand at the highest CAGR of 18.7% during the forecast period owing to the rise in investments in the IT sector and rapid growth of the end-use industries.