Worldwide edge data center industry is expected to reach $21.4 bn by 2027

The Global Edge Data Center Market size is expected to reach $21.4 billion by 2027, rising at a market growth of 19.9% CAGR during the forecast period, according to Research and Markets.

Due to the relative freshness of edge data centers as an established trend, individual data center experts may describe them differently based on their positions, industry, or goals. It is defined as data storage and access systems that are situated close to the end-user to improve the efficiency of their data delivery system. It can be a single or two racks, or a small computer unit close to a 5G antenna, but it could also be a space with 100 to 200 KW of power and greater IT power. They build well-organized habitats on the outskirts of cities, far from the typical city centers.

Additionally, rather than storing data processing control in a centralized warehouse or the cloud, edge data centers transfer it to the network’s edge. It has all of the same elements as a standard data center but in a significantly smaller space. In a complex network, an edge data center is one of many, including a central business data center. These centers are handled remotely and are located near the locations they serve. They usually connect to a bigger central data center or a number of them. Edge computing reduces latency and improves the customer experience by processing data and services as near to the end-user as possible.

In an edge computing infrastructure, time-sensitive data is handled at the origin point by an embedded server that is close to the client geographically. The goal is to deliver content as quickly as possible to any end device that might require it, with as reduced latency as possible. Less time-sensitive data can be transferred to a larger data center for historical evaluation, big data analytics, and long-term storage. Edge data centers work on the same principle as traditional data centers, but instead of simply having one intermediate server in close proximity to the client, they’re a small data center.

COVID-19 impact analysis

The outbreak of the COVID-19 pandemic caused a severe impact on the edge data center market. Various businesses all over the world were significantly devastated. In addition, due to the emergence of the COVID-19 pandemic, several economies all over the world were substantially demolished.

Moreover, governments across the world were forced to enforce country-wide lockdowns, due to which, various manufacturing units were shut. Moreover, due to the travel restrictions around the world, the worldwide supply chain was majorly disrupted, which played a major role in hauling the production of numerous products.

Moreover, organizations all over the world changed the way they purchase and sell products & services as a result of the COVID 19 outbreak. Amid and post the COVID-19 lockdown, several studies and survey organizations, including large enterprises and SMEs, increased their marketing spending.

Increasing adoption of the IoT Sector
Because of the growth of IoT, enterprises are increasingly relying on centralized cloud computing and storage solutions to manage their data. In addition, the IoT industry is also estimated to rapidly develop in the coming years. Migrating the complete IT infrastructure to the cloud raises concerns about latency and cost. As a result, businesses that use actuators, IoT sensors, and other IoT devices are rapidly turning to edge computing solutions such edge devices, nodes, and hyper-localized data centers. Edge computing includes a comprehensive cloud paradigm by integrating data processing with the data source, allowing businesses to make quick and informed decisions.

Offers enhanced data management
Data collected at the network edge is extremely significant since it provides insight into user behavior. In addition, a significant amount of the data is irrelevant noise, necessitating the employment of sophisticated analytics tools to shift unstructured data and identify important trends. All data gathered at the edge is often sent back to centralized servers capable of sorting through enormous troves of big data. A well-designed edge computing network, on the other hand, can better manage that data by combining local devices with edge data center resources. Instead of sending entire data back to the origin, edge networks can analyze the majority of it locally and only send certain sorts of data that are required to be evaluated by the core.

High capital expenditure
Edge-enabled software platforms and hardware devices require significant capital expenditure for research and development, which increases the initial cost of using edge data centers. With the deployment of edge computing, this investment is essential to serve a variety of important applications and operations, considering the diversity of hardware and platforms, as well as capacity.

Due to a lack of network and digitalization infrastructure, the initial capital along with professional expertise for leveraging critical infrastructure is considerably higher in emerging nations. Edge technology investment typically has to compete with other IT expenditures in the organization. Companies that require the deployment of edge technology must invest considerably in edge devices, nodes, and edge data centers.

CT Bureau