The analysis and forecast for the Edge Data Centre market predicts a substantial increase in value by 2034, reaching $109.78 billion from last year’s $20.62 billion, with a notable CAGR of 17.63% during the period 2025-2034.
One of the main drivers behind this growth is the rising demand for real-time computing and low-latency data processing in close proximity to where it can have the most operational impact. The expansion of 5G networks, the need for decentralization in computing infrastructure, and the integration of IoT applications are also contributing factors.
Modular data centre architecture is playing a key role in streamlining the construction of edge data centres, while government policies promoting energy-efficient data centres and investments in smart city projects further support the adoption of edge-based data centres.
Various industries such as BFSI, IT and telecom, healthcare, retail, automotive, and manufacturing are influencing the growth of this market segment. Particularly in the IT and telecom sectors, improvements in network infrastructure are rapidly progressing as edge data centres enable low-latency data processing and alleviate bottlenecks in core networks.
End-users benefit from faster and more responsive digital services, including real-time computing capabilities and potential enhancements in cybersecurity.
The utilization of edge-located centres is evident in use-cases like smart factory automation, autonomous vehicle technologies, AI-predictive maintenance, and improved supply chain processes across different industries. These applications are critical for reducing downtime and enhancing operational efficiency, especially in sectors like automotive and engineering.
In the retail sector, edge data centres play a vital role in personalizing shopping experiences, managing local inventory, and enhancing cybersecurity to safeguard customer data.
Investments in the edge data centre market have been surging in recent years, with key players establishing new facilities and expanding their presence globally. Companies like SBA Communications, Edge Centres, Arcus, Rakuten Mobile, and others are actively investing in edge data centre infrastructure to meet the growing demand for low-latency, high-speed data processing driven by technologies like AI, 5G, and IIoT.
The increasing adoption of edge computing in diverse use-cases has positioned it as a mainstream choice for organizations looking to leverage the benefits of localized infrastructure for enhanced performance and efficiency in data processing.
(Image source: “Raspberry Pi Cluster” by l33tname is licensed under CC BY 2.0.)
