Edge Data Center Market Regional Analysis:
North American Market Insights
The edge data center market share in North America is projected to have the highest growth by the end of 2035, backed by growth in data traffic, along with surge in government initiatives in order to develop data centers. By 2027, it is anticipated that North America's monthly data traffic would reach about 18 exabytes (EB). The average monthly data traffic in 2021 was close to approximately 4 EB. Moreover, in order to speed up applications such as streaming video, factory automation, and telemedicine as well as enable new technologies such as autonomous cars and augmented and virtual reality (AR/VR), businesses, telecommunications companies, and cloud service providers is anticipated to increasingly invest in edge data centers in the coming years in this region. Also, the demand for low-latency connectivity among consumers in North America region is arguably expanding at the quickest rate in eSports and video games. Hence, even this factor is estimated to boost the growth of the market in this region.
APAC Market Insights
The Asia Pacific edge data center market is estimated to be the second largest, to hold the highest market share over the forecast period. The growth of the market in this region can be attributed to growth in investment in IT sector and presence of prominent key players in this sector. Moreover, the increased use of digital services is changing how data centers are set up. When the distance from the data center increases, providing digital services to customers takes longer. Through locating data centers near the application's core, as opposed to keeping data in a centralized warehouse, full control over data processing and storage at the network's edge is possible. Furthermore, one of the major factors propelling the expansion of the edge data center market in the region is the rise in mobile data traffic. Furthermore, both the quantity of mobile data traffic and the number of smartphones and IoT devices are increasing in the region. In light of this, there is an increasing need for edge data centers, which in turn, is predicted to boost the growth of the region in the market.
Europe Market Insights
Additionally, the edge data center market in Europe is also estimated to have a significant growth over the forecast period. Demand for edge computing has surged as a result of the exponential explosion of data brought on by the digital transformation. Furthermore, the development of smaller data centers that are located closer to population centers has also been accelerated by the rise in edge computing in the region. Therefore, the need for edge computing is expected to increase dramatically in a smaller emerging market of Europe as it processes data and provides services closer to the end user.
