Edge Data Center Market Outlook:
Edge Data Center Market size was valued at USD 15.55 billion in 2025 and is set to exceed USD 139.13 billion by 2035, expanding at over 24.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of edge data center is estimated at USD 18.98 billion.
The growth of the market can be attributed to growing adoption of internet of things (IoT). Globally, about 8 billion Internet of Things (IoT) devices are expected to exist in 2020, almost tripling to more than 28 billion IoT devices in 2030. IoT is estimated to be benefited more by edge data center. It reduces communication latency between IoT devices and the main IT networks and also lead to quicker response times and higher operational effectiveness along with an increase in network bandwidth.
Moreover, the growing initiatives by government in enriching their nation digitally is also estimated to boost the growth of the edge data center market over the forecast period. For instance, RailTel, a central government PSU in India, was tasked with building "edge data centres" at railroad facilities in 102 different locations, primarily in tier-2 and tier-3 cities around the nation. RailTel was estimated to establish the "edge data centres" in collaboration with partners. Additionally, edge data center has been benefiting different industries including automobile, telemedicine, and telecommunication. Further, growing adoption of consumer electronics such as wearable, and smartwatches is also expected to boost the demand for edge data center. Hence, the construction of edge data center is also being conducted on large scale.
