Showing posts with label Edge Data Center Market Demand. Show all posts
Showing posts with label Edge Data Center Market Demand. Show all posts

Increasing Mobile Data Traffic is Strongest Driver of Edge Data Center Market

According to the Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update 2017–2022 report published in February 2019, “the mobile data traffic has been estimated at nearly 26.8 exabytes per month in 2019, and it is predicted to reach over 77.5 exabytes per month by 2022.” Apart from the growing mobile data traffic, the rising over-the-top (OTT) traffic is also propelling the demand for edge data centers across the globe.

Because of these reasons, the global edge data center market will grow, in valuation, from $5.3 billion to $53.1 billion from 2019 to 2030. The market is also predicted to advance at a CAGR of 25.4% between 2020 and 2030. with the growing number of internet users, rising popularity of internet-based applications and online streaming services, and the increasing adoption of big data, IoT, and cloud solutions in business operations, the requirement for minimal latency will surge, which will, in turn, fuel the development of edge data centers across the world in the upcoming years. 


Solutions and services are the two main categories, under the component segment of the edge data center market. Between them, the solutions category will exhibit higher growth in the market in the coming years. This category is further classified into cooling, IT racks & enclosure, storage, networking equipment, data center infrastructure management (DCIM), and power and uninterruptible power supply (UPS).
Globally, the North American edge data center market is currently being observed to be the most prosperous, as per the findings of P&S Intelligence, a market research firm based in India. This is attributed to the commercialization of 5G and the increasing investments being made by the governments of North American countries for developing data centers in the region. 

The expansion of the market in this region will be driven by the rising internet penetration and rapid digitization, especially in the developing countries such as China, Indonesia, and India. According to the Internet & Mobile Association of India (IAMAI), the country was home to over 504 million internet users as of November 2019. Further, the organization found that there was a 12% rise in the number of internet users in the country from March to November 2019.

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Rising Demand for Seamless Video Streaming to Boost Development of Edge Data Centers in Future Years

Edge data centers are the facilities that provide cached content and cloud computing resources to the end users. These facilities are situated close to the people that they serve and usually connect to a bigger central data center or multiple data centers. These centers help organizations mitigate latency and provide a greater user experience by processing data and other services closer to the end users. 


Moreover, the processing of data so close to the end users reduces the load time of webpages, which, in turn, improves the ranking of the website, thereby generating more revenue for the organization. In recent times, these facilities have become incredibly important, on account of the increasing mobile data traffic all over the world. 



The rising penetration of smartphones and various internet of things (IoT) systems is a key factor responsible for the growing mobile data traffic around the world.Besides the increasing volume of data being generated throughout the world, the surging over-the-top (OTT) traffic is also boosting the demand for edge data centers across the globe. 


According to a report published in February 2019 called the Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update 2017–2022, “the mobile data traffic has been estimated at nearly 26.8 exabytes per month in 2019, and it is predicted to reach over 77.5 exabytes per month by 2022”.

The main reasons behind the soaring OTT traffic are the increasing consumer preference for online content and the growing requirement for OTT services in several countries. According to Cisco, “the global internet protocol (IP) video, gaming and multimedia streaming traffic is estimated to reach more than 81% of all internet traffic by 2021, from 75% in 2019”.
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