As Next-Gen Applications Evolve, Collaborations Increase Among Multiple Stakeholders Across Different Industries, Finds Frost & Sullivan
The continuous rise in the number of connected and Internet of Things (IoT) devices, connected and autonomous cars, content streaming, and multiplayer games will accelerate the edge computing market at a compound annual growth rate (CAGR) of 36.3% from 2017 to 2022. With the number of connected devices set to triple by 2025, and with most of these applications requiring close to zero-latency data transfer, the $768 million global edge computing market is forecast to touch $3.62 billion by 2022. The fastest-growing edge segments will be small and medium capacity, which are likely to grow at a CAGR of 63.7% and 30.9%, respectively.
“Edge data centres are particularly focusing on high-density cooling solutions such as rack-mounted cooling and advanced cooling solutions like evaporative/adiabatic cooling, direct liquid cooling/immersion cooling, and economiser segment/free cooling,” said Energy Analyst Vasanth Krishnan. “Meanwhile, market participants are expanding their data centre footprint to Tier II and Tier III cities to develop their network at the edge, creating opportunities in these cities for other participants in the value chain.”
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Frost & Sullivan‘s recent analysis, Global Impact of Edge and 5G Technology on Data Centers, Forecast to 2022, examines the forms of edge computing, 5G and its advantages, and the major trends that will shape the market for edge-based data centres. It also presents the current and future revenue estimates for the data centres, and the strategies adopted by cloud, colocation, and enterprise-class data centre providers.
For further information on this analysis, please click here.
“It is important for market participants to forge partnerships and leverage existing relationships in the industry in order to unlock new revenue streams,” noted Krishnan. “Colocation providers will look to penetrate Tier II and Tier III cities where the workload potential is expected to increase, while enterprise-class users are likely to opt for edge-based colocation services or push their own networking infrastructure to the edge.”
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The current market ecosystem for edge data centres is diverse, with all classes of providers looking to pursue edge as part of their strategy. For greater growth opportunities, data centre operators and owners need to:
- Invest in edge through a merger, acquisition, or collaboration with an edge-focused firm.
- Continue to ensure zero downtime with best-in-class latency standards.
- Expand in Tier II and Tier III cities.
Global Impact of Edge and 5G Technology on Data Centers, Forecast to 2022 is part of Frost & Sullivan’s global Energy Storage Growth Partnership Service program.
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