The edge server market is registering a valuation of USD 3.39 billion in 2023 and is likely to secure a CAGR of 53.8% during the forecast period. The market is expected to be worth USD 251.34 billion by 2033.
The market is being driven by several factors, including:
| Attributes | Details |
|---|---|
| Market CAGR (2023 to 2033) | 53.8% |
| Market Valuation (2023) | USD 3.39 billion |
| Market Valuation (2033) | USD 251.34 billion |
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Historically, the market was valued at USD 2.20 billion in 2022. The increasing demand for real-time and low-latency data processing and the need for high bandwidth and low latency networks are driving market growth.
The North American region is expected to dominate the global market during the forecast period, followed by Europe and the Asia Pacific regions. It is primarily due to the widespread adoption of edge computing technologies by several key players in the market.
Overall, the market has experienced significant growth over the past few years, driven by the increasing demand for real-time data processing and IoT devices. The market is expected to grow rapidly in the coming years, driven by increasing high-performance computing at the edge of the network.
Principal Consultant
Based on type, the hardware segment currently dominates the edge server market. Its segment includes edge servers, gateways, and other edge devices that provide computing and storage capabilities at the network's edge.
Edge servers are critical components of edge computing infrastructure, providing local processing power and reducing latency by processing data close to the source. Conversely, gateways serve as a bridge between edge devices and the cloud or data center, enabling seamless data transfer and communication between different parts of the network.
The hardware segment is expected to dominate the edge server market in the coming years. The increasing adoption of Internet of Things devices and the growing demand for video streaming and other bandwidth-intensive applications are increasing the demand for hardware. However, the platform and service segments are also expected to experience significant growth in the coming years. However, organizations seek to optimize and integrate their edge computing infrastructure with their existing IT infrastructure. The platform segment includes edge computing software platforms and middleware, while the services segment includes consulting, integration, and support services.
The Internet of Things (IoT) application currently leads the edge server market based on application. The Internet of Things is a network of physical devices, vehicles, home appliances, and other items embedded with sensors, software, and connectivity. The segment enables these devices to connect and exchange data.
Edge computing is critical for the Internet of Things, enabling devices to process and analyze data at the network's edge. It reduces latency and enables faster decision-making, which is critical for many Internet of Things applications.
Other key edge computing applications include video surveillance, autonomous vehicles, gaming, and others. Video surveillance, for example, requires real-time video data processing, which edge servers can facilitate. Autonomous vehicles require high-performance computing and low-latency data processing, which edge servers can provide. However, the increasing adoption of Internet of Things devices across industries such as manufacturing, healthcare, and transportation are fueling the market size in the coming years. The Internet of Things is expected to generate massive amounts of data in real time, driving the need for edge computing infrastructure.
The United States is one of the leading markets for edge servers globally, with a significant share of the global edge server market. The increasing adoption of Internet of Things devices, the proliferation of smart devices, and the need for low-latency data processing are a few of the factors driving the growth of the market in the United States.
Several key players in the United Kingdom edge server market, including Dell EMC, Hewlett Packard Enterprise (HPE), Cisco Systems, and IBM. These companies are investing heavily in developing edge computing technologies, including edge servers, to cater to the growing demand for edge computing infrastructure in the United States.
The Internet of Things is one of the key application areas for edge computing in the United States, with the adoption of Internet of Things devices increasing across industries such as healthcare, manufacturing, and transportation. The need for real-time data processing and analysis drives the demand for edge computing infrastructure, including edge servers, in the United States.
The United States is expected to continue to be a leading market for edge servers in the coming years. The increasing adoption of Internet of Things devices, the proliferation of smart devices, and the need for low-latency data processing are advancing the market size in the country. The development of 5G networks is also expected to drive the growth of the edge server market in the United States.
The United Kingdom is a significant player in the global market. The United Kingdom has a well-developed technology sector and a strong history of innovation, with several companies based in the country offering edge computing solutions, including edge servers. The United Kingdom is home to companies such as BT Group, Dell Technologies, and Hewlett Packard Enterprise (HPE), all of which have a significant presence in the market.
The Internet of Things is one of the key drivers of the market in the United Kingdom, with the adoption of Internet of Things devices increasing across industries such as manufacturing, transportation, and healthcare. Low-latency data processing and analysis drive the demand for edge computing infrastructure, including edge servers, in the United Kingdom.
The United Kingdom is also investing in the development of 5G networks, which is expected to drive the growth of the market in the country. 5G networks enable faster and more reliable data transfer between edge devices and data centers, which is critical for many edge computing applications. Overall, the United Kingdom’s edge server market is expected to continue to be a significant player in the coming years.
Japan is experiencing significant growth in the market, driven by several factors, including the increasing adoption of Internet of Things devices, the need for low-latency data processing, and the development of 5G networks.
The manufacturing industry in Japan is one of the key drivers of the market in the country. Many Japanese manufacturers invest heavily in the Internet of Things and edge computing technologies to improve production efficiency and reduce costs. For example, they use edge servers to process and analyze data from sensors and other devices on the factory floor in real time, allowing them to quickly identify and fix issues and optimize production processes.
Other key application areas for edge computing in Japan include healthcare, transportation, and smart cities. In healthcare, edge servers are used to process and analyze medical device data, enabling real-time patient monitoring and diagnosis. In transportation, edge computing optimizes traffic flow and reduces congestion. In contrast, in smart cities, edge servers are used to manage and analyze data from sensors and other devices to improve city services and infrastructure.
Japan is also investing heavily in developing 5G networks, which is expected to drive market growth in the country. The high-speed and low-latency capabilities of 5G networks are expected to enable new edge computing applications. They use cases that drive demand for edge servers and other edge computing infrastructure.
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The competitive landscape in the market is highly fragmented, with many players operating. The market includes established players and new entrants, ranging from sizable multinational corporations to small startups.
These companies focus on developing innovative edge server solutions to meet the growing demand for low-latency data processing and analysis. They are also investing in partnerships and collaborations to expand their reach and offerings in the market.
Recent Developments in the Global Market:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value |
| Key Countries Covered | United States, Canada, Germany, United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Türkiye, Northern Africa, and South Africa |
| Key Segments Covered | Type, Application, Region |
| Key Companies Profiled | Dell Technologies; Hewlett Packard Enterprise (HPE); Cisco Systems; Huawei Technologies; Fujitsu Limited; NEC Corporation; Juniper Networks; IBM Corporation; Schneider Electric; Vertiv Holdings |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The CAGR of the market is 53.8% through 2033.
In 2023, the market is anticipated to be worth USD 3.39 billion.
By 2033, the market is anticipated to achieve USD 251.34 billion.
the Internet of Things (IoT) application predominates the edge server market.
The hardware sector currently controls the market in terms of type.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component 5.1. Hardware 5.2. Software 5.3. Service 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Industrial Server 6.2. Commercial Server 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 7.1. Financial and Banking Industry 7.2. Retail 7.3. Healthcare and Life Sciences 7.4. Energy and Utilities 7.5. Telecommunications 7.6. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. South Asia 8.5. East Asia 8.6. Oceania 8.7. MEA (Middle East & Africa) 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Dell 18.2. HPE (Hewlett Packard Enterprise) 18.3. Lenovo 18.4. Cisco 18.5. Nokia 18.6. Huawei 18.7. Gigabyte Technology 18.8. Fujitsu 18.9. ADLINK 18.10. Atos 18.11. Advantech 18.12. Sugon 18.13. Inspur 18.14. OnLogic 18.15. Trusme 19. Assumptions & Acronyms Used 20. Research Methodology
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Edge Server Market
