Rising Need for Zero-Latency Transfer Opens Up Opportunities for Edge Computing
June 6, 2019 | Frost & SullivanEstimated reading time: 2 minutes
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.”
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.
“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.”
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.
About Frost & Sullivan
For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.
Suggested Items
IDTechEx Examines the Opportunities for Wearables in Digital Health
04/19/2024 | IDTechExIDTechEx’s report, “Digital Health and Artificial Intelligence 2024-2034: Trends, Opportunities, and Outlook”, covers this ongoing trend in the consumer health wearables market and includes analysis of the opportunities and roadmap for biometric monitoring.
Real Time with... IPC APEX EXPO 2024: Pluritec's Expansion and Growth in the North American Market
04/19/2024 | Real Time with...IPC APEX EXPONicola Doria, president of Pluritec, discusses the company's strategic focus on the North American market, their investment in a new sales organization, service expansion, and a new process integration line. The conversation also covers market response and future installations, as well as Pluritec's new partnership with IEC.
Mycronic Releases Interim Report January–March 2024
04/18/2024 | MycronicNet sales increased 39 percent to SEK 1,692 (1,219) million. Based on constant exchange rates, net sales increased 42 percent.
Real Time with... IPC APEX EXPO 2024: Exploring Silicone Solutions with R&D Director of CHT
04/17/2024 | Real Time with...IPC APEX EXPOIn this interview, Gerry Ellis, the R&D director for CHT, discusses the product range offered by his company. He explains the challenges in creating base formulations, the drive to make products more user-friendly, and the various application techniques involved. Ellis also highlights the key market segments and the significance of providing efficient solutions to customers.
Gartner Forecasts Worldwide IT Spending to Grow 8% in 2024
04/17/2024 | Gartner, Inc.Worldwide IT spending is expected to total $5.06 trillion in 2024, an increase of 8% from 2023, according to the latest forecast by Gartner, Inc. This is an increase from the previous quarter’s forecast of 6.8% growth and puts worldwide IT spending on track to surpass $8 trillion well before the end of the decade.