Edge Data Center Market Size To Reach $109.91 Billion By 2033

July 2025 | Report Format: Electronic (PDF)

Edge Data Center Market Growth & Trends

The global edge data center market size is estimated to reach USD 109.91 billion by 2033, registering a CAGR of 28.9% from 2025 to 2033, according to a new report by Grand View Research, Inc. Increasing adoption of Internet of things across various end-use industries, the rapid growth of mobile and IoT applications, and the rising popularity of online streaming and e-commerce services are major drivers of market growth. It is anticipated that factors including the increasing adoption of 5G technology to improve communication, rising spending on data center technology, increasing demand to reduce data center complexity, and development in the AR/VR technology, will also contribute to the market's growth.

Moreover, COVID-19 has increased the penetration of technologies such as 5G, IoT, cloud, and edge computing. Owing to the global adoption of the work-from-home policy, the demand for edge data centers has witnessed a remarkable rise during the pandemic period. The pandemic has forced the major workforce to work remotely, which has resulted in a growing number of companies investing additional resources in IT services. The need for data centers has increased over the past few years as a result of this expanding digitization.

The companies in the edge data center industry have been involved in various strategic initiatives to gain better traction in the market. For instance, in March 2023, AtlasEdge announced a partnership with PacketFabric to offer customers cloud connectivity. The partnership would enable AtlasEdge to use PacketFabric’s TruNaaS Converge Platform. PacketFabric has deployed high availability 100GB private network in 2 locations AtlasEdge which are in Hamburg and Berlin. This initiative has helped enable companies to reach a wider audience, thereby driving the growth of the edge data center industry.

As edge data centers are typically smaller than centralized data centers, their scalability is limited. This can be a major limitation for applications that demand a high level of scalability, such as cloud-based apps or data-intensive workloads. However, edge data centers are expected to develop in the anticipated period because they are well-positioned to meet the growing demand for localized computing and storage resources, as well as upcoming technologies such as 5G and IoT. Edge data centers can assist in improving speed, reducing latency, and providing greater security, making them an essential component of the digital infrastructure.

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Edge Data Center Market Report Highlights

By component, the solution segment accounted for the major revenue share of 87.3% in 2024. It is anticipated to maintain its dominance over the forecast period. Increased use of hardware and software solutions such as analytics, networking equipment, DCIM, IT racks, enclosures, and power and cooling systems in data centers is attributed to the market growth.
By facility size, the small & medium facility size is expected to witness the fastest CAGR during the forecast period. Small and medium facility segment includes facilities with 1 to 12 racks, with a power draw of 8 to 12 kW/rack. They are ideal for reducing space, deploying quickly, and offering ways to cut costs. Edge data centers are designed to be smaller and more localized than standard data centers.
In terms of the end-use industry, the IT & telecom segment accounted for the major revenue share in 2024. It is anticipated to maintain its dominance over the forecast period. The rapidly growing IT and telecom industry across the globe is creating more demand for edge data centers.
North America held the highest market share of 34.4% in 2024. It is expected to retain its position over the forecast period. The high adoption of edge data center solutions and services in this region is the major driving factor behind the market growth. North America's growth is attributed to the growing adoption of edge data centers for various factors, including the requirement to serve future technologies such as 5G, IoT, and AI, which demand low latency and high bandwidth connections.