Edge Data Center Market Projected to Soar

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A key component of 5G, the Edge Data Center market is expected to grow from $7.2 billion in 2021 to $19.1 billion by 2026, at a CAGR of 21.4 percent, according to a report by MarketsandMarkets. Edge Data Center solutions and services are being driven globally by large enterprises as well as by small and mid-sized enterprises, because of the adoption of automation and digitalization, the increase in adoption of BYOD (“Bring Your Own Device”) and advent of low-latency 5G capabilities, according to the report.

“As the demand for data and accessible information continues to become more critical to businesses, information technology professionals are facing challenges in terms of technology solutions,” the report reads. “IT and Telecom account for the largest share of the edge data center market during the forecast period, with social media users posting real-time events further fueling the growth in data center traffic.”  

An edge data center acts as a caching and data-aggregation point between users and larger data centers to ease the overwhelming data traffic load. Micro mobile data centers work as a network hub for ISPs and can be used for enhancing the speed of data transfer. 

“Because of their portability and scalability, edge data centers are witnessing a growing adoption for mobile computing and in high-density networks,” the report reads. “Micro mobile data centers reduce response times and lower the operational costs. Hence, these solutions are witnessing increased adoption in the IT and telecom industry.”

Service providers are witnessing exponential growth in the demand for an efficient mobile computing platform. Moreover, as the number of users generating data traffic within a region increases, the high-density networks follow. These data centers come as a complete IT solution for the telecom and IT industry, integrated with high-end equipment and network technologies for high-density network zones.

By J. Sharpe Smith, Inside Towers Technology Editor

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