Soaring Mobile Data Traffic Fueling Demand for Edge Data Centers

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 With the rising penetration of the internet and growing usage of smartphones and internet of things (IoT) devices, the mobile data traffic is surging, which is, in turn, fueling the requirement for edge data centers. According to the World Bank, nearly 49% of the global population were internet users in 2017. The generation of large volumes of data, owing to the soaring mobile data traffic, is causing latency issues and slow network speeds. Therefore, in order to manage such huge volumes of data, edge data centers are being rapidly established all over the world. 

These data centers are located at the edge of a network and thus, assist greatly in reducing latency problems, which is rapidly becoming a huge concern area for many organizations, on account of the booming popularity of streaming services and growing adoption of cloud computing solutions and advanced technologies such as big data and the internet of things. Besides this, the increasing over-the-top (OTT) traffic, due to the mushrooming popularity of OTT services and surging consumption of online content, is also propelling the requirement for edge data centers. 

Edge Data Center Market Revenue Estimation and Growth Forecast Report

As the traditional data centers are usually located faraway from end users, OTT content frequently experiences latency, which causes buffering. This massively affects the user experience. As edge data centers reduce the time taken for the transmission of data from the source to the destination, the growing requirement for buffering-free OTT content is driving their demand across the world. This is, in turn, fueling the expansion of the global edge data center market. 

According to the estimates of the market research company, P&S Intelligence, the market revenue will rise from $5.3 billion in 2019 to $53.1 billion by 2030. Furthermore, the market is predicted to progress at a CAGR of 25.4% from 2020 to 2030. Between edge data center solutions and services, the demand for the former is predicted to be higher in the coming years. This will be because of the rapid development of edge data centers around the world. Cooling, power and uninterruptible power supply (UPS), IT racks & enclosure, networking equipment, storage, data center infrastructure management (DCIM), and connectivity, security, and support infrastructure are the major edge data center solutions.

Amongst these, the demand for cooling solutions is predicted to rise rapidly in the forthcoming years. This is credited to the fact that these solutions are required for maintaining optimal temperatures in the data center facility. Moreover, the growing adoption of various high-end cooling technologies is also boosting the need for these solutions. Geographically, North America is contributing the highest revenue to the edge data center market. This is attributed to the rapid commercialization of 5G and the increasing provision of financial incentives by the governments of the regional countries for supporting the development of edge data centers.

Hence, it is safe to say that the demand for edge data centers will surge sharply in the coming years, primarily because of the growing mobile data and OTT traffic, on account of the rising internet and smartphone penetration, and the mushrooming popularity of streaming services across the world. 


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