Edge Server Market Overview
Edge Server Market Size was estimated at 11.8 (USD Billion) in 2022. The Edge Server Market Industry is expected to grow from 13.5 (USD Billion) in 2023 to 19.24 (USD Billion) by 2032. The Edge Server Market CAGR (growth rate) is expected to be around 13.6% during the forecast period (2024 - 2032).
Key Edge Server Market Trends Highlighted
The Edge Server market is poised for substantial growth driven by the proliferation of Internet of Things (IoT) devices, rise of cloud computing and increasing demand for real-time applications. The integration of artificial intelligence and machine learning into edge servers further enhances their capabilities, enabling them to process data at the edge and respond swiftly to changing conditions. Key market drivers include the increasing need for data processing at the network edge, rise of 5G networks with ultra-low latency and the growing adoption of edge computing solutions in various industries such as manufacturing, healthcare and retail.
The market also presents opportunities for players to explore edge server solutions for autonomous vehicles, smart cities and remote operations. Recent trends in the Edge Server market include the development of virtualized edge servers, which offer greater flexibility and cost-effectiveness. Additionally, emergence of software-defined edge servers allows for centralized management and control, simplifying the deployment and maintenance of edge infrastructure. Edge servers are also increasingly being integrated with cloud platforms, enabling seamless data transfer and analysis between the edge and the cloud.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Edge Server Market Drivers
Rising Demand for Edge Computing
Edge computing can be defined as a distributed computing paradigm that pushes computation and data storage resources closer to the location where they are needed. Therefore, it is not surprising that the rapid development of edge computing applications elevates the demand for edge servers. It should be noted that edge servers are usually smaller compared to generic servers, whereas they are generally more energy-efficient. Edge servers can be installed in multiple places, such as remote branch offices, retail sites, and factories.
Thus, the increasing demand for edge computing is expected to drive the growth of the Edge Server Market Industry in the coming years.
Growth of the Internet of Things (IoT)
The Internet of Things is a network that extends beyond the Internet connection. In fact, it is a network of certain physical objects or people that connects the Internet, sensors, and software to other devices or systems in public or local clouds, creating data on the basis of the entire user. The growth of the IoT will lead to a significant increase in the demand for edge servers. The edge server can process and store the IOT data and, at the same time, can be used for real-time insights and analytics.Overall, in the upcoming years, the growth of the Internet of Things is expected to be the leading driver of growth for the Edge Server Market Industry.
Increasing Adoption of Cloud Computing
Cloud computing is a model for providing IT resources over the Internet. In recent years, cloud computing has become more popular among the leading businesses because it offers them a number of benefits, such as scalability, cost savings, and flexibility. The rapid advancement of cloud computing technology is expected to increase the demand for edge servers. Edge servers are used to cache data and applications from the cloud. Edge servers also provide local processing and storage for cloud-based applications.
The increasing adoption of cloud computing is expected to be a major driver for the growth of the Edge Server Market Industry over the next several years.
Edge Server Market Segment Insights
Edge Server Market Deployment Model Insights
The Edge Server Market is segmented based on deployment model into on-premises, cloud and hybrid. Among these, the on-premises segment held the largest market share in 2023 and it is expected to continue its dominance during the forecast period. The growth of this segment can be attributed to the increasing adoption of edge computing solutions by enterprises for better control over their data and applications. However, the cloud segment is expected to witness the highest growth rate during the forecast period, owing to the growing popularity of cloud-based services and increasing adoption of edge computing solutions by small and medium-sized businesses.
The growth of the market is attributed to the increasing adoption of edge computing solutions by enterprises across various industries to improve their operational efficiency and customer experience. The market is also expected to benefit from the growing demand for edge computing solutions from emerging economies, such as China and India. Key Insights: The on-premises segment held the largest market share in 2023, and it is expected to continue its dominance during the forecast period. The cloud segment is expected to witness the highest growth rate during the forecast period.
The hybrid segment is also expected to grow at a significant rate during the forecast period. The growth of the market is attributed to the increasing adoption of edge-computing solutions by enterprises across various industries. The market is also expected to benefit from the growing demand for edge computing solutions from emerging economies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Edge Server Market Server Form Factor Insights
The Server Form Factor segment of the Edge Server Market is characterized by a range of form factors, including blade, rackmount, tower and micro server. Blade servers known for their high density and scalability are primarily deployed in data centers with space constraints. Rackmount servers, offering flexibility and ease of maintenance, are widely adopted in enterprise and colocation environments. Tower servers designed for smaller deployments are commonly used in small businesses and remote offices. Microservers, characterized by their compact size and low power consumption are gaining traction in edge computing applications.
In 2023, the Blade Server Form Factor segment accounted for a significant share of the Edge Server Market revenue, driven by the growing demand for high-performance computing in edge data centers. The Rackmount Server Form Factor segment is projected to witness steady growth due to its versatility and scalability. The Tower Server Form Factor segment is expected to maintain a steady market share, catering to the needs of small and medium-sized businesses. The Microserver Server Form Factor segment is poised for significant growth, driven by the increasing adoption of edge computing and the need for low-power, compact servers.
Overall, the Server Form Factor segment of the Edge Server Market is expected to experience robust growth in the coming years, driven by the increasing demand for edge computing and the need for efficient and scalable server solutions.
Edge Server Market Application Insights
The Application segment of the Edge Server Market is categorized into Data Analytics, Content Delivery, Cloud Computing, and Virtualization. In 2023, the Data Analytics segment held the largest revenue share of 38.5%, owing to the increasing demand for real-time data processing and analytics at the edge. The Content Delivery segment is projected to exhibit a significant CAGR of 32.1% during the forecast period, driven by the growing popularity of video streaming and online gaming.
Cloud Computing is expected to contribute a substantial revenue share of 26.2% in 2023, supported by the rising adoption of cloud-based services and applications.The Virtualization segment is anticipated to grow steadily, with a CAGR of 29.8%, as organizations seek to optimize their IT infrastructure and reduce operational costs.
Edge Server Market Processor Architecture Insights
The Edge Server Market segmentation by Processor Architecture comprises x86, ARM, and PowerPC. Among these, the x86 segment held the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The widespread adoption of x86 processors in the IT industry, particularly in servers and workstations, has contributed to its popularity in edge computing applications. x86 processors offer high performance, compatibility with a wide range of software and operating systems, and scalability to meet the demands of edge workloads.
The ARM segment is expected to witness significant growth during the forecast period due to its energy efficiency and cost-effectiveness. ARM processors are well-suited for low-power edge devices, such as those used in IoT and mobile applications. The PowerPC segment holds a smaller market share but is gaining traction in specialized applications that require high-performance computing capabilities, such as AI and machine learning.
Edge Server Market End-User Industry Insights
The End-User Industry segment plays a crucial role in shaping the Edge Server Market revenue. Among the key end-user industries, Telecommunications, IT Services, Healthcare, and Manufacturing hold significant shares. The Telecommunications industry is projected to lead the market growth in the coming years due to the increasing demand for edge computing solutions to enhance network performance and reduce latency.
The IT Services industry is also witnessing a surge in edge server adoption to support cloud-based services, data analytics, and AI applications.The Healthcare industry is leveraging edge computing to improve patient care through real-time data processing and remote monitoring. The Manufacturing industry is utilizing edge servers to optimize production processes, reduce downtime, and enhance quality control. These industries' continued investment in edge computing solutions is expected to drive the Edge Server Market segmentation and propel its growth in the future.
Edge Server Market Regional Insights
The Edge Server Market revenue was valued at USD 28.45 Billion in 2023 and is expected to reach USD 306.0 Billion by 2032, exhibiting a CAGR of 30.2% during the forecast period. Regionally, North America held the largest market share in 2023, accounting for 39.5% of the Edge Server Market revenue. The region's dominance can be attributed to the presence of major cloud service providers, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform, which have invested heavily in edge computing infrastructure.
Europe stood as the second-largest market, with a share of 28.7% in 2023.The region's growth is driven by the increasing adoption of edge computing in various industries, including manufacturing, healthcare, and retail. APAC is expected to witness the fastest growth over the forecast period, owing to the rising demand for edge computing solutions in emerging economies such as China and India. South America and MEA are also expected to contribute to the overall market growth, albeit at a slower pace compared to other regions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Edge Server Market Key Players And Competitive Insights
The top competitors in the Edge Server Market are the major players who invest a huge amount in research and development to develop entirely new products. The first and leading competitor to manufacture Edge Server Market is HPE. The company mainly focuses on developing systems that are capable of solving unique needs for a specific industry and has less history of acquisitions.
They have the specified capabilities provided for customers in various industry verticals to perfectly meet the needs of that particular industry. We evaluated the hardware and software services and distinguished capabilities in areas like data operations that are used to implement products based on producer and manufacturer. The main reason for the rise in Edge Server Market development is the increasing need for cloud and edge computing, real-time data processing, and analytics, as well as the acquisition of new markets. Globally, HPE has a very large distribution network, so their services can be provided across the world.
HPE always maintains high quality, better performance, reliability, and other system-oriented movements, creating competition with the suppliers.Another major competitor to HPE is Dell Technologies. This company has very good communication channels and a distribution network to sell their resources throughout the world, or it can also attract network sources to sell their resources.
The systems that are developed by the competitors have unique features and have different varieties to meet the needs of the respective organizations. Like the above-mentioned HPE, Dell also provides consulting, services, implementation, and many other services. Many organizations are using these systems for their purpose as these are more reliable and have a large scalability performance as Dell sells their equipment throughout the current world using very broad networking and sales resources.
Key Companies in the Edge Server Market Include
- IBM
- Atos
- Huawei Technologies
- Tencent
- Dell Technologies
- Tech Mahindra
- Baidu
- Wipro Limited
- Lenovo
- Inspur
- Cisco Systems
- Alibaba Cloud
- Super Micro Computer
- Hewlett Packard Enterprise
- Juniper Networks
Edge Server Market Industry Developments
The Edge Server Market is poised to experience substantial growth in the coming years, driven by the increasing adoption of cloud and edge computing, rising demand for real-time data processing, and the proliferation of IoT devices. Major players in the market are investing heavily in research and development to enhance their product offerings and expand their market share. Partnerships and collaborations between vendors and service providers are becoming increasingly common as companies seek to offer comprehensive solutions that meet the evolving needs of customers.
The market is also witnessing the emergence of new technologies, such as artificial intelligence (AI) and machine learning (ML), which are being integrated into edge servers to improve performance and efficiency. Additionally, the growing adoption of 5G networks is expected to further fuel the growth of the Edge Server Market, as it will enable faster and more reliable data transmission.
Edge Server Market Segmentation Insights
-
Edge Server Market Deployment Model Outlook
-
Edge Server Market Server Form Factor Outlook
- Blade
- Rackmount
- Tower
- Microserver
-
Edge Server Market Application Outlook
- Data Analytics
- Content Delivery
- Cloud Computing
- Virtualization
-
Edge Server Market Processor Architecture Outlook
-
Edge Server Market End-User Industry Outlook
- Telecommunications
- IT Services
- Healthcare
- Manufacturing
-
Edge Server Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
11.8 (USD Billion) |
| Market Size 2023 |
13.5 (USD Billion) |
| Market Size 2032 |
19.24 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
13.6% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
IBM, Atos, Huawei Technologies, Tencent, Dell Technologies, Tech Mahindra, Baidu, Wipro Limited, Lenovo, Inspur, Cisco Systems, Alibaba Cloud, Super Micro Computer, Hewlett Packard Enterprise, Juniper Networks |
| Segments Covered |
Deployment Model, Server Form Factor, Application, Processor Architecture, End-User Industry, Regional |
| Key Market Opportunities |
Edge computing adoption in 5G and IoT Growth of cloud-based services Demand for real-time applications Increased focus on data security Expansion into developing regions |
| Key Market Dynamics |
Growing demand for low-latency applications Increasing adoption of cloud and fog computing Proliferation of IoT devices and sensors Need for improved security and data protection. Government initiatives promoting edge computing |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Edge Server Market is valued at USD 13.5 billion in 2023 and is expected to reach USD 19.24 billion by 2032, exhibiting a CAGR of 13.6% during the forecast period.
North America is expected to dominate the Edge Server Market due to the presence of major technology companies, advanced infrastructure, and increasing adoption of cloud and edge computing.
Edge servers are primarily used for content delivery, cloud gaming, video streaming, autonomous vehicles, and IoT applications.
Some of the key players in the Edge Server Market include Dell, HPE, Cisco, IBM, and Huawei.
The growth of the Edge Server Market is driven by factors such as the increasing demand for real-time data processing, the proliferation of IoT devices, and the need for reduced latency in applications.
Some of the challenges faced by the Edge Server Market include security concerns, data privacy issues, and the need for specialized skills to manage and maintain edge servers.
The Edge Server Market is expected to exhibit a CAGR of 30.2% during the forecast period from 2024 to 2032.
The Edge Server Market is projected to reach USD 306.0 billion by 2032, growing significantly from its valuation of USD 28.45 billion in 2023.
The Edge Server Market is expected to be driven by industries such as healthcare, manufacturing, retail, and transportation, where real-time data processing and low latency are crucial.
Cloud-native edge platforms, AI-powered edge computing, and the integration of 5G networks are some of the emerging trends in the Edge Server Market.
