Edge demand driving micro DC market to US$6.5bn by 2025

26 January 2021 | Capacity team

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The value of the micro data centre market is on track to reach US$6.5 billion by 2025, driven by new edge deployments and computing.

Bringing lower latency and higher bandwidth, the micro data centre space was valued at $3 billion in 2020. Now clocking growth of 16.6% CAGR, the space is being driven by the increased adoption of edge computing and IoT in non-tech industries.

Other driving factors include the growing demand for branch and remote office working, as well as instant data centres, according to the data, published by Markets and Markets this month.

The report read: "The demand for computing power is increasing in various sectors, including industries, offices, distribution warehouses, telecom clouds, and others. Telecommunication companies are deploying higher-density micro mobile data centres with 8kW to 10kW per cabinet.

"Distribution centres that need high computing power to manage inventory, transactions and shipping data prefer micro mobile data centres to process orders more efficiently and quickly. Moreover, retail outlets are now focusing on growing their in-store computing power to help provide customers with real-time discounts and advertise products that customers are most likely to purchase," it continued.

The trend is particularly strong in North America, where new and existing players are deploying new facilities to achieve scalability and reach for their customers. However, the Asia-Pacific region is set to lead all global markets in growth terms, due to the culture for rapid adoption of new technology, and advances in China. 

Elsewhere, a December report from Research and Markets showed global demand for edge analytics could have reached growth of 35.2% in 2020, with forecasts that figure will settle at 28.2% CAGR to 2027.