The global edge computing market is poised for significant growth, with projections indicating a substantial increase in value over the next few years. According to a report released by JLL, a leading commercial real estate and investment firm, the edge computing market is expected to reach £247.2 billion ($317 billion) by the end of 2026. This forecast represents a substantial increase from previous estimates, highlighting the rapid expansion and adoption of data-dependent technologies such as the Internet of Things (IoT) and generative artificial intelligence (AI).
Emerging Technological Trends Driving Growth
The expected growth of edge computing can be attributed to the proliferation of data-dependent technologies that are becoming increasingly prevalent in various industries. The Internet of Things (IoT) and generative artificial intelligence (AI) are reshaping the way businesses operate, creating a greater demand for IT infrastructure, including edge data centers. These data centers are strategically positioned to bring computing power closer to where data is generated or consumed, allowing for faster data transfer, lower latency, and higher computational capabilities.
According to JLL, the rise of edge computing will be influenced by emerging technological megatrends such as generative AI, as well as the need for improved data processing and storage capabilities. As companies continue to adopt these technologies, the demand for edge data centers is expected to grow significantly, driving the overall expansion of the edge computing market.
Drivers of Edge Data Center Adoption
Statista reports that the primary drivers for edge data center adoption include the need for low latency and high bandwidth, as well as concerns around data privacy and security. As more companies prioritize these factors in their IT infrastructure planning, the demand for edge data centers is expected to increase. Additionally, the rise of edge computing is likely to be shaped by global regulatory policies and infrastructure demands, highlighting the importance of adapting to new technologies and data privacy requirements.
Global Impact of Edge Data Centers
The shift towards edge data centers represents a significant transformation in the way data is processed and stored, with potential implications for businesses operating across multiple jurisdictions. By reducing dependence on centralized data centers, companies can improve data privacy measures and ensure seamless business operations in the future economy. Jonathan Kinsey, EMEA Lead and Global Chair of Data Centre Solutions at JLL, emphasizes the transformative potential of edge data centers in enhancing security measures and mitigating disruptions in business operations.
Investment Trends in Edge Data Centers
Respondents to the JLL report indicated their investment intentions for edge data centers over the next three years, with a focus on Industrial IoT, cloud data centers, and IoT environments. The report highlights the importance of adopting a hybrid approach to IT infrastructure, combining on-premise, cloud, colo, and edge data centers to meet the unique needs of businesses. As the number of connected devices continues to grow, driven by the adoption of new technologies, the demand for storage, compute, and network capabilities supported by edge computing is expected to increase.
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Conclusion
In conclusion, the global edge computing market is poised for significant growth in the coming years, driven by the increasing adoption of data-dependent technologies and the need for improved data processing and storage capabilities. The rise of edge data centers represents a transformative shift in the way businesses operate, with potential implications for data privacy, security, and regulatory compliance. As companies continue to invest in edge data centers and adopt a hybrid approach to IT infrastructure, the demand for low latency, high bandwidth, and enhanced computational capabilities supported by edge computing is expected to grow. Don’t miss the opportunity to be part of the latest tech conversations and innovations at the Tech Show Paris, where you can explore the future of technology and discover groundbreaking innovations in the tech industry.