Rising Need for Zero-Latency Transfer Opens Up Opportunities for Edge Computing
June 6, 2019 | Frost & SullivanEstimated reading time: 2 minutes
The continuous rise in the number of connected and Internet of Things (IoT) devices, connected and autonomous cars, content streaming, and multiplayer games will accelerate the edge computing market at a compound annual growth rate (CAGR) of 36.3% from 2017 to 2022. With the number of connected devices set to triple by 2025, and with most of these applications requiring close to zero-latency data transfer, the $768 million global edge computing market is forecast to touch $3.62 billion by 2022. The fastest-growing edge segments will be small and medium capacity, which are likely to grow at a CAGR of 63.7% and 30.9%, respectively.
“Edge data centres are particularly focusing on high-density cooling solutions such as rack-mounted cooling and advanced cooling solutions like evaporative/adiabatic cooling, direct liquid cooling/immersion cooling, and economiser segment/free cooling,” said Energy Analyst Vasanth Krishnan. “Meanwhile, market participants are expanding their data centre footprint to Tier II and Tier III cities to develop their network at the edge, creating opportunities in these cities for other participants in the value chain.”
Frost & Sullivan’s recent analysis, Global Impact of Edge and 5G Technology on Data Centers, Forecast to 2022, examines the forms of edge computing, 5G and its advantages, and the major trends that will shape the market for edge-based data centres. It also presents the current and future revenue estimates for the data centres, and the strategies adopted by cloud, colocation, and enterprise-class data centre providers.
“It is important for market participants to forge partnerships and leverage existing relationships in the industry in order to unlock new revenue streams,” noted Krishnan. “Colocation providers will look to penetrate Tier II and Tier III cities where the workload potential is expected to increase, while enterprise-class users are likely to opt for edge-based colocation services or push their own networking infrastructure to the edge.”
The current market ecosystem for edge data centres is diverse, with all classes of providers looking to pursue edge as part of their strategy. For greater growth opportunities, data centre operators and owners need to:
- Invest in edge through a merger, acquisition, or collaboration with an edge-focused firm.
- Continue to ensure zero downtime with best-in-class latency standards.
- Expand in Tier II and Tier III cities.
About Frost & Sullivan
For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.
Testimonial
"Your magazines are a great platform for people to exchange knowledge. Thank you for the work that you do."
Simon Khesin - Schmoll MaschinenSuggested Items
Aircraft Wire and Cable Market to surpass USD 3.2 Billion by 2034
10/30/2025 | Global Market Insights Inc.The global aircraft wire and cable market was valued at USD 1.8 billion in 2024 and is estimated to grow at a CAGR of 5.9% to reach USD 3.2 billion by 2034, according to recent report by Global Market Insights Inc.
The Marketing Minute: Marketing With Layers
10/15/2025 | Brittany Martin -- Column: The Marketing MinuteMarketing to a technical audience is like crafting a multilayer board: Each layer serves a purpose, from the surface story to the buried detail that keeps everything connected. At I-Connect007, we’ve learned that the best marketing campaigns aren’t built linearly; they’re layered. A campaign might start with a highly technical resource, such as an in-depth article, a white paper, or a podcast featuring an engineer delving into the details of a process. That’s the foundation, the substance that earns credibility.
ICT Symposium Review: Sustainability and the Circular Economy
10/09/2025 | Pete Starkey, I-Connect007It was pleasant autumnal weather as we made our way once again to Meriden, the nominal centre of England, for the 2025 Annual Symposium of the Institute of Circuit Technology. Delegates were welcomed by technical director Emma Hudson who introduced and moderated a skilfully coordinated programme, focused on the highly relevant theme of sustainability.
Circular Packaging Market to Reach $98.0 Billion by 2035
10/08/2025 | Fact.MRThe market's journey from USD 45.8 billion in 2025 to USD 98.0 billion by 2035 represents substantial growth, the market will rise at a CAGR of 7.9% demonstrating the accelerating adoption of sustainable packaging systems and circular economy solutions across food & beverage, personal care, and e-commerce sectors.
It’s Only Common Sense: Stop Whining About the Market—Outwork It
10/06/2025 | Dan Beaulieu -- Column: It's Only Common SenseWhenever the market hiccups or the industry cycle dips, I hear the same tired chorus: “The market is down. Customers aren’t buying. What can we do? We just have to wait it out.” Nonsense. If you think that by showing up, opening your doors, and waiting for the economy to smile kindly upon you, that success will follow, you are in the wrong business. Worse yet, you’re living in the wrong mindset. Most people don’t want to hear the truth that winners find business in down cycles. Losers blame the economy.