Edge Infrastructure Market Size
The Global edge infrastructure market reached US$ 11,127.10 million in 2024 and is expected to reach US$ 32,972.60 million by 2032, growing at a CAGR of 15.9% during 2025–2032.
The global edge infrastructure market is undergoing rapid acceleration, fueled by the convergence of AI workloads, 5G expansion, and IoT adoption. According to the International Telecommunication Union, over 60% of enterprises worldwide had deployed some form of edge computing by 2024, underscoring how quickly businesses are localizing compute for efficiency and compliance.
Edge is becoming critical to managing the explosion of connected devices, with global IoT connections expected to surpass 29 billion by 2030, creating massive demand for distributed, low-latency data centers. In parallel, government initiatives such as the US CHIPS and Science Act, which allocates $52.7 billion toward domestic semiconductor and microelectronics manufacturing, are strengthening the hardware backbone needed for scalable edge deployments.
Edge Infrastructure Market Trend
A defining trend in the market is the movement of compute-intensive artificial intelligence from centralized cloud servers to distributed edge nodes. Lenovo has noted that three-quarters of data computation now occurs at the edge, reflecting how industries such as manufacturing, automotive, and healthcare are adopting AI models closer to data sources to cut latency and enhance security.
At the same time, sustainability mandates are reshaping infrastructure design—Europe’s Climate Neutral Data Centre Pact requires 75% renewable or carbon-free energy usage in new data centers by 2025, moving to 100% by 2030. This is driving the rise of renewable-powered micro data centers, which not only meet compliance standards but also reduce energy overheads by optimizing Power Usage Effectiveness ratios as low as 1.3 in cooler climates. Together, the integration of AI-driven edge computing with renewable-powered infrastructure is creating a resilient, sustainable foundation for the next era of digital transformation.
Market Scope
Metrics | Details |
By Component | Hardware, Software / Platforms, Services |
By Organization Size | Large Enterprises, Small & Medium Enterprises (SMEs) |
By End-User | IT & Telecom, Government & Public Sector, BFSI, Manufacturing, Automotive & Transportation, Healthcare & Life Sciences, Energy & Utilities, Retail & Consumer Goods, Media & Entertainment, Others |
By Deployment Model | On-Premises, Cloud-Based, Hybrid |
By Region | North America, South America, Europe, Asia-Pacific and Middle East and Africa |
Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth |
Market Dynamics
Divers - Integration of Edge Infrastructure with Renewable-Powered Micro Data Centers
Integration of edge infrastructure with renewable-powered micro data centers is an increasingly important catalyst for market growth. In Maharashtra, India, the state government has approved the establishment of Green Integrated Data Centre Parks, injecting approximately ₹1.60 lakh crore (around US$ 1.92 billion) in sustainable, eco-conscious infrastructure development. This reflects a growing emphasis on combining edge deployments with renewable-powered micro data center capabilities to meet demand in sectors like AI, smart cities, and real-time processing.
Moreover, leading-edge data center operators are actively adopting renewable energy solutions to power their infrastructure. Indian firms such as Nxtra Data Limited have commissioned a 14 MWp captive solar plant in Uttar Pradesh and signed power purchase agreements for 9 MW hydropower to supply their core and edge sites, while CtrlS has implemented distributed solar installations in Mumbai, offsetting 620 tonnes of CO₂ emissions annually. This demonstrates how integrating renewable energy directly with micro-level data centers significantly enhances sustainability while anchoring edge infrastructure growth.
Fragmentation of Interoperability Standards Across Multi-Vendor Edge Deployments
Fragmentation in interoperability standards is a key restraint on the global edge infrastructure market. A US NIST report highlights that inconsistent standards, resistance to industry-wide consensus, and fragmented regional protocols significantly impede seamless integration across multi-vendor edge systems. In industrial contexts, legacy systems and over 40 proprietary fieldbus technologies (e.g., Profibus, Modbus) remain incompatible with modern Ethernet-based industrial networks, leading to vendor lock-in and elevated integration complexity. Together, these issues hamper efficient deployment, drive up costs, and slow down the adoption of scalable edge solutions.
Segmentation Analysis
The global edge infrastructure market is segmented based on component, deployment mode, organization size, end-user and region.
Hardware Segment Driving Edge Infrastructure Market
The primary hardware driver for global edge infrastructure lies in advanced edge-optimized SoCs (System-on-Chips) such as Intel’s Xeon D-1700 and D-2700 series. These processors deliver up to 2.4× generation-to-generation improvements in AI inference performance, thanks in part to integrated features like Deep Learning Boost, AVX-512, and hardware-accelerated security (Intel SGX and AES extensions). They’re tailored for rugged, space-constrained edge environments, powering critical applications from virtualized RAN to IoT and security appliances, with significantly enhanced throughput and energy efficiency.
Equally pivotal are high-performance data-center SSDs like Samsung’s 860 DCT, designed for sustained performance and optimized for content delivery and edge caching applications. Available in capacities up to 3.84 TB, these SSDs offer sequential read/write speeds of up to 550/520 MB/s, backed by a five-year warranty and drive-write endurance suited for 24/7 operations.
Geographical Penetration
North America Drives the Global Edge Infrastructure Market
According to the US Securities and Exchange Commission filings for the company OSS (a provider of rugged, high-performance edge platforms), in 2024 their military business alone comprised approximately 46% of segment sales, reflecting a surge in demand for edge computing applications in defense and industrial sectors. This underscores how critical ultra-low-latency, geographically distributed computing is becoming across mission-critical environments.
Separately, Veea (an edge-AI platform provider) reported that secure edge applications targeting small and medium-sized businesses (SMBs) in North America tap into a market with roughly 34.8 million SMBs in the United States and 1.2 million in Canada. This highlights a massive target base for edge deployments, especially for “plug and play” AI-driven networking and cybersecurity solutions tailored to smaller enterprises.
Sustainability Analysis
The Climate Neutral Data Centre Pact, backed by the European Commission, offers a tangible roadmap for the sustainability of edge infrastructure. Signatory operators must meet stringent targets: by 2025, new data centres in cooler climates must achieve a Power Usage Effectiveness (PUE) of 1.3 (and 1.4 in warmer climates), with existing facilities hitting the same by 2030. Furthermore, data centre electricity must be matched by 75% renewable or carbon-free energy by 2025, and achieve full (100%) renewable sourcing by 2030. The Pact also mandates that 100% of used server equipment be assessed for reuse, repair, or recycling and encourages reuse of waste heat through district heating systems where feasible.
Competitive Landscape
The major global players in the market include Cisco Systems, Inc., Hewlett Packard Enterprise (HPE), Dell Technologies Inc., Huawei Technologies Co., Ltd., Nokia Corporation, Amazon Web Services (AWS), Microsoft Corporation (Azure Edge), IBM Corporation, Schneider Electric SE, and Equinix, Inc.
Key Developments
In June 2025, iXAfrica Data Centres and EdgeNext announced a strategic partnership to accelerate digital infrastructure growth in East Africa. The collaboration integrates EdgeNext’s global edge platform, spanning CDN, bare metal, and edge compute, with iXAfrica’s hyperscale, AI-ready data centre capabilities. Centered at the Nairobi One (NBOX1) campus, the alliance enhances regional connectivity and cloud services. This move positions Kenya as a hub for next-gen edge and digital ecosystems in Africa.
In May 2025, at ITW 2025 in Maryland, USA, Henox Datacenter announced the launch of its first Edge data centre in Gujarat’s GIFT Smart City. The facility strengthens India’s digital backbone by supporting localized data storage and smart city ecosystems. It also enhances enterprise AI readiness and eco-conscious infrastructure growth. This milestone marks a key step in advancing India’s vision for its next digital decade.
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Target Audience 2024
Manufacturers/ Buyers
Industry Investors/Investment Bankers
Research Professionals
Emerging Companies
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