According to a new report, published by KBV research, The Global 5G Edge Server Market size is expected to reach $76.4 billion by 2031, rising at a market growth of 41.7% CAGR during the forecast period.
The Hardware segment is leading the Global 5G Edge Server Market by Component in 2023; thereby, achieving a market value of $38.3 billion by 2031. This growth can be ascribed to the growing demand for advanced edge servers and computing infrastructure that are necessary to facilitate the deployment of 5G networks. The need for powerful hardware to process data locally and handle the computational requirements of various low-latency applications has driven investments in the hardware segment.
The Cloud-based segment exhibits a CAGR of 41.9% during (2024 - 2031). Cloud-based edge servers are gaining popularity due to their scalability, flexibility, and cost-efficiency. Through the use of cloud computing, businesses are able to adjust their capacity in accordance with the level of demand. This is achieved by deploying edge computing resources. This deployment type is particularly attractive for companies looking for a more agile approach to managing edge computing, leveraging cloud resources to reduce operational complexities and costs.
The Multi-access Edge Computing (MEC) segment is generating highest revenue in the Global 5G Edge Server Market by Technology in 2023; thereby, achieving a market value of $25.3 billion by 2031. MEC reduces the necessity for data to travel back to centrally located data centers by processing data at the network interface, thereby bringing cloud computing skills closer to the end user. This is particularly vital in 5G environments, where applications like autonomous vehicles, real-time gaming, and smart cities require immediate data processing to function efficiently.
The Industrial IoT segment is experiencing a CAGR of 41.3% during (2024 - 2031). The increasing adoption of Industry 4.0 initiatives, such as smart factories and automation, has driven the demand for 5G edge servers in industrial IoT applications. Processing data closer to the source in real-time is crucial for manufacturing processes, predictive maintenance, and remote monitoring. 5G edge servers provide the ultra-low latency and high reliability required for these applications, enabling efficient data analytics and improved operational performance, which has contributed to the leading revenue share of the industrial IoT segment.
The Telecommunications segment is capturing the maximum revenue in the Global 5G Edge Server Market by End-Use Industry in 2023; thereby, achieving a market value of $18.7 billion by 2031. The increased demand for higher network performance and lower latency, in addition to the expanding deployment of 5G infrastructure, is the primary reason for this dominance. Telecommunications companies are leveraging 5G edge servers to optimize network management, provide better connectivity, and support emerging use cases such as augmented reality (AR), virtual reality (VR), and ultra-reliable communication, driving significant revenue for this segment.
The Small & Medium Enterprises (SMEs) segment is registering a CAGR of 42.4% during (2024 - 2031). With the growing awareness of the benefits of edge computing, more SMEs are adopting 5G edge servers to enhance their operations and stay competitive. SMEs are leveraging 5G edge computing to enable applications like remote monitoring, data analytics, and automation, which were previously out of reach due to limited budgets and resources. The increasing availability of cost-effective and scalable edge solutions and managed services has made it easier for SMEs to implement edge computing technologies.
Full Report: https://www.kbvresearch.com/5g-edge-server-market/
The North America region dominated the Global 5G Edge Server Market by Region in 2023; thereby, achieving a market value of $27.9 billion by 2031. The Europe region is expected to witness a CAGR of 41.2% during (2024 - 2031). Additionally, The Asia Pacific region would experience CAGR of 42.4% during (2024 - 2031).
By Enterprise Size
By Component
By Deployment Type
By Technology
By Application
By End-Use Industry
By Geography
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