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Edge Data Center Market Competitive Landscape, Insights by Geography, and Growth Opportunity

With the increasing popularity of e-mails, online videos/movies, online shopping, social media, instant messaging, video calling, news, and software & application downloads, the amount of internet data being created, consumed, and transferred is skyrocketing every year. Since hosting all this data on the on-site servers of companies and individuals is not possible, data centers have started to emerge around the world, thus giving rise to the concept of cloud computing.

Edge data centers are generally constructed close to major townships, so that the issue of slow connectivity can be resolved. Therefore, with the rising usage of online services, the demand for edge data centers is burgeoning. For instance, the over-the-top (OTT) traffic, which refers to the data transfer between consumers and online video streaming services, such as Netflix, Amazon Prime Video, and Hulu, is expected to account for 83% of the global internet traffic by the end of this year, after already accounting for a record-breaking 77% in 2019!

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Edge data centers are generally constructed close to major townships, so that the issue of slow connectivity can be resolved. Therefore, with the rising usage of online services, the demand for edge data centers is burgeoning. For instance, the over-the-top (OTT) traffic, which refers to the data transfer between consumers and online video streaming services, such as Netflix, Amazon Prime Video, and Hulu, is expected to account for 83% of the global internet traffic by the end of this year, after already accounting for a record-breaking 77% in 2019!

Asia-Pacific (APAC) will witness the fastest edge data center market growth during the forecast period. Home to the most people on earth, APAC is witnessing a rapid rise in the number of smartphone and internet users, thus burgeoning data traffic. Moreover, the increasing usage of the internet of things (IoT) and construction of smart cities are putting pressure on the existing data center infrastructure, thereby mandating the setup of edge data centers close to the users.

Hence, the demand for edge data centers is rising with the increasing volume of data and need to reduce the latency.

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