Edge Infrastructure Market Expands with Cloud & AI Integration at a CAGR of 15.9% During 2025-2032

Edge Infrastructure Market is fueled by rising 5G rollouts, IoT adoption, and demand for low-latency computing across industries worldwide.

NEW YORK, NY, UNITED STATES, August 26, 2025 /EINPresswire.com/ -- The global edge infrastructure market is experiencing rapid expansion, propelled by the growing adoption of AI workloads, widespread IoT connectivity, 5G network deployment, and an emphasis on sustainability and local data processing. As enterprises seek greater efficiency and compliance, edge infrastructure is becoming central to the digital transformation of industries ranging from manufacturing to healthcare and government. 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.

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Edge infrastructure refers to distributed computing systems such as micro data centers, edge servers, and networking hardware strategically placed close to data sources or end-users. This setup enables real-time processing, minimizing latency, and supports bandwidth-intensive applications (e.g., video analytics, IoT, autonomous vehicles). As over 60% of enterprises had adopted some form of edge computing by 2024 and global IoT connections climb past 29 billion by 2030, the need for scalable, low-latency edge resources is surging.

Latest Strategic Investments, Mergers, and Acquisitions (2024–2025)

• 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.

Market Players

Major global participants include:
• Cisco Systems, Inc.
• Hewlett Packard Enterprise (HPE)
• Dell Technologies
• Huawei Technologies
• Nokia Corporation
• Amazon Web Services (AWS)
• Microsoft Corporation (Azure Edge)
• IBM Corporation
• Schneider Electric SE
• Equinix, Inc.

Tese vendors are driving innovation in edge-optimized hardware, cloud-edge orchestration, and energy-efficient data center design.

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Market Dynamics

Drivers
• Demand for low-latency, real-time analytics and localized AI processes is surging, particularly in sectors like automotive, healthcare, smart cities, and manufacturing.
• Integration with renewable micro data centers, regulatory pressure for sustainable infrastructure, and enhanced security needs are accelerating edge deployments.
• Government support and investments in semiconductor and microelectronics manufacturing are anchoring hardware supply chains for edge infrastructure growth.

Restraints
• Interoperability fragmentation across hardware and software standards, particularly in multi-vendor environments, increases deployment complexity and cost.
• Legacy system incompatibility remains a hurdle, limiting ease of integration with new edge networks, especially in industrial and public sector applications.

Opportunities
• AI and 5G deployments at the edge open vast new operational and customer experience opportunities.
• Micro data centers powered by renewable energy offer compliance advantages and lower total energy footprints, especially in regulated markets.
• Targeting SMBs with plug-and-play edge solutions offers large-scale growth potential, particularly in North America where millions of SMEs require localized AI and cybersecurity.

Challenges
• Achieving seamless, standards-based interoperability between legacy and next-gen edge infrastructure is critical to widespread adoption.
• Managing the lifecycle sustainability of edge hardware, including circular supply chains and waste heat reuse, is increasingly necessary.

Market Segments: Largest and Fastest Growing

The market is segmented by:
• Component: Hardware (systems-on-chip, SSDs), platforms/software, services.
• Deployment: On-premises, cloud-based, and hybrid.
• End-user: IT & telecom, government, BFSI, manufacturing, automotive, healthcare, energy, retail, and media.

Hardware leads due to robust investment in edge-optimized processors and SSDs with AI acceleration. Energy-efficient, ruggedized designs and co-location with renewable sources are emphasizing growth across verticals.

Regional Analysis

North America dominates the edge infrastructure market, with significant investment in military, industrial, and SMB-targeted edge solutions. The US is leading in advanced edge applications such as secure AI at the edge and distributed defense systems.

Asia-Pacific is rapidly advancing, with green data center initiatives (notably in India) and substantial smart city investments propelling growth. Countries like India and China are major hubs for edge data center construction, leveraging state support and digital economy priorities.

Europe, driven by the Climate Neutral Data Centre Pact, is setting aggressive sustainability targets—mandating >75% renewable or carbon-free energy for new data centers by 2025 and 100% by 2030.

Unmet Needs and Conclusion

The market still faces gaps in standardized, vendor-neutral interoperability, integration with legacy systems, and end-to-end lifecycle sustainability. Solutions that can bridge fragmented protocols, streamline deployment, and maximize energy efficiency will have a strong competitive edge.

In conclusion, the global edge infrastructure market—set to grow from US$ 11.1 billion in 2024 to US$ 33 billion by 2032 at a CAGR of 15.9%—is central to the future of digital transformation. With North America at the forefront, followed by Asia-Pacific’s meteoric rise and Europe’s focus on climate neutrality, the next decade will see edge infrastructure as the backbone of intelligent, sustainable, and resilient global connectivity.

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Sai Kumar
DataM Intelligence 4market Research LLP
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